California Senate Bill SB1322 Amended / Bill

 BILL NUMBER: SB 1322AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 17, 2014 AMENDED IN SENATE APRIL 1, 2014 INTRODUCED BY Senator Hernandez FEBRUARY 21, 2014 An act to add  Sections 127670 and 127671 to   Chapter 8 (commencing with Section 127670) to Part 2 of Division 107 of, and to repeal the heading of Chapter 8 (   formerly commencing with Section 127670) of Part 2 of Division 107 of,  the Health and Safety Code, relating to health care. LEGISLATIVE COUNSEL'S DIGEST SB 1322, as amended, Hernandez. California Health Care  Quality Improvement and Cost Containment Commission.   Cost and Quality Database.  Existing law establishes health care coverage programs to provide health care to segments of the population meeting specified criteria who are otherwise unable to afford health care coverage and provides for the licensure and regulation of health insurers and health care service plans. This bill would state the intent of the Legislature to  make available   establish a system to provide  valid  health care  performance information  to encourage health care providers and facilities   that is   publicly available and can be used to improve the safety, appropriateness, and medical effectiveness of health care, and  to provide care that is safe, medically effective, patient-centered, timely,  efficient,   affordable,  and equitable. The  bill would require the Secretary of California Health and Human Services to, no later than January 1, 2016, enter into a contract with one or more private, independent, nonprofit organizations to establish and administer the California Health Care Cost and Quality Database. The bill would require the secretary to include specified terms in that contract   or contracts, including, among others, that the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database develop methodologies relating to the submission of health care data by health care entities. The bill would require certain health care entities, including health care service plans, to provide specified information to the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database. The bill would require all data disclosures made pursuant to these provisions to comply with all applicable state and federal laws for the protection of the privacy and security of the data and would prohibit the public disclose of any unaggregated, individually identifiable health information. The bill would require the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database to collect, process, maintain, and analyze information   from specified data sources including, among others, electronic health record systems and disease and chronic condition registries. The bill would require, no later than January 1, 2018, the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database to publicly make available a web-based, searchable database   and would require that database to be updated regu   larly.   This  bill would  also  require the  Governor   secretary  to convene  the California Health Care Quality Improvement and Cost Containment Commission and would specify the composition of the commission. The bill would require the commission to examine and address specified health care issues.     an advisory committee composed of a broad spectrum of health care stakeholders and experts to research and recommend strategies for promoting high-quality health care and containing health care costs, and to make recommendations regarding the California Health Care Cost and Quality Database.  The bill would require the  commission   committee  to issue a report to the Legislature and the  Governor, on or before July 1, 2015, or within 6 months of the commission being convened, whichever occurs later, making recommendations for health care quality improvement and cost containment.   Governor that examines and addresses specified issues, including, among others, containing the cost of health care services and coverage.  The bill would provide that the commission not be convened until  the Director of Finance has determine   d that  sufficient private or federal funds have been received and appropriated for that  purpose.   purpose, and that members of the committee not receive a per diem or travel expense reimbursement, or any other expense reimbursement.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The heading of Chapter 8 (formerly commencing with Section 127670) of Part 2 of Division 107 of the   Health and Safety Code   , as amended by Section 230 of Chapter 183 of the   Statutes of 2004, is repealed.   CHAPTER 8. CALIFORNIA HEALTH CARE QUALITY IMPROVEMENT AND COST CONTAINMENT COMMISSION   SEC. 2.   Chapter 8 (commencing with Section 127670) is added to Part 2 of Division 107 of the   Health and Safety Code   , to read:   CHAPTER 8. CALIFORNIA HEALTH CARE COST AND QUALITY DATABASE 127670. (a) It is the intent of the Legislature to establish a system to provide valid health care performance information that is publicly available and can be used to improve the safety, appropriateness, and medical effectiveness of health care, and to provide care that is patient-centered, timely, affordable, and equitable. It is also the intent of the Legislature to grant access to provider performance information to consumers and purchasers in order for them to understand the potential financial consequences and liabilities and obtain maximum quality and value in health care services. (b) It is the intent of the Legislature, by making cost and quality data available, to encourage health care service plans, health insurers, and providers to develop innovative approaches, services, and programs that may have the potential to deliver health care that is both cost effective and responsive to the needs of enrollees. 