This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h1481e.HHS DATE: 4/24/2023 HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: CS/CS/CS/HB 1481 Review and Report on Sickle Cell Disease Medications, Treatments, and Services for Medicaid Recipients SPONSOR(S): Health & Human Services Committee, Health Care Appropriations Subcommittee, Healthcare Regulation Subcommittee, Driskell TIED BILLS: IDEN./SIM. BILLS: REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF 1) Healthcare Regulation Subcommittee 16 Y, 0 N, As CS Guzzo McElroy 2) Health Care Appropriations Subcommittee 13 Y, 0 N, As CS Aderibigbe Clark 3) Health & Human Services Committee 20 Y, 0 N, As CS Guzzo Calamas 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. 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. CS/CS/HB 1481 requires AHCA to biannually review and report the same information it was required to report by the Fiscal Year 2022-2023 GAA. Additionally, it requires AHCA to assess their existing Medicaid 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 requires the Department of Health (DOH) to contract with a community-based sickle cell disease medical treatment and research center to establish and maintain a registry to track outcome measures of newborns who are identified as carrying a sickle cell hemoglobin variant. The bill requires a screening provider to notify the primary care physician of an infant who tests positive for sickle cell hemoglobin variant and to submit the results of the screening to DOH for inclusion in the sickle cell registry. The primary care physician must provide information on the availability and benefits of genetic counseling to the parent or guardian of the newborn. The bill appropriates $1,060,804 in recurring funds and $21,355 in nonrecurring funds to DOH. The bill has no fiscal impact on local government. The bill provides an effective date of July 1, 2023. STORAGE NAME: h1481e.HHS PAGE: 2 DATE: 4/24/2023 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 worse 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 Schools 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 viewed Apr. 10, 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: h1481e.HHS PAGE: 3 DATE: 4/24/2023 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. According to the report, the SCD population is 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. Sixty-one 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. Fifty-two 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 14 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). 14 Supra note 2, at 10. STORAGE NAME: h1481e.HHS PAGE: 4 DATE: 4/24/2023 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. 15 Effect of the Bill CS/CS/HB 1481 requires AHCA, in consultation with the Florida Medical Schools 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 Fiscal Year 2022-2023 GAA. Additionally, it requires AHCA to assess their existing Medicaid 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 and develop the report. The bill requires the Department of Health (DOH) to contract with a community-based sickle cell disease medical treatment and research center to establish and maintain a registry to track outcome measures of newborns who are identified as carrying a sickle cell hemoglobin variant. The bill requires a screening provider to notify the primary care physician of an infant who tests positive for sickle cell hemoglobin variant and to submit the results of the screening to DOH for inclusion in the sickle cell registry. The primary care physician must provide information on the availability and benefits of genetic counseling to the parent or guardian of the newborn. The bill requires DOH to establish a system to ensure that the sickle cell research center notifies the parent or guardian of a child included in the registry that a follow-up consultation with a physician is recommended, at least once during early adolescence and once during late adolescence. The bill also requires DOH to provide individuals who are 18 years of age and that are included in the registry with information regarding available educational services, genetic counseling, and other beneficial resources. The bill provides rulemaking authority to DOH to create the registry and requires DOH to adopt rules to establish a process for removing individuals from the registry. The bill provides an effective date of July 1, 2023. B. SECTION DIRECTORY: Section 1: Creates s. 383.147, F.S., relating to newborn and infant screenings for sickle cell hemoglobin variants; registry. Section 2: Creates s. 409.91235, F.S., relating to agency review and report on medications, treatments, and services for sickle cell disease. Section 3: Provides an appropriation to implement the bill. Section 4: Provides an appropriation to implement the bill. Section 5: Provides an effective date of July 1, 2023. II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 15 Supra note 2, at 17. STORAGE NAME: h1481e.HHS PAGE: 5 DATE: 4/24/2023 A. FISCAL IMPACT ON STATE GOVERNMENT: 1. Revenues: None. 2. Expenditures: The bill provides $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. The bill provides $450,000 in recurring funds from the General Revenue Fund to DOH to contract with a community-based sickle cell disease medical treatment and research center to establish and maintain a registry to track outcome measure. The bill provides $150,000 in recurring funds from the General Revenue Fund to educate providers and consumers throughout the state about the sickle cell registry. Finally, the bill appropriates $460,804 in recurring funds from the General Revenue Fund for five full-time equivalent positions along with the associated salary rate to implement the provisions of the bill. B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 1. Revenues: None. 2. Expenditures: None. C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 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: The bill provides sufficient rule-making authority to DOH to implement the provisions of the bill. C. DRAFTING ISSUES OR OTHER COMMENTS: None. STORAGE NAME: h1481e.HHS PAGE: 6 DATE: 4/24/2023 IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES On March 22, 2023, the Healthcare Regulation Subcommittee adopted an amendment and reported the bill favorably as a committee substitute. The amendment: Required the Department of Health (DOH) to contract with a community-based sickle cell disease medical treatment and research center to establish and maintain a registry for newborns who are identified as carrying a sickle cell hemoglobin variant. Required the registry to track sickle cell disease outcome measures. Required DOH to adopt a rule to create a process for a parent or guardian of a newborn to request to have their child removed from the registry. Required a screening provider to notify the primary care physician of an infant who tests positive for sickle cell hemoglobin variant and to submit the results of the screening to DOH for inclusion in the sickle cell registry. Required DOH to establish a system to ensure that the sickle cell research center notifies the parent or guardian of a child included in the registry that a follow-up consultation with a physician is recommended, at least once during early adolescence and once during late adolescence. Required DOH to make every reasonable effort to notify individuals who are 18 years of age that they may be removed from the registry, and requires DOH to adopt a rule to create a process for such notification. Required DOH to provide individuals who are 18 years of age and that are included in the registry with information regarding available educational services, genetic counseling, and other beneficial resources. Provided rulemaking authority to DOH. On April 12, 2023, the Health Care Appropriations Subcommittee adopted an amendment and reported the bill favorably as a committee substitute. The amendment appropriates 5.0 full-time equivalent positions and the associated salary rate and budget to the DOH for the implementation of this bill. On April 24, 2023, the Health & Human Services Committee adopted an amendment and reported the bill favorably as a committee substitute. The amendment removed duplicative provisions from the bill. This analysis is drafted to the committee substitute as passed by the Health & Human Services Committee.