BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1098| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1098 Author: Cannella (R) Amended: 6/1/16 Vote: 21 SENATE HEALTH COMMITTEE: 9-0, 4/20/16 AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen, Pan, Roth, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen SUBJECT: Medi-Cal: dental services: advisory group SOURCE: Author DIGEST: This bill establishes in the Department of Health Care Services (DHCS) the 13-member Denti-Cal Advisory Group (Advisory Group), and specifies the duties of the Advisory Group to include studying the policies and priorities of Denti-Cal with the goal of raising the Denti-Cal utilization rate among eligible child beneficiaries to 60% or greater and providing assistance and advice to DHCS, the Legislature, and the Governor regarding proposed decisions relating to the Denti-Cal program to ensure that those decisions are based on the best available evidence. ANALYSIS: Existing law: 1)Establishes the Medi-Cal program, which is administered by the SB 1098 Page 2 DHCS, under which qualified low-income individuals receive health care services, including certain dental services, as specified. 2)Requires the Department of Public Health (DPH) to maintain a dental program including, but not limited to, the following: a) Development of comprehensive dental health plans within the framework of the State Plan for Health to maximize utilization of all resources; b) Provide the consultation necessary to coordinate federal, state, county, and city agency programs concerned with dental health; c) Encourage, support, and augment the efforts of city and county health departments in the implementation of a dental health component in their program plans; d) Provide evaluation of these programs in terms of preventive services; and, e) Provide consultation and program information to the health professions, health professional educational institutions, and volunteer agencies. 3)Requires the director of DPH to appoint a California-licensed dentist to administer the dental program in 2) above. This bill: 1)Establishes in DHCS the 13 member Advisory Group, specifies the duties of the advisory group to include all of the following: a) Studying the policies and priorities of Denti-Cal, the state Medi-Cal dental services program, with the goal of raising the Denti-Cal utilization rate among eligible child beneficiaries to 60% or greater; and, b) Providing assistance and advice to DHCS, the Legislature, and the Governor regarding proposed decisions relating to the Denti-Cal program to ensure that those decisions are based on the best available evidence. 2)Requires the Advisory Group to consist of ten members appointed by the Governor, including the following: a) A representative from the California Dental Association SB 1098 Page 3 (CDA); b) A representative from the California Dental Hygienists' Association (CDHA); c) A licensed social worker; d) A representative of a health care foundation; e) A licensed pediatrician who is qualified to assess impacts on the overall health of children; f) An expert on practices in the dental insurance or health insurance markets; g) Two university professors who are experts in dental practice or the dental services field; h) A representative of a Denti-Cal health plan organization; and, i) A consumer advocate with experience in children's oral health. 3)Requires two members to be appointed by the Senate Committee on Rules, to include the following: a) A licensed dentist; and, b) A licensed dental hygienist. 4)Requires two members appointed by the Assembly Speaker, to include the following: a) A licensed dentist; and, b) A licensed dental hygienist. 5)Requires Advisory Group members, before entering upon the discharge of his or her official duties, to take and file an oath required under existing law and the state Constitution. 6)Requires a member of the commission to serve for a term of three years, prohibits a limit on the number of terms a member may serve, and permits the terms of members to be staggered so that the terms of all members will not expire at the same time. 7)Prohibits a member of the Advisory Group from being compensated for his or her services, except requires a member to be paid reasonable per diem and reimbursement of reasonable expenses for attending meetings and discharging other official responsibilities as authorized by DHCS. SB 1098 Page 4 8)Makes legislative findings and declarations regarding the Denti-Cal program, the State Auditor audit in 2014 finding that only 43.9 % of children enrolled in the Denti-Cal program had seen a dentist in the previous year and that eleven California counties had no Denti-Cal providers or no providers willing to accept new child patients covered by Denti-Cal, the need for an improved relationship between DHCS and dental care