BILL ANALYSIS                                                                                                                                                                                                    �






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                       Senator Ed Hernandez, O.D., Chair


          BILL NO:       AB 389                                      
          A
          AUTHOR:        Mitchell                                    
          B
          AMENDED:       March 30, 2011                              
          HEARING DATE:  June 22, 2011                               
          3
          REFERRAL:      Business, Professions and Economic 
          Development    8
          CONSULTANT:                                                
          9
          Orr                                                        
                                                                     
                                                                     
                                     SUBJECT

                                Bleeding disorders
                                         

                                    SUMMARY  

          Establishes requirements for providers of blood clotting 
          products for home use to treat hemophilia and other 
          bleeding disorders.  


                             CHANGES TO EXISTING LAW
                                         
          Existing federal law:
          Requires the U.S. Food and Drug Administration (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. 

          Existing state law:
          Establishes various state programs, administered by the 
          Department of Health Care Services (DHCS), that provide 
                                                         Continued---



          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          2


          
          medical care for persons with certain genetically based 
          diseases, such as the Genetically Handicapped Person's 
          Program (GHPP). GHPP provides medical care for qualified 
          adults with genetically handicapping conditions, including 
          hemophilia. Another program, the California Children's 
          Services Program (CCS), provides health care for qualified 
          children with various diseases, including hemophilia or 
          other bleeding disorders.  

          Requires pharmacies to be licensed by the California Board 
          of Pharmacy.  Requires that California pharmacies meet 
          specified statutory and regulatory requirements, including 
          those relating to proper storage, handling, dispensing, and 
          disposal of drugs, staff training protocols, drug and 
          supply inventory, labeling, and maintenance of patient 
          confidentiality.   
          Authorizes pharmacists to perform specified procedures, in 
          accordance with procedures developed by physicians and 
          health facility administrators, including ordering or 
          performing routine drug therapy-related patient 
          assessments, ordering laboratory tests, initiating or 
          adjusting a patient's drug regimen, and administering drugs 
          and biologics, such as blood clotting products, by 
          injection, pursuant to a prescriber's order.  

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

          This bill:
          Establishes the Standards of Service for Providers of Blood 
          Clotting Products for Home Use Act. Requires that providers 
          of blood clotting products for home use must: 
             1)   Have sufficient knowledge and understanding of 
               bleeding disorders and have access to sufficient 
               clinical expertise in providing services to persons 
               with bleeding disorders in order to assess the 
               adequacy of patients' supplies of clotting factor and 
               to properly store and refrigerate products.
             2)   Have 24-hour access to knowledgeable pharmacy staff 
               in order to fill emergency requests for clotting 
               factors. Also have on-call service available 24 hours 
               a day to handle emergency requests for clotting 




          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          3


          
               factor, maintain on-call services all day, every day 
               of the year, screen calls for emergencies, and respond 
               to all calls within one hour.  
             3)   Be able to obtain all brands of FDA-approved 
               clotting products in multiple ranges and sizes and 
               supply all necessary ancillary infusion equipment and 
               supplies with each prescription.
             4)   Store, ship, and deliver products in accordance 
               with the product's approved package insert and state 
               and federally mandated standards.
             5)   Provide home nursing services directly or through a 
               qualified third party as necessary and determined by 
               the treating physician.
             6)   Ship nonemergency prescription clotting products 
               and ancillary equipment within two business days upon 
               authorization, provided the manufacturer supply 
               exists. Deliver clotting products, medications, 
               equipment and home nursing services within 12 hours 
               for patients living within 100 miles of a major 
               airport and within 1 day for other patients, upon 
               authorization and provided the manufacturer supply 
               exists. Provide patients with a contact number for 
               reporting problems with their delivery, and respond to 
               calls within a reasonable time period.
             7)   Alert patients to specified classes of recalls and 
               withdrawals of blood clotting products and ancillary 
               equipment, and participate in the National Patient 
               Notification System for product recalls.
             8)   Provide language translation services as needed by 
               the patient.
             9)   Have a detailed plan for meeting these requirements 
               in the event of a natural disaster or other disruption 
               of normal business operations.
             10)  Comply with federal and state recordkeeping and 
               documentation requirements and federal privacy and 
               confidentiality requirements.

