BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                         Senator Joseph L. Dunn, Chair
                           2005-2006 Regular Session


          AB 794                                                 A
          Assembly Member Chu                                    B
          As Amended June 9, 2005
          Hearing Date: June 14, 2005                            7
          Insurance Code; Welfare & Institutions Code            9
          GMO:cjt                                                4
                                                                 

                                     SUBJECT
                                         
              Health Care Funding:  Access for Infants and Mothers  
                                 Program (AIM)


                                   DESCRIPTION  

          This bill would authorize the Department of Health Services  
          to accept or use funds allocated to the state under the  
          federal State Children's Health Insurance Program (SCHIP)  
          to fund the medically necessary pregnancy-related services  
          provided to immigrants under the Medi-Cal program, and to  
          accept and use these  funds for women in the Access for  
          Infants and Mothers Program (AIM) only when, during the  
          period of coverage, the woman is the beneficiary.

          The bill would affirm the State Supreme Court's holding in  
          People v. Belous and state that the bill is declaratory of  
          existing law.

                                    BACKGROUND  

          Congress created the SCHIP federal health coverage program  
          in 1997 to provide health care services for low-income  
          children.  [42 CFR 457.10.]  Under 42 U.S.C.  1397jj(b)(1)  
          and (c)(1), the SCHIP service population is "targeted  
          low-income children," defined as minors who are  
          "individual(s) under 19 years of age."  However, a recent  
          amendment to the SCHIP regulations regarding the target  
          population redefines "child" to read:  "'Child' means an  
          individual under the age of 19 including the period from  

                                                                 
(more)



          AB 794 (Chu)
          PageB


          conception to birth."

          In light of this expanded definition of "child" in the  
          SCHIP regulations, the state's acceptance of federal SCHIP  
          funds may result in potential legal implications relating  
          to reproductive rights, religious liberty, and potential  
          medical liability.

          In order to ensure that women have access to comprehensive  
          pregnancy-related services through the AIM and Medi-Cal  
          Prenatal Care Program, the California Health and Human  
          Services Agency cosponsors this bill, together with several  
          women's health groups.  

                            CHANGES TO EXISTING LAW
           
          1.    Existing California case law  has consistently  
            recognized, in a variety of contexts, such as  
            prosecutions for homicide and for "prenatal child abuse,"  
            that the fetus is not a human being until birth.  [People  
            v. Belous (1969) 71 Cal. 2d 954, 968.]  Belous stands for  
            the principle that women have a fundamental right to make  
            childbearing decisions, including abortion.
            
             Existing federal case law  , Roe v. Wade (1973) 410 US.  
            113, held that the word "person" as used in the  
            Fourteenth Amendment does not include the unborn.  Since  
            Roe v. Wade, the Supreme Court has reaffirmed in many  
            cases a woman's right of reproductive choice, which is  
            based upon the principle that the fetus is not a person  
            with rights separate from and equivalent to those of the  
            pregnant woman.
            
             This bill  would state that California protects a woman's  
            right to reproductive privacy through its Constitution,  
            the courts, and statutes and that California reaffirms  
            these protections specifically as stated in People v.  
            Belous, supra.

          2.    Existing federal law  requires the state to adopt a  
            plan for the provision of health services to low-income  
            children and pre-natal services to low-income women, for  
            the purpose of receiving and using funds allocated to the  
            state under the SCHIP program.  Recent amendments to the  
            federal regulations define "child" for purposes of the  

                                                                       




          AB 794 (Chu)
          PageC


            SCHIP funds to mean an "individual under the age of 19  
            years including the period from conception to birth."

             This bill  would authorize the Department of Heath  
            Services and the Managed Risk Medical Insurance Board to  
            accept and use moneys under the SCHIP, as interpreted  
            under the federal regulations, only when, during the  
            period of coverage, the woman is the beneficiary.   The  
            bill  would require the state's SCHIP plan and any  
            amendments submitted to be consistent with this  
            limitation. 

             The bill  would provide that the scope of services  
            provided to low-income children and low-income pregnant  
            women would not be altered by the bill or the state plan  
            or any amendments made to the state SCHIP plan.

                                         



                                    COMMENT
           
          1.    Need for the bill  

            The recent change in the federal regulation governing the  
            allocation of SCHIP moneys has become a concern to  
            reproductive rights advocates, who see the redefinition  
            of "child" to include, in the 19 year age limit, the  
            period from conception to birth, as an effort to promote  
            the concept that fetuses are persons.  In light of this  
            state's history relating to a woman's right of  
            reproductive choice, as established by both People v.  
            Belous and Roe v. Wade, the author and the proponents  
            believe it is important to ensure that no matter what  
            limitation the federal government places on the federal  
            funds that are to be allocated to the state, or expansion  
            into pre-natal care all the way back to conception, such  
            limitation or expansion does not erode a woman's right of  
            reproductive choice.