providers, and the purpose of the evidence-based advisory group is to guide Denti-Cal priorities, to oversee policy decisions, and to increase annual Denti-Cal utilization rates among children in the state to 60% or greater. Comments 1)Author's statement. According to the author, in a state audit of DHCS' Denti-Cal Program released in 2014, the auditor concluded that "DHCS' information shortcomings and ineffective actions are putting children enrolled in Medi-Cal at higher risk of dental disease." It is unacceptable that a program established to provide the most vulnerable population of children with oral health services is placing those children at risk of dental disease. In a report entitled "Fixing Denti-Cal," released in April 2016, the Little Hoover Commission recommends that the Legislature create an evidence-based advisory group to study and oversee Denti-Cal policies and priorities to increase oversight and make sure that Denti-Cal priorities and proposed policies are based on best available evidence, to the benefit of its most vulnerable beneficiaries. This bill creates such an advisory group with the specific purpose of studying and overseeing Denti-Cal policies and priorities to raise annual Denti-Cal utilization rates among children to the 60% range, and providing assistance and advice to DHCS, the Legislature, and the Governor on proposed decisions. 2)Medi-Cal has two different models for delivering dental services. The Medi-Cal Program is administered by DHCS and covers dental services for children under age 21 and a more limited benefit for adults. Adult dental coverage was eliminated in 2009 in AB 5 (Committee on Budget, Chapter 20, Statutes of 2009), which also eliminated other optional benefits for adults that had been covered under Medi-Cal. A more limited adult dental benefit was restored in AB 82 (Budget Committee, Chapter 23, Statutes of 2013), the 2013-14 SB 1098 Page 5 budget health trailer bill. Medi-Cal uses two different models for delivering dental services to children: fee-for-service (FFS) and Dental Managed Care in two counties. 3)Denti-Cal utilization. Denti-Cal utilization is low with different estimates for different time frames. According to the Little Hoover Commission report, only 26% of eligible California adults with fee-for-service Denti-Cal coverage saw a dentist in 2014, according to February 2016 DHCS data. DHCS stated that 51.8% of children 20 and under with Denti-Cal fee-for-service coverage had a dental visit from October 2014 through September 2015. In December 2015, the Centers for Medicare and Medicaid Services (CMS), in approving the California Medi-Cal 2020 waiver, cited a figure of 37.8% of children 20 and under making a dental visit during the calendar year 2014. In December 2014, the California State Auditor cited CMS data to report that only 44% of California's 5.1 million Denti-Cal-eligible children aged 20 and under saw a dentist from October 2012 through September 2013. DHCS currently has a small workgroup effort regarding implementation of the Dental Transformation Initiative under the Medi-Cal 2020 Waiver. The purpose of this workgroup is to collaborate with DHCS on the planning and implementation efforts that are needed to ensure the success of the dental component of the waiver. 4)Denti-Cal rates. On July 1, 2016, DHCS released its statutorily required "Medi-Cal Dental Services Rate Review" in which it compared the reimbursement rates of Denti-Cal FFS' 25 most utilized procedures to the same 25 procedure codes from other states' Medicaid dental fee schedules. These 25 procedures made up approximately 85% of billed procedures in FY 2012-13 and FY 2013-14. California's Denti-Cal FFS pays an average of 86.1% of Florida's Medicaid Program's dental fee schedule, 65.5% of Texas', 75.4% of New York's, and 129.2% of Illinois' Medicaid Program's dental fee index. The report found that Denti-Cal pays on average 27.6% to 28.3% of commercial rates in the Pacific Area. These rates did not include the repeal of the 10% Denti-Cal rate reduction required by the 2015 health budget trailer bill. 5)Little Hoover Commission report on Denti-Cal. In April 2016, the Little Hoover Commission released a report entitled SB 1098 Page 6 "Fixing Denti-Cal" that stated that DHCS essentially runs a program that is unable to attract enough dentists, unable to provide most beneficiaries access to care and seemingly, unable to change its ways. The report contains eleven recommendations. Relevant to this bill are the following two recommendations: a) The Legislature should set a target of 66% of children with Denti-Cal coverage making annual dental visits. Additionally, the Legislature should conduct oversight hearings to assess progress or lack of movement on all initiatives designed to reach this target, and particularly on implementation of the