BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2059
                                                                  Page  1

          Date of Hearing:  April 22, 2014

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
               AB 2059 (Muratsuchi) - As Introduced:  February 20, 2014
           
          SUBJECT  :  Medical records: electronic delivery.

           SUMMARY  :  Requires a medical provider, as specified, or their  
          employer to provide an electronic copy of the requested medical  
          record when an attorney presents written authorization signed by  
          the patient or patient's representative when the medical record  
          exists in a digital or electronic format that can be delivered  
          electronically.

           EXISTING LAW  :

          1)Requires health care providers to make a patient's medical  
            records available for inspection and copying by an attorney,  
            prior to the filing of any action or the appearance of a  
            defendant in an action, when the attorney presents written  
            authorization from an adult patient, the guardian or  
            conservator of his or her person or estate, or the personal  
            representative or an heir of a deceased patient.  In the case  
            of a minor, written authorization from a parent or guardian of  
            the minor, 

          2)Prohibits a health care provider or their agent from copying  
            requested medical records when the requesting attorney has  
            employed a professional photocopier registered, or anyone  
            exempt from being required to register as a professional  
            photocopier, as specified.

          3)Makes the person or entity having custody of the medical  
            records liable for all reasonable expenses, including  
            attorney's fees, incurred in any proceeding when the medical  
            records are not made available during business hours within  
            five days of the written request.

          4)Permits all reasonable costs incurred by a health care  
            provider in making patient records available to be paid by the  
            person whose written authorization required the availability  
            of the records.

          5)Defines "reasonable cost" to include $0.10 per page for  








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            standard sized reproduction of documents, $0.20 per page for  
            copying from microfilm, actual costs for the reproduction of  
            oversize documents or those requiring special processing, and  
            $16 per hour per person for clerical costs incurred in  
            locating and making the records available, actual postage  
            charges, and actual costs, if any, charged to the witness by a  
            third person for the retrieval and return of records held by  
            that third person.

          6)Limits the fees, where the records are delivered to the  
            attorney for inspection or photocopying at the record  
            custodian's place of business, to $15, plus actual costs, if  
            any, charged to the witness by a third person for the  
            retrieval and return of records held by that third person.

          7)Establishes, as part of the federal American Reinvestment and  
            Recovery Act (ARRA), the Health Information Technology for  
            Economic and Clinical Health (HITECH) Act, to provide grants  
            to states to promote the electronic movement and use of health  
            information among organizations using nationally recognized  
            interoperability standards and incentive payments to providers  
            for HIT and health information exchange (HIE) adoption.

           FISCAL EFFECT  :  None.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, this bill will  
            update existing law to reflect the use of electronic medical  
            records (EMRs), also commonly referred to as electronic health  
            records (EHRs), and that current law has failed to keep pace  
            with the rapidly changing nature of technology.  The author  
            states that charging patients per page is impractical when  
            medical records are being sent through electronic delivery.   
            According to the author, 10 other states have amended their  
            statutes to address EMRs:  Delaware; Illinois; Louisiana;  
            Maine; Michigan; Missouri; New Mexico; North Dakota; Oklahoma;  
            and, Texas.

           2)BACKGROUND  .  According to the Centers for Medicaid and  
            Medicare Services, an EHR is an electronic version of a  
            patient's medical history, that is maintained by the provider  
            over time, and may include all of the key administrative  
            clinical data relevant to that person's care under a  
            particular provider, including demographics, progress notes,  








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            problems, medications, vital signs, past medical history,  
            immunizations, laboratory data, and radiology reports. 

           3)HITECH/ARRA  .  President Obama signed ARRA on February 17,  
            2009.  The HITECH Act was a portion of the ARRA that promoted  
            the adoption and meaningful use of HIT.  The HITECH Act  
            included $36 billion in federal funding to states in order to  
            implement wide-scale use and sharing of EHRs.  The HITECH Act  
            stipulates that, beginning in 2011, healthcare providers will  
            be offered financial incentives for demonstrating meaningful  
            use of EHRs and creates a loan program that allows states to  
            make loans to healthcare providers to prepare for the adoption  
            of EHRs.  SB 337 (Alquist), Chapter 180, Statutes of 2009,  
            adopted the provisions related to HIE including authorizing  
            the Governor to apply for federal funds available for HIE and  
            HIT.  This allowed California to take advantage of $38 million  
            in federal funding to coordinate the development of a  
            sustainable electronic HIT infrastructure statewide.

           4)SUPPORT  .  The Consumer Attorneys of California (CAOC) is the  
            sponsor of this bill.  According to CAOC this bill would  
            modernize current law, which allows an attorney, with  
            authorization, to request the medical records of a patient.   
            This code section has not been updated to reflect the reality  
            of EMRs and contains outdated cost reimbursement and time  
            frame structures.  CAOC argues that current law contains no  
            reference to EMRs; instead, a per page charge of $0.10 is  
            allowed.  However, that per page cost does not make sense when  
            the medical records are sent via electronic delivery.  The  
            American Federation of State, County and Municipal Employees,  
            AFL-CIO writes in support of this bill that if a patient's  
            attorney has written authorization to inspect and copy a  
            medical record, it's common sense that it should be delivered  
            as such, rather than using a professional photocopier.

           5)DOUBLE REFERRAL  .  This bill is double referred, upon passage  
            in this Committee; it will be referred to the Assembly  
            Judiciary Committee.


           6)PREVIOUS LEGISLATION  .  

             a)   SB 588 (Emmerson) of 2013 would have increased the fees  
               medical providers are allowed to charge attorneys for  
               copying medical records, removed the prohibition on medical  








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               providers performing the copying when the attorney has  
               employed a professional photocopier, and limited the  
               attorney to employ a professional photocopying service only  
               when the records are in paper form.  SB 588 passed the  
               Senate Health Committee but was never set for hearing in  
               the Senate Judiciary Committee.

             b)   SB 1543 (Emmerson) of 2012, was similar to SB 588, and  
               would have eliminated the ability of attorneys or their  
               agents to make their own copies, while SB 588 would have  
               allowed attorney's or their agents to make their own copies  
               of paper records.  SB 1543 was never heard in a committee.

             c)   SB 337 authorizes the California Health and Human  
               Services Agency to apply for federal funds available for  
               HIT and HIE, and establishes a state fund for purposes of  
               HIT/HIE.  Authorizes the Governor to alternatively  
               designate an entity to apply for federal HIT funding, and  
               establishes governance requirements for the entity.  SB 337  
               also makes clarifying changes to requirements governing  
               reporting of unauthorized access to, or use or disclosure  
               of, patients' medical information, and provides limited  
               exemptions for law enforcement investigations.

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Consumer Attorneys of California (sponsor)
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Association for Health Services at Home

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Patty Rodgers / HEALTH / (916) 319-2097