BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 971|
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                                 THIRD READING


          Bill No:  SB 971
          Author:   Pavley (D)
          Amended:  6/1/10
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 4/14/10
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox, Leno,  
            Negrete McLeod, Pavley, Romero

           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  8-0, 4/19/10
          AYES:  Negrete McLeod, Wyland, Aanestad, Calderon, Correa,  
            Oropeza, Walters, Yee
          NO VOTE RECORDED:  Florez

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Genetic disease services:  bleeding disorders:   
          blood clotting 
                      products

           SOURCE  :     Hemophilia Council of California


           DIGEST  :    This bill establishes standards for the proper  
          storage and delivery of blood clotting factor, a prescribed  
          biologic, and other related equipment and supplies for home  
          usage by people with hemophilia or other bleeding  
          disorders.

           Senate Floor Amendments  of 6/1/10 (1) remove the  
          requirement for pharmacies to collect all billing  
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          information to patients up front and provide patients with  
          a copy of all billing invoices up front, (2) remove a  
          requirement that pharmacies maintain adequate stocks of  
          blood clotting products and ancillary infusion equipment  
          and supplies, in response to concerns that the term  
          "adequate" is unclear and difficult to define, (3) clarify  
          that the standards for blood clotting products only apply  
          to pharmacies, (4) remove a requirement that pharmacies  
          respond to all phone calls about blood clotting products  
          within one hour or less, and instead allows pharmacies to  
          acknowledge all phone calls within one or less, and (5)  
          make clarifying changes. 

           ANALYSIS  :    

          Existing law:

          1. Provides for the practice of pharmacy and the licensing  
             and regulation of pharmacies, and pharmacists by the  
             Board of Pharmacy (Board) within the Department of  
             Consumer Affairs.

          2. Specifies certain requirements regarding the proper  
             storage, handling, dispensing, and disposal of drugs,  
             staff training protocols, drug and supply inventory,  
             labeling, and maintenance of patient confidentiality.

          3. Authorizes pharmacists to administer drugs and biologics  
             pursuant to a prescriber's order.

          4. Prohibits pharmacies from leaving, picking up from,  
             accepting, or delivering prescriptions to any place not  
             licensed as a retail pharmacy, with certain exceptions,  
             including a patient's residence or workplace, or a  
             licensed health facility, as specified.

          5. Creates the Holden-Moscone-Garamendi Genetically  
             Handicapped Person's Program, which requires the  
             Director of the Department of Health Care Services to  
             establish and administer a program for the medical care  
             of persons with genetically handicapping conditions,  
             including hemophilia.

          This bill:

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          1. Creates the Standards of Service for Providers of Blood  
             Clotting Products for Home Use Act (Act).

          2. Establishes findings and declarations about bleeding  
             disorders and treatment for bleeding disorders.

          3. Specifies that the purposes of the Act is to establish  
             standards of service for providers of blood clotting  
             supplies and promoting access to a full range of  
             essential blood clotting products and equipment for use  
             at home by people with hemophilia and other bleeding  
             disorders.

          4. Applies definitions for the purpose of this Act,  
             specifically:

             A.    "Assay" as the amount of a particular constituent  
                of a mixture or of the biological or pharmacological  
                potency of a drug.

             B.    "Ancillary infusion equipment and supplies" as the  
                equipment and supplies required to infuse a blood  
                clotting product into a human vein, including, but  
                not limited to, syringes, needles, sterile gauze,  
                field pads, gloves, alcohol swabs, numbing creams,  
                tourniquets, medical tape, sharps or equivalent  
                biohazard waste containers, and cold compression  
                packs.

             C.    "Bleeding disorder" as a medical condition  
                characterized by a deficiency or absence of one or  
                more essential blood clotting proteins in the human  
                blood, often called "factors," including all forms of  
                hemophilia and other bleeding disorders that result  
                in uncontrollable bleeding or abnormal blood clotting  
                without treatment.

             D.    "Blood clotting product" as an intravenously  
                administered medicine manufactured from human plasma  
                or recombinant biotechnology techniques, approved for  
                distribution by the federal Food and Drug  
                Administration (FDA), that is used for the treatment  
                and prevention of symptoms associated with bleeding  

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                disorders.

             E.    "Patient" as a person needing a blood clotting  
                product for home use.

             F.    "Emergency" as a situation in which a prudent  
                layperson could reasonably believe that the  
                consumer's condition requires immediate medical  
                attention.

             G.    "Hemophilia" as a human bleeding disorder caused  
                by a hereditary deficiency of the Factors I, II, V,  
                VIII, IX, XI, XII, or XIII blood clotting protein in  
                human blood.

             H.    "Hemophilia treatment center" as a facility for  
                the treatment of bleeding disorders, including, but  
                not limited to, hemophilia, that receives funding  
                from federal government sources.

