BILL ANALYSIS Ó SB 1098 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1098 (Cannella) - As Amended June 30, 2016 ----------------------------------------------------------------- |Policy |Health |Vote:|18 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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. SB 1098 Page 2 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 A 2016 LHC report noted the program's dysfunction, inability to meet demand for services, underfunding, and outdated bureaucratic processes that have alienated dental SB 1098 Page 3 professionals.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 SB 1098 Page 4