BILL ANALYSIS                                                                                                                                                                                                    �






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

          BILL NO:       AB 1731
          AUTHOR:        Block
          AMENDED:       May 25, 2012
          HEARING DATE:  June 27, 2012
          CONSULTANT:    Orr

           SUBJECT  :  Newborn screening program: critical congenital heart 
          disease.
           
          SUMMARY  :  Requires hospitals with licensed perinatal services to 
          offer pulse oximetry testing for newborns in order to screen for 
          critical congenital heart disease (CCHD).

          Existing law:
          1.Requires newborn screening (NBS) for certain preventable 
            heritable or congenital disorders leading to physical defects 
            or intellectual disabilities. Requires NBS for sickle cell 
            anemia, phenylketonuria, and severe combined immunodeficiency 
            (SCID). Also requires tandem mass spectrometry screening in 
            newborns for fatty acid oxidation, amino acid and organic acid 
            disorders, and congenital adrenal hyperplasia.  Under 
            regulation, requires testing for hereditary 
            hemoglobinopathies, primary congenital hypothyroidism, and 
            galactosemia.

          2.Requires the California Department of Public Health (CDPH) to 
            develop a genetic disease testing program. Requires CDPH to 
            establish a genetic disease unit to coordinate programs in the 
            area of genetic disease and evaluate and prepare 
            recommendations on the implementation of tests for the 
            detection of certain hereditary and congenital diseases. 
            Requires CDPH to provide genetic screening and follow-up 
            services. Allows CDPH to provide laboratory testing facilities 
            or work with qualified outside labs to conduct testing.

          3.Requires CDPH to charge a fee for NBS and follow-up services, 
            and requires the amount of the fee to be established pursuant 
            to regulation and periodically adjusted. Requires any fee 
            charged for screening and follow-up services provided to 
            Medi-Cal-eligible persons, health care service plan enrollees, 
            or persons covered by disability insurance policies be paid 
            directly to the Genetic Disease Testing Fund, subject to the 
            terms and conditions of the health care service plan or 
                                                         Continued---



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            insurance coverage.

          4.Establishes the Newborn Hearing Screening Program (NHSP) under 
            the Children's Medical Services (CMS) Branch within the 
            California Department of Health Care Services (DHCS). The NHSP 
            helps identify hearing loss in infants and guide families to 
            the appropriate services needed to develop communication 
            skills. Requires all hospitals with licensed perinatal 
            services to provide inpatient hearing screening for all 
            newborns, with parental permission, prior to hospital 
            discharge.
          
          This bill:
          1.Requires a general acute care hospital with licensed perinatal 
            services to offer newborns a pulse oximetry test to identify 
            CCHD, using protocols approved by DHCS or its designee. 
            Requires the testing protocols to be consistent with those of 
            the Centers for Disease Control and Prevention (CDC). 
          2.Requires these hospitals to develop a screening program that 
            provides competent CCHD screening, utilize appropriate staff 
            and equipment for administering the testing, complete the 
            testing prior to the newborn's discharge from a newborn 
            nursery unit, refer infants with abnormal screening results 
            for appropriate care, maintain and report data as required by 
            DHCS, and provide physician and family-parent education.

          3.Requires DHCS to begin phasing in this test on or after July 
            1, 2013, and achieve 100 percent participation by 2016. 

          4.Requires the test be performed by a licensed health 
            professional, as described, or an appropriately trained 
            individual, as described.

          5.Allows parents of a newborn to object to the test on the 
            grounds that the test is in violation of his or her beliefs.

          6.Makes findings and declarations about the prevalence of CCHDs.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          committee:
          1.One-time implementation costs of $75,000 (50 percent General 
            Fund (GF), 50 percent federal funds) to consult with 
            stakeholders, develop a phase-in plan, review research and 
            guidance, and work with relevant federal agencies.

          2.Minor one-time costs for training and process development, as 




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            well as ongoing costs to University of California hospitals in 
            the range of $100,000 system-wide.

