BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 359
                                                                  Page  1

          Date of Hearing:   May 13, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 359 (Nava) - As Amended:  April 15, 2009  

          Policy Committee:                              Health Vote:17-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY
           
          This bill requires digital mammography screening be covered  
          under the "Every Woman Counts" (EWC) Cancer Detection Program  
          administered by the California Department of Public Health (DPH)  
          when analog mammography is not available. In addition, the bill  
          authorizes the use of digital mammography when both modes of  
          screening are available. This bill specifies that digital  
          mammography will only be a covered benefit pursuant to this bill  
          if the provider accepts the lower, analog, reimbursement rate.    


           FISCAL EFFECT  

          1)Annual increased costs of $2.3 million (special fund, federal  
            funds, and grants) to provide digital mammography to 15% of  
            the 270,000 women currently served in the EWC program. Such  
            increases in mammography costs could result in 32,000 women  
            losing analog screening coverage each year. This estimate  
            assumes the rate differential that exists under current law  
            with analog mammography reimbursement at $72 and digital  
            mammography reimbursement at $127. 

          2)This bill raises concerns about provider billing fraud. This  
            bill is intended to increase access to digital mammography in  
            areas where analog mammography is being phased out in favor of  
            digital technology. This bill gives willing providers the  
            authority to provide digital mammography and be reimbursed at  
            analog rates. However, such billing behavior, providing one  
            service and requesting reimbursement for another, may result  
            in alleged billing fraud. 
           
          COMMENTS  








                                                                  AB 359
                                                                  Page  2


           1)Rationale  . This bill, sponsored by Santa Barbara County,  
            increases access to digital mammography in a publicly  
            supported breast cancer screening program.  Under current law,  
            the EWC program only provides coverage for analog mammography.  
             The Medi-Cal Program currently provides coverage for digital  
            mammography and this bill aligns the EWC program with Medi-Cal  
            coverage for breast cancer screenings.  

           2)Background  .  Analog mammography stores images directly on film  
            and was introduced 90 years ago. In contrast, digital  
            mammography was approved by the Federal Drug Administration  
            (FDA) in 2000. Digital mammography takes an electronic image  
            of the breast and stores it in a computer. Electronic storage  
            allows the recorded data to be enhanced, magnified, or  
            manipulated for further evaluation. In large clinical studies,  
            digital mammography has not consistently or broadly been shown  
            to be effective or cost-effective. However, the technology has  
            been shown to be particularly effective when targeted to  
            certain groups, such as younger women, for whom analog  
            screening identifies fewer areas of cancer risk.

           3)Breast Cancer in California  . One in nine women in California  
            has a lifetime risk of being diagnosed with breast cancer. The  
            breast cancer death rate in California has dropped 20% over  
            the last two decades, but California women are more likely to  
            be diagnosed with breast cancer today.  While the death rate  
            for breast cancer has dropped, the gains have not been shared  
            equally among all women.  Women of color and low-income women  
            are less likely to be diagnosed at an early stage of cancer  
            and receive effective treatment. Therefore their survival  
            rates are lower than other groups of women.  For example,  
            African-American women, although less likely to be diagnosed  
            with breast cancer, have one of the highest breast cancer  
            death rates.   
           
          4)Related Legislation  . AB 2887 in 2008 was similar to this bill  
            and held on the Suspense File of this committee. 

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