BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2590
                                                                  Page  1

          Date of Hearing:   April 20, 2010

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
               AB 2590 (Bonnie Lowenthal) - As Amended:  March 22, 2010
           
          SUBJECT  :  Medi-Cal: disease management programs: HIV/AIDS:  
          disclosure of data: contractors.

           SUMMARY  :  Permits the Department of Health Care Services (DHCS)  
          to provide all data in its possession necessary to identify and  
          enroll eligible persons to a contractor providing disease  
          management services to persons with the human immunodeficiency  
          virus (HIV) or acquired immunodeficiency syndrome (AIDS).   
          Specifically,  this bill  :  

          1)Permits DHCS to provide all data in its possession necessary  
            to identify and enroll eligible persons to a contractor  
            providing disease management services to persons with  
            HIV/AIDS.

          2)Requires the contractor to:
             a)   Use only materials that are approved by DHCS for  
               outreach to potential enrollees in the disease management  
               program; 
             b)   Implement and maintain procedures that are approved by  
               DHCS that guard against disclosure of confidential  
               information to unauthorized persons; and, 
             c)   Inform each enrollee in the disease management program  
               of his or her right to confidentiality and obtain the  
               enrollee's consent prior to release of confidential  
               information, unless prior consent is specifically not  
               required.

          3)Prohibits the contractor from disclosing protected health  
            information supplied by DHCS to subcontractors for outreach  
            and enrollment purposes.

          4)Prohibits anything in the bill from being construed to allow  
            DHCS to access the data reported and collected pursuant to  
            existing law that requires name-based reporting of HIV/AIDS  
            cases.  

           EXISTING LAW  :









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          1)Provides for the Medi-Cal Program, which is administered by  
            DHCS and under which qualified low-income persons receive  
            health care services.  Requires DHCS to apply for a waiver of  
            federal law to test the efficacy of providing a disease  
            management benefit, as described, to specified beneficiaries  
            under the Medi-Cal Program.  

          2)Requires health care providers and laboratories to report  
            cases of HIV infection to local public health officers using  
            patient names.  Local health officers (LHO) are required to  
            report unduplicated HIV cases by name to the Department of  
            Public Health (DPH).

          3)Makes any person who willfully, maliciously, or negligently  
            discloses the content of any "confidential public health  
            record" to any 3rd party, except pursuant to a written  
            authorization, as described, or as otherwise authorized by  
            law, resulting in economic, bodily, or psychological harm to  
            the person whose confidential public health record was  
            disclosed, guilty of a misdemeanor and subject to specified  
            civil penalties. 
          4)Defines "confidential public health record or records" as any  
            paper or electronic record maintained by DPH or a local health  
            department or agency, or its agent, that includes data or  
            information in a manner that identifies personal information,  
            including, but not limited to, name, social security number,  
            address, employer, or other information that may, directly or  
            indirectly, lead to the identification of the individual who  
            is the subject of the record.

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

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, DHCS enacted a  
            Medi-Cal pilot program to provide disease management to  
            Californians with HIV/AIDS.  Because of limitations in current  
            law, DHCS structured the pilot as an opt-in program for  
            participants.  The author states that the pilot project  
            vendor, AIDS Healthcare Foundation (AHF), was therefore  
            required to search for eligible Medi-Cal beneficiaries with  
            HIV/AIDS without sufficient information to actually find those  
            persons.  The author further states that after hemorrhaging  
            more than $1 million and enrolling less than 300 hundred  








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            people, AHF was forced to close the program late last year.   
            The author states that thousands of Californians with other  
            chronic diseases are receiving care and treatment under the  
            Medi-Cal Program, and these services are being denied to  
            people with HIV/AIDS.  

           2)DISEASE MANAGEMENT PROGRAMS  .  According to the Disease  
            Management Association of America (DMAA), disease management  
            is a system of coordinated health care interventions and  
            communications for people with conditions in which patient  
            self-care efforts are significant.  Traditionally, disease  
            management has focused on the five chronic diseases: heart  
            disease, diabetes, Chronic Obstructive Pulmonary Disease  
            (COPD), asthma and heart failure.  Disease management programs  
            often include components that include telephone contact, and  
            involve interaction with a trained nursing professional.   
            These programs also include a strong educational element and  
            patients are expected to play an active role in managing their  
            diseases.  Because of the presence of co-morbidities or  
            multiple conditions in most high-risk patients, this approach  
            may become operationally complex, with patients being cared  
            for by more than one program and multiple providers.
           