          3.Additional costs that would be incurred, or saved, as a result 
            of this bill are not straightforward to estimate because the 
            extent to which screening is currently performed in hospitals 
            is not tracked. Assuming half of all babies in California are 
            currently screened, the following effects are projected: 
             a.   $450,000 in increased Medi-Cal and Healthy Families 
               Program (HFP) cost pressure related to screening (49 
               percent GF, 51 percent federal funds) and follow-up care;
             b.   Potential offsetting cost savings in the range of 
               $350,000 (49 percent GF, 51 precent federal funds) annually 
               associated with earlier detection of heart defects among 
               Medi-Cal and HFP eligible babies; and
             c.   Uncertain, but potentially significant savings to 
               various health care and developmental services programs 
               from prevention of life-long disability related to earlier 
               diagnosis.

          1.Ongoing administrative costs to hospitals could range from 
            negligible up to several thousand dollars per hospital, 
            depending whether the hospital has initiated CCHD screening in 
            the absence of this bill.

           PRIOR VOTES  :  
          Assembly Health:    15- 4
          Assembly Appropriations:12- 5
          Assembly Floor:     62- 13
           
          COMMENTS  :  
           1.Author's statement.  AB 1731 is a bill that will save lives. 
            This measure will ensure that newborns are screened for 
            congenital heart disease (CHD), which involves defects of the 
            walls, valves, arteries or veins of the heart and occurs in 7 
            to 9 of every 1,000 live births in the United States. About a 
            quarter of those babies have a critical illness which could be 
            detected and potentially treated by measuring blood oxygen 
            saturation. This bill is needed to comply with a 2011 
            recommendation from the Health and Human Services Secretary's 
            Advisory Committee on Heritable Disorders in Newborns and 
            Children (SACHDNC) that newborns be screened for CCHD. AB 1731 
            will bring California's newborn screening programs into 
            alignment with the most up-to-date public health standards and 
            practices. Many newborn lives could potentially be saved by 




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            early detection and treatment of CCHD. This simple, $3 test 
            potentially saves millions in long-term medical costs, spares 
            families unnecessary trauma, and prevents infant death.

          2.CHD. According to the SACHDNC, CHD is an overarching term 
            describing a spectrum of clinical outcomes derived from any 
            number of defects present in the structure of the heart at 
            birth. Specific defects may include the interior walls of the 
            heart, valves inside the heart or the arteries and veins that 
            carry blood to the heart or out to the body. Some defects are 
            caused by changes in genes or chromosomes, but the cause of 
            most heart defects is unknown. CHD is the most common cause of 
            death in the first year of life, with defects accounting for 3 
            percent of all infant deaths and more than 40 percent of all 
            deaths due to congenital malformations.  

            According to the CDC, CCHDs are a specific group of CHDs that 
            cause severe and life-threatening symptoms and require 
            intervention within the first few days or first year of life.  
            Infants with CCHDs are at significant risk for death or 
            disability early in life if their condition is not diagnosed 
            soon after birth. There are 7 specific defects that are 
            typically classified as CCHDs, which represent about 17 to 31 
            percent of all CHDs. In the United States, about 4,800 (or 
            11.6 per 10,000) babies born every year have one of these 7 
            CCHDs. 

          3.Pulse oximetry screening. According to the CDC, pulse oximetry 
            is a simple bedside test to determine the amount of oxygen in 
            a baby's blood and the baby's pulse rate. Low levels of oxygen 
            in the blood can be a sign of a CCHD. The test is done using a 
            machine called a pulse oximeter, with sensors placed on the 
            baby's skin. Screening is performed when a baby is 24 to 48 
            hours of age, and results are obtained at the bedside. Pulse 
            oximetry screening can identify some, but not necessarily all, 
            infants with a CCHD before they show signs of the defect. 
            Pulse oximetry screening does not replace a complete history 
            and physical examination, which sometimes can detect a CCHD 
            before the development of low levels of oxygen in the blood.  
          