          Defines "provider of blood clotting products" as all of the 
          following pharmacies that dispense blood clotting factors 
          for home use: 
             1)   Hospital pharmacies;
             2)   Health system pharmacies;
             3)   Pharmacies affiliated with hemophilia treatment 
               centers; 
             4)   Specialty home care pharmacies; and
             5)   Retail pharmacies.




          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          4


          

          Defines "provider of blood clotting product" to also 
          include a health care service plan and its affiliated 
          providers if the plan exclusively contracts with a single 
          medical group in a specific geographic area to provide 
          services to its enrollees.  

          Clarifies that providers of blood clotting products may 
          provide home nursing services for persons with bleeding 
          disorders.

          Requires the state Board of Pharmacy to enforce this bill's 
          provisions.

          Establishes various definitions for purposes of this bill.
          
          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.


                                  FISCAL IMPACT  

          The Assembly Appropriations Committee analysis estimates 
          minor absorbable costs to the California Board of Pharmacy 
          to provide oversight related to the requirements 
          established by this bill. 


                            BACKGROUND AND DISCUSSION
                                         
          The author aims to establish standards of service for 
          providers that deliver blood clotting products and related 
          equipment, supplies, and services for home use. The author 
          contends this bill will promote access to a full range of 
          essential, cost-effective, life-saving blood clotting 
          products and related equipment and supplies for home use 
          for people who have hemophilia, von Willebrand disease, and 
          other bleeding disorders.   

          Hemophilia and other bleeding disorders
          Hemophilia is a genetically inherited bleeding disorder 




          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          5


          
          that affects approximately 4,000 Californians, primarily 
          males.  Those with hemophilia are missing or have 
          dysfunctional proteins in their blood, called clotting 
          factors, which work to stop bleeding.  The lack of clotting 
          factor causes hemophiliacs to bleed for longer periods of 
          time, and generally results in internal bleeding, primarily 
          into muscles and joints.  Without treatment, hemophilia can 
          cause pain, severe joint damage, disability, and early 
          death.

          Bleeding disorders include von Willebrand disease, a blood 
          clotting disorder similar to hemophilia that is caused by a 
          deficiency or defect of a blood clotting protein called von 
          Willebrand factor which helps blood platelets to clot and 
          to seal off tears in injured blood vessels.  Both men and 
          women are affected by von Willebrand disease, which is 
          generally the least severe of the clotting disorders. 

          Blood clotting products
          According to the National Hemophilia Council, bleeding 
          disorders may occur spontaneously or after mild to severe 
          trauma. These bleeding disorders are treated by replacing 
          the missing clotting factor in the blood by injecting 
          additional blood clotting factors into the bloodstream. The 
          timing and severity of bleeding episodes are unpredictable, 
          even for patients on regularly scheduled treatment; thus 
          providers of clotting factor concentrates must be able to 
          effectively respond to varying frequency and dosing needs. 

          Clotting factors used to treat hemophilia are FDA-approved, 
          and may only be used with a prescription.  Clotting factors 
          may be found in whole blood, plasma, and recombinant 
          factors, which are made in a laboratory and do not use 
          human blood products. A variety of blood clotting products, 
          produced by various pharmaceutical manufactures, can be 
          prescribed to temporarily replace the missing clotting 
          factors in order to prevent or correct bleeding episodes.  
          To properly administer blood clotting factors, patients 
          must often use ancillary supplies and equipment, such as 
          syringes, tourniquets, gauze, and alcohol swabs.

          Blood clotting products are generally expensive, and 
          require special handling.  They should generally be stored 
          at certain temperatures, and are sensitive to extreme 
          exposure to light.





          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          6


          
          Hemophilia treatment centers (HTCs) 
          HTCs provide comprehensive diagnostic and treatment 
          services for individuals with hemophilia and other bleeding 
          disorders, through interdisciplinary teams that include 
          hematologists, nurses, social workers, physical therapists, 
          and orthopedists.  HTCs provide patient education on 
          self-care, and approximately 90 percent of severe 
          hemophilia patients seen at HTCs self-infuse their clotting 
          factors. HTCs are federally funded, and provide care in 
          accordance with goals established by the U.S. Department of 
          Health and Human Services Maternal and Child Health Bureau, 
          and the Centers for Disease Control and Prevention (CDC), 
          as well as standards established by the National Hemophilia 
          Foundation.  HTCs in California don't directly dispense 
          clotting factor, but through the 340B federal drug pricing 
          program, they have contracts with outside pharmacies to 
          distribute/dispense clotting factor to patients in the home 
          setting.
          
