BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 971
                                                                  Page  1

          Date of Hearing:   June 29, 2010

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                                 Mary Hayashi, Chair
                     SB 971 (Pavley) - As Amended:  June 23, 2010

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Bleeding disorders: blood clotting products.

           SUMMARY  :   Establishes requirements for entities providing blood  
          clotting products for home use (providers) to treat hemophilia  
          and other bleeding disorders; designates the Board of Pharmacy  
          (Board) to administer and enforce these provisions.   
          Specifically,  this bill :   

          1)Requires providers to 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 high-quality service for  
               the patient and the medical and psychosocial management  
               thereof, including, but not limited to, home therapy;

             b)   Have access to a provider with sufficient clinical  
               experience providing services to persons with bleeding  
               disorders that enables the provider to know when patients  
               have an appropriate supply of clotting factor on hand and  
               about proper storage and refrigeration of clotting factors;

             c)   Have access to knowledgeable pharmacy staffing on call  
               24 hours a day to initiate emergency requests for clotting  
               factors;

             d)   Have the ability to obtain all brands of blood clotting  
               products approved by the federal Food and Drug  
               Administration (FDA) in multiple assay ranges (low, medium,  
               and high, as applicable) 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.

             e)   Supply all necessary ancillary infusion equipment and  
               supplies with each prescription, as needed;








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             f)   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 (PI);

             g)   Provide home nursing services, as determined by the  
               treating physician, either directly or through a qualified  
               third party with experience in treating bleeding disorders  
               and coordinate pharmacy services with the third party when  
               one is used to provide home nursing services;

             h)   Ship the prescribed blood clotting products and  
               ancillary infusion equipment and supplies to the patient  
               within two business days or less upon receiving approved  
               authorization for a nonemergency prescription, provided  
               manufacturer supply exists;

             i)   Deliver prescribed blood products, ancillary infusion  
               equipment and supplies, medications, and home nursing  
               services to the patient within 12 hours 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 upon receiving approved  
               authorization to dispense a prescription for an emergency  
               situation, provided manufacturer supply exists;

             j)   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;

             aa)  Provide patients who have ordered their products with a  
               designated contact phone number for reporting problems with  
               a delivery and respond to these calls within a reasonable  
               time period;

             bb)  Provide patients with notification of Class 1 and Class  
               2 recalls and withdrawals of blood clotting products and  
               ancillary infusion equipment within 24 hours of the  
               provider of blood clotting products for home use receiving  
               notification and participate in the National Patient  
               Notification System for blood clotting product recalls;









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             cc)  Provide language interpretive services over the phone or  
               in person, as needed by the patient;

             dd)  Have a detailed plan for meeting the requirements of  
               this bill in the event of a natural or manmade disaster or  
               other disruption of normal business operations;

             ee)  Provide the patient with a sharps container and  
               instructions as to how to dispose of the medical waste  
               sharps; however, the provider shall not be liable for any  
               acts or omissions of the patient in the handling and  
               disposal of medical waste;

             ff)  Provide appropriate and necessary recordkeeping and  
               documentation as required by state and federal law and  
               retain copies of the patient's prescriptions; and,

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

          2)Requires the Board to administer and enforce this bill.

          3)Permits providers to provide home nursing services for persons  
            with bleeding disorders, and requires them to include a health  
            care service plan and all its affiliated providers, if the  
            health care service plan exclusively contracts with a single  
            medical group in a specified geographic area to provide  
            professional services to its enrollees.

          4)Prohibits any provisions of this bill from applying to either  
            hospital pharmacies or health system pharmacies that dispense  
            blood clotting products due only to emergency, urgent care, or  
            inpatient encounters, or if an inpatient is discharged with a  
            supply of blood clotting products for home use.

          5)Defines the following terms:

             a)   "Assay" means 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" means the  
               equipment and supplies required to infuse a blood clotting  
               product into a human vein, including, but not limited to,  








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               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" means 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" means an intravenously  
               administered medicine manufactured from human plasma or  
               recombinant biotechnology techniques, approved for  
               distribution by the federal FDA, that is used for the  
               treatment and prevention of symptoms associated with  
               bleeding disorders.  Blood clotting products include, but  
               are not limited to, Factor VII, Factor VIIa, Factor VIII,  
               and Factor IX products, von Willebrand Factor products,  
               bypass products for patients with inhibitors, and activated  
               prothrombin complex concentrates;

             e)   "Emergency care" means medical screening, examination,  
               and evaluation by a physician, or, to the extent permitted  
               by applicable law, by other appropriate personnel under the  
               supervision of a physician, to determine if an emergency  
               medical condition or active labor exists and, if it does,  
               the care, treatment, and surgery by a physician necessary  
               to relieve or eliminate the emergency medical condition,  
               within the capability of the facility;

             f)   "Hemophilia" means 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;

             g)   "Hemophilia treatment center" means a facility for the  
               treatment of bleeding disorders, including, but not limited  
               to, hemophilia, that receives funding specifically for the  
               treatment of patients with bleeding disorders from federal  
               government sources, including, but not limited to, the  
               federal Centers for Disease Control and Prevention and the  
               federal Health Resources and Services Administration of the  
               United States Department of Health and Human Services;









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             h)   "Home nursing services" means specialized nursing care  
               provided in the home setting to assist a patient in the  
               reconstitution and administration of blood clotting  
               products;

             i)   "Home use" means infusion or other use of a blood  
               clotting product in a place other than a state-recognized  
               hemophilia treatment center or other clinical setting,  
               including, without limitation, a home or other nonclinical  
               setting;

             j)   "Patient" means a person needing a blood clotting  
               product for home use; and,

             aa)  "Provider of blood clotting products for home use"  
               (provider) means all the following pharmacies, except as  
               specified, that dispense blood clotting factors for home  
               use:

               i)     Hospital pharmacies;

               ii)    Health system pharmacies;

               iii)   Pharmacies affiliated with hemophilia treatment  
                 centers;

               iv)    Specialty home care pharmacies; and,

               v)     Retail pharmacies.

