BILL ANALYSIS                                                                                                                                                                                                    �






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

          BILL NO:       SB 1303
          AUTHOR:        Torres
          AMENDED:       April 2, 2014
          HEARING DATE:  April 30, 2014
          CONSULTANT:    Moreno

           SUBJECT  :  Public health: hepatitis C.
           
          SUMMARY  :  Requires every "qualifying individual," as defined,  
          who receives medical care from a health care practitioner to be  
          offered a hepatitis C screening test or diagnostic test, unless  
          the health care practitioner providing those services reasonably  
          believes that any one of specified criteria applies.

          Existing law:
          1.Requires the Department of Public Health (DPH) to make  
            available protocols and guidelines developed by the National  
            Institutes of Health (NIH), the University of California at  
            San Francisco, and California legislative advisory committees  
            on hepatitis C for educating physicians and health  
            professionals and training community service providers on the  
            most recent scientific and medical information on hepatitis C  
            detection, transmission, diagnosis, treatment, and therapeutic  
            decision making.

          2.Requires a patient who has blood drawn at a primary care  
            clinic and who has consented, as specified, to be offered an  
            HIV test, unless the clinic has tested the patient for human  
            immunodeficiency virus (HIV) within the previous 12 months.  
            Requires the primary care clinician to offer an HIV test  
            consistent with the United States Preventive Services Task  
            Force (USPSTF) recommendation for screening HIV infection.   

          This bill:
          1.Requires every "qualifying individual" who receives medical  
            care from a health care practitioner to be offered a hepatitis  
            C virus (HCV) screening test or hepatitis C diagnostic test,  
            unless the health care practitioner providing those services  
            reasonably believes that the individual:

             a.   Is being treated for a life-threatening emergency;
             b.   Has previously been offered a HCV screening test or  
               diagnostic test, or has been the subject of a test or  
                                                         Continued---



          SB 1303 | Page 2




               diagnostic test, unless the individual is a current or  
               former injection drug user (IDU), is an individual who has  
               liver disease or has had abnormal liver test results, is a  
               health care worker who may be exposed to needle sticks, or  
               an HIV positive individual; or,
             c.   Lacks capacity to consent to a HCV screening test or  
               hepatitis C diagnostic test;

          2.Defines a "qualifying individual" as any of the following:

             a.   A person born between the years of 1945 and 1965;
             b.   A current or former IDU;
             c.   A recipient of a blood transfusion, blood product, or  
               organ transplant before 1992;
             d.   A recipient of a blood clotting product before 1987;
             e.   An individual who has liver disease or has had abnormal  
               liver test results;
             f.   A hemodialysis patient;
             g.   A health care worker who may be exposed to needle  
               sticks; or, 
             h.   An individual who is infected with HIV.

          3.Requires a health care practitioner, if an individual consents  
            to a screening or diagnostic test and is positive or reactive,  
            to either offer follow-up health care or refer the individual  
            to a health care practitioner who can provide follow-up care.   
            Requires the follow-up care to include a hepatitis C  
            diagnostic test.

          4.Requires the offering of the test to be culturally and  
            linguistically appropriate. Requires DPH to issue guidance  
            related to this provision by July 1, 2015.

          5.Prohibits this bill from affecting the scope of practice of a  
            health care practitioner or diminishing the authority, legal,  
            or professional obligation of a health care practitioner to  
            offer a hepatitis C screening or diagnostic test, or to  
            provide services or care for the subject of a test.

          6.Exempts this bill's provisions from applying to an individual  
            receiving health care in a hospital or emergency room setting.

           FISCAL EFFECT  :  This bill has not been heard by a fiscal  
          committee.

