BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 389
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           Date of Hearing:   March 22, 2011

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                   AB 389 (Mitchell) - As Amended:  March 15, 2011
           
          SUBJECT  :   Bleeding disorders.

           SUMMARY  :   Establishes requirements for providers of blood 
          clotting products for home use (providers) to treat hemophilia 
          and other bleeding disorders.  Specifically,  this bill  :

          1)Establishes the Standards of Service for Providers of Blood 
            Clotting Products for Home Use Act (Act), and designates the 
            California State Board of Pharmacy (Board) to enforce the Act.

          2)Requires providers to meet 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)   Maintain 24-hour on-call service seven days a week for 
               every day of the year, adequately screen telephone calls 
               for emergencies, acknowledge all telephone calls within one 
               hour or less, and 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 








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               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 including, but not limited to, the 
               standards set forth in the product's approved package 
               insert;

             g)   Provide home nursing services when determined to be 
               necessary 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 for established and new 
               patients, upon receipt of approved authorization for a 
               nonemergency prescription;

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

             aa)  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 receiving notification, and participate in the 
               national Patient Notification System for blood clotting 
               product recalls;








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

             cc)  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;

             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 federal Health Insurance Portability and 
               Accountability Act of 1996.

          3)Exempts 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 from the requirements of this bill.

          4)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, 
               syringes, needles, sterile gauze, filled 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, without treatment, result in 
               uncontrollable bleeding or abnormal blood clotting;

             d)   "Blood clotting product" means an intravenously 








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               administered medicine manufactured from human plasma or 
               recombinant biotechnology techniques, approved for 
               distribution by the 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" means care as defined in current law, as 
               specified;

             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 Service Administration of the 
               United States Department of Health and Human Services;

             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 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" means 
               all the following pharmacies, except for those exempted 
               from these requirements as specified:

               i)     Hospital pharmacies;








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               ii)    Health system pharmacies;

               iii)   Pharmacies affiliated with hemophilia treatment 
                 centers;

               iv)    Specialty home care pharmacies; and,

               v)     Retail pharmacies.

          5)Clarifies that providers may provide home nursing services for 
            persons with bleeding disorders.

          6)Requires providers and all affiliated providers to include a 
            health care service plan if the health care service plan 
            exclusively contracts with a single medial group in a 
            specified geographic area to provide professional services to 
            its enrollees.

          7)Adds a course on bleeding disorders, with particular emphasis 
            on von Willebrand disease, using the latest treatment 
            guidelines adopted by the National Heart, Lung, and Blood 
            Institute to the continuing education requirements under 
            consideration by the Division of Licensing of the Medical 
            Board of California.

          8)Makes legislative findings and declarations.

           EXISTING LAW  :

          1)Establishes the Board within the Department of Consumer 
            Affairs 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, 
            administering drugs and biologics, such as blood clotting 
            products, by injection, pursuant to a prescriber's order.









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          4)Establishes the Genetically Handicapped Persons Program, 
            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  .  According to the author's office, "AB 389 will 
          establish standards of service for pharmacies that deliver blood 
          clotting products and related equipment, supplies, and services 
          for home use and would promote access to a full range of 
          essential, cost effective, life-saving, blood clotting products 
          and related equipment, supplies for home use for people who have 
          hemophilia, von Willebrand disease and other bleeding 
          disorders."

           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 factors 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 
          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.    









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          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.

          This bill seeks to standardize the pharmacy requirements for 
          both public and private pay individuals needing clotting 
          products.  This bill is a substantially similar to SB 971 
          (Pavley) of 2010, which was vetoed.  In his veto message, the 
          governor stated SB 971 "?is unnecessary and attempts to create 
          additional standards that are already being adequately enforced 
          through other regulatory and administrative mechanisms.  Since 
          the current standards of practice for blood clotting products 
          and service are already being met through state and federal 
          pharmacy laws, voluntary compliance and existing state contract 
          provisions, it is unclear what problem this bill seeks to 
          address."

           Support  .  The sponsor of this bill, the Hemophilia Council of 
          California, writes in support, "Currently, pharmacies in 
          California wishing to provide clotting factor to patients in 
          Medi-Cal, California Children's Services, or the genetically 
          Handicapped Persons Program must sign contracts with the State 
          which include strict standards for the storage and delivery of 
          clotting factor to patients.  We believe it is critical to 
          ensure that these standards are codified in statute for future 
          generations for both the public and private pay patients in 
          California."

           Previous legislation  .  

          SB 971 (Pavley) of 2010, 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 to administer and enforce these provisions. 
           This bill was vetoed.








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          SB 1594 (Steinberg) of 2008, establishes standards and requires 
          regulations for entities that provide blood products to homes, 
          directs the Department of Health Care Services to establish the 
          necessary protocols and regulations, and directs the Board to 
          administer and enforce the measure.  This bill was held in the 
          Senate Appropriations Committee.


           
          Double referred  .  This bill is double-referred to the Assembly 
          Health Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Hemophilia Council of California (sponsor)
          California Society of Health-System Pharmacists
          Community Healthcare Services
          CSL Behring
          Grifols, Inc.
          Federal Hemophilia Treatment Centers Region IX
          Herndon Pharmacy
          National  Cornerstone Healthcare Services Inc.
          Red Chip Enterprises
          Walgreens

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Rebecca May / B.,P. & C.P. / (916) 
          319-3301