BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 158
                                                                  Page  1

          Date of Hearing:   January 24, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                     AB 158 ( Ma) - As Amended:  January 16, 2008

          Policy Committee:                              Health Vote:15-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable: Yes

           SUMMARY  

          This bill expands Medi-Cal eligibility to Californians with  
          Chronic Hepatitis B Viral (CHBV) infections who are not  
          currently disabled, but who would qualify for benefits once  
          disabled. 

           FISCAL EFFECT  

          1)Increased annual costs of at least $1 million (50% GF) if 200  
            individuals with CHBV become eligible for Medi-Cal pursuant to  
            this bill. This estimate reflects CHBV infection rates, family  
            and size, and take-up rates when public program coverage is  
            offered to new beneficiaries. 

          2)Unknown offsetting savings to the extent newly eligible or  
            current enrollees elect Medi-Cal managed care, which is only  
            available in certain counties. This bill requires the  
            Department of Health Care Services (DHCS) to meet federal  
            revenue neutrality requirements through savings generated by  
            voluntary enrollment of CHBV beneficiaries into Medi-Cal  
            Managed Care from existing fee-for-service or when  
            beneficiaries newly enroll. 

          3)The Medi-Cal benefit created by this bill, as well as the  
            revenue neutrality provision is modeled on AB 2197 (Koretz),  
            Chapter 687, Statutes of 2002. AB 2197 requires Medi-Cal  
            eligibility to be extended to HIV-positive individuals who are  
            not disabled by the infection, but who would qualify for  
            benefits once disabled. AB 2197 has not been funded or  
            implemented and is now the subject of litigation brought by  
            the AIDS Healthcare Foundation, one of the country's largest  








                                                                  AB 158
                                                                  Page  2

            providers of HIV/AIDS medical care. 

           COMMENTS  


           1)Rationale  . This bill increases health care provided to  
            low-income Californians infected with CHBV. HBV is a highly  
            contagious disease and creates a significant health threat if  
            chronic. HBV may be vaccinated against and reflects a much  
            higher rate of infection among Asian Americans. Although  
            anyone can be infected with HBV, people of Asian descent are  
            more likely to be infected because of higher rates of  
            infection in Asian counties and corresponding transmission  
            pregnant women to their children.  Under current law, those  
            infected with CHBV must be disabled to qualify for Medi-Cal.  
            Without Medi-Cal, those with non-disabling CHBV may be unable  
            to access health services to reduce long-term health  
            consequences such as illness and death.   


           2)Hepatitis B  . A person may be infected with HBV for several  
            weeks before symptoms show. More than 90% of adults infected  
            with HBV experience no ill effects and clear the infection  
            within six months. Others, who continue to carry the virus,  
            are chronically infected. Approximately 1.25 million people  
            nationally have chronic Hepatitis B, which causes inflammation  
            of the liver and sometimes liver failure. Based on  
            California's population, at least 125,000 people have HBV.  
            Acute symptoms include liver inflammation, vomiting, jaundice,  
            and sometimes death. Hepatitis B is responsible for 80%of  
            liver cancers in Asian and Pacific Islander groups.  The Asian  
            Liver Center at Stanford University estimates that up to 10%of  
            Asian Americans have Hepatitis B and do not know it. Despite  
            the availability of a Hepatitis B vaccine, immunization rates  
            are low.   



           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081