           COMMENTS  :  




                                                            SB 1303 | Page  
          3


          

           1.Author's statement.  According to the author, it is estimated  
            that between 2.7 and 3.9 million United States residents are  
            infected with hepatitis C and 500,000 Californians are living  
            with this virus. Nevertheless, there is a significant lack of  
            awareness of Hepatitis C, the threat that hepatitis C poses to  
            the public health and current opportunities to control it.    
            To address this problem, the United States Department of  
            Health and Human Services (DHHS) is working to identify  
            persons infected with Hepatitis C, to improve access to and  
            quality of care and treatment for persons infected, and  
            advocating for prevention of the disease.  Two significant  
            actions have occurred in the last two years that have promoted  
            awareness and detection.  First, in 2012, the Centers for  
            Disease Control and Prevention (CDC) issued guidelines that  
            recommend a one-time test of everyone born from 1945 - 1965  
            for hepatitis C.  Second, the USPSTF updated their guidelines  
            to mirror those of the CDC in 2013.  The USPSTF calls for a  
            one-time testing of hepatitis C within the baby boomer age  
            cohort, as well as among high-risk patients.  
            
          2.Background.  According to DPH, hepatitis C is a liver disease  
            caused by HCV and usually spread through blood. People can  
            become infected through sharing needles, needle-stick injuries  
            in health care settings, or being born to a mother who has  
            hepatitis C.  Less commonly, a person can also get HCV  
            infection through sharing personal care items that may have  
            come in contact with another person's blood (like razors or  
            toothbrushes), or having sexual contact with a person infected  
            with the virus. Hepatitis C can be either "acute" or  
            "chronic," and can range in severity from a mild illness  
            lasting a few weeks to a lifelong illness. According to the  
            CDC, millions of Americans have hepatitis C, but most don't  
            know it, because people often have no symptoms and can live  
            with an infection for decades without feeling sick. About 80  
            percent who have HCV infection develop a chronic, or lifelong,  
            infection.   

            Hepatitis C is a leading cause of liver cancer and the leading  
            cause of liver transplants. According to data from 1999 to  
            2008, about three-fourths of U.S. patients with HCV infection  
            were born between 1945 and 1965.  The most important risk  
            factor for HCV infection is past or current IDU, with most  
            studies reporting a prevalence of 50 percent or more. The  
            incidence of HCV infection was more than 200,000 cases per  
            year in the 1980s but decreased to 25,000 cases per year by  




          SB 1303 | Page 4




            2001.  According to the CDC, there were an estimated 16,000  
            new cases of HCV infection in 2009 and an estimated 15,000  
            deaths in 2007.  

          3.USPSTF recommendations.  Released in June 2013, the USPSTF  
            recommendations for HCV infection screening apply to all  
            asymptomatic adults without known liver disease or functional  
            abnormalities.  Persons born between 1945 and 1965 are more  
            likely to be diagnosed with HCV infection, possibly because  
            they received blood transfusions before the introduction of  
            screening in 1992 or have a history of other risk factors for  
            exposure decades earlier.  The recommendations state that a  
            risk-based approach may miss detection of a substantial  
            proportion of HCV-infected persons in the birth cohort because  
            of a lack of patient disclosure or knowledge about prior risk  
            status.  As a result, one-time screening for HCV infection in  
            the birth cohort may identify infected patients at earlier  
            stages of disease who could benefit from treatment before  
            developing complications from liver damage.  

          4.Screening and treatment.  The USPSTF believes that screening  
            should be voluntary and undertaken only with the patient's  
            knowledge and understanding that HCV testing is planned.  
            Patients should be informed orally or in writing that HCV  
            testing will be performed unless they decline. The USPSTF  
            further believes that before HCV screening, patients should  
            receive an explanation of HCV infection, how it can (and  
            cannot) be acquired, the meaning of positive and negative test  
            results, and the benefits and harms of treatment. Patients  
            should also be offered the opportunity to ask questions and to  
            decline testing. An antiviral treatment regimen is the  
            standard treatment for HCV infection.   The purpose of  
            antiviral treatment regimens is to prevent long-term health  
            complications of chronic HCV infection. The traditional  
            treatment regimen for HCV includes at least two drugs,  
            pegylated interferon and ribavirin, for treatment duration of  
            12 to 72 weeks. Previously, a third drug was added for some  
            individuals (protease inhibitor Incivek or Victrelis).  
            Interferon is a protein that interferes with viral  
            reproduction. The amount administered for the treatment of HCV  
            is well above natural levels in the body leading to adverse  
            and often serious side effects. As a result, for individuals  
            with certain conditions, including HIV and advanced liver  
            disease, the traditional treatment for HCV is contraindicated.

          5.The $1,000 pill.  In December 2013, the federal Food and Drug  




                                                            SB 1303 | Page  
          5


          

            Administration (FDA) approved a drug produced by Gilead  
            Sciences called Sovaldi for the treatment of HCV.  Sovaldi  
            represents a significant advance in therapy for HCV as it  
            provides a higher cure rate, allows for a shorter duration of  
            treatment, has fewer adverse effects and opens up treatment  
            options for individuals with comorbid conditions for which  
            traditional treatments are contraindicated.  While the drug  
            has been found to be remarkably effective (curing 90 percent  
            or more patients over the course of 12 weeks, according to the  
            FDA), Gilead Sciences has come under heavy fire for the price  
            of the drug treatment.  Sovaldi is priced at $1,000 per pill,  
            which brings the cost associated with a 12-week treatment  
            regimen to $84,000.  Gilead Sciences reported it sold $2.27  
            billion worth of Sovaldi in the first quarter of 2014, a  
            number that beat Wall Street estimates by $1 billion,  
            according to an April 23, 2014 article that ran in Bloomberg.  
            That article reported that Express Scripts Holding Co, the  
            country's largest pharmacy benefit manager, may try to start a  
            price war once competing medicines from AbbVie Inc. and Merck  
            & Co. reach the market.  CVS Caremark Corp., the  
            second-biggest pharmacy manager, has said it might try to slow  
            down the use of the drug.  A 12-week regimen of Sovaldi  
            doesn't cost $84,000 everywhere. According to a an April 13,  
            2014 article in the San Francisco Chronicle, Gilead prices the  
            treatment at $57,000 in the United Kingdom and $66,000 in  
            Germany. While in Egypt and other developing countries, the  
            treatment costs $900, which is 99 percent less than the U.S.  
            cost.

            An April 13, 2014 letter from the Fair Pricing Commission (a  
            group of HIV and HCV activists that negotiates for the lowest  
            possible prices for new medications, price freezes for  
            existing medications, rebates for public payers, and patient  
            assistance and copay programs for people living with the  
            diseases) officially requested that Gilead Sciences provide  
            additional rebates for Sovaldi to state Medicaid programs over  
            and above the legally required initial Medicaid rebate  
            offering and institute a price freeze for all HIV and HCV  
            drugs for the next two years and henceforth for a two-year  
            period from the date of FDA approval of all new HIV and HCV  
            drugs. 
            
          6.Prior legislation.  AB 446 (Mitchell), Chapter 589, Statutes  
            of 2013, among other provisions, requires a patient between 12  
            and 65 years of age who has blood drawn at a primary care  




          SB 1303 | Page 6




            clinic, and who has consented to the HIV test to be offered an  
            HIV test.  Deems the primary care clinic to be in compliance  
            if it chooses to test the patient using a rapid HIV test.   
            Prohibits this bill from applying if the primary care clinic  
            has tested the patient for HIV, or if the patient has been  
            offered and declined the HIV test within the previous 12  
            months.  Requires subsequent testing of a patient who has been  
            tested by the primary care clinic to be consistent with the  
            most recent guidelines issued by the CDC and the USPSTF.

          7.Support.  Project Inform, the sponsor of this bill, Drug  
            Policy Alliance, California Black Health Network, BayBio,  
            Biocom, County Alcohol and Drug Program Administrators  
            Association of California, California Healthcare Institute,  
            California State Association of Occupational Health Nurses,  
            AIDS Support Network, and OraSure Technologies write that  
            because a new generation of medications is now capable of  
            curing HCV infection and preventing forward transmission of  
            the virus, DHHS is working to identify persons infected with  
            HCV early in the course of the disease, to improve access to  
            and quality of care and treatment for persons infected, and to  
            strengthen prevention of the disease.  Supporters write that  
            many medical providers are not testing their patients for HCV  
            despite the CDC and USPSTF recommendations and this bill  
            advances the goals of DHHS by requiring the offer of an HCV  
            test to the two risk populations defined by the CDC and the  
            USPSTF.  Supporters state that it is estimated that the  
            one-time testing of baby boomers will help to identify  
            thousands of infected individuals who do not know their status  
            and may prevent more than 120,000 deaths.  Supporters contend  
            that early diagnosis and treatment can help prevent more  
            costly health conditions resulting from advanced liver  
            disease, such as cirrhosis, liver transplants, and liver  
            cancer and that empowering individuals to know their HCV  
            status is essential both to curing the disease for those  
            infected and stemming the ongoing transmission of this  
            life-threatening communicable disease.  AIDS Healthcare  
            Foundation states that in order to interrupt the HCV epidemic,  
            it is critical to make people aware of their status so that  
            they can change their behaviors and get into care and  
            treatment.  Quest Diagnostics states that baby boomers are  
            largely unaware of the need for screening and their  
            vulnerability to this disease and we need to increase public  
            awareness of the disease and the treatment options available  
            to those who are diagnosed.  





                                                            SB 1303 | Page  
          7


          

          8.Opposition.  The California Medical Association (CMA) states  
            that this bill legislates the practice of medicine, and that  
            memorializing guidelines establishes a static standard, which  
            does not reflect how medicine naturally evolves to adjust to  
            changing science. CMA writes that guidelines and standards of  
            care will evolve, but the mandating to a particular guideline  
            will freeze practice at this current point in time or require  
            frequent amendment to stay up to date.

          9.Policy comments.
              a.   Shotgun approach.   This bill requires the testing of  
               "qualified individuals," which is defined as people meeting  
               specified conditions.  It is unclear how health care  
               professionals would know if a patient meets one of those  
               conditions, particularly settings such as urgent care  
               clinics, where long-term provider-patient relationships  
               have not been established.  Additionally, even a provider  
               with an established relationship may not know if a  
               particular patient meets the criteria spelled out in the  
               bill (for example, whether or not a patient was a recipient  
               of a blood clotting product prior to 1987).  At a minimum  
               it might require practitioners to ask every patient about  
               each criteria.  Patient self-reporting of medical history  
               can be unreliable, so the default would quite possibly be  
               that practitioners end up offering the test to everyone. 
              b.   Mandating tests.   There are some examples in which  
               existing law mandates clinical activities rather than defer  
               to clinical judgment by health care providers.  However,  
               there are many diseases and conditions that can lead to  
               long-term disability and death, and it is unclear why  
               California should mandate screening for HCV, and not for  
               other diseases, such as cancer, diabetes, or heart disease,  
               which are among the leading causes of death and disability  
               in the U.S. 
              c.   Affordability of treatment.   Part of the proponents'  
               argument for this bill is that early identification will  
               lead to early treatment.  However, it is unclear if the  
               drugs currently available are affordable and/or sustainable  
               in our market.  If California is to mandate that people be  
               offered screening, policymakers should consider if there is  
               some assurance that people who are diagnosed can receive  
               reasonably priced treatment.  
            
           SUPPORT AND OPPOSITION  :
          Support:  Project Inform (sponsor)




          SB 1303 | Page 8




                    AIDS Healthcare Foundation
                    American Liver Foundation - Northern CA and NV  
                    Division
                    BayBio
                    Biocom
                    California Black Health Network
                    California Healthcare Institute
                    California Hepatitis C Task Force
                    California State Association of Occupational Health  
                    Nurses
                    County Alcohol and Drug Program Administrators  
                    Association of California
                    Drug Policy Alliance
                    OraSure Technologies, Inc.
                    Quest Diagnostics
                    Sacramento Area Liver Transplant Support 
                    San Francisco Hepatitis C Task Force
                    San Luis Obispo County AIDS Support Network
                    SLO Hepatitis C Project
                    5 individuals

          Oppose:   California Medical Association


                                      -- END --