Legislature(2001 - 2002)

04/12/2002 03:25 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 282-PRESCRIPTION DRUG INSURANCE BENEFITS                                                                                   
                                                                                                                                
 [This is a verbatim transcript.]                                                                                               
                                                                                                                                
TAPE 02-55, SIDE B                                                                                                              
Number 2382                                                                                                                     
                                                                                                                                
VICE  CHAIR HALCRO:   ...  House Bill  282, "An  Act relating  to                                                               
prescription drug  benefits under  a group health  care insurance                                                               
plan,"   sponsored   by   Representatives   Coghill   and   Fate.                                                               
Representative Coghill, welcome to the committee, sir.                                                                          
                                                                                                                                
REPRESENTATIVE COGHILL:  Thank you, Mr. Chairman.                                                                               
                                                                                                                                
VICE CHAIR HALCRO:   We do have a  [proposed committee substitute                                                               
for the]  sponsor substitute in front  of us, Version L,  and the                                                               
chair would accept a motion to  adopt it as our working document.                                                               
Oh, I'm sorry, excuse me, it's ... Version J.                                                                                   
                                                                                                                                
REPRESENTATIVE MEYER:  Mr. Chairman.                                                                                            
                                                                                                                                
VICE CHAIR HALCRO:  Representative Meyer.                                                                                       
                                                                                                                                
Number 2312                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER:   I'd  move CS  for Sponsor  Substitute for                                                               
House  Bill 282,  J version  [22-LS1066\J, Ford,  2/5/02], before                                                               
the committee.                                                                                                                  
                                                                                                                                
VICE CHAIR HALCRO:  Any  objections?  Seeing none, Representative                                                               
Coghill, welcome to the committee, sir.                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL:   Thank you,  and thank you  for adopting                                                               
this version.  This has been  kind of an exercise in learning for                                                               
me as well.  So, I've  gone through three different versions just                                                               
to ... get where  I'm at right now, before I  even had a hearing.                                                               
The way this  whole thing started was, my wife  takes a continued                                                               
medication, on  thyroid medicine.   And throughout the  course of                                                               
the  pharmaceutical   journeys,  we  were  paying   a  copay  for                                                               
prescriptions.  Doctors  had been prescribing 90 days  at a time,                                                               
and just about a year ago  it began -- the practice started where                                                               
we had  to pay a  copay for every month  now, instead of  for the                                                               
90-day prescription.   They said that  ... was the change  in the                                                               
insurance plan.   I got  to thinking about it  - and I  know that                                                               
the insurance companies have a little  different view than I do -                                                               
but it's  really cost shifting, is  what it amounts to.   And the                                                               
contract kind of changed in midstream on our part.                                                                              
                                                                                                                                
REPRESENTATIVE COGHILL:   So, I thought, well, I  should at least                                                               
ask the question why.  And  it really led to the discussion here,                                                               
which  brings us  to  AS  ... 21.54.155,  which  would  be a  new                                                               
section  saying  that [a]  health  care  insurance plan  that  is                                                               
providing a group  market plan may not impose a  supply limit for                                                               
a  prescription if  the supply  limit  is lower  than the  supply                                                               
limit prescribed  by the prescription.   Really, what  I'm asking                                                               
is that  if a doctor  prescribes for  a certain amount,  then the                                                               
doctor  should  know  and  it should  be  appropriate  that,  for                                                               
example,  if I  get a  90-day prescription  for a  blood-thinning                                                               
medicine, that I should be able to  get that filled.  I know that                                                               
this is going to be open for  debate, and I think we'll hear some                                                               
of the  debate.  And  I'm open to some  amendment if it  makes it                                                               
better, quite frankly.                                                                                                          
                                                                                                                                
REPRESENTATIVE  COGHILL:   In  the  discussion  with some  of  my                                                               
pharmacy buddies,  part number  one came into  view, and  that is                                                               
that  pharmacists  would go  through  the  process of  filling  a                                                               
prescription ... and  even be paid by the  insurance company, and                                                               
they would  agree that  it was  properly paid,  only to  find out                                                               
later, upon review of their  books, they decided that they didn't                                                               
want to pay at that level and  go back and change it after they'd                                                               
already  paid it.   Once  again,  that is  not my  battle, but  I                                                               
decided I'd put  it.  Certainly, you'll hear,  probably, pros and                                                               
cons on ... each one of that.                                                                                                   
                                                                                                                                
REPRESENTATIVE COGHILL:   To me,  it's a matter of  fairness, and                                                               
so I  ... folded  in the  best I  could with  language.   I would                                                               
certainly submit  to your thinking  on the  matter.  Even  on ...                                                               
Section  2, on  the supply  limit, really  my intention  is if  a                                                               
doctor prescribes  for 90 days, that  it should be 90  days.  And                                                               
if the  ... wording is not  as artful as  it can be, I'm  open to                                                               
amendment.   I know  that there  are those who  ... will  come to                                                               
some amendments.  In  fact, I see one right in front  of me.  So,                                                               
... that's  my whole  intent, very  simple.   Insurance companies                                                               
certainly are  ... very powerful, and  it's a consumer-protection                                                               
item.  And then it's a matter  of, can they work with the doctors                                                               
on  the timeliness  of prescriptions.    So, with  that, I  think                                                               
you'll hear  some testimony,  both pro  and con.   And  if you'll                                                               
take that testimony,  I'll get a chance to  peruse this amendment                                                               
that was just put  in front of us, which I've  never seen -- this                                                               
looks like a different bill.                                                                                                    
                                                                                                                                
VICE  CHAIR HALCRO:   Any  questions for  Representative Coghill?                                                               
Representative Crawford.                                                                                                        
                                                                                                                                
Number 2151                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD:   Thank  you, Mr. Chairman.   ...  As an                                                               
ironworker, we're under the Iron  Workers Health Trust and we get                                                               
a month of coverage  for each hundred hours that we  work.  If we                                                               
were  to ...  get a  prescription that  says for  90 days  or 180                                                               
days, but  we only have  a month  of coverage actually  coming to                                                               
us,  ... there's  the possibility  there that  ... the  insurance                                                               
company would have  to pay for more than they  were liable for if                                                               
this ... wording  were to go ...  through.  And I  don't know how                                                               
to fix that.                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL:   Well, and I understand that.   First of                                                               
all,  at the  time that  you got  the prescription,  certainly, I                                                               
would  imagine   that  that  would   be  the  time   of  payment.                                                               
Certainly,  the  insurance  is  picking   up  a  portion  of  the                                                               
prescription cost; so are you.   And once again, that would be --                                                               
just  from  my  estimation,  and  I  would  be  open  to  further                                                               
testimony, ... it would  seem to me like you pay  for it when you                                                               
buy it.   And if  you buy within  the month that  you're insured,                                                               
then so be it.  I mean, that  would be my guess.  And I would ...                                                               
defer to those ... who know that ... technicality better than I.                                                                
                                                                                                                                
REPRESENTATIVE CRAWFORD:  I have  the same condition myself, with                                                               
the thyroid medicine.  And I know  that they ... can write it for                                                               
180  days, but  they will  only fill  30 days  at a  time because                                                               
that's how the  insurance prefers it, each  month of eligibility.                                                               
But if ...  it were to be  changed in this manner,  it seems that                                                               
the health care trust would be  liable for the whole 180 days, if                                                               
I understand this.                                                                                                              
                                                                                                                                
REPRESENTATIVE COGHILL:   And that would be the  way I understand                                                               
it.  If you bought it at the  time you were covered, then I think                                                               
that would be a fair assessment.                                                                                                
                                                                                                                                
Number 2058                                                                                                                     
                                                                                                                                
VICE  CHAIR  HALCRO:    Any   other  questions?    Representative                                                               
Coghill,  let me  ask you,  ... [paragraph]  (1), where  it talks                                                               
about a penalty against pharmacists.   Part of the concern ... is                                                               
that -- as  I read your sponsor statement, it  gives the incident                                                               
that occurred  in Fairbanks where  a local pharmacy  was audited.                                                               
What  we've heard  from some  in the  pharmaceutical industry  is                                                               
that when  they go in and  do these audits, sometimes  either the                                                               
pharmacy  has  either  misunderstood  or  misrepresented  to  the                                                               
health insurance company exactly what  the doctor said, and these                                                               
audits   catch  these.     So,   in   the  case   where  it's   a                                                               
misunderstanding,  that's  one  thing,  and ...  it's  a  genuine                                                               
mistake.  In  the instance where there is  a ... miscommunication                                                               
... and it  is the pharmacist's fault, do you  have any heartburn                                                               
-- I mean, I think it's only  fair that we should put a condition                                                               
in here  that says  if the  audit reveals  that the  pharmacy, in                                                               
fact, was responsible for the error,  and not the ... health care                                                               
company  or the  ... doctor,  if it  was the  pharmacy's problem,                                                               
then they should be  held liable.  I mean, to  me that only seems                                                               
fair.                                                                                                                           
                                                                                                                                