five-year $740 million Denti-Cal targeted incentive plan to increase children's preventative dental visits, and ensure the state dental director has adequate authority to see that the Denti-Cal targeted incentive program aligns with the 2016 oral health plan; and, b) The Legislature and the Governor should enact and sign legislation in 2016 to create an evidence-based advisory group for the Denti-Cal program. DHCS has much work to do retool its Denti-Cal program to win over more providers and provide greater access to dental care statewide. Denti-Cal should be guided by an evidence-based advisory group, which consists of the state dental director and expert specialists who can weigh in on proposed decisions and make sure they are based on the best evidence and science and not merely on cost. This would be especially helpful to minimize the continual strife, confusion and even alleged harm to beneficiaries, including special needs populations that the Commission heard about repeatedly in public comment during its two hearings. 6)Support if amended. Maternal and Child Health Access (MCHA) requests amendments to expand the focus of the Denti-Cal Advisory Committee on improving utilization rates to all Denti-Cal beneficiaries, including pregnant women, and to include an obstetrician/ gynecologist or other prenatal care provider and maternal and child health advocates on the Advisory Committee. MCHA writes that dental health problems for pregnant women are linked to poor birth outcomes, and on top of all the other access barriers, pregnant women also face SB 1098 Page 7 prenatal care providers who often do not make the connection to dental, or dentists who do not know it is safe to provide dental care during pregnancy. MCHA states CDA and the American College of Obstetricians and Gynecologists recently came out with joint practice guidelines during pregnancy, and it would be important to have this crossover issue represented on the Dental Advisory Committee. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: 1)Ongoing costs, likely between $50,000 and $150,000 per year to provide staff support to the Advisory Group (General Fund and federal funds). It is likely that the Advisory Group will need staff support from DHCS to assist it with gathering information, interpreting data and program requirements, and formulating recommendations. 2)Unknown additional costs to provide Denti-Cal benefits to children, to the extent that the Advisory Group is successful in improving the utilization of Denti-Cal services (General Fund and federal funds). Currently, the state spends about $1.2 billion per year on Denti-Cal for adults and children. Estimates of the utilization rate for children vary, but are all well below the goal set in the bill of 60% annual utilization. On its own, the Advisory Group would not have the authority to raise reimbursement rates or streamline program requirements. However, to the extent that the Advisory Group is able to work with DHCS to take actions that improve access to services, there will be increased utilization costs. For every 5% increase in annual utilization by children, the cost would be about $35 million per year. 3)Unknown potential cost-savings due to increased use of preventative dental services (General Fund and federal funds). Regular dental care for children is likely to prevent dental conditions, such as cavities, from becoming more serious SB 1098 Page 8 health problems that require more costly interventions later. To the extent that the bill results in increased utilization of preventative dental services by children in Medi-Cal, there are likely to be reduced costs for more serious dental services. Whether those avoided costs are greater than the cost of providing greater access to preventative services is unknown. SUPPORT: (Verified5/26/16) California Dental Hygienists' Association Little Hoover Commission OPPOSITION: (Verified5/26/16) None received ARGUMENTS IN SUPPORT: The California Dental Hygienists' Association (CDHA) writes in support that examinations by both the State Auditor and the Little Hoover Commission have brought to light concerns that both patients and providers have expressed for years. Specifically, providers do not participate in the Denti-Cal program due to the excessive administrative burdens, low reimbursement rates, DHCS' poor communication with providers and DHCS' lack of understanding of how their Denti-Cal policy decisions will impact both providers and patients in the field. CDHA writes that this bill, if passed and implemented correctly, should address those fundamental issues faced by the Denti-Cal program and will go a long way to restoring DHCS' relationship with providers and to create sound policies for this vital program. SB 1098 Page 9 Prepared by:Scott Bain / HEALTH / (916) 651-4111 6/1/16 18:41:33 **** END ****