SB 407 Page 1 Date of Hearing: June 23, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair SB 407 (Morrell) – As Amended June 17, 2015 SENATE VOTE: 36-0 SUBJECT: Comprehensive Perinatal Services Program: licensed midwives. SUMMARY: Expands the definition of a comprehensive perinatal provider, as used in the Comprehensive Perinatal Services Program (CPSP) for the purposes of reimbursement for MediCal services, to include a licensed midwife, and authorizes a health care provider to employ or contract with a licensed midwife, as specified. Clarifies that this bill is not intended to expand or revise the scope of practice of licensed midwives. EXISTING LAW: 1) Establishes the Medi-Cal Program under the direction of the Department of Health Care Services (DHCS) to provide qualifying individuals health care and a uniform schedule of benefits, including comprehensive perinatal services. 2) Requires midwifery services provided by a licensed midwife to be covered under the Medi- Cal program, to the extent that federal financial participation is available. 3) Establishes the CPSP under the direction of the Department of Public Health (DPH). 4) For the purposes of reimbursement for Medi-Cal services, defines a comprehensive perinatal provider as any general practice physician, family practice physician, obstetriciangynecologist, pediatrician, certified nurse midwife (CNM), a physician group, as specified, or any preferred provider organization or clinic enrolled in the Medi-Cal program and certified pursuant to the standards of existing law. 5) Requires comprehensive perinatal providers to schedule visits with appropriate providers and ensure the provision of specified services. 6) Authorizes a health care provider to employ or contract with specified medical practitioners for the purpose of providing comprehensive perinatal services, including physicians, CNMs, nurses, nurse practitioners, physician assistants, social workers, health and childbirth educators, and registered dietiticians. FISCAL EFFECT: According to the Senate Appropriations Committee, one-time costs, less than $50,000, to revise existing regulations and develop a state plan amendment to allow licensed midwives to provide services in the CPSP, under Medi-Cal (General Fund (GF) and federal funds). No significant impact to the utilization of services in Medi-Cal managed care (MCMC) is anticipated. Under current law and practice, the services that are authorized under the CPSP are required benefits for Medi-Cal managed care beneficiaries. Because those beneficiaries already have access to those services through managed care, it is not likely that adding an additional SB 407 Page 2 authorized provider will increase the utilization of those services. (For example, if a licensed midwife who is seeing a pregnant woman in MCMC wished to order a covered service, that midwife could simply work with another eligible practitioner to order the services.) Unknown potential increase in costs to provide services in fee-for-service (FFS) Medi-Cal (local funds and federal funds). Under current practice, Medi-Cal beneficiaries in FFS can receive CPSP services from their healthcare provider. In FFS, those costs are paid for with local funds and federal matching funds. The state does not provide GF support for those costs. It is possible that there could be an increase in the utilization of services under this bill, to the extent that Medi-Cal beneficiaries are being provided care by a licensed midwife and it is not easy for that provider to get another authorized provider to order the specified services. The extent to which the fact that licensed midwives are not eligible to provide the specified services is actually a barrier to women getting those services in not known, so it is difficult to estimate whether there would actually be an increase is service utilization. This bill does not create a new program or mandate a higher level of service (the legal test for whether a state mandate is reimbursable). Therefore, it is not likely that the state would be required to reimburse counties for any increased costs under the bill, even if utilization of services does increase. COMMENTS: 1) PURPOSE OF THIS BILL. According to the author, studies have shown that women who receive comprehensive childbirth, pre-natal health, and breastfeeding education services during pregnancy have healthier pregnancies and less complicated births. The author contends that expectant mothers of all income levels should have options when deciding where and how their child is brought into the world, however existing law limits these choices for low-income individuals by the exclusion of licensed midwives on the list of eligible Medi-Cal providers for these services. The author states that increasing the number of comprehensive perinatal Medi-Cal providers alleviates wait times and access issues within the overall perinatal health delivery system, allowing women to receive timely and personalized care. The author also contends that the authorization of licensed midwives as comprehensive perinatal service providers will save the state financial resources. The author maintains births at home or at birth centers with licensed midwives can save the state up to 80% when compared to the cost of a birth in a hospital. The author concludes that this bill will expand health care access and choices to low-income, pregnant women, and drive down the cost in the state health care system, while also ensuring safe, quality care for pregnancy and childbirth. 