          2.    Legal liability issues presented by change in federal  
          regulations  

            Proponents are also concerned about the impact of the new  

                                                                       




          AB 794 (Chu)
          PageD


            regulation on the state's legal liability when, for  
            example, necessary medical services are provided to a  
            pregnant woman but the medical protocol presents an  
            appreciable risk to the fetus.  

            To illustrate, they cite Medical Complications of  
            Psychiatric Illness<1>: the "decision to use psychotropic  
            drugs should be reached by carefully weighing the risk of  
            prenatal exposure against the risks to the fetus and  
            mother posed by a relapse of the mother's psychiatric  
            illness if drugs are withheld."  In analyzing the impact  
            of the SCHIP program covering the fetus under the new  
            regulation, the authors of that publication advise:  
            "since the fetus is the client, it appears that the  
            responsibility of the physician is strictly to the needs  
            of the fetus."  The doctor, according to the publication,  
            would need answers to questions such as whether the  
            doctor should consult someone other than the pregnant  
            woman (since she would have a "conflict of interest" with  
            her fetus); who that person would be (the absent  
            father?); whether a legal guardian ought to be appointed  
            for the fetus; if it matters if the services are being  
            provided by a managed care organization that provides  
            SCHIP services extensively, or by a totally publicly  
            funded exclusive provider of services under the new SCHIP  
            regulations.

            In order to avoid such legal liability questions, this  
            bill would simply allow the state to access and use these  
            SCHIP funds only when, during the period of coverage, the  
            woman is the beneficiary.

          3.    Is the language sufficient to pass federal muster?  

            The amendments to AB 794 were drafted in consultation  
            with the Department of Health Services and groups  
            concerned about the impact of the new regulation on a  
            woman's right of reproductive privacy in California.   
            Thus, it reflects a delicate balance that would allow the  
            state to continue to receive federal funds under the  
            SCHIP program while avoiding any potential erosion of a  
            woman's reproductive rights in California.  The language  
            ------------------------
          <1> Claire Pomery, MD, James E. Mitchell, MD, James Roerig,  
          Pharm.D., BCPP, and Scott (American Psychiatric Publishing,  
          Inc. 2002).

                                                                       




          AB 794 (Chu)
          PageE


            is not mandatory; the state may accept and use the  
            potentially restricted funds only when the woman is the  
            beneficiary.  However, no reduction in pregnancy-related  
            services to low-income pregnant women is expected,  
            because the two programs that provide such services, the  
            Access for Infants and Mothers and Medi-Cal's pre-natal  
            care programs, are borne solely by state funds [General  
            Fund and Proposition 99 (tobacco funds)].

            According to the Health and Human Services Agency, AB 794  
            provides the framework for California to access $288  
            million in  new  federal funds to support critical health  
            services.  "This legislation clarifies that California  
            will accept and utilize the Federal funds for  
            comprehensive pregnancy-related services for women in a  
            manner that is consistent with its Constitution, case law  
            and statutes that protect a woman's right to reproductive  
            privacy."  (Letter from Health and Human Services Agency,  
            dated June 9, 2005.)

          4.    Provision relating to woman's right to reproductive  
            choice is declaratory of existing law  

            To further guard a woman's right to reproductive choice  
            in California, the bill contains a provision affirming  
            the state's protection of that right through its  
            Constitution, its statutes, and case law.  The provision  
            specifically affirms the California Supreme Court's  
            decision in People v. Belous (1969) 71 Cal. 2d 954, 958,  
            which preceded Roe v. Wade, supra.  In Belous the Supreme  
            Court recognized that women have a fundamental right to  
            make childbearing decisions, including abortion,  
            rejecting the state's argument that California's criminal  
            abortion law was justified by a compelling state interest  
            in protecting the embryo or fetus, as demonstrated by  
            laws "which assertedly show that the embryo or fetus is  
            equivalent to an unborn child."  The Court stated that  
            "all of the statutes and rules relied upon require a live  
            birth or reflect the interest of the parents."  This  
            conclusion was central to the Court's protection of  
            women's reproductive choice.  "By citing the Belous  
            decision in the legislation," proponents state,  
            "California reaffirms its legal tradition of protecting  
            women's reproductive freedom, while assuring it can  
            receive these funds without jeopardizing this freedom."

                                                                       




          AB 794 (Chu)
          PageF




          Support:  California Family Health Council (CFHC); Planned  
                 Parenthood Affiliates of California Inc.; Maternal  
                 and Child Health Access; American Civil Liberties  
                 Union; American Association of University Women,  
                 California; Maternal, Child, and Adolescent Health  
                 (M.C.A.H.) Action 

          Opposition:  None Known

                                     HISTORY
           
          Source: California Health and Human Services Agency; author

          Related Pending Legislation:  None Known

          Prior Legislation:  None Known 

          


                                 **************