BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 175
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          ASSEMBLY THIRD READING
          AB 175 (Galgiani)
          As Amended April 21, 2009
          Majority vote 

           HEALTH              19-0        BUSINESS & PROFESSIONS            
          10-0                 
          
           ----------------------------------------------------------------- 
          |Ayes:|Jones, Fletcher, Adams,   |Ayes:|Hayashi, Emmerson,        |
          |     |Ammiano, Block, Carter,   |     |Conway,                   |
          |     |Conway, De La Torre, De   |     |Eng,  Hernandez, Nava,    |
          |     |Leon, Emmerson, Gaines,   |     |Niello,                   |
          |     |Hall, Hayashi, Hernandez, |     |John A. Perez, Ruskin,    |
          |     |Bonnie Lowenthal, Nava,   |     |Smyth                     |
          |     |V. Manuel Perez, Salas,   |     |                          |
          |     |Audra Strickland          |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      16-0                                        
           
           -------------------------------- 
          |Ayes:|De Leon, Nielsen,         |
          |     |Ammiano, Charles          |
          |     |Calderon, Davis, Duvall,  |
          |     |Krekorian, Hall, Harkey,  |
          |     |Miller, John A. Perez,    |
          |     |Price, Skinner, Solorio,  |
          |     |Audra Strickland,         |
          |     |Torlakson                 |
          |-----+--------------------------|
          |     |                          |
           -------------------------------- 
           SUMMARY  :   For the purposes of Medi-Cal reimbursement, expands,  
          until January 1, 2013, the definition of "teleophthalmology and  
          teledermatology by store and forward" to include services of a  
          licensed optometrist.

          EXISTING LAW  :

          1)Defines, in the Medical Practice Act, telemedicine as the  
            practice of health care delivery, diagnosis, consultation,  
            treatment, transfer of medical data, and education using  
            interactive audio, video, or data communications. 








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          2)Prohibits health plans and insurers, including Medi-Cal, from  
            requiring face-to-face contact for services appropriately  
            provided through telemedicine.

          3)Defines, for the purposes of Medi-Cal, "teleophthalmology and  
            teledermatology by store and forward" as transmission of  
            medical information to be reviewed at a later time and at a  
            distant site by a physician who is trained in ophthalmology or  
            dermatology, where the physician at the distant site reviews  
            the medical information without the patient being present in  
            real time.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis, this bill could result in General Fund  
          savings of $1.3 million if 500 screenings prevent blindness. 

           COMMENTS  :  According to the author, although existing law allows  
          optometrists to provide telemedicine services, they are  
          restricted from providing these services to Medi-Cal recipients.  
           The author states studies have shown that programs for early  
          detection and treatment of diabetic retinopathy and improving  
          eye care for diabetic persons are highly cost-effective and may  
          prevent blindness.  Medi-Cal data indicate that the proportion  
          of diabetic fee-for-service Medi-Cal recipients who receive  
          annual dilated eye examinations is significantly lower (25%)  
          than the United States (U.S.) Department of Health and Human  
          Services' target of 75% for 2010.  The author argues this bill  
          will increase the number of providers able to perform  
          teleophthalmology services by store and forward, thereby  
          improving access for people who live in medically underserved  
          rural areas or who have geographic barriers to receiving these  
          services.  The author states the majority of the claims for  
          teleophthalmology by store and forward will be for the diagnosis  
          of diabetic retinopathy; therefore, this bill will potentially  
          decrease the risk of blindness in diabetic Medi-Cal recipients  
          through early detection and prevention in underserved areas.

          In traditional telemedicine, a physician at a distant site is  
          able to interview and examine the patient via closed circuit  
          television.  Store and forward telemedicine allows video  
          recording with viewing of the recording at a later time by a  
          health care provider at a distant location.  Store and forward  
          is especially applicable to the fields of dermatology and  








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          ophthalmology where visual examination is important in  
          diagnosis.

          According to the National Eye Institute (NEI), diabetic  
          retinopathy, which is damage to the blood vessels at the back of  
          the eye, is a leading cause of blindness in American adults.   
          The California HealthCare Foundation (CHCF), in a March 2009  
          report on its diabetic retinopathy program, states 24,000  
          diabetics become legally blind each year in the U.S., but  
          clinical trials demonstrate that early detection and treatment  
          can prevent 90% of vision loss.  NEI recommends that everyone  
          with diabetes - whether type I or type II - get an annual  
          comprehensive dilated eye exam.  According to CHCF, residents of  
          California's Central Valley face the challenges of high rates of  
          diabetes and poverty, low insurance rates, lack of regular  
          sources of care, health care provider shortages, and rural  
          settings that pose transportation obstacles.  CHCF funded a  
          pilot project to implement screening for diabetic retinopathy  
          using EyePACS, which is open-source telemedicine software that  
          the University of California, Berkeley School of Optometry  
          developed specifically for exchanging eye-related clinical  
          information.  Providers in the 13 primary care sites in the  
          pilot project screened over 12,000 patients, of whom 15%  
          required referrals for further eye care.  CHCF subsequently  
          expanded the project to help 43 more clinics throughout the  
          state to acquire digital retinal cameras, telemedicine software  
          and/or expert consultation.  CHCF's goal for this program is 100  
          clinics and 100,000 patients. 

          According to the Department of Health Care Services (DHCS),  
          sponsor of this bill, this bill would increase the number of  
          providers able to perform teleophthalmology services by store  
          and forward, thereby improving access in medically underserved  
          rural and other communities, and could potentially decrease the  
          risk of blindness in diabetic Medi-Cal recipients through early  
          detection and prevention.  DHCS argues that optometrists are the  
          first line of defense against debilitating eye disease and  
          outnumber physicians in their willingness to participate in the  
          Medi-Cal program.  The California Optometric Association writes  
          in support that this bill does not expand the scope of  
          optometric practice and will assure that more patients at risk  
          of becoming blind from diabetes or glaucoma will be diagnosed  
          and treated sooner.









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          Analysis Prepared by  :    Allegra Kim / HEALTH / (916) 319-2097 


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