127671. (a) The Secretary of California Health and Human Services shall, no later than January 1, 2016, use a competitive process to contract with one or more private, independent, nonprofit organizations in order to establish and administer the California Health Care Cost and Quality Database. A contract entered into pursuant to this section is exempt from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and is exempt from review or approval by any division of the Department of General Services. (b) The secretary shall include as a term in the contract or contracts entered into pursuant to subdivision (a) all of the following: (1) A requirement that the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database do all of the following: (A) Develop methodologies for the collection, validation, refinement, analysis, comparison, review, reporting, and improvement of health care data submitted by health care entities that are validated, recognized as reliable, and meet industry and research standards. (B) Receive information from all types of health care entities and report that information in a form that allows valid comparisons across care delivery systems. (C) Comply with the requirements governing provider and supplier requests for error correction established pursuant to Section 401.717 of Title 42 of the Code of Federal Regulations for all claims data received, including, but not limited to, data from sources other than Medicare. (2) A prohibition on the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database doing either of the following: (A) Using the data received during the execution of the contract for any purpose not specified in this chapter or in the contract. (B) Receiving funding from any other source to accomplish the same purposes sought to be accomplished under this chapter. (3) A requirement that the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database identify the type of data, purpose of use, and entities and individuals that are required to report to, or that may have access to, the Health Care Cost and Quality Database. (c) For the purposes implementing the California Health Care Cost and Quality Database, a health care service plan, including a specialized health care service plan, an insurer licensed to provide health insurance, as defined in Section 106 of the Insurance Code, a self-insured employer, or a multiemployer self-insured plan, that is responsible for paying for health care services provided to beneficiaries, the trust administrator for a multiemployer self-insured plan, a supplier, as defined in paragraph (3) of subdivision (b) of Section 1367.50, or a provider, as defined in paragraph (2) of subdivision (b) of Section 1367.50, shall provide both of the following to the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database: (1) Utilization data from insurers' medical, dental, and pharmacy claims and encounter data from entities that do not use claims data, including, but not limited to, integrated delivery systems. (2) Pricing information for health care items and services gathered from allowed charges for covered health care items and services or, in the case of organizations that do not use or produce individual claims, standard price lists. (d) (1) All disclosures of data made pursuant to this section shall comply with all applicable state and federal laws for the protection of the privacy and security of the data, including, but not limited to, the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the federal Health Information Technology for Economic and Clinical Health Act, Title XIII of the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5), and implementing regulations. (2) (A) All policies and protocols developed in the performance of the contract shall ensure that the privacy, security, and confidentiality of individually identifiable health information is protected. The nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database shall not publicly disclose any unaggregated, individually identifiable health information. (B) For the purposes of this paragraph, "individually identifiable health information" has the same meaning as in Section 160.103 of Title 45 of the Code of Federal Regulations. (e) (1) The nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database shall collect, process, maintain, and analyze information from data sources including, but not limited to, claims from private and public payers, electronic health record systems, disease and chronic condition registries, third-party surveys of quality and patient satisfaction, reviews by licensing and accrediting bodies, and local and regional public health data. Aggregated payer and provider performance on validated measures of clinical quality and patient experience, such as measures from the Healthcare Effectiveness Data and Information Set (HEDIS) and Consumer Assessment of Healthcare Providers and Systems (CAHPS), shall be collected from accrediting organizations, including, but not limited, to the National Committee for Quality Assurance (NCQA), URAC, and the Joint Commission. (2) The nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database shall include all of the following in an analysis performed pursuant to paragraph (1): (A) Population-level data on prevention, screening, and wellness utilization. (B) Population-level data on behavioral and medical risk factors, interventions and outcomes. (C) Population-level data on chronic conditions, management, and outcomes. (D) Population-level data on trends in utilization of procedures for treatment of similar conditions to evaluate medical appropriateness. (E) Data that permits socioeconomic status and disparities in care due to race, ethnicity, gender, sexual orientation, and gender identity to be considered. (f) No later than January 1, 2018, the nonprofit organization or organizations establishing and administering the California Health Care Cost and Quality Database shall make publicly available a web-based, searchable database. The information shall be presented in a way that facilitates comparisons of cost, quality, and satisfaction across payers, provider organizations, and other suppliers of health care services. This public database shall be regularly updated to reflect new data submissions. 