BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 502


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          ASSEMBLY THIRD READING


          AB  
          502 (Chau)


          As Amended  April 30, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                  |Noes                |
          |                |      |                      |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Business &      |10-4  |Bonilla, Jones,       |Baker, Chang,       |
          |Professions     |      |Bloom, Campos, Dodd,  |Gatto, Wilk         |
          |                |      |Eggman, Holden,       |                    |
          |                |      |Mullin, Ting, Wood    |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Health          |11-7  |Bonta, Bonilla,       |Maienschein,        |
          |                |      |Burke, Chiu, Gomez,   |Chávez, Gonzalez,   |
          |                |      |Nazarian,             |Lackey, Patterson,  |
          |                |      |                      |Steinorth, Waldron  |
          |                |      |                      |                    |
          |                |      |Ridley-Thomas,        |                    |
          |                |      |Rodriguez, Santiago,  |                    |
          |                |      |Thurmond, Wood        |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Appropriations  |13-3  |Gomez, Bloom, Bonta,  |Bigelow, Chang,     |
          |                |      |Calderon, Daly,       |Gallagher           |
          |                |      |Eggman, Eduardo       |                    |
          |                |      |Garcia, Holden,       |                    |
          |                |      |Jones, Quirk, Rendon, |                    |








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          |                |      |Wagner, Weber         |                    |
          |                |      |                      |                    |
          |                |      |                      |                    |
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          SUMMARY:  Authorizes registered dental hygienists in alternative  
          practice (RDHAPs), who established practices within certified  
          dental shortage areas, to continue their practice when the  
          shortage area designation is removed; requires insurance companies  
          to reimburse RDHAPs for dental hygiene care legally provided and  
          covered by insurance; and clarifies that RDHAPs are authorized to  
          establish corporations.  Specifically, this bill:  


          1)Authorizes an alternative dental hygiene practice established  
            within a certified shortage area to continue to operate if the  
            certification is removed if the RDHAP continues to serve those  
            patients that lack or have limited access to dental care, and at  
            least 40% of the total patient population is comprised of  
            underserved populations.


          2)Exempts professional corporations, rendering professional  
            services by persons duly licensed by the Dental Hygiene  
            Committee of California (DHCC), from the requirement to obtain a  
            certificate of registration in order to render those  
            professional services, and specifies that RDHAPs may be  
            shareholders, officers, or directors of an RDHAP corporation,  
            and that licensed dentists and dental assistants may be  
            professional employees of an RDHAP corporation.  


          3)Requires health care service plan contracts covering dental  
            services, specialized health care service plan contracts  
            covering dental services, health insurance policies covering  
            dental services, and specialized health insurance policies  
            covering dental services issued, amended, or renewed on or after  
            January 1, 2016, to reimburse RDHAPs for performing dental  








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            hygiene services that may lawfully be performed by registered  
            dental hygienists (RDH) and that are reimbursable under the  
            contracts or policies, and would require the plan or insurer to  
            use the same fee schedule for reimbursing both registered dental  
            hygienists and RDHAP. 


          4)Makes other clarifying and conforming changes.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, any costs to the California Department of Insurance and  
          the Department of Managed Health Care to assess compliance with  
          this bill's requirements are expected to be minor and absorbable. 


          COMMENTS:


          Purpose.  This bill is sponsored by the California Dental  
          Hygienists' Association.  According to the author, "A number of  
          situations reduce access to RDHAPs.  First, California law allows  
          [RDHs]to open practice in geographic areas where people have no  
          access to regular preventive oral care due to an absence or  
          shortage of dentists.  However, under current law, RDHAPs who  
          practice in dental health shortage areas can no longer practice in  
          those areas once they are no longer designated a dental shortage  
          area.  Second, many dental insurance companies recognize dentists  
          in a dental practice as the billable provider of dental hygiene  
          services and even though RDHAPs provide the same billable services  
          that an RDH provide, billed by the dentist, the insurance  
          companies are denying RDHAP's reimbursement for services.  This  
          forces patients who cannot easily access care in a traditional  
          dental office to pay out of pocket for the services of a RDHAP or  
          not receive the care due to finances.  Additionally, any patient  
          who goes directly to an RDHAP for preventative services must  
          obtain a dentist's or doctor's prescription to continue those  
          services once they pass 18 months of service with the RDHAP.  This  
          is problematic in areas where dentists are in short supply  