          6)Declares legislative intent. 

           EXISTING LAW  :

          1)Establishes the Board within the Department of Consumer  
            Affairs (DCA) to regulate the practice of pharmacy and the  
            licensing of pharmacies and pharmacists.

          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)Allows pharmacists to perform certain procedures under  
            specified conditions, including, among other things,  








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            administering drugs and biologics, such as blood clotting  
            products, by injection, pursuant to a prescriber's order.

          4)Establishes the Genetically Handicapped Persons Program  
            (GHPP), administered by the Department of Health Care  
            Services, to provide for the medical care of adults with  
            certain genetic diseases, including hemophilia.

          5)Establishes the federal FDA to regulate the manufacture of  
            pharmaceuticals derived from blood and blood components, such  
            as blood clotting products, including establishing standards  
            for those products for shipping, storage, and delivery,  
            inspecting products, approving products for use by patients,  
            and recalling products that may be defective or potentially  
            harmful.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "The  
          intent of the bill is to place standards in state law regarding  
          the proper storage and delivery of blood clotting factor, a  
          prescribed biologic that is infused several times per week by  
          people with Hemophilia and other bleeding disorders.  The bill  
          would set standards in place for the delivery of clotting factor  
          and other related equipment and supplies for home usage. 

          "In previous years, some pharmacies have mishandled clotting  
          factor through improper storage and delivery  - posing a health  
          risk to patients.  This bill would ensure that pharmacies have  
          proper safeguards in place to ensure the safety and well-being  
          of patients." 

           Background  .  Hemophilia is a rare, hereditary bleeding disorder  
          affecting approximately 4,000, mostly male, Californians.  It is  
          a chronic, lifelong, and incurable, but treatable disease marked  
          by the absence of clotting factors that stop bleeding.  Lack of  
          clotting factor causes hemophiliacs to bleed for longer periods  
          of time and results in internal bleeding, primarily in muscles  
          and joints.  Without treatment, hemophilia can cause pain,  
          severe joint damage, disability, and early death.  
             
          Hemophilia and other bleeding disorders are treated by replacing  
          the missing clotting factor in the blood.  Clotting factors are  








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          approved by the FDA and can only be used with a prescription.   
          Proper administration of blood clotting products requires the  
          use of ancillary supplies and equipment, including syringes,  
          tourniquets, gauze, and alcohol swabs.  Blood clotting products  
          are generally expensive and require special storage and  
          handling.    

          Most blood clotting product providers in the state are specialty  
          care pharmacies.  However, all pharmacies are permitted under  
          their license to supply such products.  Specialty care  
          pharmacies specialize in providing treatments and supplies to  
          individuals with particular chronic diseases.  Generally, they  
          focus their services on targeted patient populations, rather  
          than the needs of the general public.  These types of pharmacies  
          usually ship or deliver blood clotting products to the homes of  
          individuals with hemophilia and other clotting disorders and,  
          when necessary, provide or arrange for nursing services to  
          patients who need assistance with infusing the blood factor  
          products.  According to the bill's sponsor, there have been  
          incidences in the past of non-specialty pharmacies failing to  
          handle clotting factors appropriately.   

          As of July 1, 2010, pharmacies providing blood clotting factors  
          to patients in the Medi-Cal Program, the California Children's  
          Services Program, and GHPP must agree to standards similar to  
          those in this bill.  These requirements were adopted two years  
          ago as part of the State Budget.  According to the Board, the  
          pharmacies affected by this agreement represent approximately  
          half of those serving California's hemophilia population.   

          This bill seeks to standardize the pharmacy requirements for  
          both public and private pay individuals needing clotting  
          products.  

           Previous legislation  .  SB 1594 (Steinberg) of 2008 would have  
          imposed requirements on providers of blood clotting products for  
          home use that are used to treat hemophilia and other bleeding  
          disorders.  SB 1594 was held in the Senate Appropriations  
          Committee Suspense File.

           Arguments in support  .  CSL Behring writes, "It is essential that  
          individuals with bleeding disorders receive timely access to the  
          full range of blood clotting therapies, including blood clotting  
          products and ancillary infusion equipment and supplies.  When  
          patients do not receive optimal service from providers, there is  








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          potential for painful and sometimes crippling injury to the  
          joints and organs.  The recommendations and standards  
          established by the Medical Science Advisory Council of the  
          National Hemophilia Foundation and set forth in this legislation  
          are found to be cost-effective and reduce mortality and  
          bleeding-related hospitalization.  

           Arguments in opposition  .  DCA writes, "[We] appreciate the  
          intent of this bill.  However, DCA believes that an adequate  
          case as to why existing law is insufficient has not been made.   
          It is our understanding that, at present, the general level of  
          service and care received by bleeding disorder patients is high.  
           Furthermore, the bulk of the provisions of this bill are  
          already due to be included in applicable Medi-Cal contracts.   
          Therefore, DCA has not been shown what problem this bill seeks  
          to rectify."

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Hemophilia Council of California (sponsor)
          California Medical Association
          CSL Behring 
          Federal Hemophilia Treatment Centers/Region IX
          Grifols Inc. 
          Herndon Healthcare, Inc.
          National Hemophilia Foundation
          Plasma Protein Therapeutics Association
           
            Opposition 
           
          Department of Consumer Affairs

           Analysis Prepared by  :    Sarah Weaver / B.,P. & C.P. / (916)  
          319-3301