REPRESENTATIVE COGHILL:   Sure.   And ...  I would go  along with                                                               
that,  that sense  of  fairness.   And  ... I  think,  as it  was                                                               
portrayed to  me, that  that was  certainly open  for discussion.                                                               
It was my understanding that  there was further appeal processes,                                                               
but if we  need to make it  emphatic in this, I would  be open to                                                               
that.                                                                                                                           
                                                                                                                                
Number 1991                                                                                                                     
                                                                                                                                
VICE CHAIR  HALCRO:   And the  second ...  point, where  it talks                                                               
about a  supply limit for a  prescription if the supply  limit is                                                               
lower:   like  probably a  lot of  my colleagues,  ..., I  have a                                                               
prescription.   And  when we  come down  here in  January through                                                               
May, ... my doctor writes the  prescription for a year, but every                                                               
30 days I've  got to call.   Especially in this day  and age with                                                               
technology -  where I can  pick up the phone  at any time  of the                                                               
day or night and call Fred  Meyer, Carrs, and fill a prescription                                                               
over  the phone  through their  automated system,  and go  in the                                                               
next morning  and pick  it up,  you know  - it  seems to  me that                                                               
there  are certain  cost-containment protections  ... built  into                                                               
this, only giving somebody a 30-day supply.                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  In addition,  ... I've had the case where ...                                                               
you've prescribed medicine and it  works good for the first three                                                               
...  [or]  four weeks,  and  ...  you  start  to show  some  side                                                               
effects.   And ...  maybe the  doctor comes back  in, and  you go                                                               
back to your doctor, and the  doctor says, "Well, we need to take                                                               
you off  of this;  let's get  you on something  else."   But I've                                                               
already filled a  90-day prescription at my pharmacy.   Then what                                                               
I do  with the remaining  60 days'  worth of medication,  ... I'm                                                               
certainly  not going  to return  those to  ... the  pharmacy; ...                                                               
they, in  good faith, can't resell  those.  So, it  seems that to                                                               
be --  that although from a  consumer standpoint, it is  a little                                                               
bit  of a  burden to  have to  call every  30 days  and get  your                                                               
prescription renewed,  but from a  cost containment and  even ...                                                               
as far as  an overall health benefit, there does  seem to be some                                                               
justification for that 30-day limit.  Comment on that and all.                                                                  
                                                                                                                                
Number 1934                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL:   And I appreciate  that.  And I  can see                                                               
that scenario  as a  realistic scenario.   I don't  know, though,                                                               
through experience,  that doctors would prescribe,  especially if                                                               
they anticipated  that type  of ..  an adjustment.   But  even if                                                               
they did,  I would  think that  they would  ... certainly  try to                                                               
time  that adjustment.   One  of  the things  that I'm  concerned                                                               
about is, certainly those of us  who travel, those who have to go                                                               
and live in  different parts, ... where you can't  go every month                                                               
and show  up or go in  to do your copay  -- so, you might  want a                                                               
90-day supply.  And I just  can't imagine a doctor would use that                                                               
indiscriminately.    I  can  understand   that  there  are  costs                                                               
involved.   But I also understand  that, for me, whereas  we were                                                               
paying $10 copay for a prescription,  now I'm paying an extra $20                                                               
for that prescription, because I'm  having to go back every month                                                               
and  pick that  up,  with ...  an  extra part  of  copay that  my                                                               
insurance  plan has  outlined.   So,  certainly there  is a  cost                                                               
savings to somebody, but it's not to me.                                                                                        
                                                                                                                                
VICE  CHAIR  HALCRO:   Any  other  questions  for  Representative                                                               
Coghill?   Seeing  none,  thank  you very  much,  and stick  real                                                               
close.   Let's go  online first to  Fairbanks, Mr.  Gerald Brown.                                                               
Mr. Brown, are you with us, sir?                                                                                                
                                                                                                                                
Number 1866                                                                                                                     
                                                                                                                                
GERALD BROWN:   Yes, I am,  and thank you very  much for allowing                                                               
me to speak to you.                                                                                                             
                                                                                                                                
VICE CHAIR HALCRO:   Mr. Brown ..., if you  could state your name                                                               
and affiliation for the record, please.                                                                                         
                                                                                                                                
MR. BROWN:   My  name is  Gerald Brown ...;  I'm a  pharmacist; I                                                               
work  in Fairbanks.  I'm also  on the  ... Alaska  Pharmaceutical                                                               
Association Board.   I am not representing the board  today.  I'm                                                               
...  representing  just  the profession,  as  a  pharmacist  here                                                               
today.   I would like  to speak  to this bill.   I ...  have some                                                               
problems with  the new,  amended version.   ... As  a pharmacist,                                                               
we've been  listed as  the number-one  trusted profession  in the                                                               
nation ... since the mid-'80s  through the mid-'90s.  And because                                                               
of that, the  public trusts pharmacists very much.   This bill is                                                               
not about reimbursement,  per se.  This bill is  -- the intent is                                                               
to help the public.                                                                                                             
                                                                                                                                
MR. BROWN:   We are concerned about the public  being able to get                                                               
medication  on  a  timely  basis   in  an  easy  method,  and  in                                                               
convenient  forms  that  they  can   get  for  travel  or  remote                                                               
locations  or inaccessibility  to pharmacies,  especially in  the                                                               
state of Alaska.   What we were having problems  with is that the                                                               
insurance companies want  to refuse the delivery  to mail orders,                                                               
and  it's ...  intending, through  economic incentives,  to drive                                                               
the prescription filling  not from [an] in-state  and local basis                                                               
but to out-of-state,  offsite basis.  We feel this  is not right;                                                               
this is not  good health care.   And to say that it  is under the                                                               
guise of  saving health care costs  is a misnomer.   We feel that                                                               
... this  bill, as it has  been amended here, does  not take into                                                               
consideration those ... factors.                                                                                                
                                                                                                                                
Number 1783                                                                                                                     
                                                                                                                                
MR. BROWN:   We like the  first version a little  bit better, but                                                               
there are some  problems with that also.  What  we were trying to                                                               
do is  to match up  to being able  to fill,  if there is  a mail-                                                               
order provision,  to be able to  fill the same quantities  of the                                                               
mail order and  the same copay so that everything  is on the same                                                               
basis.  There is an economic  disincentive to be able to only get                                                               
30 days locally, while  you can get 90 days via  mail order.  And                                                               
then, for  instance, like  the North Star  Borough here  allows a                                                               
30-percent  copay  locally, but  20-percent  copay  Outside at  a                                                               
mail-order place.   And  we don't believe  that that's  fair, and                                                               
it's  usury to  the  ... public.    We believe  that  ... on  the                                                               
original bill [SSHB 282] there was  a provision (3) that said for                                                               
a supply limit,  that does not necessarily need to  be there, but                                                               
we want  to have it  so that there is  an option for  regress and                                                               
allowance  for  review  by  the  ...  patient  to  the  insurance                                                               
company, to allow for special  situations such as remote location                                                               
and special situations  where a supply limit may need  to be more                                                               
than 30 or 90 days.                                                                                                             
                                                                                                                                
MR. BROWN:  I  have a lady who lives 90 miles  outside of Tok off                                                               
on a snowmobile  trail, ... and she's only able  to come in about                                                               
every six months, and it's a long  travel just to get to the post                                                               
office in  Tok.   We would  like to be  able to  let her  get her                                                               
medication once or  twice a year, so that she  could get that but                                                               
she  would have  to apply  to the  insurance company  for special                                                               
waivers on that.   We feel that that's a  practical solution.  We                                                               
don't feel that  you should be able to get  ... necessarily a 90-                                                               
or 180-day supply  because you happen to go South  for the winter                                                               
or  you  happen  to  be   Outside  visiting  your  relatives,  or                                                               
whatever.   That, to  me, is  not a consideration.   But  we feel                                                               
that ...  we need to have  some convenience for those  people who                                                               
live in Eagle who  have a road closed for six  to nine months out                                                               
of the  year.   We think that  it is important  that we  can have                                                               
those changes, and they have an option to do that.                                                                              
                                                                                                                                
