BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 136 (Yee)
Hearing Date: 5/16/2011 Amended: 4/28/2011
Consultant: Katie Johnson Policy Vote: Health 6-2
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BILL SUMMARY: SB 136 would extend the sunset date from January
1, 2013, to January 1, 2018, on provisions permitting the use of
store-and-forward technology for teledermatology and
teleophthalmology services.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Increased Medi-Cal unknown, potentially significant
General/*
services Federal
*Medi-Cal costs reimbursed with 50 percent General Fund, 50
percent federal funds.
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STAFF COMMENTS: This bill may meet the criteria for referral to
the Suspense File.
Since July 1, 2006, existing law has not required face-to-face
contact between a health care provider of teledermatology and
teleophthalmology services by store-and-forward technology and a
patient. These provisions sunset January 1, 2013. This bill
would extend the sunset from January 1, 2013, to January 1,
2018.
It is unclear whether or not the extension of this program would
decrease barriers to teledermatology and teleophthalmology
services; in February 2009, the Department of Health Care
Services (DHCS) submitted a report to the Legislature entitled,
"Medi-Cal Telemedicine Benefits: Store and Forward
Teleophthalmology and Teledermatology," in response to statutory
reporting requirements of the 2006 implementing legislation.
This bill would delete the reporting requirement since it is no
longer necessary.
SB 136 (Yee)
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According to the report, since July 1, 2006, only one provider
has submitted claims under the store-and-forward billing code.
He submitted 30 claims for teledermatology services over the
period July 1, 2006, through November 19, 2007, at a total cost
of $1,786. DHCS notes that it is possible that other providers
are using store-and-forward technology, but that since the
reimbursement rates are identical, they could have failed to use
the billing code modifier that denotes the use of
store-and-forward.
Therefore, it is unknown whether or not providers in California
utilize this statutory authority. Since current data is
insufficient to recommend to the Legislature whether or not this
program increases access to these services and this bill deletes
the now obsolete 2008 reporting requirement, staff recommends
that the bill be amended to:
1) Include a requirement that DHCS report to the
appropriate policy and fiscal committees of the Legislature
no later than January 1, 2015, and again no later than
January 1, 2017, the following:
a. the number and dollar amount of claims billed
under this program for all years it has been active
(prior to and including this bill up to January 1,
2017), and,
b. the number and dollar amount of all
ophthalmology and dermatology claims for all years
that this telemedicine program has been active, as
well as the number and dollar amount of all
ophthalmology and dermatology claims for 3 years prior
to the authorization of store-and-forward; and,
2) Require DHCS to specify that providers billing for
store-and-forward teledermatology and teleophthalmology
services must use the appropriate billing code in the next
available general provider bulletin after the effective
date of this bill.
Any costs related to these reporting requirements and an
addendum to a regularly scheduled provider bulletin would be
minor and absorbable.
SB 136 (Yee)
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