Florida 2023 2023 Regular Session

Florida House Bill H1481 Analysis / Analysis

Filed 03/21/2023

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h1481.HRS 
DATE: 3/21/2023 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: HB 1481    Review and Report on Sickle Cell Disease Medications, Treatments, and Services 
for Medicaid Recipients 
SPONSOR(S): Driskell 
TIED BILLS:   IDEN./SIM. BILLS:  
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Healthcare Regulation Subcommittee 	Guzzo McElroy 
2) Health Care Appropriations Subcommittee   
3) Health & Human Services Committee   
SUMMARY ANALYSIS 
Sickle cell disease (SCD) is an inherited disease caused by abnormal hemoglobin in red blood cells, which 
causes the red blood cells to become hard and sticky making them prone to clogging the flow of blood. This 
can lead to episodes of pain or other health problems such as strokes, organ failure, eye problems, and 
infections. It affects 100,000 people nationwide, 90 percent of which are people of African descent.  
 
In 2022, the General Appropriations Act (GAA) included nonrecurring funds for the Agency for Health Care 
Administration (AHCA) to conduct a review and publish a report of its findings on the availability and utilization 
of specific services for Medicaid enrollees diagnosed with SCD, including detailed information on: 
 
 Age and population demographics; 
 Utilization patterns and expenditures for all pharmaceutical and medical services provided; and 
 The number of clinical treatment programs who contract with managed care plans and are specifically 
designed or certified to provide care to individuals with SCD. 
 
The report, which was published on February 1, 2023, used information from 2018 through 2021 on Medicaid 
enrollees with SCD to produce the following results: 
 
 On average, 7,328 Medicaid enrollees have SCD, which is twice as high as the national average; 
 Enrollees are predominantly female (58%), young (median age 18), and black (63%); 
 85 percent were evaluated or treated in an outpatient clinic setting; 61 percent were evaluated in an 
emergency room; and 52 percent were admitted for inpatient care in a hospital; 
 Stroke screening for children with transcranial doppler ultrasound was only performed at half the rate 
recommended by national guidelines; and 
 72 clinical treatment programs contract with managed care plans to provide care to individuals with SCD. 
 
HB 1481 requires AHCA to biannually review and report the same information it was required to report by the 
2022-GAA. Additionally, it requires AHCA to assess their existing payment methodologies for approved SCD 
treatments and medications in the inpatient setting and whether such payment methodologies result in barriers 
to access. If barriers to access are identified, AHCA must assess whether the payment methodologies may be 
modified or improved. 
 
The bill authorizes $250,000 in nonrecurring funds from the General Revenue Fund to AHCA. The bill has no 
fiscal impact on local government.  
 
The bill provides an effective date of July 1, 2023. 
   STORAGE NAME: h1481.HRS 	PAGE: 2 
DATE: 3/21/2023 
  
FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
Background 
 
Sickle Cell Disease 
 
Sickle cell disease (SCD) is the most common inherited blood disorder in the United States—
approximately 100,000 Americans have SCD.
1
 It is caused by a mutation in the hemoglobin-Beta gene 
called HbS. When a child inherits HbS from only one parent, the person may have sickle cell trait, 
which means they are a carrier of SCD, thus increasing the chance of having a child with SCD if they 
have a child with another carrier.
2
 When both parents have SCD, there is a 25 percent chance their 
child will have SCD. A child from those same parents also has a 50 percent chance of inheriting sickle 
cell trait and a 25 percent chance of no sickle cell inheritance.
3
 
 
Hemoglobin transports oxygen from the lungs to other parts of the body. Red blood cells with normal 
hemoglobin are smooth and round and glide through blood vessels. In people with SCD, abnormal 
hemoglobin molecules stick to one another and form long, rod-like structures. These structures cause 
red blood cells to become stiff, assuming a sickle shape, which causes them to pile up and create 
blockages that can damage vital organs and tissue.
4
 SCD can also cause fatigue, which is why it is 
sometimes called sickle cell anemia.
5
 
