BILL ANALYSIS                                                                                                                                                                                                    



                                                                 AB 175
                                                                 Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 175 (Galgiani) - As Amendeed:  April 21, 2009 

          Policy Committee:                              Health Vote:    
          19-0
                        Business & Professions               10-0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


           SUMMARY


           This bill increases the use of Medi-Cal telemedicine services  
          for the diagnosis and treatment of diabetic retinopathy, which  
          leads to blindness. Specifically, this bill adds optometrists to  
          the providers authorized to use teleopthalmology (digital  
          retinal screening) and teledermatology (telemedicine for skin  
          care) store and forward technology which allows providers to  
          review medical information at a later time and away from the  
          patient. 


           FISCAL EFFECT  


          1)Major savings of $2,500 (GF) per digital retinal screening to  
            Medi-Cal and other publicly funded health and human services  
            programs. $1.3 million (GF) will accrue if 500 screenings  
            prevent blindness. According to data, there are approximately  
            110,000 Medi-Cal patients who may benefit from increased  
            screening pursuant to this bill. Savings will be greater to  
            the extent more screening for diabetic retinopathy reduces  
            visual impairments, blindness, and associated dependence on  
            public benefits. 


          2)This estimate is based on preliminary research which relies on  
            a combination of caseload, clinical, cost, and modeling  
            information to identify significant per screening savings due  








                                                                 AB 175
                                                                 Page  2

            to reduced Medi-Cal, Social Security Program (SSP), In-Home  
            Supportive Services (IHSS), and California Food Assistance  
            Program (CFAP) benefits. According to the modeling  
            information, reductions in visual impairments lead to  
            significant public savings by reducing disability and  
            dependence. 


           COMMENTS  

           Rationale  .  This bill is sponsored by the California Department  
          of Health Care Services (DHCS) to increase the use of  
          telemedicine in the screening of patients at risk of diabetic  
          blindness. Diabetic retinopathy is the leading cause of  
          blindness nationally, with 24,000 diabetics losing their sight  
          each year. This bill addresses store and forward technology, for  
          which Medi-Cal reimburses for a provider viewing of patient  
          digital retinal screening images at a later time. The visual  
          data provided in this manner can be particularly important in  
          optical and skin treatments in which the patient and provider  
          are unable to meet in person. 


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