California Board Votes to Extend Implementation of Electronic Pedigree Requirement
On Tuesday, March 25, the California Board of Pharmacy (board) voted to delay the implementation of the state's electronic pedigree requirements from Jan. 1, 2009 to Jan. 1, 2011.  The law requires that all dangerous drugs be uniquely serialized at the unit of use level in order to be sold in the state.  CHI strongly supports the decision of the board because additional time is needed to ensure a smooth transition that will not adversely affect patients in California. In November, CHI surveyed its membership to gauge progress toward implementation and identify problems to meet the requirements of the law.  The results of the survey were the basis for CHI's submission to the board in January to request the delay.  Attention will now move to the Legislature, where a hearing is scheduled for Monday, April 7, in the Senate Business, Professions and Economic Development Committee.  The hearing will center on two legislative proposals - SB 1270, authored by Senator Gil Cedillo (D-Los Angeles) and SB 1307, authored by Senator Mark Ridley-Thomas (D-Los Angeles).  SB 1307 is sponsored by the board and would make a small technical correction to the existing law.  SB 1270 is sponsored by California RxSafe Track, a group of supply chain stakeholders including CHI, and would make more significant changes that reflect concerns with implementing the law as written.  For more information, contact Sandra Pizarro, CHI vice president-state government affairs (916-233-3497 or pizarro@chi.org).

Bill to Harmonize Reimbursement Codes Would Speed Patient Access
Legislation (AB 2440), authored by Assemblyman John Laird (D-Santa Cruz), that would require the State Department of Health Care Services (department) to update specified diagnostic and reimbursement codes within 60 days of their publication by the federal Centers for Medicare and Medicaid Services and the American Medical Association was approved by the Assembly Health Committee on Tuesday, March 25.  Currently the state's Medi-Cal system does not reimburse providers who offer approved products until the state reimbursement codes have been updated to harmonize with federal codes. It is common for the department to take more than six months to update their codes, which delays patient access. CHI will continue to support this measure as it moves to the Appropriations Committee to ensure that providers can supply patients with the medicines they require without undue delay.

Drug Marketing Bill Would Duplicate Current Guidelines
AB 2821, authored by Assemblyman Mike Feuer (D-Los Angeles), that would require pharmaceutical companies to report gifts, fees or payments above $50 to healthcare entities, as well as implement a limit of $250 in gifts or combinations of gifts that can be given to a health or medical professional during a calendar year, will be heard by the Assembly Health Committee on Tuesday, April 1. The legislation would also establish the Pharmaceutical Gift Disclosure Fund, assess an undetermined fee on companies whose products are distributed in California and disclose names of health professionals who have received these gifts.  Under current law, companies must adopt a Comprehensive Compliance Program in accordance with federal guidelines that dictates their spending on gifts or incentives and requires them to declare and report this information to the public.  While CHI supports full conformance with the Compliance Program Guidance for Pharmaceutical Manufacturers, CHI is opposed to this new proposal because it is unclear that any problem exists under current law that would call for additional burdensome requirements that have the potential to increase the cost of drugs.

University of California Announces New President
University of California regents on Thursday approved Mark Yudof, the chancellor of the University of Texas system, as UC's next president.  Yudof will take office by September.  Among the challenges he will face as he comes to office are budget cuts totaling $332 million and deciding whether to raise student fees again.  The system is also in the process of downsizing the president's office.  During the press conference announcing his appointment, Yudof said he will be committed to maintaining academic excellence, working on the structure of the systemwide administration, and enhancing diversity and affordability.

Coalition Considering Lawsuit Against the State Over Medi-Cal Cuts
When the governor and lawmakers agreed last month to cut reimbursement by 10 percent for physicians who treat Medi-Cal patients, they did it without knowing how it might impact services for the poor.  For years the state has failed to act upon a law requiring an analysis designed to keep physician reimbursement rates competitive with other insurers.  Passed in 1976, the law requires the Medi-Cal director to conduct an annual review of physician pay to ensure “reasonable access of Medi-Cal beneficiaries to physician and dental services.”  For more than 15 years, Medi-Cal spending has been negotiated between the governor and lawmakers as part of the budget process, a move that critics say has led to cuts without a strong understanding of statewide impact.  In response to the current cuts, a coalition of physicians, hospitals, medical providers, and local governments (led by San Francisco Mayor Gavin Newsom) are considering a lawsuit against the state.  According to the California Medical Association, California reimbursement rates are already the lowest of all 50 states, including the District of Columbia.  An estimated half of all physicians in California do not accept Medi-Cal patients, a number that is sure to increase should the 10 percent cuts go into effect.

Poll Reveals Budget’s Effect on Californians
Californians are becoming increasingly gloomy about the state’s precarious fiscal conditions and bleak economic outlook.  These sentiments are being passed on in Californians’ assessments of elected officials and their policies according to a recent poll released today by the Public Policy Institute of California.  Nearly all Californians (94 percent) see the state budget situation as somewhat of a problem, with 56 percent saying they are very concerned about the future effects spending reductions in the recent budget will have.  Almost two-thirds of respondents believe the state is already in a recession and similar numbers expect things to get worse throughout the year.  The current situation has caused the citizens of California to reconsider how to deal with the budget crisis, with most residents supporting a combination of tax increases and spending reductions.  The effect of the slumping economy can be seen in the public’s perception of California’s elected officials whose approval ratings since December are down across the board.  View the poll.

Final Opportunity to Register for California Life Sciences Day
The deadline to register for this event is Wednesday, April 2. Reserve your seat today and join with leaders in biotechnology, medical devices, pharmaceuticals and biomedical research as well as the patients whose lives have been impacted by medical innovation, in Sacramento on Wednesday, April 9th, 2008 to build support for the issues that matter most to California's life sciences industry and improvements in public health. Attendees will participate in face-to-face meetings with legislators and state government officials; network at a luncheon featuring a keynote address by Sacramento Bee Public Affairs Columnist Dan Weintraub; and join legislators and their staffs at a closing reception at the historic Sutter Club. By joining forces and speaking with one voice, we can successfully advocate the collective economic impact and human value of our work.  For more information contact David Burt, CHI legislative director at 858-551-6677 or burt@chi.org.