          3)EXISTING MEDI-CAL PROGRAMS  .  Disease Management Program.  The  
            health budget trailer bill of 2003 (AB 1762 (Committee on  
            Budget), Chapter 230, Statutes of 2003) established the  
            Disease Management Waiver to test the effectiveness of  
            providing a Medi-Cal disease management benefit.  During  
            implementation, DHCS opted to use a pilot project approach  
            that did not require a waiver.  Eligibility for the Disease  
            Management program is limited to those persons who are  
            eligible for the Medi-Cal program as seniors and persons with  
            disabilities (SPDs), or those persons over 21 years of age who  
            are not enrolled in a Medi-Cal managed care plan, or are  
            ineligible for Medicare, and who are determined by the DHCS to  
            be at risk of, or diagnosed with certain chronic diseases.   
            The Medi-Cal Disease Management program is an "opt-out"  
            program under which DHCS identifies enrollees with one of the  
            targeted diseases and provides paid claims data to the  
            contractor for them.  Enrollees are automatically signed up  
            for the program, but may opt-out if they do not wish to  
            participate.

            DHCS contracts with McKesson Health Solutions to provide  
            disease management services in Alameda County (3,668 enrollees  








                                                                  AB 2590
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            as of January 10, 2010) and in Los Angeles County (15,376  
            enrollees as of January 10, 2010) under a three-year $4  
            million per year contract.  The McKesson contract is in its  
            second year of operation.  

            Coordinated Care Management (CCM).  The Budget Act of 2006  
            authorized DHCS to establish the CCM Demonstration Project.   
            CCM I focuses on SPDs who have chronic conditions or who may  
            be seriously ill and near the end of life.  CCM II focuses on  
            persons with chronic conditions and serious mental illnesses.   
            Both CCM programs operate as opt-out programs.  Like the  
            Disease Management program, DHCS identifies enrollees with one  
            of the targeted diseases and provides paid claims data to the  
            contractor for them.  Enrollees are automatically signed up  
            for the program, but may opt-out if they do not wish to  
            participate.
             
            DHCS contracts with APS Healthcare to administer both phases  
            of CCM.  The go live date for the first phase was in January  
            2010 and Phase II began in April 2010.  As of April 2010,  
            there were 1,886 enrollees in CCM I.  There are 10,550  
            eligible enrollees in CCM II.  


             -------------------------------------------------------------- 
            |Disease Management |CCM I                 |CCM II             |
            |I                  |                      |                   |
            |-------------------+----------------------+-------------------|
            |SPDs with one or   |SPDs who have chronic |Persons with       |
            |more of the        |conditions or may be  |chronic conditions |
            |following chronic  |seriously ill and     |and serious mental |
            |conditions:        |near the end of life, |illnesses*, may    |
            | Advanced         |may include but       |include but not    |
            |  Atherosclerotic  |limited to the        |limited to the     |
            |  Disease Syndrome |following:            |following:         |
            | Congestive Heart | Cancer              |   Cancer         |
            |  Failure          | Cerebrovascular     |                  |
            | Diabetes         |  Disease             |   Cerebrovascular Disease|
            |  mellitus         | Asthma              |   Asthma         |
            | Asthma           | COPD                |   COPD           |
            | Coronary Artery  | Congestive Heart    |   Congestive     |
            |  Disease          |  Failure             |   Heart Failure   |
            | COPD             | Coronary Artery     |   Coronary       |
            |                   |  Disease             |   Artery Disease  |
            |                   | Diabetes            |   Diabetes       |








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            |                   | Hypertension        |   Hypertension   |
            |                   | Arthritis           |   Arthritis      |
            |                   | Obesity             |   Obesity        |
            |                   | Substance Abuse     |   Substance      |
            |                   |                      |   Abuse           |
            |                   |                      |                   |
            |                   |                      |*Serious Mental    |
            |                   |                      |Illnesses:         |
            |                   |                      |Depression,        |
            |                   |                      |Bipolar Disorder,  |
            |                   |                      |Schizophrenia,     |
            |                   |                      |Dementia,          |
            |                   |                      |Delusional         |
            |                   |                      |Disorders,         |
            |                   |                      |Non-Organic        |
            |                   |                      |Psychoses,         |
            |                   |                      |Anxiety,           |
            |                   |                      |Dissociative &     |
            |                   |                      |Somatoform         |
            |                   |                      |Disorders          |
             -------------------------------------------------------------- 

