BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1098  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1098  
          (Cannella) - As Amended June 30, 2016


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          |Policy       |Health                         |Vote:|18 - 0       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill, until January 1, 2022, establishes the Denti-Cal  
          Advisory Group (advisory group) to study the policies and  
          priorities of the Denti-Cal program, and to assist and advise  
          the Legislature and the administration on the Denti-Cal program.  
            


          It also includes, among the duties of the advisory group, a  
          requirement that the group study the policies and priorities of  
          Denti-Cal, with the goal of raising the Denti-Cal utilization  
          rate among eligible children to 60% or higher.  









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          FISCAL EFFECT:


          1)Costs in the range of $200,000 (GF/federal) ongoing annually  
            to Department of Health Care Services (DHCS), including costs  
            to staff the advisory group, contract costs to provide  
            consultant and meeting facilitative services, and other  
            miscellaneous and travel costs. 



          2)To the extent this bill results in additional utilization of  
            dental services based on the specific utilization goal of 60%,  
            unknown, potentially significant costs to the Denti-Cal  
            program, as well as potential cost avoidance through  
            prevention of more severe dental problems by improving access  
            to dental preventive care (GF/federal).  The net effect is  
            unknown.  



          COMMENTS:


          1)Purpose. This bill implements a recommendation made by the  
            Little Hoover Commission (LHC) to improve care in the  
            Denti-Cal program. 


          2)Background. Problems such as low provider participation and  
            low utilization among eligible children have consistently  
            plagued the Denti-Cal program, the dental services component  
            of the Medi-Cal program.  Recent reports have highlighted the  
            program's underperformance.  Specifically, a 2014 State  
            Auditor's Report noted low utilization and poor program  
            monitoring. A 2016 LHC report noted the program's dysfunction,  
            inability to meet demand for services, underfunding, and  
            outdated bureaucratic processes that have alienated dental  








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            professionals. The LHC report called for a more coordinated,  
            comprehensive system of preventative care.   The most  
            significant DHCS response to the criticism of Denti-Cal was  
            the prioritization of Denti-Cal improvements through a  
            recently approved federal waiver.  The waiver includes $740  
            million in funding over five years for the "Dental  
            Transformation Initiative," which seeks to increase the use of  
            preventive dental services for children, prevent and treat  
            more early childhood caries, and increase continuity of care  
            for children. On a related note, the California Department of  
            Public Health is undertaking a broader dental health  
            initiative by creating a State Oral Health Plan under the  
            auspices of a newly appointed State Dental Director.  


          3)Support. The Little Hoover Commission, the California Dental  
            Hygienists Association, and the California Pan-Ethnic Health  
            Network support this bill, citing the need for evidence-based  
            recommendations to improve the program.   


          4)Opposition. DHCS opposes this bill, noting improvements to  
            Denti-Cal are underway and the intended goals of this  
            legislation are being addressed through other venues that  
            allow for public and expert input.  


          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081


















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