127672. (a) The Secretary of California Health and Human Services shall convene an advisory committee, composed of a broad spectrum of health care stakeholders and experts to research and recommend appropriate and timely strategies for promoting high-quality health care, containing health care costs, and making recommendations regarding the establishment, implementation, and ongoing administration of the California Health Care Cost and Quality Database, including a business plan for sustainability without using moneys from the General Fund. The advisory committee shall hold public meetings with stakeholders, solicit input, and set its own meeting agendas. Meetings of the advisory committee are subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). (b) The secretary shall arrange for the preparation of a report to the Legislature and the Governor based on the findings of the advisory committee, including input from the public meetings, that shall, at a minimum, examine and address the following issues: (1) Assessing California health care needs and available resources. (2) Containing the cost of health care services and coverage. (3) Improving the quality and medical appropriateness of health care. (4) Increasing the transparency of health care costs and the relative efficiency with which care is delivered. (5) Use of disease management, wellness, prevention, and other innovative programs to keep people healthy and reduce disparities and costs and improving health outcomes for all populations. (6) Efficient utilization of prescription drugs and technology. (7) Reducing unnecessary, inappropriate, and wasteful health care. (8) Educating consumers in the use of health care information. (9) Using existing data sources to build the Health Care Cost and Quality Database. (c) The advisory committee established pursuant to this section shall not be convened until the Director of Finance has determined that sufficient private or federal funds have been received and that the funds have been appropriated for that purpose. (d) Notwithstanding any other provision of law, the members of the advisory committee shall receive no per diem or travel expense reimbursement, or any other expense reimbursement.   SECTION 1.   Section 127670 is added to the Health and Safety Code, to be added to Chapter 8 (formerly commencing with Section 127670) of Part 2 of Division 107, to read: 127670. (a) It is the intent of the Legislature to make available valid performance information to encourage health care providers and facilities to provide care that is safe, medically effective, patient-centered, timely, efficient, and equitable. It is also the intent of the Legislature to put provider performance information into the hands of consumers and purchasers so that they are able to understand their financial liability and find the best quality and value. (b) It is the intent of the Legislature to encourage health care service plans, health insurers, and providers to develop innovative approaches, services, and programs that may have the potential to deliver health care that is both cost effective and responsive to the needs of enrollees.   SEC. 2.   Section 127671 is added to the Health and Safety Code, to be added to Chapter 8 (formerly commencing with Section 127670) of Part 2 of Division 107, to read: 127671. (a) The Governor shall convene the California Health Care Quality Improvement and Cost Containment Commission to research and recommend appropriate and timely strategies for promoting high-quality care and containing health care costs. (b) The commission shall be composed of 13 members who are knowledgeable about the health care system and health care spending. (c) The Governor shall appoint five members of the commission, the Senate Committee on Rules shall appoint three members, and the Speaker of the Assembly shall appoint three members. The membership shall be comprised of at least one of each of the following: (1) A representative of California's business community. (2) A representative from organized labor. (3) A representative of consumers. (4) A health care practitioner. (5) A hospital industry representative. (6) A representative of the health insurance industry. (7) A representative of the legal community with expertise in health and ethics. (8) A representative of persons with disabilities. (9) A health care economist. (d) The Secretary of the California Health and Human Services Agency and the Executive Director of Covered California shall serve as members of the commission. (e) The Governor shall appoint the chairperson of the commission. (f) The commission shall, on or before July 1, 2015, or within six months of the convening of the commission, whichever occurs later, issue a report to the Legislature and the Governor making recommendations for health care quality improvement and cost containment. The commission shall, at a minimum, examine and address the following issues: (1) Assessing California health care needs and available resources. (2) Containing the cost of health care services and coverage. (3) Improving the quality of health care. (4) Increasing the transparency of health care costs and the relative efficiency with which care is delivered. (5) Use of disease management, wellness, prevention, and other innovative programs to keep people healthy while reducing costs and improving health outcomes. (6) Consolidation of existing state programs to achieve efficiencies where possible. (7) Efficient utilization of prescription drugs and technology. (g) The commission established pursuant to this section shall not be convened until sufficient private or federal funds have been received and appropriated for that purpose.