           1)POSITIVE HEALTH CARE PROGRAM  .  In March 2009, enrollment began  
            in California's Positive Health Care (PHC), the disease  
            management program for Medi-Cal beneficiaries with HIV/AIDS.   
            This program is an opt-in program, and like CCM I and II,  
            basic identifying data for potential enrollees was supplied to  
            the contractor, who was responsible for outreach and  
            enrollment.  DMHC had a three-year, $4 million per year  
            contract with the sponsor of this bill, AHF.  According to  
            AHF, over the course of nine months letters were sent and  
            calls were made to individuals for whom they had the data.  In  
            order to reach out to those potential enrollees for whom AHF  
            did not have sufficient data, outreach workers and nurse case  
            managers contacted known providers of services to HIV-positive  
            people to help identify Medi-Cal enrollees that might be  
            eligible for and interested in the program. AHF states that  
            all the efforts were hugely unsuccessful, and that out of  
            4,000 potentially eligible individuals, less than 300 were  
            enrolled.  

            This California pilot was modeled after a program that AHF had  
            implemented in Florida in 1999, also called PHC.  According to  
            AHF, the program has had a fluctuating census, as high as  
            about 10,000 and currently serving 6,000 enrollees.  In the  








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            first 5 years of the program, the percentage of persons with  
            an undetectable viral load in the program went from 39% to  
            62%.  In the same period, the average CD4 count (white cells  
            fighting the infection) increased from 358 cells per  
            microliter to 548.  In the 5th year, in any given month, the  
            number of mergency room visits was 50% less for patients  
            enrolled in the program compared to those who were not. 

           2)HIV/AIDS REPORTING  .  California requires health care providers  
            to confidentially report more than 80 diseases and conditions  
            to LHOs, who then report that data to DPH.  HIV and AIDS are  
            reportable conditions in California using patients' names.  
            California made name-based reporting mandatory for HIV through  
            SB 699 (Soto), Chapter 20, Statutes of 2005.  California's HIV  
            reporting statute is coupled with the protection of  
            "confidential public health records." DHCS states that this  
            law, which imposes penalties for disclosing the results of an  
            HIV test except pursuant to a written authorization, prevented  
            them from sharing paid claims data to AHF, as that action is  
            tantamount to disclosing the results of an HIV test.

           3)SUPPORT  .  AHF, the sponsor of this bill, writes that it  
            learned the hard way that the neediest Medi-Cal beneficiaries  
            with HIV/AIDS are harmed by current limits on data-sharing.   
            AHF was provided nearly 4000 names of potential eligible  
            beneficiaries but because of limited data provided on these  
            beneficiaries, AHF spent $1 million over 9 months and found  
            and enrolled only 299 people.  AHF states that limited data  
            that includes only name, address and telephone number is  
            largely useless when the population is highly transient, when  
            address and phone numbers change or disappear frequently, when  
            the only residential data is "living in a car," when dealing  
            with their HIV/AIDS is less urgent than fulfilling other  
            activities daily living.  AHF further states that they faced  
            problems because of the discreet challenges of the population  
            they were seeking to engage: the homeless, mentally ill,  
            low-income women of color, Californians who had little access  
            to or knowledge of the health care delivery system.  

           4)OPPOSITION  .  Opponents write that this bill would likely have  
            a deleterious effect on HIV testing.  Opponents assert that as  
            state contractors call newly diagnosed individuals to market  
            medical services to them, these individuals, who already be  
            traumatized by the recent diagnosis, are likely to be  
            resentful of the fact that this intimate information has been  








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            shared without their consent.  Opponents contend that as word  
            spreads that newly diagnosed individuals are receiving calls  
            from contractors who clearly know this sensitive information,  
            individuals at risk of HIV infection will be more likely to  
            avoid testing lest their HIV status be shared.  Opponents  
            further state that AB 2590 is a serious violation of the  
            privacy and medical rights of Californians, a measure that  
            will cause real and serious harm to those who are HIV-positive  
            in the state and which will impede, rather than assist efforts  
            to combat HIV/AIDS in California.  The American Civil  
            Liberties Union (ACLU) writes that there are less intrusive  
            ways to achieve the goal of this bill than to release without  
            the consent of the individuals their names, addresses and "all  
            data in the department's possession that [are] necessary to  
            identify an[d] enroll persons who are eligible."  The ACLU  
            gives as examples: a) DHCS could ask people when they enroll  
            for Medi-Cal, whether they would consent to be contacted for  
            disease management purposes, if necessary in the future; b)  
            DHCS could send eligible enrollees a self-addressed stamped  
            envelope that they could return if they are interested in  
            disease management services; or, c) outreach workers could be  
            posted at homeless shelters and other places where the  
            targeted population frequent.