Number 1662                                                                                                                     
                                                                                                                                
MR.  BROWN:   We want  to be  able to  fill the  cost, ease,  and                                                               
supplies  of  the  mail  orders  ...  without  ...  the  economic                                                               
disincentives  that the  insurance companies  are putting  on the                                                               
clients here.   We feel that  the ... companies that  are touting                                                               
these mail-order services are actually  our government.  And what                                                               
this is  saying to me is  that the government doesn't  want to do                                                               
business with businesses  within the state; they  want to shuffle                                                               
business  to the  ... Outside  mail-order places.   We  feel that                                                               
that  is extremely  unfair, and  that we  have the  University of                                                               
Alaska,  ...  the Fairbanks  Northstar  Borough,  and the  school                                                               
district - just  for examples here locally - who  are saying that                                                               
we don't  want you to  have business here  in the state,  we want                                                               
you to use the mail-order business.   And we feel that that's bad                                                               
health care policy because there's  nobody there to help look for                                                               
drug interactions, help  to look for questions  and problems with                                                               
the prescription,  or to answer  questions if there is  a problem                                                               
with  a particular  medication.    And I  can  give you  numerous                                                               
examples of how  that has and can occur  in filling prescriptions                                                               
here in Alaska and in Fairbanks.                                                                                                
                                                                                                                                
MR. BROWN:   Remember, the National Chamber of  Commerce says for                                                               
every dollar that you spend  within the state, it multiplies four                                                               
to seven times.   If we send a dollar out  to a mail-order place,                                                               
that's a  dollar lost to  the economy.  That  mail-order business                                                               
does not  pay business taxes  here in Alaska, yet  the businesses                                                               
within  the  state  do  pay  taxes; we  do  contribute  to  local                                                               
nonprofit groups,  charity groups.   We donate to  the University                                                               
of Alaska.   We  donate to  the school  district in  ... monetary                                                               
firms.  We sponsor hockey  and soccer teams within the community.                                                               
We are good business partners within the community.                                                                             
                                                                                                                                
VICE CHAIR HALCRO:  Mr. Brown.                                                                                                  
                                                                                                                                
MR. BROWN:  Yes.                                                                                                                
                                                                                                                                
VICE CHAIR HALCRO:  Could you please summarize?                                                                                 
                                                                                                                                
MR.  BROWN:   Okay.   We feel  ... that  we'd like  to have  this                                                               
legislation so  that we  can fill those  same quantities,  so, at                                                               
least to the customers, ... we  are helping them, and ... to them                                                               
we're the  same as if  we were the mail  order, also, and  we can                                                               
provide those services the same.                                                                                                
                                                                                                                                
VICE CHAIR HALCRO:  Thank you  for your testimony, sir.  Is there                                                               
any  questions?   Seeing none,  we will  go to  our offnet  site,                                                               
Nicole Salinas.                                                                                                                 
                                                                                                                                
NICOLE SALINAS:  Yes, I'm here via teleconference.                                                                              
                                                                                                                                
VICE CHAIR HALCRO:  If you  could state your name and affiliation                                                               
for the record,  and please keep your testimony  to three minutes                                                               
or less.                                                                                                                        
                                                                                                                                
Number 1545                                                                                                                     
                                                                                                                                
MS.  SALINAS:   Sure,  I'll  do my  best.    Chairman Halcro  and                                                               
members of  the House  Labor and Commerce  Committee, my  name is                                                               
Nicole  Salinas.   I am  part  of Aetna's  national account  team                                                               
responsible for the  state of Alaska.  And, again,  thank you for                                                               
letting  me   testify  on  this  bill   via  teleconference  this                                                               
afternoon.   Aetna does oppose HB  282 because it is  designed to                                                               
take away  any incentive for  insured Alaskans to use  mail order                                                               
as a  means of  purchasing maintenance  prescription drugs.   The                                                               
use   of  mail   order  does   benefit  consumers   by  providing                                                               
prescription  drugs at  a lower  cost than  could be  obtained at                                                               
local pharmacies.   While our  covered ... members do  have their                                                               
choice   of  purchasing   drugs   locally  or   by  mail   order,                                                               
prescription  plans are  often  set up  with  a differentials  in                                                               
copayment and  differentials in quantity  limits.   Without these                                                               
differentials,  there   would  be   very  little   incentive  for                                                               
individuals  to use  mail order,  except ...  the convenience  of                                                               
receiving drugs at their home.   The results of the bill would be                                                               
more  business  and  profits  for  local  pharmacies,  but  at  a                                                               
substantially higher  cost to the insurance  plan and, therefore,                                                               
the smaller employer groups.                                                                                                    
                                                                                                                                
MS. SALINAS:   Today, drugs represent a component  of health care                                                               
costs which  is increasing  at the  highest rate  both nationwide                                                               
and  in Alaska.    Aetna  and other  insurers  do  their best  to                                                               
mitigate this  cost increase by  using their  national purchasing                                                               
power  to  negotiate  favorable financial  discount  arrangements                                                               
with   large  pharmaceutical   vendors   like  Express   Scripts,                                                               
Walgreen's, or Wal-Mart  to provide maintenance drugs  at a lower                                                               
cost  than  could  be  obtained  by  individual  employer  groups                                                               
locally.   Pharmacists in Alaska  currently fill over  85 percent                                                               
of  drugs  covered  under  insurance  plans.    We  make  special                                                               
arrangements  to  allow  pharmacists   in  rural  communities  to                                                               
receive reasonable  compensation from Aetna for  the service they                                                               
do provide our  customers locally.  To  increase the pharmacist's                                                               
business  to   100  percent  will  result   in  significant  cost                                                               
increases to Alaskans  for their prescription drug  coverage.  We                                                               
urge  the  committee members  to  oppose  the bill  as  currently                                                               
drafted.                                                                                                                        
                                                                                                                                
VICE CHAIR HALCRO:   Thank you very much.   Any questions for Ms.                                                               
Salinas?  Seeing none, we'll go to Roger Mortemore.                                                                             
                                                                                                                                
Number 1426                                                                                                                     
                                                                                                                                
ROGER MORTEMORE:   Yes.   My  name is Roger  Mortemore and  I'm a                                                               
pharmacist in Fairbanks,  and I'm also on the  Board of Directors                                                               
of  the Alaska  Pharmaceutical  Association.   But  as Mr.  Brown                                                               
said, I'm  also just addressing  the profession.   And basically,                                                               
in  the interest  of  time, I'll  say pretty  much  I agree  with                                                               
everything  that Mr.  Brown has  said.   But you  were discussing                                                               
about if you have  coverage for just one month at  a time and you                                                               
get [a prescription for] three months.   That also applies if you                                                               
mail it  off; even if you  have coverage for just  one month, you                                                               
are going  to be  able to  get three  months from  the mail-order                                                               
pharmacy,  what  would be  an  additional  incentive such  as  in                                                               
Section 1, part (1), of what Ms. Salinas said for Aetna.                                                                        
                                                                                                                                
MR.  MORTEMORE:    Aetna  is   rather  cooperative  as  insurance                                                               
companies  go;  there   are  several  others  that   are  not  as                                                               
cooperative  -- and  if there  could be  some wording  that could                                                               
help say  that exceptions could  be made.   And my  other comment                                                               
was in regard  to the part (3) of  the bill [SSHB 282].   I am in                                                               
full agreement of  changing that one completely,  saying, like, a                                                               
90-day supply.   And my opinion would be to  rewrite the bill ...                                                               
with changing some of the amendments in support of HB 282.                                                                      
                                                                                                                                
VICE CHAIR HALCRO:  Thank  you for your testimony, Mr. Mortemore.                                                               
Is there any questions?  Seeing none, we'll go to Jack McRae.                                                                   
                                                                                                                                
Number 1347                                                                                                                     
                                                                                                                                
JACK McRAE:   Hi, I'm  Jack McRae with  Premera, and we  own Blue                                                               
Cross Blue  Shield of Alaska.   And  I'm at a  major disadvantage                                                               
because I don't have Version J in  front of me, and I haven't had                                                               
a chance to see it yet.  And  ... if the chair agrees, maybe I'll                                                               
respond to some of the questions  that were brought up, if that's                                                               
acceptable.                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  Absolutely.  Go ahead, sir.                                                                                 
                                                                                                                                
MR. McRAE:   We insure 80,000  lives in Alaska.   And in relation                                                               
to the  30-day and  the 90-day  issue, we  do require  [a] 30-day                                                               
prescription  limit if  they go  to a  pharmacist.   (Indisc.) in                                                               
Alaska, we've  been doing  business there  before statehood.   We                                                               
recognize the differences  in Alaska, and ... through  all of our                                                               
group plans, a person  can go in and get 90-day  supply of a drug                                                               
either through the pharmacist or  through mail order - the 30-day                                                               
period  - but  they can  get 90  days, but  they would  pay three                                                               
copays.  For example, if it's  on our formulary and you went into                                                               
a pharmacist in Alaska and  purchased the pharmaceutical product,                                                               
you'd pay  $30 for the  three months.  To  do mail order  on that                                                               
same drug  through our Merck-Medco [Managed-Care  L.L.C.] system,                                                               
you'd pay a $20 copay.  So you'd still get a 90-day supply.                                                                     
                                                                                                                                
