BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 952
                                                                  Page  1

          Date of Hearing:   May 28, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 952 (Kerkorian) - As Amended:  May 19, 2009 

          Policy Committee:                              Health  Vote:  
          19-0         
                        Judiciary                            10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill revises California's Confidentiality of Medical  
          Information Act (CMIA) to authorize the release of summary  
          health information (SHI) by health plans to a third party if  
          authorized by, and consistent with, the federal Health Insurance  
          Portability and Accountability Act (HIPAA).

           FISCAL EFFECT  

          No direct fiscal impact is created by this bill, which clarifies  
          California medical privacy laws to authorize access to summary  
          health information allowed by federal law for specified health  
          plans. 

           COMMENTS  

            1) Rationale  . This bill modifies state law to address recently  
             HIPAA regulations that have created a barrier to the sharing  
             of SHI for specific health benefits governed by the Employer  
             Retirement Income Security Act (ERISA) and regulated by the  
             federal Department of Labor (DOL). The author indicates this  
             bill will allow the continued sharing of summary health  
             information so benefit administrators know they are paying  
             claims appropriately and consistently. Specifically, this  
             bill modifies state law to recognize ERISA DOL Taft-Hartley  
             health plans to allow these health plans to comply with state  
             law and HIPAA. 

           2)   Background  . California medical privacy law, often stricter  
             than federal law, requires providers to give patients access  








                                                                  AB 952
                                                                  Page  2

             to personal medical information, an opportunity to review and  
             correct this information, and assurance that medical  
             information be disclosed only as permitted by law. HIPAA,  
             enacted in 1996, accelerated the move from paper-based to  
             electronic transactions through the establishment of national  
             standards and requirements for the transmission, storage, and  
             handling of specified health care data. 

           Regulations promulgated under HIPAA created a national standard  
             for privacy of health information. The HIPAA privacy  
             regulations apply to all health plans, health care  
             clearinghouses, and health care providers who transmit any  
             health information in electronic form in connection with a  
             specified transaction, including claims, patient care  
             information, claims status, and report of injury.  


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