          4.NBS.  According to the CDC, NBS programs test infants shortly 
            after birth for serious or life-threatening metabolic 
            disorders, endocrine disorders and other conditions like 
            cystic fibrosis that, when detected early, might be managed or 
            treated to prevent death, disability, or other severe 
            consequences such as intellectual disabilities. These tests 




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            are typically conducted using a few drops of blood collected 
            from newborns before hospital discharge that are spotted on 
            filter paper cards. Although NBS programs are primarily funded 
            by user fees, state and federal public health system funding 
            often is necessary to support the comprehensive programs, 
            which include education, laboratory screening, follow-up and 
            tracking, diagnosis, treatment and management, and evaluation. 
            The NBS program in California is administered by CDPH. 

            California also maintains the NHSP, established as a result of 
            AB 2780 (Gallegos), Chapter 310, Statutes of 1998. This law 
            requires a comprehensive hearing screening program for the 
            early detection of hearing loss in newborns and infants, 
            access to diagnostic evaluations and follow-up services, and 
            provisions for data collection and reporting. DHCS, 
            specifically the CMS Branch, has responsibility for the 
            implementation and oversight of this program. Families of 
            infants delivered in general acute care hospitals with 
            licensed perinatal services which have been certified by DHCS 
            to participate in the NHSP have the opportunity to have their 
            baby's hearing screened at the point-of-care. Infants who do 
            not pass the screening in the hospital are referred for 
            additional testing after discharge.  

          5.Uniform screening panel.  In 2010, the Secretary of the U.S. 
            Department of Health and Human Services (HHS) Kathleen 
            Sebelius adopted the SACHDNC recommendation to create a 
            Recommended Uniform Screening Panel (RUSP), which included 
            screening for 30 core conditions and reporting 26 secondary 
            conditions as a national standard for NBS programs. The list 
            of core and secondary conditions includes several types of 
            congenital disorders and testing for hearing loss and SCID.  
            
            On September 17, 2010, SACHDNC recommended that the HHS 
            Secretary add screening for CCHDs to the RUSP. After an 
            initial rejection, the HHS Secretary approved this 
            recommendation on September 21, 2011. In her approval letter, 
            the HHS Secretary noted that she is committed to advancing 
            screening for CCHD, but evidence gaps remain about the public 
            health impact of universal screening for CCHD, which she 
            believed deserved closer attention. Specifically, she claimed 
            it would be beneficial to states, health care facilities, and 
            individual clinicians to have the SACHDNC, the federal Health 
            Resources and Services Administration (HRSA) and other public 
            health experts provide information about a number of issues 




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            including determining the impacts to state health departments 
            to implement this new screening and ensuring that all babies 
            will receive screenings and their results communicated with 
            their providers. She also recommended that HRSA guide the 
            development of screening standards and infrastructure needed 
            for the implementation of a public health approach to bedside 
            screenings for CCHDs, to address these evidence gaps. 

          6.Methodology for adding new conditions.  There is no federal 
            requirement to add a disorder to a state's screening program. 
            In California, disorders have been added through legislation 
            or administratively by the CDPH Director. While California 
            typically waits for the official acceptance of the disease by 
            the HHS Secretary, CDPH may also evaluate additional disorders 
            for addition into the NBS program using specified criteria. 
            Currently, California screens for over 70 conditions. 

          7.Related legislation. SB 1072 (Strickland) would have required 
            CDPH to expand statewide screening of newborns to include 
            screening for two types of lysosomal storage diseases.  AB 
            1072 was held in the Senate Appropriations Committee. 

          8.Prior legislation. SB 395 (Pan), Chapter 461, Statutes of 
            2011, expanded statewide NBS to include screening for SCID. 
            
            AB 1307 (Buchanan) of 2009 would have required CDPH to 
            consider including conditions recommended by the American 
            College of Medical Genetics or other specified entities in the 
            NBS program. AB 1307 died in the Senate Appropriations 
            Committee.

            SB 1748 (Figueroa) of 2006, would have added biotinidase and 
            cystic fibrosis to the existing expansion of the statewide NBS 
            program. SB 1748 died in the Assembly Appropriations  
            Committee. Provisions enacted through 2006-07 budget trailer 
            bills. 