2) BACKGROUND. a) CPSP. The CPSP, under the direction of DPH, provides a wide range of services to pregnant Medi-Cal beneficiaries, from conception through 60 days postpartum. Beneficiaries receive enhanced nutrition, psychosocial, and health education services, in addition to standard obstetric services under the program. The goals of the CPSP are to: decrease the incidence of premature births; improve pregnancy outcomes; give every baby a health start in life; and, lower health care costs by preventing catastrophic illness in infants and children. According to DPH, there are over 1,500 Medi-Cal providers approved to for the CPSP, in both FFS and MCMC. The CPSP is administered by Federal Title V Maternal and Child Health block grant funds, Federal Title XIX Medicaid funds, and the Maternal, Child, and Adolescent Health program. SB 407 Page 3 b) Midwifery. Existing law defines the practice of midwifery as the furthering or undertaking by any licensed midwife to assist a woman in childbirth, as long as progress of the birth meets criteria accepted as normal. Licensed midwives are authorized to attend cases of normal pregnancy and childbirth, as defined by existing law, and provide prenatal, intrapartum, and postpartum care, including family-planning care, for the mother, and immediate care for the newborn. Midwives are not authorized to practice medicine or perform surgery, and are not authorized to assist childbirths by any artificial, forcible, or mechanical means. Licensed midwives are authorized to directly obtain supplies and devices, obtain and administer drugs and diagnostic tests, order testing, and receive reports that are necessary to the practice of midwifery and consistent with his or her scope of practice. As of December 31, 2014, there were 332 licensed midwives in California. CNMs are a different designation of the midwifery profession, licensed by the California Board of Registered Nursing. CNMs are registered nurses who acquired additional training in the field of obstetrics and are certified by the American College of Nurse Midwives. These professionals commonly work in hospitals and birthing centers that are licensed by the state. CNMs have an independent scope of practice and work in collaboration and consultation with physicians, depending on the medical needs of the individual woman or infant and the practice setting. Existing law requires nursemidwifery care to be performed under the supervision of a licensed physician and surgeon, but supervision does not require physical presence of the physician. All complications are referred to a physician immediately and CNMs provide emergency care until physician assistance can be obtained. As of March 1, 2015, there were 1,136 CNMs in California. 3) SUPPORT. The California Association of Midwives, the sponsor of this bill, states there is an increasing demand for prenatal care with midwives in birth centers, and that this bill will allow more California mothers to receive care in safe, specialized settings. The sponsor contends many rural and medically underserved communities have no health care providers who accept CPSP, and licensed midwives are ready to fill this gap. Supporters of this bill state allowing licensed midwives to offer comprehensive perinatal services lowers state health care costs, and makes quality prenatal health care possible for a larger portion of the state’s low-income pregnant women and their infants. Supporters also contend that by increasing the number of maternity care providers who accept Medi-Cal, this bill will help rural communities, where families on Medi-Cal have limited options for maternity care. Supporters state this bill will make it easier for women to receive quality prenatal care early in their pregnancy, resulting in better health outcomes for themselves and their babies, at a lower cost to state taxpayers. 4) OPPOSITION. The American Congress of Obstetricians and Gynecologists, District IX (California) is opposed unless amended to a prior version of this bill, stating that licensed midwives do not have the qualifications to be a lead CPSP; however the organization has no opposition to adding licensed midwives as a provider of comprehensive perinatal services. The opposition writes it would remove its opposition if the language only added licensed midwives as a provider of services in subsection (e) of this bill’s provisions, and deleted the right to lead from subsection (a). SB 407 Page 4 5) RELATED LEGISLATION. a) AB 1306 (Burke) removes the physician supervision requirement for CNMs allowing them to manage a full range of primary health services, perform peripartum care, provide emergency care when a physician is not present and perform and repair episiotomies in all practice settings. AB 1306 is currently pending referral at the Senate Desk. b) SB 408 (Morrell) establishes minimum training requirements and duties that may be performed by a midwife assistant. SB 408 is currently in the Assembly Business and Professions Committee. 6) PREVIOUS LEGISLATION. a) AB 1308 (Bonilla), Chapter 665, Statutes of 2013, authorizes a midwife to directly obtain supplies and devices, obtain and administer drugs and diagnostic tests, order testing and receive reports that are necessary to his/her practice of midwifery and consistent with his/her scope of practice; expands the disclosures required to be made by a midwife to a prospective client to include the specific procedures that warrant consultation with a physician and surgeon; and, makes other correcting and conforming changes. b) SB 614 (Figueroa), Chapter 614, Statutes of 2005, expands the scope of practice for CNMs to include furnishing or ordering Schedule II controlled substances outside a hospital, as specified. 7) DOUBLE REFFERAL. This bill has been doubled referred. Upon successful passage of this Committee, this bill will be referred to the Assembly Business and Professions Committee. REGISTERED SUPPORT / OPPOSITION: Support California Association of Midwives (sponsor) Association of California Healthcare Districts California Black Health Network California Families for Access to Midwives Capital OB/GYN, Inc. (prior version) Central California Alliance for Health (prior version) Monterey County Board of Supervisors (prior version) Planned Parenthood Affiliates of California Santa Cruz County WellSpace Health (prior version) Two individuals Opposition American Congress of Obstetricians and Gynecologists (prior version) Analysis Prepared by: An-Chi Tsou / HEALTH / (916) 319-2097