BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2590
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2590 (Lowenthal) - As Amended:  April 27, 2010  

          Policy Committee:                              Health Vote: 11-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the California Department of Health Care  
          Services (DHCS) to share information under specified  
          circumstances with a contractor providing disease management  
          services to Medi-Cal beneficiaries who are HIV-positive or who  
          have been diagnosed with AIDS. Specifically, this bill:

          1)Establishes requirements related to collecting informed  
            consent from Medi-Cal beneficiaries.

          2)Establishes parameters for the content of patient information  
            that may be disclosed to a contractor.

          3)Establishes contractor prohibitions regarding marketing and  
            outreach to beneficiaries. 

           FISCAL EFFECT  

          1)Costs in the range of $300,000 (50% GF) to $500,000 (50% GF)  
            to the extent DHCS uses the authority established in this bill  
            to procure informed consent from potential beneficiaries of a  
            disease management program related to HIV or AIDS. Actual  
            costs would depend on how many beneficiary contacts are made  
            and the complexity and mode of contact.  

          2)Due to the highly sensitive nature of medical information in  
            general and HIV-status specifically, it is unclear how the  
            informed consent mechanism in this bill would be established.  
            Medi-Cal is funded at the state level, but eligibility  
            determinations and consumer interactions are typically with  
            county Medi-Cal eligibility workers. It seems this bill would  
            create requirements for county eligibility workers that are  








                                                                  AB 2590
                                                                  Page  2

            outside their scope of service and may involve sensitive  
            information about health status. 

           COMMENTS  

           1)Rationale  . This bill is sponsored by the AIDS Healthcare  
            Foundation in Los Angeles to improve future disease management  
            programs. Disease management refers to coordinated care  
            provided to patients with chronic conditions such as diabetes,  
            chronic obstructive pulmonary disease (COPD), and  
            hypertension. AB 1732 (Committee on Budget), Chapter 230,  
            Statutes of 2003 established several DHCS disease management  
            programs, including one for which the AIDS Healthcare  
            Foundation was the contractor. This bill establishes  
            parameters for collecting informed consent from Medi-Cal  
            beneficiaries in order to improve contractor access to patient  
            information and thereby increase enrollment in future disease  
            management efforts. 

           2)Background  . The DHCS-AIDS Healthcare Foundation disease  
            management program started enrolling patients in the spring of  
            2009. While other disease management programs have been  
            opt-out, meaning beneficiaries have to disenroll to not  
            participate, the AIDS Healthcare Foundation program was  
            established to be opt-in, meaning a beneficiary had to  
            affirmatively agree to enroll. The contractor, who began  
            enrolling individuals last year, faced numerous obstacles to  
            enrollment. These obstacles included out-of-date contact  
            information, attempted contacts with indigent individuals  
            living on the street, and a lack of sufficient data to reach  
            potential participants. After expenditures of $1 million, the  
            contractor was only able to enroll 400 of a potential 4,000  
            Medi-Cal beneficiaries. This bill will reduce these kinds of  
            barriers following an individual providing informed consent. 

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