BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 217
                                                                  Page  1

          Date of Hearing:   April 21, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                     AB 217 (Beall) - As Amended:  April 16, 2009
           
           SUBJECT:   Medi-Cal: alcohol and drug screening and brief  
          intervention (SBI) services.

           SUMMARY  :   Establishes the Medi-Cal Alcohol and Drug Screening  
          and Brief
          Intervention Services Program (Program) for Medi-Cal  
          beneficiaries who are pregnant or women of childbearing age,  
          with county or local government entities paying the nonfederal  
          share of expenditures through certified public expenditures  
          (CPEs).  Specifically,  this bill  :

          1)Requires the Department of Health Care Services (DHCS), in  
            consultation with the Department of Alcohol and Drug Programs  
            (DADP), to administer the Program for the purpose of  
            increasing the state's ability to make available alcohol and  
            drug SBI services for Medi-Cal beneficiaries who are pregnant  
            or women of childbearing age.

          2)Requires DHCS to administer this bill in accordance with the  
            CPE requirements described in federal regulations, or any  
            successor thereto, in certifying that the claimed expenditures  
            for alcohol and drug SBI services for Medi-Cal beneficiaries  
            are eligible for federal financial participation (FFP). 

          3)Requires DHCS to do all of the following in accordance with  
            administering this bill: 

             a)   Provide evidence supporting the certification, as  
               specified by DHCS;
             b)   Submit data, as specified by DHCS, to determine the  
               appropriate amounts to claim as expenditures qualifying for  
               FFP; and, 
             c)   Keep, maintain, and have readily retrievable, any  
               records specified by DHCS to fully disclose reimbursement  
               amounts to which the eligible public entity is entitled,  
               and any other records required by the federal Centers for  
               Medicare and Medicaid Services (CMS);

          4)Requires the nonfederal share of expenditures submitted to CMS  








                                                                  AB 217
                                                                  Page  2

            for purposes of claiming FFP to be comprised of only those  
            funds that are paid by a public entity (county or other local  
            governmental entity) and certified in accordance with this  
            bill.

          5)Requires DHCS, in administering this bill, to do all of the  
            following:

             a)   Promptly seek any necessary federal approvals for the  
               implementation of this bill;
             b)   Submit claims for FFP for the expenditures for the  
               services that are allowable expenditures under federal law;  

             c)   Submit, on an annual basis, any necessary materials to  
               the federal government to provide assurances that claims  
               for FFP will include only those expenditures that are  
               allowable under federal law; and,
             d)   Create an appropriate mechanism to enable a public  
               entity to pay the nonfederal share of the cost of providing  
               services under this bill.

          6)Requires DHCS, upon receipt of federal reimbursement for the  
            claim, including federal matching funds, to provide the  
            reimbursement to the public entity for which the claim was  
            submitted.

          7)Permits DHCS to implement, interpret, and make specific this  
            bill by means of all county letters, provider bulletins, and  
            similar instructions.

          8)Requires participation in the SBI Program to be voluntary for  
            a Medi-Cal beneficiary. 

          9)Requires participation in the Program, and results of the  
            screening, to be maintained in the beneficiary's confidential  
            medical records, and subject to all confidentiality  
            requirements applicable to medical records.

          10)   Implements this bill only if, and to the extent that,  
            federal funds are available for this purpose.

           EXISTING LAW  :

           1) Establishes DADP to develop and implement a statewide plan  
             to alleviate problems related to inappropriate alcohol use,  








                                                                  AB 217
                                                                  Page  3

             and to license alcoholism and drug abuse recovery or  
             treatment facilities that provide a broad range of services  
             in a supportive environment for adults who are addicted to  
             alcohol or drugs.

           2) Establishes the Medi-Cal program, administered by DHCS,  
             which provides comprehensive health benefits to low-income  
             children, their parents or caretaker relatives, pregnant  
             women, elderly, blind or disabled persons, nursing home  
             residents, and refugees who meet specified eligibility  
             criteria.

