SECTIONS 127670-127671 - California Statutes

HEALTH AND SAFETY CODE

SECTION 127670-127671

127670. The Legislature finds and declares the following:
(a) California's health care system needs to be reformed to
provide high quality accessible, affordable, and equitable care and
treatment.
(b) Too many Californians are unable to obtain affordable, high
quality health care.
(c) The rising costs associated with health care are driven by
numerous factors, including, but not limited to, the following:
(1) Prescription drug spending, including costs of research and
development and marketing and increased drug utilization.
(2) Hospital rates.
(3) Health insurance premium rates.
(4) Provider rates.
(5) Health system inefficiencies.
(6) Fraud and abuse in the health care system.
(7) Technology development and utilization.
(8) Emergency room overutilization.
(9) Inequitable allocation of services and treatment to different
segments of the population.
(10) Cost shifting, which occurs when the costs of providing
uncompensated health care to uninsured individuals is shifted to
those with health insurance, driving health care prices and insurance
premiums higher.
(d) Health care cost containment is an important part of enabling
the health care coverage system to provide high quality care in a
manner that improves patient outcomes.
(e) Evidence-based medicine may improve cost-effectiveness and
care to patients by using scientific evidence to determine clinical
practice, drug therapy, and other measures that improve the quality
of care in a cost-effective manner while taking into account the
special needs of individual patients. To improve quality as well as
cost-effectiveness, evidence-based medicine should take into account
the special needs of persons with disabilities as well as the racial,
ethnic, and gender disparities in health research and the provision
of health care.
(f) Chronic diseases, such as heart disease, stroke, asthma,
cancer, and diabetes, are among the most prevalent, costly, and
preventable of all health problems. Seventy-eight percent of health
care costs can be attributed to the treatment of chronic conditions.
"Disease management" provides a strategy to improve patient health
outcomes and limit health care spending by identifying and monitoring
high-risk populations, helping patients and providers better adhere
to proven interventions, engaging patients in their own care
management, and establishing more coordinated care interventions and
followup systems to prevent unnecessary and expensive health
complications. These disease management strategies should be tailored
to fit the needs of each patient. Disease management is most
effective when it takes into account racial, ethnic, and gender
disparities in health research and the provision of health care.
(g) Without reform, California's health care system may fail to
deliver the affordable quality care that all Californians deserve.
(h) It is the intent of the Legislature to make available valid
performance information to encourage hospitals and physicians to
provide care that is safe, medically effective, patient-centered,
timely, efficient, and equitable. It is also the intent of the
Legislature to strengthen the ability of the Office of Statewide
Health Planning and Development to put hospital performance
information into the hands of consumers, purchasers, and providers.
(i) It is the intent of the Legislature to encourage health care
service plans, health insurers, and providers to develop innovative
approaches, services, and programs that may have the potential to
deliver health care that is both cost-effective and responsive to the
needs of enrollees.

127671. (a) The Governor shall convene the California Health Care
Quality Improvement and Cost Containment Commission, hereinafter
referred to as "the commission," to research and recommend
appropriate and timely strategies for promoting high quality care and
containing health care costs.
(b) The commission shall be composed of 27 members who are
knowledgeable about the health care system and health care spending.
(c) The Governor shall appoint 17 members of the commission, as
follows:
(1) Three representatives of California's business community,
including at least one representative from a small business.
(2) Two representatives from organized labor, one of whom
represents health care workers.
(3) Two representatives of consumers.
(4) Two health care practitioners, including at least one
physician.
(5) One representative of the disabilities community.
(6) One hospital industry representative.
(7) One pharmaceutical industry representative.
(8) Two representatives of the health insurance industry, one with
expertise in managed health care delivery systems and one with
expertise in health insurance underwriting and rating.
(9) One representative of academic or health care policy research
institutions.
(10) One health care economist.
(11) One expert in disease management techniques and wellness
programs.
(d) The Senate Committee on Rules shall appoint four members, with
two members from the majority party and two from the minority party.
(e) The Speaker of the Assembly shall appoint four members, of
which two members shall be the Chair and Vice Chair of the Assembly
Committee on Health.
(f) The Secretary of the Health and Human Services Agency and the
Director of the Department of Managed Health Care shall serve as
members of the commission.
(g) The Governor shall appoint the chairperson of the commission.
(h) The commission shall, on or before January 1, 2006, issue a
report to the Legislature and the Governor making recommendations for
health care quality improvement and cost containment. The commission
shall, at a minimum, examine and address the following issues:
(1) Assessing California health care needs and available
resources.
(2) Lowering the cost of health care coverage.
(3) Increasing patient choices of health coverage options and
providers.
(4) Improving the quality of health care.
(5) Increasing the transparency of health care costs and the
relative efficiency with which care is delivered.
(6) Potential for integration with workers' compensation
insurance.
(7) Use of disease management, wellness, prevention, and other
innovative programs to keep people healthy while reducing costs and
improving health outcomes.
(8) Consolidation of existing state programs to achieve
efficiencies where possible.
(9) Efficient utilization of prescription drugs and technology.
(i) Notwithstanding any other provision of law, the members of the
task force shall receive no per diem or travel expense
reimbursement, or any other expense reimbursement.