 
 Diagnosis and Treatment 
 
All newborns in Florida are screened within 1 week after birth for SCD.
6
 It can also be diagnosed 
prenatally by using diagnostic tests that identify chromosomal or genetic abnormalities.
7
  
 
SCD is a disease that gets worst over time, but treatments exist that can prevent complications and 
lengthen the lives of people with SCD. Oral penicillin is the standard of care for children with SCD 
because chronic damage to the spleen increases the risk of life-threatening pneumococcal bacterial 
infection.
8
 The only therapy approved by the FDA that may be able to cure SCD is a bone marrow or 
stem cell transplant.
9
 These treatments are estimated to cost $1 million to $2 million per person and are 
only available at a limited number of transplant centers.
10
 
 
AHCA Report on Sickle Cell Disease  
 
In 2022, the legislature appropriated $250,000 in nonrecurring funds from the General Revenue Fund 
to the Agency for Health Care Administration (AHCA), in consultation with the Florida Medical School 
Quality Network and a dedicated SCD medical treatment and research center that maintains a sickle 
cell patient database and tracks SCD outcome measures, to conduct a review and publish a report of 
                                                
1
 National Heart, Lung, and Blood Institute, What is Sickle Cell Disease?, available at https://www.nhlbi.nih.gov/health/sickle-cell-
disease (last visited March 20, 2023).  
2
 AHCA, Florida Medicaid Study of Enrollees with Sickle Cell Disease, February 1, 2023, available at 
https://ahca.myflorida.com/content/download/20771/file/Florida_Medicaid_Study_of_Enrollees_with_Sickle_Cell_Disease.pdf (last 
visited March 20, 2023). 
3
 Id.  
4
 CDC, What is Sickle Cell Disease?, available at https://www.cdc.gov/ncbddd/sicklecell/facts.html (last visited March 20, 2023). 
5
 Id.  
6
 S. 383.14(2), F.S., and rule 64C-7.002, F.A.C. 
7
 Supra note 4.  
8
 Supra note 2, at 10-12. Hydroxyurea is the standard of care for people as young as 9 months old; L-Glutamine is recommended for 
adults and children age 5 and older; Voxelotor is recommended for adults and children age 4 and older; Crizanlizumab is recommended 
for people age 16 and older; and opioids and iron chelating agents are also often used.  
9
 Supra note 4. 
10
 Supra note 2.  STORAGE NAME: h1481.HRS 	PAGE: 3 
DATE: 3/21/2023 
  
its findings on the availability and utilization of specific services for Medicaid enrollees diagnosed with 
SCD.
11
 Specifically, the report was required to include detailed information on: 
 
 Age and population demographics; 
 Utilization patterns and expenditures for all medical and pharmaceutical services provided; and 
 The number of clinical treatment programs who contract with managed care plans and are 
specifically designed or certified to provide care to individuals with SCD. 
 
The report was published on February 1, 2023, and the results were based on data gathered between 
2018 through 2021 on Medicaid enrollees with SCD.
12
 
 
Age and Population Demographics 
 
The average number of Medicaid enrollees with SCD is 7,328, which is twice as high as the national 
average. Florida and New York have the highest number of Medicaid recipients with SCD. The SCD 
population was predominantly female (58%), young (median age 18), and black (63%). Geographically, 
the highest number of Medicaid enrollees with SCD live in Central and South Florida. 
 
Utilization of Medical and Pharmaceutical services 
 
Nearly all enrollees with SCD were evaluated by a physician at least once and approximately 85 
percent were evaluated or treated in an outpatient clinic setting at least once. 61 percent were 
evaluated and treated in an emergency room at least once, and those with an emergency room visit 
had an average of 4.5 visits from 2018 to 2021. 52 percent of enrollees with SCD were admitted for 
inpatient care in a hospital, and those enrollees had an average of 2.9 inpatient admissions from 2018 
to 2021. 
 