MR. McRAE:   So, our  practice in our  group plans in  Alaska has                                                               
been, for  quite a while, to  prescribe a 90-day supply.   And if                                                               
that's not happening,  then it must be  a misinformation, because                                                               
we just  checked this today.   In relation  to the issue  of mail                                                               
order  versus pharmacy,  our concern  up  there is  to keep  cost                                                               
down.  Drugs are the, on  a percentage basis, ... fastest growing                                                               
percentage  of health  care when  you look  at hospital  fees and                                                               
physician fees;  it's just  going up  faster than  anything else.                                                               
And we believe ... that if we were not able to use the mail-                                                                    
order system  on ... our  multistate basis,  it would be  about a                                                               
30-40  percent increase  in  the  cost of  drugs  because of  the                                                               
contracts  we're able  to ...  have with  Merck-Medco, our  mail-                                                               
order ... prescriber.                                                                                                           
                                                                                                                                
Number 1238                                                                                                                     
                                                                                                                                
MR. McRAE:  In relation to ...  going over a 90-day period, we do                                                               
have a concern  there, that was brought up  earlier, that there's                                                               
a situation where  somebody either quits an employer  or moves on                                                               
for some  reason, and they get  billed more than 90-days.   There                                                               
can  be a  tendency  to do  that just  before  they know  they're                                                               
moving on.   So, we do like  the limit of 90 days,  but in Alaska                                                               
we do use  90 days.  Again,  going back to the one  issue of mail                                                               
order:   we are very concerned  that if mail order  is eliminated                                                               
or, with some of  the language that was up there,  it would be no                                                               
advantage for  mail order -  that it would  be a cost  driver for                                                               
our 80,000 subscribers  up there.  So, with that,  if there's any                                                               
questions, I'd be more than willing to respond.                                                                                 
                                                                                                                                
VICE CHAIR HALCRO:   Any questions to Mr. McRae?   Mr. McRae, let                                                               
me ask  you, with regards to  this supply limit, ...  did you say                                                               
it's currently 90 days?                                                                                                         
                                                                                                                                
MR. McRAE:   It's currently  90 days  both through a  pharmacy in                                                               
Alaska and through mail order in Alaska.                                                                                        
                                                                                                                                
VICE CHAIR  HALCRO:   Okay.   And ...  you said  you do  not have                                                               
Version J in front of you?                                                                                                      
                                                                                                                                
MR. McRAE:  I do not have ... Version J, I'm sorry.                                                                             
                                                                                                                                
VICE CHAIR HALCRO:  Subsection (2)  says, ... "a supply limit for                                                               
a  prescription if  the supply  limit  is lower  than the  supply                                                               
limit described  in the prescription."   Would it be  possible or                                                               
practical for  us to identify  or add on  that there is  a 90-day                                                               
limit?                                                                                                                          
                                                                                                                                
MR. McRAE:   Yeah, that would be acceptable  from our standpoint.                                                               
As you're  aware, Mr.  Chair, ...  a lot of  times a  doctor will                                                               
prescribe less  than ... 30  days or  15 days, some  much smaller                                                               
amount to  90.   But to limit  to 90 would  be an  advantage just                                                               
from our standpoint.                                                                                                            
                                                                                                                                
VICE CHAIR HALCRO:   Okay, great.  Thank you.   Any questions for                                                               
Mr. McRae?  Seeing none, we'll go to Angie LeBoeuf.                                                                             
                                                                                                                                
Number 1139                                                                                                                     
                                                                                                                                
ANGIE LeBOEUF:   Hi, I'm Angie LeBoeuf from Anchorage,  and I'm a                                                               
pharmacist,   and  I'm   also  the   President   of  the   Alaska                                                               
Pharmaceutical  Association, speaking  on behalf  of myself  as a                                                               
pharmacist.   And I  want to  support HB  282.   In the  world of                                                               
retail pharmacy,  we're frequently  presented with  the situation                                                               
of trying to explain the insurance  to the customers.  They don't                                                               
understand why  their policy  requires that  they use  mail order                                                               
outside  the   state  to  get   a  better  copay,  and   it's  an                                                               
inconvenience  for  the  consumer,  and they're  angry  with  the                                                               
situation.  Many  times, they'll get only a 30-day  limit if they                                                               
use a  local pharmacy versus a  90-day if they go  Outside.  It's                                                               
not only an inconvenience for them  when they try to use the mail                                                               
order; the medication often arrives  late, so they've already run                                                               
out of medicine.   So, they come to the local  pharmacy to try to                                                               
get  the  medications, to  get  them  through until  their  other                                                               
prescription comes in.                                                                                                          
                                                                                                                                
MS. LeBOEUF:   In cases  like this, often  they have to  pay cash                                                               
for the  small quantity because  the insurance may not  allow for                                                               
them to get an  early fill.  It's an early  fill to the insurance                                                               
because the  mail order  already filled and  mailed it,  but it's                                                               
late.  And so, then, this  presents the pharmacy with the task of                                                               
trying to get a hold of  the doctor to get a prescription because                                                               
the prescription  was mailed Outside,  so that they can  ... help                                                               
the patient  get through.   Other times, they may  have questions                                                               
about their medication,  and they can't get  the information they                                                               
need in a timely manner.   And, again, [in] these situations, the                                                               
patient  will call  the  local  pharmacy, who  did  not fill  the                                                               
prescription.   And  there  is  also a  risk  of medications  not                                                               
properly maintained  at the correct  temperature.  So you  have a                                                               
stability  question through  mail order.   I  think that  ... for                                                               
these  reasons, it's  in the  best  interest of  the consumer  to                                                               
allow equal access and equivalent  copays and quantities from the                                                               
insurance.                                                                                                                      
                                                                                                                                
MS. LeBOEUF:  And addressing  the cost-containment issue that was                                                               
brought forward  regarding a  30-day supply  or a  90-day supply,                                                               
many  times  in  the  ways  prescriptions are  paid  there  is  a                                                               
dispensing  fee.   And  so  if they  get  a  90-day supply,  then                                                               
there's one dispensing  fee, whereas if they have to  get [a] 30-                                                               
day supply at the local pharmacy,  and they do that ..., then the                                                               
insurance is  really paying  more because  they're having  to pay                                                               
three  dispensing fees.   And  so, I  think ...  it's not  a bill                                                               
about  money and  ... the  insurance can  save so  much money  by                                                               
using the  Outside source, but  rather that ... it's  just better                                                               
for the patient if they use  the same pharmacy that can check for                                                               
interactions  and  give personal  care  and  consultation to  the                                                               
patient.  Thank you.                                                                                                            
                                                                                                                                
VICE CHAIR  HALCRO:  Thank you.   Is there any  questions?  Thank                                                               
you very much  for your testimony.  Is there  anybody here in the                                                               
room that  wishes to give  testimony on  House Bill 282?   Seeing                                                               
none, is there anybody else  online that remains, that would wish                                                               
to give testimony on House Bill 282?                                                                                            
                                                                                                                                
Number 0945                                                                                                                     
                                                                                                                                
MR. BROWN:  May we add to our comments or to our testimony?                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  Is this Mr. Brown?                                                                                          
                                                                                                                                
MR. BROWN:  Yes, it is.                                                                                                         
                                                                                                                                
VICE CHAIR HALCRO:  Yes, Mr. Brown, very briefly, sir.                                                                          
                                                                                                                                
MR. BROWN:   The comment about whether the ...  dispensing fee is                                                               
more  expensive to  the insurance  company:   the  fact that  the                                                               
dispensing fee is only between a  $1.75 and $2.75, you can divide                                                               
that for  one 30-day supply  or you divide  it over ...  90 days;                                                               
that dispensing  fee doesn't  change.  And  so it  actually saves                                                               
the  insurance   company  money.    ...   The  insurance  company                                                               
determines what the cost is.  So,  the cost should be the same or                                                               
relatively the same  basis ... as the mail order  is basing their                                                               
cost off.  So, it should be the same cost.                                                                                      
                                                                                                                                
VICE CHAIR HALCRO:   Thank you very much.  Any  questions?  We do                                                               
have one  more person in the  committee room here that  wishes to                                                               
give testimony.  Why  don't you come to the table.   If you could                                                               
state your name and affiliation  for the record, please.  Welcome                                                               
to the committee, Dan.                                                                                                          
                                                                                                                                