           5)AMENDMENTS  .  The author has agreed to take the following  
            amendments in Committee:

            14132.31.  (a) Notwithstanding any other provision of state  
            law, the department may, in accordance with federal law,  
            provide to an entity that contracts with the state to provide  
            disease management services to persons with the human  
            immunodeficiency virus (HIV) or acquired immunodeficiency  
            syndrome (AIDS)  all data  the following information in the  
            department's possession that is necessary to identify and  
            enroll persons who are eligible for the disease management  
            program,  provided that the department possesses a signed  
            consent form pursuant to subdivision (d) for each person whose  
            personal information is disclosed  :
             (1) Contact information of Medi-Cal enrollees who are eligible  
            for the disease management program.
            (2) The name and contact information of their Medi-Cal  
            contracted healthcare providers.
            (3) The number of visits to each of those providers in the  
            past 18 months.
            The information provided shall not include treatment  








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            information, billing codes, or other such information that is  
            unique to the patient and protected by the provider-patient  
            confidential relationship. For purposes of this section,  
            "healthcare provider" shall include hospitals, pharmacies, and  
            physicians.
               (b) (1) The contractor described in subdivision (a) shall  
            do all of the following:
               (A) Use only materials that are approved by the department  
            for outreach to potential enrollees in the disease management  
            program.
               (B) Implement and maintain procedures that are approved by  
            the department that guard against disclosure of confidential  
            information to unauthorized persons  , including compliance with  
            Health and Safety Code Section 120980  .
               (C) Inform each enrollee in the disease management program  
            of his or her right to confidentiality and obtain the  
            enrollee's consent prior to release of confidential  
            information, unless prior consent is specifically not  
            required.
               (2) The contractor shall not disclose protected health  
            information supplied by the department to subcontractors for  
            outreach and enrollment purposes.
               (3)  The contractor shall not use outreach activities to  
            potential enrollees or enrollees in its disease management  
            services program to market other services the contractor may  
            provide.  However, this paragraph shall not be construed to  
            prohibit an enrollee from using other services provided by the  
            contractor.
               (c) Nothing in this section shall be construed to allow the  
            department to access the data reported and collected pursuant  
            to Section 121022 of the Health and Safety Code.  
               (d)   Each person with HIV or AIDS who enrolls or  
            re-enrolls in Medi-Cal shall be offered an opportunity to  
            share the information in (a) with an entity that contracts  
            with the state to provide disease management services to  
            persons with HIV or AIDS.  The offer to share such information  
            shall be described as "voluntary" to the patient who must sign  
            an "informed consent" for authorizing the sharing of the  
            information.  The informed consent form shall include notice  
            to the patient that the exercise of this option is voluntary  
            and that the patient does not need to provide consent for  
            purposes of Medi-Cal or other eligibility for services or  
            treatment.  The form shall  include that only the information  
            in (a) will be shared with the entity that contracts with the  
            state,  the specific name of the entity, the methods that such  








                                                                 AB 2590
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            entity may use to contact the person, and that such contact  
            will occur within one year from the date the consent form is  
            signed.  Any such informed consent form shall be subject to  
            the approval of the department and shall be provided in the  
            language spoken by the patient.  A patient may revoke his/her  
            consent for release of the information at any time and  
            facilities where the informed consent form is offered shall  
            also maintain revocation of consent forms available upon  
            request of the patient."
            (e) This section does not apply to any disclosures made by the  
            department prior to the date of its enactment.
           

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          AIDS Healthcare Foundation (sponsor)
          California Communities United Institute

           Opposition 
           
          American Civil Liberties Union
          Being Alive
          Center for Health Justice
          HIV & AIDS Legal Services Alliance
          National Health Law Program
           
          Analysis Prepared by  :    Melanie Moreno / HEALTH / (916)  
          319-2097