            AB 2651 (Jones ) Chapter 335, Statutes of 2006, requires every 
            general acute care hospital with licensed perinatal services, 
            as specified,  on or after January 1, 2008, to administer a 
            hearing screening test to every newborn, as specified.

            SB 1103 (Committee on Budget and Fiscal Review), Chapter 228, 
            Statutes of 2004, expanded statewide screening of newborns to 
            include tandem mass spectrometry screening for fatty acid 
            oxidation, amino acid, organic acid disorders, and congenital 




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            adrenal hyperplasia.  

            AB 442 (Committee on Budget), Chapter 1161, Statutes of 2002, 
            required hospitals to collect fees associated with any tests 
            conducted under the state's NBS program.

            AB 2427 (Kuehl) Chapter 803, Statutes of 2000, appropriated 
            $3.9 million from the Genetic Disease Testing Fund in order to 
            support the cost of  a trial program to use tandem mass 
            spectrometry testing to detect additional hereditary 
            disorders.

            SB 537 (Greene), Chapter 1011, Statutes of 1998, required CDPH 
            to establish a program to provide extended newborn genetic 
            screening services for persons who elect to have, and pay for, 
            the additional screening.

            AB 2780, the Health Services Budget Act, established the NHSP 
            to provide hearing screening tests for children at risk for 
            deafness and a system to provide follow-up and assessment 
            services.
            
          9.Support. The March of Dimes is sponsoring this bill and 
            believes this screening is cost effective and easy to 
            implement. They claim that an estimated 30 babies die each 
            year in California due to undiagnosed CCHD. They cite the 
            experience of Santa Clara Valley Medical Center, where their 
            CCHD screening program has screened 12,000 babies at an 
            approximate cost of $3.00 per baby over the past few years, 
            and identified 6 babies with CCHD, 3 of which would have been 
            sent home undiagnosed had there not been pulse oximetry 
            screening. March of Dimes claims that when screening is 
            implemented with protocols consistent with the CDC's 
            protocols, there will be a low false-positive rate, and 
            asserts that this screening will likely lead to cost savings 
            as fewer cardiac ultrasounds would be ordered because of the 
            combination of the examination and screening.

          10.Opposition.  The California Hospital Association (CHA) 
            appreciates the bill's intent but suggests we be mindful of 
            the impact that a new mandate will have on hospitals, health 
            care professionals, and our state's health oversight 
            infrastructure and financing capacity. CHA opposes the bill 
            because they claim the bill is missing many necessary and 
            critical components of a screening program, including no 




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            uniformity of protocol, lack of data collection, and no 
            reimbursement for specialty equipment and supplies.

          11.Policy comment. As mentioned above, CDPH currently 
            administers the state's NBS program, where blood samples are 
            obtained at the hospital and testing is performed offsite in a 
            laboratory. DHCS administers the NHSP, which is performed at 
            bedside similar to the pulse oximetry screening. The bedside 
            nature and lack of involvement of the CDPH's centralized lab 
            for the testing and interpreting of pulse oximetry test 
            results seemed to signal that DHCS would be the appropriate 
            state entity to oversee surveillance of this new test. 
            However, since CDPH has more experience with disease 
            surveillance and more involvement with a range of congenital 
            conditions in newborns by virtue of their comprehensive NBS 
            program, it could be argued that CDPH would be more 
            appropriate. The author may wish to reexamine this provision 
            and grant CDPH the authority to incorporate this screening 
            within their existing NBS program. 

           SUPPORT AND OPPOSITION  :
          Support:  March of Dimes Foundation (sponsor)
                    The American College of Obstetricians and 
                              Gynecologists, District IX California
                    American Heart Association
                    The Arc and United Cerebral Palsy in California
                    Association of Regional Center Agencies
                    California Medical Association
                    California Chapter of the American College of 
                              Cardiology
                    Cisco Systems
                    Kaiser Permanente (if amended)
                    MCAH Action
                    Mended Little Hearts
                    Santa Clara County Board of Supervisors

          Oppose:   California Hospital Association

                                      -- END --