Number 0888                                                                                                                     
                                                                                                                                
DAN HEINCY:   Thank you.  My name  is Dan Heincy.  I'm  am also a                                                               
pharmacist, but I happen to work  for Merck & Company, which owns                                                               
Merck-Medco   mail-order  pharmacy,   and   we   also  own   PAID                                                               
Prescriptions,  which is  the fiscal  intermediary  who pays  the                                                               
claims for  many local pharmacies as  well as for the  claims for                                                               
the state of  Alaska.  Without revealing terms  of contracts, ...                                                               
my  colleagues who  are out  in  retail pharmacy  are not  seeing                                                               
something that  is going on.   There is a difference  in the cost                                                               
to insurance  companies as to whether  or not they use  the local                                                               
pharmacy or whether they use  a mail-order pharmacy, whether it's                                                               
Merck-Medco or it's any other mail-order pharmacy.                                                                              
                                                                                                                                
MR. HEINCY:   And typically what  happens here is that  when they                                                               
go to the local pharmacy  they've negotiated a rate that includes                                                               
an average  wholesale price, less  a discount, plus  a dispensing                                                               
fee.  When ... that  insurance company negotiates a contract with                                                               
a  mail-order  pharmacy, they  typically  get  a better  discount                                                               
rate; they get  the average wholesale price, plus  an even deeper                                                               
discount off  of the cost  of ingredients.  So  immediately there                                                               
are  savings to  the insurance  company  or the  employer or  ...                                                               
whoever has  contracted for  this service.   So  they immediately                                                               
save  on  the  differential  in  the  ingredient  cost,  and  ...                                                               
frankly, my colleagues  in the private sector  complain about the                                                               
dispensing fees that they get.                                                                                                  
                                                                                                                                
MR. HEINCY:   The pharmacists who  work for Merck-Medco -  and we                                                               
are the  largest pharmacist employer  in the United  States; more                                                               
pharmacists work  for us than any  other group - bottom  line for                                                               
those guys is they  even get a lower fee too.   So, it's not only                                                               
less ingredient cost, but it's also  a lower dispensing fee.  So,                                                               
the bottom line  is whoever is paying for the  drug benefit saves                                                               
money if it happens  to go through mail order.   And we feel that                                                               
we deliver ...  very good, quality pharmaceutical  services.  All                                                               
of our pharmacists are members  of professional societies and are                                                               
licensed in multiple  states - just as I am  licensed in multiple                                                               
states, too.                                                                                                                    
                                                                                                                                
VICE CHAIR HALCRO:   Any questions for Mr. Heincy?   Seeing none,                                                               
thank you  for your testimony.   With that, we will  close public                                                               
testimony.  ...                                                                                                                 
                                                                                                                                
Number 0739                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:   The chair would like to  propose a couple of                                                               
amendments, which  I think  the first two  to the  existing bill,                                                               
[paragraph]  (1),  where it  talks  about  "a penalty  against  a                                                               
pharmacist   if  the   penalty  results   for  the   pharmacist's                                                               
accurately filling  a prescription", et  cetera.  I  believe that                                                               
there  needs  to, as  we  discussed  in  committee with  ...  the                                                               
sponsor -- Representative  Coghill, if you'd like to  come to the                                                               
table and join us, that'd be great.   If we could put a provision                                                               
in there,  and I have  some language I'd  just like to  read ...,                                                               
you might  actually -- I don't  know if everybody has  this here,                                                               
but I can certainly make copies.   Basically, what we're going to                                                               
say is, we're  going to say you can't penalize  a pharmacist, ...                                                               
provided the  pharmacist did  not provide  inaccurate information                                                               
to the  health care insurance  plan administrator when  the claim                                                               
was  filed.   So, if  it  is genuinely  not his  fault and  these                                                               
claims ... are uncovered --  or these discrepancies are uncovered                                                               
through the  audit procedure  - if,  in fact, ...  it is  not the                                                               
pharmacist's fault - then they shouldn't  be held liable.  But in                                                               
the case where inaccurate information  was provided, then I think                                                               
there certainly needs  to be ... some accountability  there.  And                                                               
I  would just  propose that  to the  committee.   And we'll  make                                                               
copies  of  that.    And  we'll  open  that  up  for  discussion.                                                               
Actually, ...  once we get that  in writing, I will  move that as                                                               
an amendment.                                                                                                                   
                                                                                                                                
     [Later  labeled  Amendment  1,  the  written  amendment                                                                    
     dated 04/02/02 was to SSHB  282, rather than Version J.                                                                    
     An  upper   portion  that  just  quoted   the  existing                                                                    
     language  in  SSHB 282  is  omitted  here.   The  lower                                                                    
     portion read as follows, with original punctuation:                                                                        
                                                                                                                                
     Amend as follows:                                                                                                      
     Page  1,  Section  1.   Section  21.54.155,(1),(2),(3),                                                                  
     Lines 4 through 14.                                                                                                      
                                                                                                                                
     Section  1.   AS  21.54  is  amended  by adding  a  new                                                                  
     section to  read:  Sec.  21.54.155.   Prescription drug                                                                  
     benefits.   A health  care insurance  plan sold  in the                                                                  
     group market  that provides prescription  drug benefits                                                                    
     may not impose                                                                                                             
     (1)  a higher  copayment amount  or lower  supply limit                                                                    
     for a  prescription drug purchased  from a  pharmacy in                                                                    
     this state  than the copayment  amount or  supply limit                                                                    
     imposed  for  a  prescription drug  purchased  by  mail                                                                    
     service  pharmacy, as  long as  the  in state  pharmacy                                                                
     agrees  to   the  same  price,   reimbursement,  terms,                                                                
     conditions, and services as the mail service pharmacy;                                                                 
     (2)  a  penalty against  a  pharmacist  if the  penalty                                                                    
     results  from  the  pharmacist's accurately  filling  a                                                                    
     prescription for which  the pharmacist received written                                                                    
     or electronic  approval from the health  care insurance                                                                    
     plan  administrator provided  the  pharmacists did  not                                                                
     provide  inaccurate  information  to  the  health  care                                                                
     insurance plan administrator when  the claim was filed;                                                                
     or                                                                                                                         
     (3) a  supply limit  for a  prescription if  the supply                                                                
     limit is lower  than the supply limit  described in the                                                                
     prescription. [This would allow  [a] pharmacist to fill                                                                
     any quantity at  all as long as that's  what the doctor                                                                  
     writes on  the prescription.   So  a patient  could get                                                                  
     365 days  supply or more  in one  fill.  This  does not                                                                  
     make  sense  in light  of  everyone  trying to  contain                                                                  
     prescription  cost.    What   happens  if  the  patient                                                                  
     becomes ineligible two weeks [later]?]                                                                                   
                                                                                                                              
     (end of Amendment 1; short note at bottom omitted)]                                                                        
                                                                                                                                
VICE CHAIR  HALCRO:   Representative Coghill  could you  speak to                                                               
that.  Does the sponsor have any objections to that amendment?                                                                  
                                                                                                                                
Number 0647                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL:  No, I was  open to the language that was                                                               
proposed.   I  think that  what ...  I was  looking for  was some                                                               
degree of equity.  And I think if  there is a discussion on if it                                                               
was  properly  filled  out, properly  reported,  I  think  that's                                                               
appropriate.   I understood that;  certainly, I would  think that                                                               
an insurance  company would have  a claim if they  found anything                                                               
that was  out of the  ordinary or  fraudulent, but I  think we're                                                               
expressing it very emphatically.                                                                                                
                                                                                                                                
VICE CHAIR HALCRO:   Sure.  And  I think ... you bring  up a very                                                               
good point in  the bill:  we certainly don't  want pharmacists to                                                               
be penalized if, in  fact, it was not their mistake.   But in the                                                               
case  where   something  was  misrepresented,  I   think  ...  it                                                               
certainly sounds like we need some kind of a fallback.                                                                          
                                                                                                                                
REPRESENTATIVE COGHILL:   One of  the things that was  brought to                                                               
my  attention over  this was  the paper  trail sometimes  is very                                                               
difficult because  sometimes doctors go  by way of phone,  by way                                                               
of fax,  by way of delivering  an actual prescription.   And it's                                                               
the ... auditable ones that can create some problems.                                                                           
                                                                                                                                
VICE CHAIR HALCRO:   And I raised that question  earlier today in                                                               
a meeting, and it  seems to me that -- because I  do that quite a                                                               
bit,  call my  doctor  in Anchorage  and  ask him  to  call in  a                                                               
prescription locally here.   And I asked about that:   ... how do                                                               
you get  a paper trail  from a phone  conversation?  And  it's my                                                               
understanding that most pharmacies either  fax the doctor back or                                                               
ask them  to fax down a  written prescription so they  keep it on                                                               
file.  So, there is some kind of  a paper trail.  So, ... in that                                                               
kind of a case, it would be covered.                                                                                            
                                                                                                                                
