BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2616
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          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2616 (Skinner) - As Amended:  April 29, 2014 

          Policy Committee:                              InsuranceVote:8-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill extends to hospital employees who provide direct  
          patient care the presumption that methicillin-resistant  
          Staphylococcus aureus (MRSA) infections are job-related.  It  
          also requires workers' compensation benefits to include payment  
          for medical treatment, including hospital and surgical care,  
          disability indemnity, and death benefits.
           
           FISCAL EFFECT  

          1)Presumptions generally lead to an increase in accepted claims  
            and over-time costs for the workers' compensation system.  

          2)This bill would apply to several state-run facilities, namely,  
            state hospitals, developmental centers, and correctional  
            treatment facilities that are all funded through GF dollars.   
            The number of additional MRSA cases among state-employed  
            direct care nursing staff is as a result of the presumption is  
            likely to be small.  However, if even one additional  
            MRSA-related workers' compensation claims was filed and  
            approved as a result of this presumption, the cost could  
            easily be in excess of $200,000 GF.  

           COMMENTS  

           1)Purpose  .  The author states that MRSA is a work-related  
            contact hazard for hospital employees. Although infection  
            control measures help slow the spread of MRSA, the author  
            states, they do not eliminate this job-related hazard. Given  
            this, the author asserts these employees are entitled that  
            these infections be presumed related to work.









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           2)Background  . Existing law establishes a rebuttable presumption  
            for front-line public safety officers that MRSA infections,  
            among other injuries and conditions, are job-related. 

            Data from the Centers for Disease Control and Prevention (CDC)  
            data show that 78% of MRSA cases are from health facility  
            settings, with the rest considered community-associated (CA).   
            People with weak immune systems are more likely to become  
            infected with CA-MRSA. The distinction between the two types  
            has been blurred as CA-MRSA has become more prevalent, but the  
            great majority of infections are still healthcare-acquired.

            The bill extends the concept of presumptions in two novel  
            respects: it applies presumptions to a broad class of private  
            sector employees, and to non-public safety employees.   
            Presumptions in current law apply generally to front-line  
            public safety officers, with very minor and limited  
            exceptions. 

           3)Support  .  The California Nurses Association (CNA) is the  
            sponsor of this bill. CNA believes a MRSA presumption is  
            justifiable for direct care workers due to the high-risk  
            environment in which they work.  

           4)Opposition  .  The California Hospital Association (CHA) and the  
            University of California (UC) oppose this bill, citing  
            increased costs and a lack of necessity.  The UC also points  
            out workers are often employed by multiple facilities and it  
            could be difficult to determine which employer may be  
            responsible for a workers' compensation claim with such  
            presumptions. Additionally, they are concerned that language  
            in AB 2616 may eliminate the ability for the apportionment of  
            a workers' compensation claim for MRSA.  Finally, they argue  
            state employees in a variety of occupations face inherent  
            employment risks, and that the current workers' compensation  
            system is a fair standard that is applied to all injuries for  
            all other employees.

            UC provided data indicating the success rate of workers  
            compensation claims for contagious disease are between 96% and  
            98% over the last four years, which UC asserts illustrates the  
            existing workers' compensation system is functioning as  
            intended and that injured employees are receiving benefits for  
            these injuries when evidence demonstrates that the injury  
            arises out of their employment.








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           5)Related Legislation  . AB 2052 (Gonzalez) extends existing  
            presumptions for public safety officers to all peace officers,  
            as defined. AB 2052 is pending on the Suspense File of this  
            committee.

           6)Prior Legislation  . 

             a)   AB 664 (Skinner), 2009 and AB 1994 (Skinner), 2010,  
               proposed including nurses in the full range of presumptions  
               afforded safety officers.  AB 664 and AB 1994 were held on  
               this committee's Suspense File.  

             b)   AB 375 (Skinner), 2011, initially was similar to AB 664  
               and AB 1994, but was narrowed to include fewer of the  
               presumptions.  It failed passage on the Senate Floor.  

             c)   AB 808 (Skinner), 2012, was identical to AB 2616 and was  
               held on the Senate inactive file.

           1)Staff Comments .  Data are not available to reliably estimate  
            the difference in the number or success rate of claims under a  
            scenario where MRSA among direct care workers is presumed  
            job-related, versus the status quo.  Anecdotally, proponents  
            argue hospitals actively discourage workers from filing claims  
            and many MRSA infections are likely not considered serious  
            enough by employees to provoke a claim, especially given  
            direct care workers are likely to have comprehensive health  
            insurance and personal doctors through which they can seek  
            treatment. A presumption would likely encourage more  
            legitimate claims, and also may encourage a larger proportion  
            of lower-cost claims, given the burden of proof would no  
            longer rest with the employee.  

            It is indisputable that MRSA infection among direct patient  
            care workers are likely to be job- related; however, it is  
            unclear whether workers who acquire MRSA have difficulty  
            pursuing benefits through the normal workers' compensation  
            process.  There are other inherently risky professions that  
            rely on the workers' compensation system to establish whether  
            injuries are work-related. The rationale for granting the  
            presumption in this bill logically implies that private  
            employees with specific job-related injury risks should  
            instead be granted blanket presumptions for such risks. 









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           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081