          Specialty care pharmacies 
          Many blood clotting product providers in California are 
          considered specialty care pharmacies.  These pharmacies 
          specialize in the provision of treatments and supplies to 
          individuals with specific chronic diseases.  They generally 
          concentrate their services on their target patient 
          population, rather than providing services that meet the 
          needs of the general public.  Specialty care pharmacies 
          must comply with all statutory and regulatory requirements 
          as traditional pharmacies, but do not need to meet 
          additional licensing requirements in order to provide their 
          specialty services. 
          Specialty pharmacies often ship or deliver blood clotting 
          products to the homes of individuals with hemophilia, and 
          other bleeding disorders, and when necessary, provide or 
          arrange for nursing services to patients who may need 
          assistance with infusion of the blood clotting products.

          Medi-Cal contracting requirement 
          As of July 1, 2010, providers supplying blood clotting 
          factors to patients in Medi-Cal, CCS, 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, 




          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          7


          
          handling, and delivery of clotting factor concentrates and 
          ancillary supplies; processing of prescription orders; 
          hours of operation and access to staff; and recordkeeping, 
          billing, and product recalls.     

          Prior legislation
          SB 971 (Pavley) of the 2009-2010 Session was substantially 
          similar to AB 389. AB 971 was vetoed by Governor 
          Schwarzenegger with the message: "This bill 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."

          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. 
          Failed passage in Senate Appropriations Committee.

          AB 2408 (Negrete-McLeod), Chapter 777, Statutes of 2007, 
          defines the scope of professional practice for pharmacists 
          to include authorization for pharmacists to administer 
          drugs and biologics by injection, pursuant to a 
          prescriber's order.
          
          Arguments in support
          The Hemophilia Council of California and the UC Davis 
          Hemophilia Treatment Center claim that with the production 
          of highly purified blood clotting factors, people with 
          hemophilia have the opportunity to lead normal lives, free 
          of pain and crippling arthritis.  For most people with 
          these bleeding disorders, this necessitates intravenous 
          injection or infusion of prescription blood clotting 
          products several times a week, generally at home. AB 389 
          would establish crucial standards of service for pharmacies 
          that deliver these blood clotting products to people with 
          hemophilia and other life-threatening bleeding disorders in 
          the home setting.  

          CSL Behring believes it is essential that people with 
          bleeding disorders receive timely access to the full range 
          of blood clotting therapies. When patients do not receive 




          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          8


          
          optimal services from providers, there is potential for 
          painful and sometimes crippling injury to the joints and 
          organs. CSL Behring asserts that the recommendations and 
          standards established by the National Hemophilia Foundation 
          and set forth in AB 389 are cost- effective and reduce 
          mortality and bleeding-related hospitalization.  
                                         


                                 PRIOR ACTIONS

           Assembly Business, Professions and Consumer Protection:  9- 
          0
          Assembly Health:                        15- 3
          Assembly Appropriations:                12- 3
          Assembly Floor:                         78- 0


                                    POSITIONS  
                                        
          Support:  Baxter Healthcare
                    California Medical Association
                    California Pharmacists Association
                    Community Healthcare Services
                    CSL Behring
                    Federal Hemophilia Treatment Centers, Region IX
                    Grifols Inc.
                    Hemophilia Council of California
                    Hemophilia Foundation of Northern California
                    Herndon Pharmacy
                    Hueneme Family Pharmacy
                    Meyer Family Cellars
                    National Cornerstone Healthcare Services Inc.
                    Pfizer Inc.
                    Plasma Protein Therapeutics Association
                    Talecris Biotherapeutics
                    UCD Hemophilia Treatment Center
                    Walgreens
                    Two individuals

          Oppose:   None received.

                                        
                                   -- END --
          





          STAFF ANALYSIS OF ASSEMBLY BILL 389 (Mitchell)        Page 
          9