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          creating a barrier for patients to obtain much needed services.   
          Finally, the [BPC] authorizes RDHAPs to incorporate. Corporation  
          law would protect the RDHAP's business, however, there is not  
          language in the Corporations Code authorizing RDHAPs to establish  
          corporations, leaving them without critical protections.  [This  
          bill] would address these issues and ensure that the public has  
          access to quality dental hygiene services."


          Background.  In 1986, the Office of Statewide Health Planning and  
          Development (OSHPD) created the RDHAP.  In 1993, the professional  
          designation was made permanent in statute.  An RDHAP must have  
          been engaged in the practice of dental hygiene as a registered  
          dental hygienist in any setting, including educational settings  
          and public health settings, for a minimum of 2,000 hours during  
          the immediately preceding 36 months, complete 150 additional hours  
          of education courses, and pass a written exam.  An RDHAP has a  
          unique distinction in that they can work for a dentist or as an  
          employee of another RDHAP as an independent contractor, as a sole  
          proprietor of an alternative hygiene practice, or other locations  
          such as residences of the homebound, schools, residential  
          facilities, and in underserved dental shortage areas, as  
          determined by OSHPD.  They may also operate a mobile dental clinic  
          or operate an independent office or offices.  


          As a result, RDHAPs may practice in settings outside of the  
          traditional dental office, and allow patients to receive the same  
          type of professional preventive care they would receive in a  
          dental office in schools, skilled and residential care facilities,  
          hospitals, private homes, and in some instances in an RDHAP's own  
          office.  A 2009 survey of California RDHAPs found that more than  
          two-thirds of their patients had no other source of oral health  
          care. RDHAPs also struggle to find referrals to dentists for  
          patients in need of more advanced care and charge lower fees than  
          dentists. 


          The DHCC licenses and regulates approximately 509 RDHAPs.  








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          Prescription Requirements.  Business and Professions Code Section  
          1931 allows a RDHAP to provide dental hygiene services to a  
          patient without referral by a dentist for up to 18 months.   
          However, after 18 months a patient needs to have a prescription  
          from a dentist or a physician and surgeon in order to continue  
          dental hygiene services with the RDHAP.  The prescription is valid  
          for up to two years.  According to the author, this is problematic  
          in areas where dentists are in short supply creating a barrier for  
          patients to obtain much needed basic preventive care services.  


          According to the author, RDHAPs have proven to be safe providers  
          who refer patients to dentists when major dental issues arise  
          outside of their scope of practice to treat.  There is no  
          precedent for requiring a practice agreement for licensure, nor  
          for services delivered within a professional's own scope of  
          practice.  This is unique in that most restrictions requiring a  
          prescription of one provider to another are for specialty care,  
          not for primary preventive health care services.  In practice,  
          this is simply an administrative hurdle, time consuming for  
          providers, and has not been shown to contribute to positive  
          patient outcomes.  The author indicates that patients should have  
          their choice of dental hygiene care provider, and the public  
          should not need a prescription to receive basic preventive care.   
          According to the sponsors, an RDHAP is the only oral health care  
          provider a patient has access to, and if a prescription is not  
          obtained, the patient cannot even continue to receive preventative  
          dental hygiene care, even though the need for and benefits of that  
          care still exist.  


