BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 137
                                                                  Page  1

          Date of Hearing:   May 11, 2011 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 137 (Portantino) - As Introduced:  January 12, 2011 

          Policy Committee:                              HealthVote:18-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires health insurance plans to cover mammography 
          upon a provider's referral.  It also requires both health care 
          service plans and health insurance plans to notify subscribers 
          and policyholders regarding recommended timelines for an 
          individual to undergo tests for the screening or diagnosis of 
          breast cancer. 

           FISCAL EFFECT  

          1)The California Health Benefits Review Program (CHBRP) 
            indicates that, based on their review, all plans in California 
            affected by this bill are already compliant with both the 
            coverage and notification requirements.  Thus, they estimate 
            no impact on coverage for mammograms and no associated cost. 

          2)Federal regulations implementing the federal health reform 
            law, the Patient Protection and Affordable Care Act (ACA) 
            (PL-111-148), may impact the costs of this bill in future 
            years.  However, as mammography is widely covered and 
            considered a standard preventative service, it is unlikely 
            that there would be additional future state costs associated 
            with this bill.

           COMMENTS  

           1)Rationale  . According to the author, this bill updates the 
            statute governing insurance coverage of mammography to remove 
            obsolete age-based screening guidelines and instead require 
            coverage based on the referral of a medical provider. In 
            addition, the author states that given the recent confusion 
            created by the release of new guidelines on when a woman 








                                                                  AB 137
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            should begin to be screened, the information required to be 
            disclosed by this bill on when women should begin screening is 
            vital to the health of women in California.

           2)Mandates and the Affordable Care Act (ACA)  .  The ACA creates 
            new state-run health insurance exchanges that will likely 
            provide coverage to millions of Californians beginning in 
            2014, and requires that health plans offered through an 
            exchange cover certain categories of benefits, called 
            Essential Health Benefits (EHBs). The Secretary of Health and 
            Human Services (HSS) is expected to publish guidance later in 
            2011 and 2012 that will further define these categories. These 
            definitions will have important fiscal implications for the 
            state.  

            The ACA specifies that if states require plans in the exchange 
            to offer additional benefits that go beyond the defined EHBs, 
            then states must pay the additional cost related to those 
            mandates. At this time, there are a number of outstanding 
            questions related to how federally defined EHBs will interact 
            with state-level benefit mandates. 

            According to federal law, EHBs are to resemble what is 
            typically included in an employer health plan.  CHBRP 
            indicates that it is likely that all employer-based plans 
            already comply with the requirements of this bill. Therefore 
            it is unlikely that this bill would result in increased future 
            state costs.
           
          3)Related Legislation  . AB 113 (Portantino) of 2010 was identical 
            to this bill.  Governor Schwarzenegger vetoed AB 113, stating, 
            in part, that it was unnecessary and had no practical impact 
            on the current state of health coverage in California.

            AB 56 (Portantino) of 2009 was similar to this bill. AB 56 was 
            vetoed due to affordability concerns with regard to health 
            coverage and the premium pressures created by this and other 
            health mandates.

            AB 2234 (Portantino) of 2008 would have required health plans 
            and health insurers to provide coverage for tests necessary 
            for screening or diagnoses of breast conditions, in accordance 
            with national guidelines, upon referral of a specified health 
            care provider and required health plans and health insurers to 
            notify female enrollees or policyholders in writing of their 








                                                                  AB 137
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            eligibility for testing.  AB 2234 was held on the Suspense 
            file of this committee.

           4)Other Mandates in the Current Session  . There are 14 health 
            mandates proposed this year, including AB 137. Other mandates 
            in the current session include: 

             a)   AB 72 (Eng): Acupuncture
             b)   AB 154 (Beall): Mental Health Services
             c)   AB 171 (Beall): Autism
             d)   AB 185 (Hernandez): Maternity Services 
             e)   AB 310 (Ma): Prescription Drugs
             f)   AB 369 (Huffman): Pain Prescriptions 
             g)   AB 428 (Portantino): Fertility Preservation
             h)   AB 652 (Mitchell): Child Health Assessments
             i)   AB 1000 (Perea): Cancer Treatment
             j)   SB 136 (Yee): Tobacco Cessation
             aa)  SB 155 (Evans): Maternity Services
             bb)  SB 173 (Simitian): Mammograms
             cc)  SB 255 (Pavley): Breast Cancer

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081