Legislature(2011 - 2012)CAPITOL 106

03/15/2012 03:00 PM House HEALTH & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 127 FETAL ALCOHOL DISORDERS AWARENESS DAY TELECONFERENCED
Moved Out of Committee
*+ HB 343 DISCLOSURE OF CHILDREN'S RECORDS TELECONFERENCED
Moved CSHB 343(HSS) Out of Committee
+= HB 218 PRESCRIPTION DRUG SPECIALTY TIERS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
            HB 218-PRESCRIPTION DRUG SPECIALTY TIERS                                                                        
                                                                                                                                
3:28:58 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 218 "An Act  prohibiting an insurer from  using a                                                               
drug   formulary  system   of  specialty   tiers  under   certain                                                               
circumstances."                                                                                                                 
                                                                                                                                
3:29:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  moved to  report HB  218 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
3:30:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  objected  for discussion.    He  directed                                                               
attention to a letter from  Jack C. McRae, Senior Vice President,                                                               
Premera  Blue Cross  Blue Shield  of Alaska,  dated February  14,                                                               
2012, [Included  in members' packets]  which stated  concerns for                                                               
duplicate regulations  with proposed  HB 218.   He  declared that                                                               
although he supported  proposed HB 218, he  wanted this testimony                                                               
from the insurance industry on the record.                                                                                      
                                                                                                                                
3:31:23 PM                                                                                                                    
                                                                                                                                
CHAIR  KELLER reported  that  proposed HB  218  would change  the                                                               
notification  for terms  applicable to  specialty pharmacy  tiers                                                               
from  30  days to  90  days,  while  the Patient  Protection  and                                                               
Affordable Care Act would change  this notification time frame to                                                               
60 days.   He agreed with Representative Seaton  that proposed HB
218 could conflict with the federal law.                                                                                        
                                                                                                                                
3:32:09 PM                                                                                                                    
                                                                                                                                
SHEELA TALLMAN, Manager, Legislative  Affairs, Premera Blue Cross                                                               
Blue Shield of  Alaska, stated that Premera was  in opposition to                                                               
proposed HB 218  in its present form.  She  declared that Premera                                                               
desired to  maintain transparency  to the consumers  by providing                                                               
detailed,  accurate information  about the  benefits, application                                                               
and renewals, co-payments, cost sharing,  and other out of pocket                                                               
costs at least  30 days prior to  any new terms.   She added that                                                               
this was also applicable to  the specialty pharmacy tiers and any                                                               
changes to  the formularies when  generic drugs  were introduced,                                                               
causing a  shift for  the brand  drug to a  different tier.   She                                                               
declared that Premera was concerned  with the 90 day notification                                                               
time frame,  as it would  impact application and  renewal cycles,                                                               
as  well as  increase  the overall  specialty  drug spending  and                                                               
premiums.     She  pointed  out   that  the  proposed   bill  was                                                               
duplicative  with the  federal  health  care reform  requirement.                                                               
She  clarified that  Premera was  required, as  of September  23,                                                               
2012,  to  provide  specific information  to  its  members  about                                                               
coverage  and  benefits,  including   pharmacy  benefits  with  a                                                               
breakdown of the cost sharing for  each tier.  She noted that any                                                               
change to  any of the plans  required a notification at  least 60                                                               
days prior to  the modification.  She declared  opposition to any                                                               
additional notices.                                                                                                             
                                                                                                                                
3:36:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked for a  monetary value to the expected                                                               
increase  to  the premiums  due  to  any change  in  notification                                                               
requirements.                                                                                                                   
                                                                                                                                
MS.  TALLMAN  replied  that  she   did  not  have  that  specific                                                               
information.                                                                                                                    
                                                                                                                                
3:36:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON, directing attention to  page 2, line 23 of                                                               
the proposed bill, paraphrased from the section:                                                                                
                                                                                                                                
     ...  specialty  drug  tiers may  impose  cost  sharing,                                                                    
     deductibles  for a  unique category  or specialty  tier                                                                    
     prescription drug that exceed  the dollar amount of the                                                                    
     cost sharing,  but only if the  insurer notifies within                                                                    
     the 90 days.                                                                                                               
                                                                                                                                
He asked  to clarify that this  did not say that  there could not                                                               
be a  charge for specialty  drug tiers, but that  it specifically                                                               
stated that  there can  be differing  charges for  specialty drug                                                               
tiers.  He stated that there  just had to be notification 90 days                                                               
in advance.                                                                                                                     
                                                                                                                                
3:38:10 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER agreed with the clarification.                                                                                     
                                                                                                                                
3:38:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON removed his objection.                                                                                    
                                                                                                                                
3:38:59 PM                                                                                                                    
                                                                                                                                
There being  no further objection,  HB 218 was reported  from the                                                               
House Health and Social Services Standing Committee.                                                                            
                                                                                                                                

Document Name Date/Time Subjects
1 SB 127 Sponsor Statement.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
2 SB 127 Bill Text version A.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
3 SB127 Fiscal Note.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
4 SB 127 10 Things About FAS.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
5 SB 127 Ltr of Support AMHB ABADA LOS FASD Day 2-13-12.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
6 SB 127 Ltr of Support Arctic FASD RTC.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
7 SB 127 Ltr of Support Gov Council Disability Spec Ed.pdf HHSS 3/15/2012 3:00:00 PM
SB 127
1 HB 218 sponsor.docx HHSS 3/15/2012 3:00:00 PM
HB 218
test HHSS 3/15/2012 3:00:00 PM
HB 218
2.5 HB 218-DCCED-INS-02-24-12 fiscal note.pdf HHSS 3/15/2012 3:00:00 PM
HB 218
3 HB 218 Sectional summary.pdf HHSS 3/15/2012 3:00:00 PM
HB 218
4 Premera Letter HB 218.pdf HHSS 3/15/2012 3:00:00 PM
HB 218
01 - HB 343, Original Bill, Version A, Disclosure of Children's Records.PDF HHSS 3/15/2012 3:00:00 PM
HB 343
02 - HB 343 Sponsor Statement, Original Bill, Version A.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
03 - HB 343 Sectional Analysis of Original Bill, Version A.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
3.5 HB 343-DHSS-PS-3-12-12 Fiscal note.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
3.75 HB 343-DOA-PDA-3-6-12 Fiscal note.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
3.76 HB 343-DOA-OPA-3-12-12 Fiscal Note.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
04 - HB 343 Letter of Support from the Division of Juvenile Justice, 24 February 2012.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
05 - HB 343 Letter of Support from the Office of Children's Services, 27 February 2012.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
06 - HB 343 Supporting Document, Flow Chart Explaining Current Disclosure Law by the Division of Juvenile Justice, 6 February 2012.pdf HHSS 3/15/2012 3:00:00 PM
HB 343
07 - HB 343 Supporting Document, Flow Chart Explaining Proposed Disclosure Law by the Division of Juvenile Justice, 6 February 2012.pdf HHSS 3/15/2012 3:00:00 PM
HB 343