BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 389
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          Date of Hearing:   April 5, 2011

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                   AB 389 (Mitchell) - As Amended:  March 30, 2011
           
          SUBJECT  :  Bleeding disorders.

           SUMMARY  :  Prescribes requirements governing entities that 
          provide blood clotting products for home use in the treatment of 
          hemophilia and other bleeding disorders and charges the Board of 
          Pharmacy (Board) with administering and enforcing 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 essential, cost effective, 
            lifesaving, blood clotting products and 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 
            (FDA), 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)Clarifies that providers in 3) above may provide home nursing 








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            services for persons with bleeding disorders.

          5)Requires the providers in 3) above to include a health care 
            service plan and all its affiliated providers if the plan 
            exclusively contracts with a single medical group in a 
            specified geographic area to provide professional services to 
            its enrollees.

          6)Requires each provider 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 
               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 FDA, 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;








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

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

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

          7)Directs the Board to administer and enforce the requirements 
            of this bill.
           
          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 








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            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.

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

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

          6)Establishes the 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 the products, approving them for use by patients, 
            and recalling products that may be defective or potentially 
            harmful.

           FISCAL EFFECT  :   This bill has not yet been analyzed by a fiscal 
          committee.  

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, people with 
            hemophilia, von Willebrand disease, and other bleeding 
            disorders often need to receive intravenous injection or 
            infusion of lifesaving prescription blood clotting factor 
            products several times a week.  Most patients use these 
            products at home.  The author notes that, currently, 
            pharmacies that provide clotting factor to patients on state 
            programs, such as Medi-Cal and GHPP, must comply with 
            standards that are included in written contracts with the 
            State.  The author points out that these standards are not 
            established for pharmacy providers with patients on private 
            insurance, and, as a result, these patients have endured some 
            difficulties in receiving their products.  This bill will 
            ensure that there are standards in state law to govern the 








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            proper storage and delivery of blood clotting products for 
            private pay patients.

           2)BLEEDING DISORDERS  .  Hemophilia is a rare, hereditary bleeding 
            disorder affecting approximately 4,000, mostly male, 
            Californians.  It is a chronic, lifelong, incurable yet 
            treatable disease marked by the absence of blood proteins, 
            called clotting factors, that work to stop bleeding.  Lack of 
            clotting factor causes hemophiliacs to bleed for longer 
            periods of time and generally results in internal bleeding, 
            primarily in muscles and joints.  Without treatment, 
            hemophilia can cause pain, severe joint damage, disability, 
            and early death.  Von Willebrand disease is another bleeding 
            disorder caused by a deficiency or defect of a blood clotting 
            protein called von Willebrand factor.  It is considered less 
            severe than hemophilia and is estimated to affect 360,000 
            Californians.   

           3)BLOOD CLOTTING PRODUCTS  .  Hemophilia and other bleeding 
            disorders are treated by replacing the missing clotting factor 
            in the blood through injections of additional blood clotting 
            factors into the bloodstream.  Clotting factors used to treat 
            hemophilia are approved by the FDA and can only be used with a 
            prescription.  Clotting factors are found in whole blood, 
            plasma, and recombinant factors, which are made in a 
            laboratory and do not involve human blood products.  A number 
            of blood clotting products, made by a variety of 
            pharmaceutical manufacturers, may be prescribed to temporarily 
            replace the missing clotting factors in order to prevent or 
            contain bleeding episodes.  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 as they are sensitive to 
            extreme exposure to light.    

           4)PUBLIC PROGRAMS  .  As of July 1, 2010, pharmacies providing 
            blood clotting factors to patients in Medi-Cal, the California 
            Children's Services Program, and the GHPP 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 DHCS, 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 








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            clotting factor concentrates and ancillary supplies; 
            processing of prescription orders; hours of operation and 
            access to staff; and, 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 privately-insured 
            patients in California who have hemophilia or other bleeding 
            disorders.   

           5)SPECIALIZED PHARMACIES  .  Many blood clotting product providers 
            in the state are specialty care pharmacies.  These 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.  Specialty care pharmacies are 
            subject to the same statutory and regulatory requirements as 
            traditional pharmacies, but they do not need to meet 
            additional licensing requirements in order to provide their 
            specialized services.  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, they provide or arrange for nursing services to 
            patients who need assistance with infusing the blood factor 
            products.

           6)PRIOR LEGISLATION  .

             a)   SB 971 (Pavley) of 2010, which was substantially similar 
               to this bill, was vetoed by Governor Schwarzenegger.  In 
               his veto message, the Governor stated that SB 971 was 
               unnecessary 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.

             b)   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 died on the Senate 
               Appropriations Committee Suspense File.

           7)SUPPORT  .  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 








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            that deliver blood factor products to people with hemophilia 
            and other life-threatening blood disorders in the home 
            setting.  The sponsor of this bill, Hemophilia Council of 
            California, writes that it is critical to ensure that the 
            strict standards for the storage and delivery of blood 
            clotting factor currently included in state contracts are 
            codified in statute for both public and private paying 
            patients in California.  Community Healthcare Services and 
            Walgreens state that this bill will promote access to a full 
            range of essential and cost effective blood clotting products 
            and related equipment to enable people with bleeding disorders 
            to lead normal lives, free of pain and crippling arthritis.  
            Pfizer notes in support that timely access to appropriate 
            blood clotting products and infusion services is extremely 
            cost effective and reduces mortality and bleeding-related 
            hospitalizations.  CSL Behring and other makers of 
            plasma-protein therapies write that individuals with blood 
            disorders need to receive timely access to the full range of 
            blood clotting therapies and the standards specified in this 
            bill will help make treatment for these patients 
            cost-effective and reduce mortality and bleeding-related 
            hospitalization.  

           8)DOUBLE REFERRAL  .  This bill is double referred.  It was heard 
            in the Assembly Committee on Business, Professions and 
            Consumer Protection on March 22, 2011 and passed out on a 9-0 
            vote.

           REGISTERED SUPPORT / OPPOSITION  :   

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









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           Opposition 
           
          None on file.

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