National guidelines recommend that children with SCD aged 2-16 should have an annual transcranial 
doppler ultrasound (TCD) to screen for stroke risk.
13
 Florida Medicaid child enrollees had an average of 
two TCDs over the four-year reporting period, which was below the recommended four TCDs for that 
period.  
 
Data on medication utilization indicated that 77 percent of Medicaid enrollees with SCD had a 
pharmacy expenditure for a sickle cell disease-relevant medication, including disease-modifying 
treatments, prophylactic antibiotics, opioids, or iron chelating agents 
 
Medication Utilization by Eligible Individuals with SCD 
Medication 
Number Eligible to 
Receive Medication 
Number of Patients 
Taking Medication 
Percent of Eligible 
Population Taking 
Medication 
Oral Penicillin 2, 054 	1,197 	58% 
Hydroxyurea              7,613 	1,691 	22% 
L-glutamine              6,840  154 	2% 
Voxelotor              5,629 	8 	0.1% 
Crizanlizumab              4, 956                  4 	0.8% 
 
 
 
 
Managed Care Clinical Treatment Programs for SCD 
 
                                                
11
 Ch. 2022-156, Laws of Fla. 
12
 Supra note 2.  
13
 National Heart, Lung, and Blood Institute, Evidence-Based Management of Sickle Cell Disease: Expert Panel Report, 2014, available 
at https://www.nhlbi.nih.gov/health-topics/evidence-based-management-sickle-cell-disease (last visited March 20, 2023).  STORAGE NAME: h1481.HRS 	PAGE: 4 
DATE: 3/21/2023 
  
The report identified 72 clinical treatment programs who contract with managed care plans to provide 
care to individuals with SCD. They include as little as one treatment program offered by a managed 
care plan to as many as 23. According to the report, in addition to these clinical treatment programs, 
hematopoietic cell transplant programs at the University of Miami, H. Lee Moffitt Cancer Center, the 
University of Florida, and others have transplanted autologous or allogeneic adult blood stem cells to 
patients with SCD to introduce a new blood system free of sickle shaped red blood cells. Further, in 
2023, these transplant centers may also offer new FDA approved gene therapies for people with SCD 
that have the potential to cure SCD. These treatments are estimated to cost $1 million to $2 million per 
person and are only available at a limited number of transplant centers.  
 
Effect of the Bill 
 
HB 1481 requires AHCA, in consultation with the Florida Medical School Quality Network and a 
dedicated SCD medical treatment and research center that maintains a sickle cell patient database and 
tracks SCD outcome measures, to biannually review and report the same information it was required to 
report by the 2022-GAA. Additionally, it requires AHCA to assess their existing payment methodologies 
for approved SCD treatments and medications in the inpatient setting and whether such payment 
methodologies result in barriers to access. If barriers to access are identified, AHCA must assess 
whether the payment methodologies may be modified or improved. 
 
The bill authorizes $250,000 in nonrecurring funds from the General Revenue Fund to AHCA to 
conduct the review develop the report. 
 
The bill provides an effective date of July 1, 2023.    
 
B. SECTION DIRECTORY: 
Section 1: Creates s. 409.91235, F.S., relating to agency review and report on medications, 
treatments, and services for sickle cell disease. 
Section 2: Provides an appropriation. 
Section 3: Provides an effective date of July 1, 2023. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
The bill authorizes $250,000 in nonrecurring funds from the General Revenue Fund to AHCA to 
conduct the review and develop the report. This is the same amount that AHCA received in 2022, 
which it used to contract for the completion of the report. The bill requires the report to be 
conducted biannually. If AHCA were to contract for the completion of the biannual report, it would 
cost $1.25 million every ten years.  
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:  STORAGE NAME: h1481.HRS 	PAGE: 5 
DATE: 3/21/2023 
  
None. 
 
D. FISCAL COMMENTS: 
 
None. 
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
Not applicable. The bill does not appear to affect county or municipal governments. 
 
 2. Other: 
None. 
 
B. RULE-MAKING AUTHORITY: 
No rule-making authority is necessary to implement the provisions of the bill. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES