CAMPS Legislative Bill Tracking
LEGISLATIVE REPORT
CA ASSOCIATION OF MEDICAL PRODUCT SUPPLIERS
MAY 10, 2024
Update on the Office of Health Care Affordability’s 3 Percent Spending Target
In March of this year, CAMPS joined the California Medical Association (CMA) and a coalition of providers to submit comments in response to the Department of Health Care Access and Information’s (HCAI) Office of Health Care Affordability (OHCA) staff recommendation for an annual 3% statewide health care spending growth target for 2025-2029. The stated goal of OHCA’s proposed spending growth target was to ensure that health care spending did not grow faster than the incomes of California families. However, coalition members raised a number of concerns and emphasized that the initial spending growth target should be one that health care entities can achieve without reducing access to quality care.
Along with other coalition members, CAMPS asked the Board to consider the cost of providing health care and to ensure that historical health care spending growth data be factored into the target for 2025-2029. We emphasized that it was critical for the Board to take actual cost data into consideration such as the cost of labor, supplies, and medical equipment as well as the rate of inflation. The coalition cautioned that in the last CMA survey of members, the majority of physician practices in this state were still worried about their financial health after the height of the pandemic was behind us. Coalition members also urged the Board to consider maintaining access to care along with affordability.
On April 24th, the OHCA Board approved a statewide health care spending target that took into account some of the concerns raised by the coalition if the 3 percent target were to take effect immediately. Instead, the Board decided that the 3 percent target will be phased in over time, initially starting at 3.5 percent for 2025 and 2026. The target will then be lowered to 3.2 percent for 2027 and 2028 before ultimately reaching 3 percent for 2029 and beyond.
Legislative Bill Report
CAMPS has been watching 7/8 bills and has sent official letters of “support” for the following 4 bills:
Assembly Bill 1926 (Connolly) Enteral Nutrition Formulas
This bill will ensure coverage of enteral formulas for patients diagnosed with digestive disorders, such as Crohn’s Disease, and inherited metabolic diseases. AB 1926 aligns commercial health care coverage with what is already covered by Medi-Cal.
Status: 4/17/2024 – The bill was set for a hearing in the Assembly Appropriations Committee and referred to the suspense file which will be heard on May 16th.
Assembly Bill 2101 (Rodriguez) Statewide Strategic Stockpile
AB 2101 requires CDPH, in coordination with Cal OES, to establish a statewide strategic stockpile. CDPH will be responsible for establishing guidelines for procurement, management, distribution, and restocking of medicine, vaccines, and medical supplies items in the stockpile. Should California be faced with a recurring pandemic, CDPH and OES can be prepared to prioritize the distribution of stockpile items based on infection and hospitalization rates and can ensure geographical distribution in both urban and rural areas throughout the state.
Status: 5/8/2024 – The bill was set for a hearing in the Assembly Appropriations Committee and referred to the suspense file which will be heard on May 16th.
Assembly Bill (AB) 2446 (Ortega) – Medically Necessary Diapers for Children Under 5
AB 2446 expands coverage of medically necessary diapers to children under the age of 5, aligning California law with federal law. There are several medical conditions that can cause or contribute to incontinence for children under the age of 5. However, California does not provide coverage for prescription diapers in these instances.
For example, children with “Spina Bifida,” a congenital defect characterized by imperfect closure of the spinal column, can sometimes experience total bowel and bladder incontinence and are not always able to sense potentially infectious skin irritations resulting from incontinence. There are several other diseases and conditions for which a Physician or qualified medical professional may determine diapers are medically necessary for children under the age of 5.
Status: 4/17/2024 – The bill was set for a hearing in the Assembly Appropriations Committee and referred to the suspense file which will be heard on May 16th.
Assembly Bill 2753 – Coverage of DME Under Health Care Plans
AB 2753 expands coverage of durable medical equipment (DME) and services under health care plans and insurance policies, ensuring that they are covered if prescribed by a health professional. The federal Centers for Medicare & Medicaid Services (CMS) agency as well as California’s Department of Healthcare Services have rightfully recognized the importance of providing DME and services under both Medicare & Medi-Cal. Insured members of private healthcare plans who require ongoing medical care and support should have access to DME and services without strict dollar limitations and/or high-cost sharing on the equipment they need.
Status: 4/17/2024 – The bill was set for a hearing in the Assembly Appropriations Committee and referred to the suspense file which will be heard on May 16th.