VICE  CHAIR HALCRO:    You  will see  the  amendment language  is                                                               
actually towards the bottom of  the page, the bold language under                                                               
[paragraph]  (2),  where  it's  just  very  clear.    It  states:                                                               
"provided  ...   the  pharmacist   did  not   provide  inaccurate                                                           
information to the health care  insurance plan administrator when                                                           
the claim was filed", and then end.                                                                                         
                                                                                                                                
Number 0511                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  So, with  that, I would move Amendment Number                                                               
1.    Is there  any  objection?    Seeing  none, Amendment  1  is                                                               
adopted.                                                                                                                        
                                                                                                                                
Number 0499                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:   The second amendment I would  offer would be                                                               
on ...  page 1, line  11, after "prescription", you  would insert                                                               
"with  a  maximum limit  of  90  days".   And  that  goes to  the                                                               
testimony  that we  heard, that  currently that  is their  limit.                                                               
And  I think  there is  a  good ...  reasoning for  a ...  90-day                                                               
limit.   There's, certainly, as  we discussed ... the  case where                                                               
your medication  changes.   If you  filled a  90-day prescription                                                               
and you need  to ... change your medication, what  do you do with                                                               
that,  not  to   mention  the  fact  that  if  you   get  a  year                                                               
prescription and  they fill it  for a  year, ... what  happens in                                                               
three months  if you  change jobs, have  a different  health care                                                               
provider; therefore, ... your former  health care coverage is not                                                               
paying, you're  no longer  ... under that  policy, and  you would                                                               
certainly benefit  from the remaining  prescription.  I  think 90                                                               
days is equitable, and a very good compromise.                                                                                  
                                                                                                                                
Number 0432                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  And with  that, I would move Amendment Number                                                               
2.  Is there any objection?  And Representative Coghill, any...?                                                                
                                                                                                                                
REPRESENTATIVE COGHILL:   I'm  not going  to object  to it.   I'm                                                               
going  to  do some  checking.    It sounds  to  me  like it's  an                                                               
industry  standard, sounds  like something  we would  be amenable                                                               
to, and I will just follow  through with those who have testified                                                               
both pro and  con to get a feel  for it.  But at  this point, I'm                                                               
not going to object to it.                                                                                                      
                                                                                                                                
Number 0394                                                                                                                     
                                                                                                                                
VICE CHAIR  HALCRO:  All right.   Okay.  So,  Amendment Number 2,                                                               
without objection, is adopted.                                                                                                  
                                                                                                                                
VICE CHAIR  HALCRO:  Amendment  Number 3 is before  the committee                                                               
in a more  lengthy form.  If we could  mark this Amendment Number                                                               
3, and I would move Amendment Number 3.  Is there objection?                                                                    
                                                                                                                                
     [Amendment  3, 22-LS1066\J.1,  Ford,  4/12/02, read  as                                                                    
     follows:                                                                                                                   
                                                                                                                                
     Page 1, line 1, following "Act":                                                                                         
          Insert "requiring that the cost of contraceptives                                                                   
     be included in certain  health care insurance coverage,                                                                  
     and"                                                                                                                     
                                                                                                                                
     Page 1, following line 3:                                                                                                  
          Insert a new bill section to read:                                                                                    
     "*  Section 1.   AS 21.42  is amended  by adding  a new                                                                  
     section to read:                                                                                                           
          Sec. 21.42.410.  Coverage for contraceptives.                                                                       
     (a)   Except  with  respect to  limited benefit  health                                                                    
     care insurance or health care  insurance purchased by a                                                                    
     religious employer, a health  care insurer that offers,                                                                    
     issues for delivery, delivers, or  renews in this state                                                                    
     a  health care  insurance plan  that provides  coverage                                                                    
     for  prescription drugs  on an  outpatient basis  shall                                                                    
     provide  coverage for  any  prescribed  drug or  device                                                                    
     approved   by  the   United   States   Food  and   Drug                                                                    
     Administration  for  use  as   a  contraceptive.    The                                                                    
     coverage  required under  this  section  is subject  to                                                                    
     standard   policy   provisions  applicable   to   other                                                                    
     benefits,    including    deductible    or    copayment                                                                    
     provisions,  within  the  constraints of  (b)  of  this                                                                    
     section.                                                                                                                   
          (b)  An insurer may not impose on a person                                                                            
     receiving prescription contraceptive benefits a                                                                            
               (1)   copayment, coinsurance payment,  or fee                                                                    
     that is not  equally imposed on all  individuals in the                                                                    
     same  benefit category,  class,  coinsurance level,  or                                                                    
     copayment  level  receiving benefits  for  prescription                                                                    
     drugs; or                                                                                                                  
               (2)    reduction in  allowable  reimbursement                                                                    
     for prescription drug benefits.                                                                                            
          (c)  This section may not be construed to                                                                             
               (1)     require  coverage   for  prescription                                                                    
     coverage benefits  in a contract, policy,  or plan that                                                                    
     does  not otherwise  provide coverage  for prescription                                                                    
     drugs;                                                                                                                     
               (2)   preclude the use of  closed formularies                                                                    
     if   the  formularies   include   oral,  implant,   and                                                                    
     injectable  contraceptive drugs,  intrauterine devices,                                                                    
     and prescription barrier methods;                                                                                          
               (3)   require an insurer to  provide coverage                                                                    
     for abortion.                                                                                                              
          (d)  A health care insurance plan that, under (a)                                                                     
     of this section, is exempt  from providing coverage for                                                                    
     contraceptives  must  contain  a  written  notice  that                                                                    
     prescription contraceptives are  not included under the                                                                    
     policy.                                                                                                                    
          (e)  In this section,                                                                                                 
               (1)  "limited  benefit health care insurance"                                                                    
     means   accident  and   sickness  insurance   designed,                                                                    
     advertised,  and marketed  to supplement  major medical                                                                    
     insurance,  including  accident only,  Civilian  Health                                                                    
     and   Medical  Program   of   the  Uniformed   Services                                                                    
     (CHAMPUS) supplement, dental,  disability income, fixed                                                                    
     indemnity,   long-term   care,   Medicare   supplement,                                                                    
     specific  disease,  vision,   and  other  accident  and                                                                    
     sickness insurance  other than basic  hospital expense,                                                                    
     basic  medical-surgical   expense,  or   major  medical                                                                    
     insurance;                                                                                                                 
               (2)  "religious employer" means an employer                                                                      
               (A)   with  a primary  purpose of  instilling                                                                    
     religious principles;                                                                                                      
               (B)   that primarily employs  individuals who                                                                    
     share the religious principles of the employer;                                                                            
               (C)   that  primarily serves  individuals who                                                                    
     share the employer's religious principles; and                                                                             
               (D)  that does not receive public funding."                                                                      
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "Section 1."                                                                                                 
     Insert "Sec. 2."                                                                                                         
                                                                                                                                
     (end of Amendment 3)]                                                                                                      
                                                                                                                                
Number 0380                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES:  I'll object for discussion.                                                                              
                                                                                                                                
VICE  CHAIR  HALCRO:    Representative  Hayes  has  objected  for                                                               
purposes of discussion.   And I will tell the  committee that one                                                               
of the reasons  why I have forwarded this, it  actually struck me                                                               
this morning when  I was reading the sponsor  statement for House                                                               
Bill Number 282.  And I will  read a couple of sentences from the                                                               
sponsor  statement.   The first  sentence  is, "This  legislation                                                               
addresses  concerns  over   certain  prescription  drug  coverage                                                               
inequities".    There  is  a   second  sentence  in  the  sponsor                                                               
statement that  talks about the intent  of House Bill 282  "is to                                                               
promote fairness and balance in  prescription drug benefits."  In                                                               
the  state of  Alaska,  contraceptives, birth  control pills  for                                                               
women, are not required to  be covered by health insurance plans,                                                               
while ... for men, Viagra is.                                                                                                   
                                                                                                                                
VICE  CHAIR  HALCRO:   And  I  think  if  there  is any  kind  of                                                               
inequity, that's certainly an inequity.   And certainly, those of                                                               
us will agree  that ... the women of this  state should certainly                                                               
have  the benefit  of  their birth  control  being covered  under                                                               
their health plans.  I've talked  to a number of insurance health                                                               
care providers who begrudgingly will  tell you that it's not that                                                               
... big  of an expense.   The traditional ... opposition  to this                                                               
is more  of "it's another  mandate."  But I  think for all  of us                                                               
who want  to do  our part in  preventing unwanted  pregnancies, I                                                               
think this certainly is a very  good step in helping the women of                                                               
this  state  have  equitable  health  care  coverage  with  their                                                               
contraceptives being  covered.   And with  that, once  again, the                                                               
amendment  has   been  moved.    Is   the  objection  maintained?                                                               
Representative Meyer.                                                                                                           
                                                                                                                                
