BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1174 (McGuire) - Medi-Cal:  children:  prescribing patterns:   
          psychotropic medications
          
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          |Version: March 28, 2016         |Policy Vote: B., P. & E.D. 8 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 25, 2016    |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 1174 would require the Department of Health Care  
          Services to provide quarterly data to the Medical Board related  
          to the prescribing of psychotropic medications through the  
          Medi-Cal program to foster youth. The bill would require the  
          Medical Board to review the data to determine if there is  
          excessing prescribing. The bill would require the Medical Board  
          to prioritize cases of excessive prescribing of psychotropic  
          medications to minors for investigation.


          Fiscal  
          Impact:  
           Ongoing costs up to $280,000 per year for the Department of  
            Health Care Services to analyze prescription drug claims data  
            and compile required information for the Medical Board  
            (General Fund and federal funds).  The Department's  
            information technology systems contain prescription drug  
            claims data (when combined with information from the  







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            Department of Social Services on foster care placements) to  
            provide the data required to fulfill the requirements in the  
            bill. The Department indicates that it will need two  
            additional staff positions to compile the required data,  
            stratify it into the required data categories, and report to  
            the Medical Board. 

            However, as part of recent efforts to reduce overprescribing  
            of psychotropic medications to foster youth, the Department  
            has been working with the Department of Social Services and  
            counties to identify foster youth being prescribed such  
            medications. The Governor's budget proposal includes an  
            additional permanent position to continue this work. If  
            approved by the Legislature, that new position may be able to  
            also perform some or all of the requirements of this bill as  
            well.

           Uncertain costs for the Medical Board of California to review  
            the information provided by the Department of Health Care  
            Services and investigate instances where excessive prescribing  
            may be occurring (Contingent Fund of the Medical Board of  
            California). According to the Medical Board, its staff are  
            already reviewing data provided by the Department to look for  
            cases of excessing prescribing. However, to the extent that  
            such data analysis does uncover instances of excessing  
            prescribing, this would lead to increased costs for  
            investigations and potential disciplinary action by the  
            Medical Board. While those instances of excessing prescribing  
            may already be actionable by the Medical Board under current  
            law and regulation, the data analysis required in the bill  
            makes such investigations more likely to occur.
           Unknown potential cost savings in the Medi-Cal program due to  
            reduced inappropriate utilization of psychotropic medications  
            by foster youth. To the extent that this bill contributes to  
            ongoing efforts to reduce inappropriate use of those drugs by  
            Medi-Cal beneficiaries, the bill is likely to reduce spending.  
            Ongoing efforts in other states to reduce inappropriate  
            prescribing have substantially reduced the use of these  
            frequently expensive medications. The amount of any decrease  
            in spending that could be attributed to this bill is  
            uncertain, in part because there are several efforts underway  
            by the state and the counties to reduce inappropriate  
            prescribing of psychotropic drugs to foster youth. 









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          Background:  Under current law, only a juvenile court judicial officer may  
          order the administration of psychotropic medications for a minor  
          who is a dependent of the court (i.e. a foster youth). Foster  
          youth are categorically eligible for Medi-Cal benefits and hence  
          Medi-Cal provides coverage for those psychotropic medications. 
          Psychotropic medications are intended to treat a variety of  
          mental health conditions. While many patients benefit from the  
          use of psychotropic medications, there are often serious side  
          effects, particularly when taken in combination. In general, the  
          use of psychotropic medications on children and adolescents is  
          "off label" meaning that those drugs have not been specifically  
          approved for use in children or adolescents. According to the  
          Department of Social Services, about 11% of foster youth under  
          age 17 are authorized to receive psychotropic medications.  
          Concerns have been raised by advocates for foster youth that  
          many foster youth are being prescribed these medications to  
          sedate them, rather than to appropriately address their mental  
          health and behavioral health needs.


          In response to concerns about the high rate of psychotropic  
          drugs administered to foster youth, the Department of Health  
          Care Services expanded its existing policy requiring treatment  
          authorization requests for psychotropic drugs for Medi-Cal  
          beneficiaries. Previously, the Department required a prior  
          treatment authorization request before Medi-Cal would authorize  
          psychotropic drugs for Medi-Cal beneficiaries under age six. In  
          October 2014, the Department expanded this requirement for  
          children and adolescents up to age 17. The treatment  
          authorization request process allows for emergency prescriptions  
          while the request is under review. In addition, in April 2015  
          the Department of Health Care Services and the Department of  
          Social Services released guidelines for the use of psychotropic  
          medications in foster youth.




          Proposed Law:  
            SB 1174 would require the Department of Health Care Services  
          to provide quarterly data to the Medical Board related to  
          prescribing of psychotropic medications through the Medi-Cal  
          program to foster youth. 








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          The bill would require the Medical Board to review the data to  
          determine if there is excessing prescribing.  If instances of  
          excessing prescribing are found, the bill would require the  
          Medical Board to take disciplinary action against the  
          prescribing physician. The Medical Board would be required to  
          report quarterly to the Legislature on the results of its  
          analysis. 


          The bill would require the Medical Board to prioritize cases of  
          excessive prescribing of psychotropic medications to minors for  
          investigation.




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