BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2352 (J. Perez)
Hearing Date: 8/2/2010 Amended: 7/15/2010
Consultant: Katie Johnson Policy Vote: Health 6-0
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BILL SUMMARY: AB 2352 would require that a Medi-Cal beneficiary
remain eligible for Medi-Cal coverage of antirejection
medication for up to two years following an organ transplant,
unless he or she becomes eligible for other insurance that would
cover the medication, including Medicare.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Medication costs $190 $400
$400General
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Medi-Cal currently pays for antirejection medication for
one-year after a transplant. This bill would require that a
Medi-Cal beneficiary remain eligible for Medi-Cal coverage of
antirejection medication for up to two years following an organ
transplant. Medi-Cal coverage would cease if the individual were
to become eligible for either Medicare or other private health
insurance that would cover the medication.
Since this bill would increase the time a beneficiary may claim
Medi-Cal coverage, it would increase costs to the Medi-Cal
program. Antirejection medication costs Medi-Cal approximately
$20,000 annually. Approximately 1,450 individuals receive organ
transplants through Medi-Cal fee-for-service coverage annually.
If 1 percent of individuals who had received an organ transplant
were to utilize services for the extra year, 15 individuals, as
provided for under this bill, the annual cost would be $300,000.
From 2005-2007, there were 45 individuals, or the 15 individuals
per year, who had a lapse in Medi-Cal coverage during months 13
- 24 post-transplant. Since 26 percent of Medi-Cal seniors and
persons with disabilities, the categories under which an
individual receiving an organ transplant would fall, are in
Medi-Cal managed care, it would be reasonable that the number of
people with lapsed coverage would be substantially lower for
Medi-Cal managed care than for fee-for-service. If 15
individuals equals 74 percent of Medi-Cal enrollees, then 5
individuals equals 26 percent of total enrollees and represents
the individuals in managed care who would likely use this bill.
Total costs then could be expected to be approximately $400,000
annually. There could be cost avoidance to the extent that the
provision of antirejection medication for an additional year
would prevent hospitalization for transplant rejection and
another transplant.
This expansion of Medi-Cal benefits is not a mandatory or state
option under federal Medicaid law. Therefore, federal matching
funds would not be available to match costs related to this
bill. The costs incurred by Medi-Cal would be 100 percent
General Fund. The Department of Health Care Services (DHCS)
would be permitted to implement or interpret these provisions by
means of all-county letters, provider bulletins, or similar
instructions without taking any other regulatory action.