REPRESENTATIVE MEYER:   Obviously,  this amendment is  [a] little                                                               
... different than  your other two - not that  I'm opposed to it,                                                               
but it ... changes  the scope of the bill.  And  I'd like to hear                                                               
from the sponsor as to whether or not he ...                                                                                    
                                                                                                                                
VICE CHAIR HALCRO:  Certainly.  Representative Coghill.                                                                         
                                                                                                                                
Number 0234                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL:   Well, certainly this  changes the whole                                                               
scope of the bill.  And it is  a policy call, and I object to the                                                               
policy call.  I understand the  concern.  I have been unashamedly                                                               
an opponent  of abortion.   I have been unashamedly  proactive in                                                               
teaching and  preaching abstinence.   This particular  bill would                                                               
require  that  abortions be  covered  by  insurance.   I  object.                                                               
That's on page 2, line 3 [of  Amendment 3].  The whole concept of                                                               
the  contraception, I'm  certainly not  against that  debate.   I                                                               
just ...  would ask that you  don't amend this bill  so that have                                                               
to deal  with that  issue; it's  way beyond the  scope of  what I                                                               
wanted to  do in  this bill.   And  I would  ask that  you please                                                               
don't amend it into this bill.                                                                                                  
                                                                                                                                
REPRESENTATIVE MEYER:  Mr. Chairman.                                                                                            
                                                                                                                                
VICE CHAIR HALCRO:  Representative Meyer.                                                                                       
                                                                                                                                
REPRESENTATIVE MEYER:   As a follow-up.  I  appreciate the thrust                                                               
of the bill,  bringing in ... line  6 ... on page  2.  Obviously,                                                               
the whole  issue of abortions  is a very emotional  and sensitive                                                               
issue.   And I  don't believe  it really should  be part  of this                                                               
particular bill  0 maybe an  issue or  bill separate, so  that we                                                               
can discuss it ...  on its own merits.  But  I think to piggyback                                                               
that big of a issue on a fairly  simple bill is ... too much, Mr.                                                               
Chairman.                                                                                                                       
                                                                                                                                
Number 0111                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  Just a  correction for the committee.  If you                                                               
will look at page  1, line 24, it says, "This  section may not be                                                               
construed to  provide the  following".  So,  in fact,  there's no                                                               
coverage for the things that  were mentioned by the committee and                                                               
the sponsor.  So, it just is women's oral contraceptives.                                                                       
                                                                                                                                
REPRESENTATIVE MEYER:  Okay, that's much better.                                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL:    Thank  you  for  that  clarification.                                                               
Obviously,  the amendment  was just  dropped on  me moments  ago.                                                               
So, I appreciate  that.  This would include what  is ... RU486, I                                                               
would take it.                                                                                                                  
                                                                                                                                
VICE CHAIR HALCRO:  I believe  it is for contraceptives.  I'm not                                                               
quite  sure  about emergency  contraceptives,  but  it would  be,                                                               
traditionally, birth control pills.                                                                                             
                                                                                                                                
REPRESENTATIVE COGHILL:   And I would ask, please,  don't make me                                                               
carry that type of language.                                                                                                    
                                                                                                                                
REPRESENTATIVE MEYER:  Mr. Chairman.                                                                                            
                                                                                                                                
VICE CHAIR HALCRO:  Representative Meyer.                                                                                       
                                                                                                                                
Number 0038                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER:  Do ...  other states cover contraceptives?                                                               
I  mean, I  agree  with  the analogy  of  the  Viagra versus  the                                                               
contraceptives, and  certainly there is  an inequity there.   And                                                               
maybe  we should  drop Viagra;  I  don't know.   But  I was  just                                                               
wondering ... what other states do.                                                                                             
                                                                                                                                
VICE  CHAIR HALCRO:    There are  two states  --  this debate  is                                                               
underway in several state legislatures.  ...                                                                                    
                                                                                                                                
TAPE 02-56, SIDE A                                                                                                              
                                                                                                                                
VICE   CHAIR   HALCRO:     ...   The   State  of   Texas   covers                                                               
contraceptives....  At  this time, maybe what I might  be able to                                                               
do is invite Robin Phillips to the  table.  And she might be able                                                               
to tell the committee a little bit more about it.                                                                               
                                                                                                                                
Number 0040                                                                                                                     
                                                                                                                                
ROBIN  PHILLIPS:   Thank you,  Mr. Chairman.   My  name is  Robin                                                               
Phillips; I'm the staff person  to Representative Lisa Murkowski.                                                               
We are carrying a similar bill.   And just to answer a few of the                                                               
questions:     currently,   there  are   24  states   that  offer                                                               
contraceptive  coverage.   There are  17 states  looking at  it -                                                               
similar to  the State  of Alaska  - that  are looking  to include                                                               
contraceptive  coverage.   The type  of coverage  ... that  we're                                                               
looking  for,  according  to   this  amendment,  is  FDA-approved                                                               
contraceptives;   that,  I   believe,   does  include   emergency                                                               
contraceptives, but I would have to  look at that further just to                                                               
double check.   I do believe that the  emergency contraceptive is                                                               
FDA-approved.                                                                                                                   
                                                                                                                                
VICE CHAIR HALCRO:  Representative Meyer.                                                                                       
                                                                                                                                
REPRESENTATIVE MEYER:  Just a  follow-up.  Ms. Phillips, you said                                                               
that this is similar to another bill you're carrying?                                                                           
                                                                                                                                
MS. PHILLIPS:   There's ... currently  a House bill and  a Senate                                                               
bill that are  both ... being offered that  includes the language                                                               
similar to this amendment.                                                                                                      
                                                                                                                                
REPRESENTATIVE MEYER:   Thank you,  and if  I may follow  up, Mr.                                                               
Chairman.     I   thought  there   was,  that   had  dealt   with                                                               
contraceptives,  because I  remember  talking to  my staff  about                                                               
that.   So with that  in mind, why  do we  need to include  it in                                                               
this bill?                                                                                                                      
                                                                                                                                
Number 0146                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:   I will answer  that question, Representative                                                               
Meyer.  The fact is that it's  been very difficult for us to even                                                               
get  a  hearing in  any  of  these committees.    And  it is  the                                                               
chairman's position  that this state  legislature needs  to start                                                               
protecting the women in  this state.  And I feel  that this is an                                                               
opportunity to  amend a  bill that is  completely germane  in its                                                               
title, in its  scope.  And it is an  amendment that is completely                                                               
in order and conducive  to not only Title 21 but,  as I said, the                                                               
sponsor  statement, where  we talk  about promoting  fairness and                                                               
balance in  prescription drug  benefits; this  certainly achieves                                                               
that for the women of this state.   And I think it's time that we                                                               
do that.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  MEYER:    Mr.  Chairman,  if  I  may  follow  up?                                                               
Certainly, you  have the right  to make  that amendment.   But as                                                               
you said, the two bills on their  own, both on the Senate and the                                                               
House side, ... have been stalled.   So what I'm afraid of is, by                                                               
putting  this amendment  on  ...  Representative Coghill's  bill,                                                               
that we'll  just simply be  stalling his bill  too.  And  I don't                                                               
think  ... that's  fair  or appropriate  to do  that  to ...  the                                                               
sponsor.                                                                                                                        
                                                                                                                                
VICE CHAIR HALCRO:  And  Representative Meyer, I would respond by                                                               
pointing  out that  this bill  goes  back to  the HES  committee.                                                               
And, as  is ... the  legislative process, committees  amend bills                                                               
every  day.   And,  certainly, when  this bill  goes  to the  HES                                                               
committee, ...  if the committee  so chooses, they can  take this                                                               
out and replace it with language  desired by the sponsor.  But in                                                               
this committee, we  all sit and look at these  bills, and this is                                                               
an amendment that I feel, once  again, is ... not only germane to                                                               
the title and the scope of  what the sponsor has proposed, but it                                                               
is certainly  just overall  good health policy  for the  State of                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  MEYER:   And if  I may  follow up,  Mr. Chairman.                                                               
And, again,  it's -- certainly you  have that right to  make that                                                               
amendment.   But I don't  agree with  making an amendment  in one                                                               
committee just so that another committee  can take it out.  So, I                                                               
will ... object also.                                                                                                           
                                                                                                                                
VICE CHAIR HALCRO: Representative Crawford.                                                                                     
                                                                                                                                
Number 0293                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD:   Thank you, Mr. Chairman.   I ... would                                                               
very much  like to  see contraception covered  as well  as Viagra                                                               
and all.   But  I ... do  have some heartburn  with ...  what the                                                               
sponsor  of the  bill  has said  in ...  making  this bill  cover                                                               
emergency contraception  as well.  I  would ... like to  go ahead                                                               
and have this  amendment go forward, but I don't  want to do that                                                               
against   the   will  of   the   sponsor,   with  the   emergency                                                               
contraception.                                                                                                                  
                                                                                                                                