           FISCAL EFFECT  :   This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, fetal alcohol  
            syndrome is one of the leading known preventable causes of  
            birth defects and developmental disabilities.  Prenatal  
            exposure to alcohol, tobacco, and other drugs have been proven  
            to severely damage the development, formation, and functioning  
            of the fetal brain.  According to the U.S. Centers for Disease  
            Control, approximately one in twelve pregnant women admit to  
            consuming alcohol and one in thirty pregnant women said they  
            had engaged in binge drinking.  Effective prevention,  
            intervention, and screening can reduce the incidence of  
            exposed infants while significantly reducing long term health  
            care costs.  However, despite the evidence of the benefits,  
            SBIs have not yet been widely used in primary care settings,  
            emergency rooms, state licensed facilities and clinics.  SBI  
            evaluates patients for potential substance abuse by asking a  
            series of five questions about their potential substance use.   
            The questions can easily be integrated into the initial  
            prenatal visit and used for follow-up screening throughout the  
            pregnancy.  If the patient screens positive indicating they  
            are at risk for alcohol or other substance abuse, the provider  
            will recommend a brief intervention involving one or more  
            short counseling sessions.  Individuals who are considered  
            high risk for abuse or addiction are given a brief  
            intervention counseling session and are also scheduled for a  
            brief treatment appointment.  The author reports San  
            Bernardino County recorded an 18% reduction in low birth  
            weights over three years among women whose physicians provided  
            SBIs compared with women whose physicians did not provide  








                                                                  AB 217
                                                                  Page  4

            those services. The author states an evaluation of 20 counties  
            found a definitive decline in substance abuse rates during  
            pregnancy and low birth weights.

           2)BACKGROUND  .  Effective January 2007, new billing codes  
            approved by CMS allow Medicaid reimbursement for SBI services.  
             According to the White House Office of National Drug Control  
            Policy, the impetus behind the Medicaid decision to reimburse  
            for SBI services was the recognition of the number of people  
            who go unidentified and who are in need of treatment.   
            According to the author, a typical SBI evaluates patients by  
            asking a series of questions about their potential substance  
            use.  If the patient screens positive, indicating they are at  
            risk for alcohol or other substance abuse, the provider will  
            recommend a brief intervention that usually involves one or  
            more short counseling sessions.  Individuals who are  
            considered high risk for abuse or addiction are given a brief  
            intervention counseling session and are also scheduled for a  
            brief treatment appointment.  According to the author, due to  
            the absence of state action, twenty counties have chosen to  
            begin their own county-funded prenatal SBI programs.  The  
            author reports that an evaluation of those counties found a  
            sharp decline both in rates of substance abuse during  
            pregnancy and in low birth weight newborns.

           3)PREVALENCE OF ALCOHOL AND DRUG ABUSE IN CALIFORNIA  .  According  
            to DADP's Web site, alcohol and other drug abuse is a major  
            factor in chronic disease, the spread of infectious diseases,  
            hospital emergency room visits, newborn health problems,  
            violence, and auto fatalities.  According to a 2004 DADP  
            survey of alcohol and drug use in the month prior to the  
            survey found that an estimated 18.5 million persons had used  
            alcohol, 7.5 million had engaged in binge drinking (drinking  
            four or more drinks in a row), and 3.5 million had used  
            illicit drugs.  DADP also reports that fetal alcohol syndrome,  
            caused by drinking during pregnancy, is the number one cause  
            of preventable developmental disabilities and birth defects in  
            the U.S.  DADP estimated that the 2005 cost to society of  
            alcohol and drug abuse in California was over $44 billion,  
            including loss of productivity, health care costs, prevention  
            and treatment costs, criminal justice costs, and losses due to  
            crimes.  DADP reported that in 2004, 308,683 Californians were  
            arrested on alcohol-related charges and 431,769 on  
            drug-related charges.









                                                                  AB 217
                                                                  Page  5

           4)SUPPORT  .  Counties and the California Probation Parole and  
            Correctional Association write in support of increasing the  
            state's ability to make alcohol and drug SBI services  
            available to Medi-Cal beneficiaries as contributing to the  
            prevention and treatment of individuals suffering from alcohol  
            and drug addiction.

           5)PREVIOUS LEGISLATION  .  

             a)   AB 2124 (Beall) of 2008 would have allowed counties to  
               set up a voluntary program to fund the states share of SBI  
               in draw down federal funds.  AB 2124 was held on the Senate  
               Appropriations suspense file. 

             b)   AB 2129 (Beall) also of 2008 would have required the  
               Department of Public Health to collaborate with DADP in  
               developing a model program for the screening and treatment  
               of  pregnant women who are suffering from drug and alcohol  
               abuse.  AB 2129 was held on the Assembly Appropriations  
               suspense file.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American College of Obstetricians and Gynecologists, District IX
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Commission on the Status of Women
          California Probation Parole and Correctional Association
          California Society for Clinical Social Work
          California State Association of Counties
          Drug Policy Alliance
          Santa Clara County Board of Supervisors

           Opposition 
          
          None on file.
           
          Analysis Prepared by  :    Scott Bain / HEALTH / (916) 319-2097