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HB 452: "An Act establishing the Alaska Prescription Drug Task Force; and providing for an effective date."

00 HOUSE BILL NO. 452 01 "An Act establishing the Alaska Prescription Drug Task Force; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 LEGISLATIVE FINDINGS AND PURPOSE. (a) The legislature finds that 07 (1) the rising cost of prescription drugs has imposed a significant hardship on 08 residents in the state who have limited budgets, are uninsured, or who have prescription drug 09 coverage with a carrier that is unable to control costs successfully due to cost shifting and 10 disparate pricing policies; 11 (2) there is an increasing need for the citizens of the state to have affordable 12 access to prescription drugs; 13 (3) in an effort to promote healthy communities and to protect the public 14 health and welfare, the legislature finds that it is the legislature's responsibility to make every

01 effort to provide affordable access to prescription drugs for all residents of the state; 02 (b) The purpose of this Act is to establish a prescription drug task force to consider 03 strategies to manage the increasing costs of prescription drugs and to increase affordable 04 access to prescription drugs for all state residents. 05 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 ALASKA PRESCRIPTION DRUG TASK FORCE. (a) The Alaska Prescription Drug 08 Task Force is established in the Department of Health and Social Services. The task force 09 consists of 10 members appointed by the governor as follows: 10 (1) one member from the Department of Administration; 11 (2) one member from the division of insurance, Department of Commerce, 12 Community, and Economic Development; 13 (3) one member from the Department of Health and Social Services; 14 (4) one member from the division of workers' compensation, Department of 15 Labor and Workforce Development; 16 (5) one member from the division of senior and disabilities services, 17 Department of Health and Social Services; 18 (6) one member who is a state resident and who is a licensed pharmacist; 19 (7) one member who is a state resident, who is not a state employee, and who 20 represents the insurance industry; 21 (8) one member who is a state resident who is a consumer of prescription 22 drugs; 23 (9) one member who is a representative from a large employee benefit plan; 24 and 25 (10) one member who is a state resident who is a primary care physician. 26 (b) The task force shall consider strategies for managing the increasing costs of 27 prescription drugs and for increasing affordable access to prescription drugs for all of the 28 state's citizens, including 29 (1) discount prices or rebate programs for seniors and individuals without 30 prescription drug coverage; 31 (2) the enactment of fair prescription drug pricing policies;

01 (3) requirements, including the level of detail, for disclosures by prescription 02 drug manufacturers of expenditures for advertising, marketing, and promotion, based on 03 aggregate national data; 04 (4) the establishment of programs aimed at educating health care practitioners 05 authorized to prescribe prescription drugs about the relative costs and benefits of various 06 prescription drugs, with an emphasis on generic substitution for brand-name prescription 07 drugs when available and medically appropriate; prescribing older, less costly drugs instead of 08 newer, more expensive prescription drugs, when appropriate; and prescribing lower dosages 09 of prescription drugs, when available and medically appropriate; 10 (5) disease management programs aimed at enhancing the effectiveness of the 11 treatment with prescription drugs of certain diseases that are prevalent among state residents; 12 (6) joint negotiations for prescription drug purchasing, a shared prescription 13 drug pricing schedule, and a uniform preferred prescription drug list for use by the medical 14 assistance program, other state payors, and private insurers; 15 (7) coordination among the medical assistance program, the labor-union 16 representatives, and, to the extent possible, in-state hospitals and private insurers toward the 17 development of a uniform prescription drug list that is clinically appropriate and that 18 leverages retail prices; 19 (8) policies that promote the use of generic prescription drugs where 20 medically appropriate; 21 (9) development of other strategies permitted under state and federal law 22 aimed at managing escalating prescription drug prices and increasing affordable access to 23 prescription drugs for all state residents; and 24 (10) the state's becoming a paying member of the National Legislative 25 Association on Prescription Drug Prices. 26 (c) The members of the task force shall serve without compensation but are entitled to 27 per diem and travel expenses authorized for boards and commissions under AS 39.20.180. 28 (d) The Department of Health and Social Services shall, at the request of the chair, 29 provide reasonable assistance with staff, supplies, equipment, and other appropriate items. 30 (e) The task force shall select a chair from among its members, shall meet at least 31 three times but may meet as frequently as necessary, and may meet and vote by

01 teleconference. 02 (f) The task force shall hold public hearings and use other means to solicit as much 03 helpful information as possible from the citizens of the state about increasing affordable 04 access to prescription drugs; and 05 (g) The task force shall submit its findings and recommendations to the governor and 06 the legislature by the 30th day of the First Regular Session of the Twenty-Fifth Alaska State 07 Legislature. 08 * Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c).