BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 1382 (Hernandez)
          
          Hearing Date: 8/15/2011         Amended: 7/7/2011
          Consultant: Katie Johnson       Policy Vote: Health 8-0
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          BILL SUMMARY: AB 1382 would permit HIV counselors to perform 
          skin puncture tests for Hepatitis C virus or combination 
          HIV/hepatitis C tests.
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                            Fiscal Impact (in thousands)

           Major Provisions        2011-12      2012-13       2013-14     Fund
           
          Increased treatment of unknown, potentially significant 
          General/*
          individuals with HIV                                    Federal/
          and Hepatitis C                                         Local

          *See Staff Comments.
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          
          This bill would permit HIV counselors to perform skin puncture 
          tests for Hepatitis C virus or combination HIV/Hepatitis C 
          tests. HIV counselors are currently allowed to perform rapid HIV 
          tests, but may only provide home testing kits for Hepatitis C. 
          An individual using a home test kit would take the test at home 
          and then send the results to a laboratory. He/she would then 
          return to the site of the procurement of the test two weeks 
          later for the test results. 

          According to the California Department of Public Health's Office 
          of AIDS (CDPH/OA), 50 to 80 percent of injection drug users 
          (IDUs) who are infected with HIV are also infected with 
          Hepatitis C. Symptoms associated with Hepatitis C infection, 
          such as fatigue, abdominal bloating, flu-like symptoms, and 
          jaundice, are present in only 20 to 30 percent of cases; 
          therefore, most infections go undiagnosed until liver disease 








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          develops often 20 to 30 years later. Liver disease is one of the 
          leading causes of death of individuals with Hepatitis C. In a 
          fact sheet, CDPH/OA cites a 2003 pilot project in which it was 
          concluded that HIV test disclosure return rates increased by 21 
          percent among IDUs when individuals were able to receive both 
          their Hepatitis C and HIV test results and that HIV testing 
          rates among IDUs nearly doubled when HIV counseling and testing 
          was offered in conjunction with Hepatitis C counseling and 
          treatment. In January of 2008, CDPH/OA integrated Hepatitis C 
          testing into its HIV counseling and treatment program. 
          Currently, CDPH/OA provides federal HIV testing funds to 17 high 
          incidence counties.

          To the extent that testing increases and more individuals are 
          identified to be infected with Hepatitis C or HIV as a result of 
          this bill, there could be unknown, potentially significant, 
          treatment costs to state health programs such as Medi-Cal, the 
          Low-Income Health Program (LIHP), Pre-Existing Condition 
          Insurance Plan (PCIP), Managed Risk Medical Insurance Program 
          (MRMIP), and the AIDS Drug Assistance Program (ADAP). However, 
          to the extent that this bill were to aid in reducing long-term 
          health care costs of individuals infected with HIV and Hepatitis 
          C and in preventing future cases of HIV and/or Hepatitis C, 
          there could be future cost avoidance to publicly funded health 
          care programs.

          Medi-Cal is generally funded 50 percent General Fund and 50 
          percent federal funds. However, commencing January 1, 2014, 
          newly eligible individuals would be paid for with 100 percent 
          federal funds for calendar quarters 2014 - 2016, 95 percent for 
          calendar quarters in 2017, 94 percent for calendar quarters in 
          2018, 93 percent for calendar quarters in 2019, and 90 percent 
          for calendar quarters in 2020 and thereafter. The remainder 
          would be covered by General Fund.

          The LIHP is funded 50 percent federal funds and 50 percent local 
          funds and sunsets December 31, 2013. ADAP is funded with General 
          Fund, federal funds, and prescription drug rebate revenues. The 
          percentages vary by an enrollee's insurance status and carrier. 
          PCIP is funded by federal and private funds and MRMIP is funded 
          by state tobacco tax funds and private funds. Impacts to these 
          programs could decrease after January 1, 2014, when the federal 
          Affordable Care Act would require health plans and insurers to 
          offer insurance to individuals regardless of pre-existing 








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          medical conditions.