BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2059
          Author:   Muratsuchi (D)
          Amended:  6/15/14 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-2, 6/24/14
          AYES:  Jackson, Corbett, Lara, Leno, Monning
          NOES:  Anderson, Vidak

           ASSEMBLY FLOOR  :  73-0, 5/23/14 - See last page for vote


           SUBJECT  :    Medical records: electronic delivery

           SOURCE  :     Consumer Attorneys of California


           DIGEST  :    This bill requires a health care provider to provide  
          an electronic copy of an electronic medical record or electronic  
          health record, when an electronic copy is requested, if the  
          medical record exists in digital or electronic format and the  
          medical record can be delivered electronically.  This bill  
          authorizes a health care provider that provides electronic  
          copies of medical records to charge 25 cents per page, not to  
          exceed $125, and retrieval or processing fee in an amount not to  
          exceed $30.  This bill additionally extends the period in which  
          a health care provider must make records available or be subject  
          to liability for all reasonable expenses, including attorney's  
          fees and court costs, from five days to 20 business days.



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           ANALYSIS  :    

          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/her person or estate, or the personal  
             representative or an heir of a deceased patient.

          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. Authorizes 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 10 cents per page for  
             standard sized reproduction of documents, 20 cents 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  

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             retrieval and return of records held by that third person. 

          This bill:

          1. Provides that if the records requested are electronic medical  
             records or electronic health records stored on a digital or  
             other electronic medium and the requesting party requests  
             delivery in a digital or electronic medium, the health care  
             provider must provide an electronic copy.

          2. Makes the person or entity having custody of the medical  
             records liable for all reasonable expenses, including  
             attorney's fees and court costs, incurred in any proceeding  
             when the medical records are not made available during  
             business hours within 20 business days of the written  
             request.

          3. Provides that reasonable costs for retrieval of electronic  
             medical records or electronic health records provided on a  
             digital or other electronic medium of 25 cents per page, not  
             to exceed $125 and a retrieval or processing fee in an amount  
             not to exceed $30.

          4. Provides that it should not be construed to supersede the  
             requirements or replace or in any way modify any privacy and  
             information security requirements and protections in federal  
             law, or any rule promulgated by the Department of Industrial  
             Relations, Division of Workers' Compensation.

          5. Makes other clarifying and technical changes.

           Background
           
          Twelve states, including California, have statutes that  
          establish a preset fee or a maximum fee which can be charged for  
          copying and researching a patient's medical records.  These  
          states have statutes that are similar to those of states that  
          limit reproduction costs to "reasonable" or "actual" costs.    
          However, there are few guidelines to help establish what is  
          "reasonable" on a case-by-case basis.  Instead, legislatures  
          have established costs that are presumptively reasonable.  For  
          example, in California, copies may not exceed 10 cents per page,  
          unless they are copied from microfilm.  In Connecticut, health  
          care institutions cannot charge more than 65 cents per page,  

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          which includes all related research, handling, and postage fees.  
           Florida, at the high end of the spectrum, allows a charge of up  
          to one dollar per page.  

          Ten states, including Illinois, Maine, and Texas, have enacted  
          statutes for electronic medical records.  These caps range from  
          $81.57 in Texas to $150 in Maine.  Four states have created a  
          separate per digital page cost structure.  Of those four,  
          Illinois, North Dakota, and Oklahoma provide a lesser amount per  
          digital page than paper page, while Delaware allows the same  
          rate to be charged for both digital pages and paper pages.  The  
          remaining two states' statutes allow for medical records to be  
          charged at "actual cost."  California's existing provision that  
          authorizes the discovery of medical records was enacted in 1968,  
          before electronic medical records came into existence.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  6/26/14)

          Consumer Attorneys of California (source)
          AFSCME AFL-CIO
          California Association of Health Services at Home

           OPPOSITION  :    (Verified  6/26/14)

          Association of Health Information Outsourcing Specialists
          California Hospital Association
          California Medical Association
          Medi-Legal LLC

           ARGUMENTS IN SUPPORT  :    According to the author: 

             AB 2059 will modernize Evidence Code Section 1158, 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 electronic medical  
             records (EMRs) and contains outdated cost reimbursement  
             and time frame structures. Consumer Attorneys of  
             California (CAOC) has been meeting with the relevant  
             users, providers and document service providers in an  
             attempt to update the statute in a thoughtful and workable  
             manner.  

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             Current law contains no reference to electronic medical  
             records; instead, a per page charge of ten cents is  
             allowed.  However, that per page cost does not make sense  
             when the medical records are sent via electronic delivery.  
              At least seven other states have distinct electronic  
             rates with a capped amount.  Further, many other states  
             contain clear and specific language that if the records  
             are maintained in electronic form (EMR), the requestor can  
             specifically request that the copies be provided in a  
             digital format.

           ARGUMENTS IN OPPOSITION  :    The California Medical Association  
          writes that it is concerned that this bill "would require a  
          physician to provide medical records through email if requested  
          in such a format.  While the language of the bill would allow a  
          request that records be delivered through email, the bill only  
          requires that a health care provider provide an "electronic  
          copy." 

          The Association of Health Information Outsourcing Specialists  
          (AHIOS) argues that provisions of this bill may be in violation  
          of the Health Insurance Portability and Accountability Act  
          (HIPAA).  Specifically, AHIOS believes that permitting  
          "professional photocopiers and attorneys to access and inspect  
          all original medical records?would violate HIPAA and cause  
          confusion at healthcare facilities."  Staff notes that parties  
          may always make objections to discovery requests.  Additionally,  
          nothing in this bill creates broader parameters for electronic  
          retrieval of medical records than exists for paper retrieval of  
          medical records.

           ASSEMBLY FLOOR  :  73-0, 5/23/14
          AYES:  Achadjian, Alejo, Allen, Bigelow, Bloom, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia,  
            Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman,  
            Hall, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue,  
            Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  
            John A. P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins

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          NO VOTE RECORDED:  Ammiano, Donnelly, Beth Gaines, Harkey, Roger  
            Hern�ndez, V. Manuel P�rez, Vacancy


          AL:d  6/26/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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