             I.    "Home nursing services" as specialized nursing  
                care provided in the home setting to assist a patient  
                in the reconstitution and administration of blood  
                clotting products

             J.    "Home use" as infusion or other use of a blood  
                clotting product in a place other than a  
                state-recognized hemophilia treatment center,  
                including a home or other non-clinical setting.

             K.    "Provider of blood clotting products for home use"  
                as a provider of blood clotting products and  
                ancillary infusion equipment for home use and  
                consumer assistance, including home nursing services  
                for persons with bleeding disorders, for the  
                management of bleeding disorders.

          2. Provides that each provider of blood clotting products  
             for home use shall meet all of the following  
             requirements:

             A.    Have sufficient knowledge and understanding of  
                bleeding disorders to accurately follow the  
                instructions of the prescribing physician and ensure  

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                high-quality service for the consumer and the medical  
                and  psychological management thereof, including, but  
                not limited to, home therapy.

             B.    Have sufficient clinical experience serving people  
                with bleeding disorders and have sufficient  
                non-clinical understanding of bleeding disorders so  
                he/she knows when patients have an appropriate supply  
                of clotting factor on hand and knows about proper  
                refrigeration of clotting factors.

             C.    Ensure that customer service staff the  
                requirements of #A and #B above.

             D.    Have knowledgeable pharmacy staff on call 24 hours  
                a day in the event of need to provide emergency  
                clotting factors.

             E.    Have the ability to approve all brands of blood  
                clotting products approved by the FDA in multiple  
                assay and vial sizes, including products manufactured  
                from human plasma and those manufactured with  
                recombinant biotechnology techniques, provided  
                manufacturer supply exists and payer authorization is  
                obtained.

             F.    Supply all necessary ancillary infusion equipment  
                and supplies with each prescription, as needed.

             G.    Maintain adequate stocks of blood clotting  
                products and ancillary infusion equipment and  
                supplies.

             H.    Store and ship, or otherwise deliver, all blood  
                clotting products in conformity with all state and  
                federally mandated standards, including, but not  
                limited to, the standards set forth in the product's  
                approved package insert.

             I.    When home nursing services are prescribed by the  
                treating physician, to offer these services either  
                directly or through a qualified third party with  
                experience in infusing bleeding disorders and  
                coordinate pharmacy services with the third party  

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                when one is used to provide home nursing services.

             J.    Upon receiving approved authorization for a  
                non-emergency prescription, to ship the prescribed  
                blood clotting products and ancillary infusion  
                equipment and supplies to the consumer within two  
                business days for established customers and three  
                business days for new customers.

             K.    Upon receiving approved authorization to dispense  
                a prescription for an emergency situation, to deliver  
                prescribed blood products, ancillary infusion  
                equipment and supplies, medications, and home nursing  
                services to the consumer within 12 hours after  
                receipt of the prescription for patients living  
                within 100 miles of a major metropolitan airport, and  
                within one day for patients living more than 100  
                miles from a major metropolitan airport.

             L.    Maintain 24-hour on call service seven days a week  
                for every day of the year, adequately screen phone  
                calls for emergencies, and acknowledge all phone  
                calls within one hour or less.

             M.    Provide consumers who have ordered their products  
                a designated contact phone number for reporting  
                problems with a delivery and respond to these calls  
                immediately.

             N.    Provide patients notification of recalls and  
                withdrawals of blood clotting products and ancillary  
                infusion equipment within 24 hours and requires  
                providers to participate in the National Patient  
                Notification System for blood clotting product  
                recalls.

             O.    Provide language translation services, both over  
                the phone and in person, as needed by the consumer.

             P.    Have a detailed plan for fulfilling their  
                requirements in the event of a natural or manmade  
                disaster or other disruption of normal business  
                operations.


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             Q.    Provide for proper collection, removal, and  
                disposal of hazardous waste pursuant to state and  
                federal law, including, but not limited to, sharps  
                containers for the removal and disposal of medical  
                waste.

             R.    Clearly inform a consumer of his/her co-pay,  
                deductible, and coinsurance payment responsibilities  
                initially and when changed by the consumer's  
                insurance, health plan, or other third-party payer.

             S.    Provide consumers with a copy of all billing  
                invoices.

             T.    Provide appropriate and necessary recordkeeping  
                and documentation as required by state and federal  
                law and retain copies of the patient's prescriptions.

             U.    Comply with the privacy and confidentiality  
                requirements of the Health Insurance Portability and  
                Accountability Act of 1996 (HIPAA).

          3. Requires the Board to enforce and administer the  
             provisions of the article.

           Background

           According to information provided by the bill's sponsor,  
          hemophilia is a rare, hereditary bleeding disorder  
          affecting close to 17,000 people in the United States,  
          approximately 4,000 of whom live in California.  Von  
          Willebrand disease, another bleeding disorder, affects  
          approximately 360,000 Californians.  People born with  
          hemophilia have little or no clotting factor, the protein  
          needed for normal blood clotting.  Until the 1970s, people  
          with severe hemophilia suffered from uncontrollable  
          internal bleeding, orthopedic deformities and a shortened  
          lifespan.  Recent inventions and production of highly  
          purified blood clotting factors have helped give additional  
          quality of life to those living with bleeding diseases.   
          Factor products on the market today are usually free from  
          previous risks like HIV and hepatitis as a result of  
          contaminated material.


