BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2787
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            AB 2787 (Committee on Health) - As Introduced:  March 9, 2010

          Policy Committee:                              Health Vote:18-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill modifies a current law reporting requirement related  
          to a disease management program administered by the California  
          Department of Health Care Services. Specifically, this bill  
          extends the due day of the report from January 1, 2008 to  
          January 1, 2011 and requires the report to include  
          recommendations related to a pending expansion of the pilot  
          program. 

           FISCAL EFFECT  

          No direct fiscal impact to the Department of Health Care  
          Services (DHCS) to finalize the report and modify  
          recommendations related to an expansion of the disease  
          management program. 

           COMMENTS  

           1)Rationale  . This bill extends a deadline established by AB 1732  
            (Committee on Budget), Chapter 230, Statutes of 2003. The  
            report deadline extension is needed because the underlying  
            program implementation was delayed by several years. 

           2)Committee Amendment  . As written, this bill would require the  
            submission of the report the same day the bill is enacted, if  
            signed into law. It is recommended the bill be amended to move  
            the due date of the report to July 1, 2011. 
           
          3)Background  . AB 1732 required DHCS to apply for a waiver of  
            federal law to test the efficacy of providing a disease  
            management benefit to Medi-Cal beneficiaries. The disease  
            management benefit was required to include evidence-based  








                                                                  AB 2787
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            practice guidelines, adherence to care plans, patient  
            education and monitoring, and healthy lifestyle changes. 

           4)Background  . The McKesson Corporation was selected by DHCS in  
            2007 to implement a disease management pilot program for  
            chronically ill, fee-for service Medi-Cal beneficiaries  
            residing in Los Angeles and Alameda counties. Disease  
            management refers to coordinated care provided to patients  
            with chronic conditions such as diabetes, chronic obstructive  
            pulmonary disease (COPD), and hypertension. Because the start  
            of the disease management program was delayed by several  
            years, DHCS needs more time to complete the related report and  
            recommendations. 

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