BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 971
                                                                  Page  1


          SENATE THIRD READING
          SB 971 (Pavley)
          As Amended August 9, 2010
          Majority vote 

           SENATE VOTE  :34-0  
           
           HEALTH              19-0        BUSINESS & PROFESSIONS      11-0
           
           ----------------------------------------------------------------- 
          |Ayes:|Monning, Fletcher,        |Ayes:|Hayashi, Conway, Eng,     |
          |     |Ammiano, Carter, Conway,  |     |Hernandez, Hill, Ma,      |
          |     |De La Torre, De Leon,     |     |Nava, Niello, Ruskin,     |
          |     |Eng, Gaines, Hayashi,     |     |Smyth, Nestande           |
          |     |Hernandez, Jones, Bonnie  |     |                          |
          |     |Lowenthal, Nava,          |     |                          |
          |     |V. Manuel Perez, Salas,   |     |                          |
          |     |Smyth, Audra Strickland,  |     |                          |
          |     |Gilmore                   |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-0                                        
           
           -------------------------------- 
          |Ayes:|Fuentes, Conway,          |
          |     |Bradford,                 |
          |     |Charles Calderon, Coto,   |
          |     |Davis,                    |
          |     |De Leon, Gatto, Hall,     |
          |     |Harkey, Miller, Nielsen,  |
          |     |Norby, Skinner, Solorio,  |
          |     |Torlakson, Torrico        |
          |     |                          |
           -------------------------------- 
           SUMMARY  :  Establishes requirements governing entities that  
          provide blood clotting products for home use in the treatment of  
          hemophilia and other bleeding disorders and designates the Board  
          of Pharmacy to administer and enforce these provisions.   
          Specifically,  this bill  :   

          1)Makes various legislative findings and declarations relating  
            to establishing standards of service for entities that deliver  
            blood clotting products for home use and promoting timely  
            access to a full range of blood clotting products and  








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            high-quality services for home use for persons with hemophilia  
            and other bleeding disorders.

          2)Establishes various definitions for purposes of this bill.   
            Defines "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, that  
            is used for the treatment and prevention of symptoms  
            associated with bleeding disorders.

          3)Defines "provider of blood clotting products" as all of the  
            following pharmacies that dispense blood clotting factors for  
            home use: 

             a)   Hospital and health system pharmacies, except those that  
               dispense blood clotting products due only to emergency,  
               urgent care, or inpatient encounters, or discharge an  
               inpatient with a supply of blood clotting products for home  
               use;

             b)   Pharmacies affiliated with hemophilia treatment centers;  


             c)   Specialty home care pharmacies; and,

             d)   Retail pharmacies.

          4)Requires each provider of blood clotting products for home use  
            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, as specified;

             b)   Have access to a provider with sufficient clinical  
               experience serving people 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  








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               factors, 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;

             d)   Have the ability to obtain all brands of blood clotting  
               products approved by the federal Food and Drug  
               Administration, as specified, provided manufacturer supply  
               exists and payer authorization is obtained;

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

             f)   Store and ship, or otherwise deliver, all blood clotting  
               products in conformity with all state and federally  
               mandated standards, as specified;

             g)   Provide home nursing services either directly or through  
               a qualified third party with experience in treating  
               bleeding disorders, when deemed necessary by the treating  
               physician, and coordinate pharmacy services with the third  
               party provider;

             h)   Adhere to various shipping and delivery requirements for  
               blood clotting products and ancillary infusion equipment  
               upon receiving approved authorization for nonemergency and  
               emergency prescriptions, provided manufacturer supply  
               exists, as specified;

             i)   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;

             j)   Notify patients of federal recalls and withdrawals of  
               blood clotting products and ancillary infusion equipment  
               within 24 hours of the provider receiving notification and  
               participate in the National Patient Notification System for  
               blood clotting product recalls;

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

             bb)  Have a detailed plan for meeting the requirements of  








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               this bill in the event of a natural or manmade disaster or  
               other disruption of normal business operations;

             cc)  Properly collect, remove, and dispose of medical waste  
               in accordance with current law governing medical waste;

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

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

          5)Directs the California Board of Pharmacy (Board) to administer  
            and enforce the requirements of this bill.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor absorbable workload to the Board to provide  
          oversight related to requirements established by this bill  

           COMMENTS  :  According to the author, this bill will impose  
          statewide standards for 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 author states that pharmacies and other entities  
          specializing in the delivery of blood clotting products and  
          related equipment, supplies, and services for home use represent  
          a growing segment of providers in California but there are  
          currently no formal standards of service in California to  
          regulate them.  

          As of July 1, 2010, pharmacies providing blood clotting factors  
          to patients in the Medi-Cal Program, the California Children's  
          Services Program, and the Genetically Handicapped Persons  
          Program must sign contracts with the state indicating that they  
          agree to meet standards similar to the standards set forth in  
          this bill.  According to information from the Department of  
          Health Care Services, these specialty contracts for blood factor  
          products require participating providers to meet various  
          performance obligations with regard to pharmacy provider staff  
          knowledge; storage, handling, and delivery of clotting factor  
          concentrates and ancillary supplies; processing of prescription  
          orders; hours of operation and access to staff; and,  








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          recordkeeping, billing, and product recalls.  The author  
          contends that this bill will ensure that the standards in these  
          contracts are codified in statute to ensure that pharmacies have  
          proper safeguards in place to provide for the safety and  
          well-being of publicly- and privately-insured patients in  
          California who have hemophilia or other bleeding disorders.   

          Providers, manufacturers of blood clotting products, and patient  
          advocacy groups support this bill because it would establish  
          crucial standards of care for health care entities that deliver  
          blood factor products to people with hemophilia and other  
          life-threatening blood disorders in the home setting.  The  
          sponsor of this bill, the Hemophilia Council of California  
          points out that the state has a long history of ensuring that  
          patients have access to care delivered by medical professionals  
          with vast experience treating bleeding disorders and this bill  
          will ensure that patients get the same high quality care and  
          service from pharmacy providers.

          Kaiser Permanente opposes this bill because it would set a  
          precedent to make all products available for all chronic care  
          patients, such as diabetics and asthmatics, for example.  Kaiser  
          adds that its physicians have the ability, independent of health  
          plan approval, to prescribe off the formulary if they feel it is  
          in the best interest of the patient.  The Department of Consumer  
          Affairs also objects to this bill, arguing that it is unclear  
          what problem this bill seeks to remedy given that it is the  
          Department's understanding that, at present, the general level  
          of service and care received by bleeding disorder patients is  
          high; and, furthermore, the bulk of the provisions of this bill  
          are already included in applicable Medi-Cal contracts.


           Analysis Prepared by  :    Cassie Rafanan / HEALTH / (916)  
          319-2097 


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