PRNewswire - April 4, 2007

Nearly Five Years After Gov. Davis Signed Bill, Lifesaving Bill Remains at a Standstill

LOS ANGELES, April 4 /PRNewswire/ -- Nearly five years after California Governor Gray Davis signed a landmark bill to extend Medicaid (Medi-Cal) coverage to HIV-positive, non-disabled individuals statewide, AIDS Healthcare Foundation (AHF), the US' largest HIV/AIDS healthcare, prevention and education provider, which operates AIDS treatment clinics in the US, Africa, Latin America/Caribbean and Asia -- including 12 clinics in California -- today filed a legal complaint against California's Department of Health Services (DHS) to compel the state to comply with this groundbreaking legislation. Since the bill, AB 2197 (Paul Koretz, D-West Hollywood- [retired]), was signed into law by Davis in September 2002, implementation of this potentially lifesaving measure remains at a standstill.

The lawsuit, filed earlier today in Superior Court, Los Angeles County in the State of California (BS108234) by AHF alleges that California's Department of Health Services, "...has failed to comply with any requirements contained in AB 2197. As a result, no additional Californians have received Medi-Cal coverage and the attending medical care and treatment. AHF has submitted a request to DHS under the Public Records Act for all documents demonstrating compliance with AB 2197, but thus far has received no formal response or documents."

"AB 2197 was intended to help HIV-positive Californians access lifesaving care before they progress to an AIDS diagnosis, and it borders on criminal that almost five years later California is no closer to implementing this crucial legislation," said Michael Weinstein, AIDS Healthcare Foundation President. "At the time of its initial passage, I noted that the bill was the most important piece of AIDS legislation in California in a decade. It does absolutely no good to have such visionary legislation if state bureaucrats are unable or unwilling implement it, so we are filing this action to compel California to comply with the law."

"We are asking the Court for a declaration that California's Department of Health Services has indeed violated, and continues to violate AB 2197," said Tom Myers, General Counsel for AIDS Healthcare Foundation. "We are also seeking a writ of mandate from the Court directing DHS and its Director, Sandra Shewry, to comply with all applicable provisions of the law."

"We know HIV-positive people can lead longer, healthier lives if they are in care and on treatment, so I'd urge state officials to quickly comply with and honor the intent of this legislation," said Dr. Charles Farthing, Chief of Medicine for AIDS Healthcare Foundation.

AB 2197 came about in part in response to a call by the federal centers for Medicare and Medicaid Services for states to seek waivers to extend healthcare services to low-income individuals in the early stages of HIV. As written and signed into law, AB 2197 directs California's Department of Health Services to, among other things:

* Determine whether, under applicable Federal law, the federal government will contribute financially for the enrollment and maintenance of these beneficiaries in the Medi-Cal program;

* Seek from the federal government a waiver of requirements for the Medi-Cal program, such that California may implement this program;

* Actively encourage Medi-Cal recipients with AIDS to voluntarily enroll in Medi-Cal managed care programs;

* Utilize the savings generated by such enrolments to fund the coverage of otherwise eligible persons with HIV into the Medi-cal program.

Despite the passage of close to five years, AIDS Healthcare Foundation believes that DHS has failed to comply with any requirements contained in AB 2197.

History of the Legislation

In 2002, California Governor Gray Davis signed Assembly Bill 2197, a landmark AIDS care bill that was intended to extend Medi-Cal eligibility to HIV-positive Californians who are not yet disabled by AIDS. The bill, which had been introduced twice before in the California legislature in various versions as far back as 1997, honored a campaign pledge Davis made during his first California gubernatorial campaign.

At the time of its passage, AB 2197's author, Assembly Member Paul Koretz, said, "This bill is a win-win for the state and for persons living with HIV. It will provide access to more reliable, stable health care for these individuals at no additional cost to the state. The strong bi-partisan support this bill has received is testament to the fact that it is a very sensible, cost-effective approach to improving access to health care."

AB 2197 had been the highest priority that legislative year for California's leading AIDS organizations -- including the Southern California HIV Advocacy Coalition (SCHAC), (the sponsor of the bill) representing 10,000 individuals throughout the Southland, and AIDS Healthcare Foundation (AHF), the nation's largest specialty provider of HIV/AIDS medical care with clinics in Southern and Northern California.

AB 2197 extends Medi-Cal eligibility to Californians who are HIV positive, but do not yet have an AIDS defining illness. Previously, only Californians with an AIDS diagnosis (those who have progressed clinically from being HIV positive to having an AIDS defining illness) could be considered for Medi-Cal eligibility. As a result, many HIV-positive Californians had to progress to an AIDS diagnosis -- in essence get sicker, in order to then access care -- via Medi-Cal. Sadly, because of the state's failure to comply with AB 2197 almost five years after its passage, this still largely remains the case today.

AB 2197 Enjoyed Widespread Editorial Support From State's Top Newspapers

In addition to widespread support from numerous community and health organizations throughout the state, AB 2197 also received enthusiastic editorial endorsements from many of the state's top newspapers. The editorial pages of two of California's most-respected and widely-read newspapers -- the Los Angeles Times and the San Jose Mercury News -- each supported AB 2197 and asked for the Governor's timely signature on the bill.

The Times' editorial pointed out, "The law is written to preclude costing the state additional money. By giving patients access to drugs and care otherwise unavailable, the bill would extend their lives and on-the-job productivity," (September 10 2002 editorial, "A few Good Measures").

The Mercury News' headline underscored a critical element of the bill -- "Healthy Legislation: It's Not Always Expensive," (September 10 2002 editorial). AB 2197 had been written to be cost neutral, an even more important consideration in light of the $30 billion dollar budget crisis facing the state at that time.

The San Diego Union-Tribune and the San Francisco Chronicle also endorsed AB 2197. Urging "swift approval" of this "no-brainer" bill, the Union-Tribune noted that it "would cost the state general fund virtually nothing" in this budget deficit year while helping an estimated 10,000 people, many of them Latinos, blacks, and other minorities "who are falling through the cracks of the health care system" (July 20 editorial, "AIDS Prevention: Measure Would Extend Medical Benefits"). The Chronicle called AB 2197 a "matter of compassion and fiscal prudence," (July 18 editorial, "Earlier HIV Treatment").

The Legal Action

In addition to the Department of Health Services, AHF also has named Sandra Shewry, Director of DHS, as a defendant in the filing. In it's prayer for relief, AHF seeks from the Court:

* A declaration that Defendants have violated and continue to violate AB 2197;

* That the Court issue a write of mandate, directing Defendants to comply with all applicable provisions of AB 2197;

* An award for Plaintiff's costs of suit and attorneys' fees; and

* Other and further relief as this Court may deem just and proper.

For media inquiries, contact: Ged Kenslea, AHF's Communications Relations Director, (323) 860.5225 or Lori Yeghiayan, Associate Director of Communications for AHF or visit www.aidshealth.org

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