          Dental Health Professional Shortage Areas (DHPSAs).  According to  
          OSHPD, DHPSAs are based on the evaluation of criteria established  
          through federal regulation to identify geographic areas or  
          population groups with a shortage of dental providers.  The  
          federal DHPSA designation identifies areas as having a shortage of  
          dental providers on the basis of availability of dentists and  








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          other dental auxiliaries.  To qualify for designation as a DHPSA,  
          an area must be:  1) a rational service area; have a population to  
          general practice dentist ratio of 5,000:1 or 4,000:1 plus  
          population features demonstrating "unusually high need"; and 2) a  
          lack of access to dental care in surrounding areas because of  
          excessive distance, overutilization, or access barriers.   
          According to OSHPD, there are 53 DHPSAs.  Approximately 5% of  
          Californians live in a DHPSA. 


          The DHCC noted in their 2014 Sunset Review Report that problems  
          have arisen when the shortage area in which an RDHAP sets up a  
          practice is redesignated as a non-shortage area.  Existing law  
          requires the RDHAP to close down the practice when this occurs.   
          The DHCC views this as "counterproductive...as the closure of the  
          practice would leave patients with no access to dental hygiene  
          services."  According to the sponsors, when a DHPSA in San Luis  
          Obispo was faced with losing its designation status, RDHAPs in  
          that area fought to keep the designation area so that patients  
          could continue to be served.  This bill seeks to prevent patients  
          from losing access to established dental care should an area lose  
          its DHPSA.  


          Reimbursement for Services.  Currently, many dental insurance  
          companies recognize dentists in a dental practice as the billable  
          provider of dental hygiene services and even though RDHAPs provide  
          the same billable services that an RDH provide, billed by the  
          dentist, the insurance companies are denying RDHAP's reimbursement  
          for services.  In its 2014 Sunset Review Report, the DHCC  
          identified as a barrier to RDHAP practice the inability for RDHAPs  
          to collect payment for services rendered.  The DHCC noted that  
          RDHAPs have difficulty collecting payment for services from  
          insurance companies based outside of California.  This is because  
          not all states have the RDHAP provider status making them  
          ineligible for reimbursement.  As a result, some patients who  
          cannot easily access care in a traditional dental office are  
          forced to pay out of pocket for the services of a RDHAP or not  
          receive care due to financial constraints.  








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          Professional Corporations.  A professional corporation is an  
          organization made up of individuals of the same trade or  
          profession.  The Moscone-Knox Professional Corporations Act of  
          1968 authorized the formation of professional corporations to  
          obtain certain benefits of the corporate form of doing business,  
          such as limited legal liability.  At that time, only medical, law  
          and dental professional corporations were envisioned; there are  
          now 15 authorized healing arts professional corporations.  Current  
          law specifies which healing arts licensees may be shareholders,  
          officers, directors or professional employees of professional  
          corporations controlled by a differing profession if the sum of  
          all shares owned by those licensed persons does not exceed 49% of  
          the total shares of the professional corporation.  


          Business and Professions Code Section 1962 authorizes an  
          association, partnership, corporation, or group of three or more  
          registered RDHAPs to practice under an assumed or fictitious name  
          if the association, partnership, corporation, or group holds a  
          permit issued by the DHCC authorizing the holder to use that name  
          connection with the holder's practice, as specified.  According to  
          the sponsors, this section was intended to allow RDHAPs to  
          incorporate to gain the protections afforded by corporation law,  
          most importantly, protection against personal liability.  However,  
          conforming changes were not made to the Corporations Code.  This  
          bill would specify that RDHAPs may be shareholders, officers, or  
          directors of an RDHAP corporation, and specify that licensed  
          dentists and dental assistants may be professional employees of an  
          RDHAP corporation.  


          Policy Issues:


          DHPSAs.  The sponsors assert that it is necessary to allow RDHAPs  
          who have established practices in DHPSAs to be able to continue  
          that practice, even if that designation is later removed.   








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          However, while there is anecdotal evidence that this is a concern,  
          it does not appear that any DHPSA has in fact been un-designated  
          as a shortage area.  




          Analysis Prepared by:                                               
                          Eunie Linden / B. & P. / (916) 319-3301  FN:  
          0000413