BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1098|
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                                   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  








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            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  







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               (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.








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          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  







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            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  







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            "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  







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            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  







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            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.



          








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          Prepared by:Scott Bain / HEALTH / (916) 651-4111
          6/1/16 18:41:33


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