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          Bleeding diseases are not curable but are treatable, often  
          through intravenous (IV) injection or infusion of  
          prescription blood clotting products several times per  
          week.  A variety of blood clotting products, produced by  
          various pharmaceutical manufactures, can be prescribed to   
          temporarily replace the missing clotting factors in order  
          to prevent or correct bleeding episodes.  To properly  
          administer blood clotting factors, patients must often use  
          ancillary supplies and equipment, such as syringes,  
          tourniquets, gauze, and alcohol swabs.  Blood clotting  
          products are generally expensive and require special  
          handling, including storage at certain temperatures, and  
          sensitivity to extreme exposure to light.  The Centers for  
          Disease Control (CDC) recommends timely access to  
          hemophilia treatment and the products and services related  
          to that treatment.

          Treatment is available to people with hemophilia and others  
          suffering bleeding disorders at federally funded Hemophilia  
          Treatment Centers (HTCs) or by prescription at pharmacies  
          licensed in the state.  The CDC reports that patients  
          treated at HTCs significantly reduce their morbidity and  
          mortality.  There are over 140 HTCs in the nation which  
          provide both diagnostic and treatment services to people  
          with hemophilia and other bleeding disorders, combining the  
          efforts of physicians, nurses, social workers, physical  
          therapists, orthopedists and dentists to comprehensively  
          serve patients.

          In California, many blood clotting product providers are  
          specialty care pharmacies.  While these pharmacies may  
          specialize in the provision of treatments and supplies to  
          individuals with specific chronic diseases, they are not  
          licensed according to different standards than other  
          pharmacies.  Specialty pharmacies often ship or deliver  
          blood clotting products to the homes of individuals with  
          hemophilia, and other bleeding disorders, and when  
          necessary, provide or arrange for nursing services to  
          patients who may need assistance with infusion of the blood  
          clotting products.

          Various other states including California have attempted to  
          establish standards for blood clotting products, including  
          Massachusetts, Missouri, Pennsylvania and New Jersey.  New  

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          Jersey enacted that state's "Standards of Care in  
          Hemophilia Homecare Law" that was enacted in 2000.  The  
          primary issue was a requirement by insurers that people  
          with hemophilia worked with certain home care companies  
          with which they had contracts.  The Hemophilia Association  
          of New Jersey found that often times, not all home care  
          companies were familiar with hemophilia care, needs, and  
          complications.  New Jersey now requires all insurance  
          carriers that provide coverage for the home treatment of  
          hemophilia to contract with home care providers that comply  
          with certain minimum standards of care developed by  their  
          Department of Health and Senior Services, in consultation  
          with the Hemophilia Association.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/17/10) (prior version of the bill)

          Hemophilia Council of California (source)
          California Medical Association
          CSL Behring
          Federal Hemophilia Treatment Center - Region IX
          Grifols
          Herndon Pharmacy
          National Hemophilia Foundation
          Plasma Protein Therapeutics Association
          UCSF Hemophilia Treatment Center

           OPPOSITION  :    (Verified  5/17/10) (prior version of the  
          bill)

          California Children's Hospital Association
          California Hospital Association
          California Pharmacists Association
          Kaiser Permanente Medical Program

           ARGUMENTS IN SUPPORT  :    According to the author and the  
          bill's sponsor, the Hemophilia Council of California, there  
          are currently no standards of service in state law  
          governing the proper storage and delivery of blood clotting  
          products and this bill will protect the health of people  
          with coagulation disorders who use these products at home.   
          The sponsor cites, as a need for a state standard, a recent  

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          situation in which a northern California pharmacy delivered  
          clotting factor product to a patient and left it on their  
          doorstep where the product subsequently spoiled in the  
          heat.  The author and sponsor also note that pharmacies and  
          other entities specializing in the delivery of blood  
          clotting products for home use form a growing segment in  
          California and standards will "benefit people with  
          hemophilia and other bleeding disorders, as well as  
          maintain the current cost effective model for care for  
          future generations."  The sponsor also states that  
          California needs to have equal standards for all companies  
          distributing clotting factor in order to protect people  
          with bleeding disorders from companies that may not  
          properly store or distribute clotting factor.

           ARGUMENTS IN OPPOSITION  :    The California Pharmacists  
          Association has an "oppose unless amended" position on this  
          bill because of a number of provisions that are  
          "problematic for the smaller pharmacies that dispense blood  
          factor and other medications" to those with bleeding  
          diseases.  "If these requirements were imposed on the  
          smaller pharmacies serving those with Hemophilia, most  
          would be forced to discontinue providing these products."  
           

          CTW:mw  6/1/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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