BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2352
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2352 (John A. Perez)
          As Amended July 15, 2010
          Majority vote
           
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          |ASSEMBLY:  |62-12|(June 1, 2010)  |SENATE: |31-4 |(August 24,    |
          |           |     |                |        |     |2010)          |
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          Original Committee Reference:   HEALTH  

           SUMMARY  :  Requires Medi-Cal beneficiaries to remain eligible to  
          receive Medi-Cal coverage for anti-rejection medication for up  
          to two years following an organ transplant unless during that  
          time the beneficiary becomes eligible for Medicare or private  
          health insurance that would cover the medication.

           The Senate amendments  authorize the Department of Health Care  
          Services (DHCS) to implement, by means of all-county letters,  
          provider bulletins, or similar instructions, without taking any  
          further regulatory action.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the bill as passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:

                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund  
          Medication costs                $190                    
          $400$400General
           
          COMMENTS  :  According to the author, there are currently some  
          patients that qualify for Medi-Cal under a federal rule allowing  
          coverage for patients with end-stage renal disease (on  
          dialysis).  Those patients, if they are able to receive a kidney  
          and have an organ transplant, will only receive coverage for  
          their immunosuppressive medication for one year post-transplant  
          as the person's Medi-Cal eligibility ends when he or she no  
          longer meets the eligibility requirement of end-stage renal  
          disease.  









                                                                  AB 2352
                                                                  Page  2

          Patients in this particular group may not be eligible for  
          Medi-Cal under any other eligibility criteria, and they may also  
          be ineligible for Medicare, either because they have not paid  
          into Social Security for a sufficient time or because of their  
          immigration status.  The author states that if these patients  
          were dual-eligible for Medicare and Medi-Cal, Medicare would pay  
          for immunosuppressive coverage for an additional two years, so  
          the patient would have immunosuppressive drugs for a total of  
          three years post-transplant.  Because patients who have had a  
          kidney transplant must have immunosuppressive drugs or their  
          body will naturally reject the organ, they have a medical need  
          for the anti-rejection medication to prevent kidney failure,  
          being placed back on dialysis or, in a worst-case scenario,  
          death.  The author argues the state has already paid for the  
          organ transplant surgery (the cost of transplant surgery is  
          $50,000 to $100,000 according to the author) and it makes no  
          sense to drop Medi-Cal coverage for these patients after only a  
          year when many organ transplant patients are not yet stable or  
          ready to enter the workforce.

          The Patient Protection and Affordable Care Act (Public Law  
          111-148), among other provisions, requires states, as of January  
          2014 to include all adults with income up to 133% of the Federal  
          Poverty Level (FPL) in its Medicaid Program and provides  
          enhanced federal matching assistance funds.  States have the  
          option to begin providing medical assistance to individuals  
          eligible under this new group as of April 1, 2010.  Transplant  
          patients who have income under 133% of FPL will have full-scope  
          Medi-Cal once this is implemented.

           
          Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097 


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