VICE CHAIR  HALCRO:  Would  you like  to propose an  amendment to                                                               
the amendment, Representative Crawford?                                                                                         
                                                                                                                                
REPRESENTATIVE CRAWFORD:  I would.                                                                                              
                                                                                                                                
VICE CHAIR HALCRO:  Please proceed.                                                                                             
                                                                                                                                
Number 0350                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD:  Conceptual  amendment to ... remove ...                                                               
emergency  contraception coverage.   (Indisc.)   I  guess ...  in                                                               
line 5 [of Amendment 3], after "barrier methods".                                                                               
                                                                                                                                
VICE CHAIR HALCRO:  ... We could  slip that in ... page 2, line 5                                                               
[of  Amendment   3],  after  "barrier  methods",   eliminate  the                                                               
semicolon,  ",or   emergency  contraceptives".    Is   there  any                                                               
objections  to the  amendment to  the amendment?   Representative                                                               
Meyer.                                                                                                                          
                                                                                                                                
Number 0418                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER:    I'll object  just  for  discussion  and                                                               
clarification.     Emergency  contraception,  ...  is   that  the                                                               
"morning after pill"?  ...                                                                                                      
                                                                                                                                
VICE CHAIR HALCRO:  Ms. Phillips.                                                                                               
                                                                                                                                
MS. PHILLIPS:   ... To  answer that question, through  the chair,                                                               
...  there's  a  few  different  varieties, I  believe.    And  I                                                               
apologize for not having the types in  front of me, and I can get                                                               
you those.   But I believe  that includes what is  considered the                                                               
"morning after pill,"  and ... there is also,  I believe, another                                                               
form that is prescribed by a  doctor.  But ... all contraceptives                                                               
are prescribed  by doctors, but  ... I  believe it is  called the                                                               
"morning after  pill," is the  one.  And  I'll get you  those ...                                                               
titles.  I just, unfortunately, don't have them in front of me.                                                                 
                                                                                                                                
VICE  CHAIR HALCRO:   Is  there  any continued  objection to  the                                                               
amendment to the amendment?                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER: Well, ... I guess  I'd like to speak to the                                                               
sponsor, if I may.                                                                                                              
                                                                                                                                
VICE CHAIR  HALCRO:  Certainly,  go right ahead.   Representative                                                               
Coghill.                                                                                                                        
                                                                                                                                
REPRESENTATIVE COGHILL:   Certainly that  makes me feel  a little                                                               
more comfortable, although  I can commit to you that  I will work                                                               
vigorously to  get this whole amendment  out.  It's not  an issue                                                               
that I want to carry, quite  frankly.  And certainly I understand                                                               
what it's  like to  have bills  heard.  I've  got one  sitting in                                                               
this committee  that will  probably never see  the light  of day.                                                               
And  it's  very tempting  to  amend  it  into another  bill,  but                                                               
protocol  being as  it may,  I  was reluctant  to do  that.   So,                                                               
certainly, this carries  a different subject matter,  and for the                                                               
amendment to the amendment, I appreciate  that.  I will not speak                                                               
against the amendment to the amendment.                                                                                         
                                                                                                                                
Number 0540                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:   Thank you, Representative Coghill.   And ...                                                               
just for the  committee's notice, actually, if we  could -- we're                                                               
adopting it conceptually because from  what I understand from the                                                               
Division of Insurance, that is not  an appropriate place.  A more                                                               
appropriate place  would be  in ... Section  1, between  lines 10                                                               
and 14, somewhere  in there.  So, we will  adopt it conceptually,                                                               
but the  drafter will have to  find the appropriate place  for it                                                               
because that, apparently, is not the appropriate place for it.                                                                  
                                                                                                                                
REPRESENTATIVE  MEYER:    Mr.  Chairman,  I'll  ...  maintain  my                                                               
objection.  I  think it's -- we're  at a point now  where I think                                                               
it's more  of a principle.   Obviously, the sponsor of  this bill                                                               
is not comfortable  with contraceptives being part  of this bill.                                                               
We sprung this  on him last-minute; I don't think  that's fair or                                                               
right.  Certainly,  that's your prerogative.  But I  know ... I'd                                                               
hate to have that  done to one of my bills, and  since we do have                                                               
two other bills, both in the  Senate and the House side, that has                                                               
that same subject that you're  trying to get incorporated here, I                                                               
frankly  don't  think  it's  necessary.   So,  I'll  maintain  my                                                               
objection.                                                                                                                      
                                                                                                                                
VICE CHAIR HALCRO:  Objection to the amendment to the amendment?                                                                
                                                                                                                                
REPRESENTATIVE MEYER:  Correct.                                                                                                 
                                                                                                                                
VICE CHAIR  HALCRO:  Any  other further comment?   Representative                                                               
Kott.                                                                                                                           
                                                                                                                                
Number 0630                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT:   And Mr.  Chairman, I  think I'm  going to                                                               
have to side  with my partner in crime that  sits across from me.                                                               
I  think we're  going down  a slippery  slope here  in trying  to                                                               
define a term  of art that has no definition;  at least I haven't                                                               
seen any  evidence produced  that emergency  contraceptives means                                                               
this.   Is this  a general term  of art that  is used  within the                                                               
insurance industry?   Is it used  by physicians?  I  just haven't                                                               
heard that  term before.   So,  I think we're  trying to  come up                                                               
with  a broad  term  of art  that has  no  definition, unless  we                                                               
define what ... I would  believe would be the normal nonemergency                                                               
contraceptives -  define those and  then, by exclusion,  the rest                                                               
are emergency.  I don't see how you could head down this path.                                                                  
                                                                                                                                
VICE CHAIR HALCRO:   In speaking to that,  Representative Kott, I                                                               
would  simply point  out  that  emergency contraceptives  clearly                                                               
would be the "morning after pill"  or RU486, whatever you want to                                                               
call it.   There's nothing else  out there that I  know of that's                                                               
FDA-approved that is considered  an emergency contraceptive.  And                                                               
so,  I don't  believe  we're  going down  a  slippery  slope.   I                                                               
believe it's very clearly defined.   We can certainly leave it to                                                               
the drafter to encompass if there  is more than one ... emergency                                                               
contraceptive ....   But the  committee -- the amendment  is very                                                               
clear in its nature.  Representative Hayes.                                                                                     
                                                                                                                                
Number 0720                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES:  Thank you, Mr.  ... Chair.  You know, it's                                                               
a shame that we have to look at  this ... in an amendment in this                                                               
committee when you have two bills  out there to adjust this.  And                                                               
... the  thing I  think about the  most is, when  I look  at this                                                               
discussion, is  the fact  that when  we had  a bill  on prostrate                                                               
cancer, it zoomed through this building.   And when we had a bill                                                               
on breast  and cervical cancer,  it took  almost till day  121 to                                                               
pass out of this building.                                                                                                      
                                                                                                                                
REPRESENTATIVE  HAYES:   I  just I  think it's  a  shame, not  to                                                               
folks' motives, but it does seem  a little strange to me that you                                                               
have very  few women legislators  in here and  you have a  lot of                                                               
male legislators.  And something  that affects men can go through                                                               
this building  really quickly, and  something that  affects women                                                               
takes forever  or is  not heard.   I think  that is  ultimately a                                                               
shame.   It's  a shame  that we're  not hearing  the bill  in ...                                                               
whatever committees that it's being  held in.  But the amendment,                                                               
as much  as I hate  to admit it, it  actually does fit  into what                                                               
you put out here.  I  didn't even realize that until the chairman                                                               
mentioned it.   The amendment actually does fit in  your bill.  I                                                               
know  you  would  vigorously  fight  to  pull  this  out,  and  I                                                               
understand that,  because I understand where  you're coming from.                                                               
But it actually does make with this legislation.                                                                                
                                                                                                                                
Number 0825                                                                                                                     
                                                                                                                                
VICE CHAIR HALCRO:  Is there  any other comments on the amendment                                                               
on the amendment?  Let's take a roll call vote.                                                                                 
                                                                                                                                
COMMITTEE SECRETARY:  Representative Meyer.                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER:  Nope.                                                                                                    
                                                                                                                                
COMMITTEE SECRETARY:  Representative Kott.                                                                                      
                                                                                                                                
REPRESENTATIVE KOTT:  No.                                                                                                       
                                                                                                                                
COMMITTEE SECRETARY:  Representative Crawford.                                                                                  
                                                                                                                                
REPRESENTATIVE CRAWFORD:  Yes.                                                                                                  
                                                                                                                                
COMMITTEE SECRETARY:  Representative Hayes.                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES:  Yes.                                                                                                     
                                                                                                                                
COMMITTEE SECRETARY:  Chairman Halcro.                                                                                          
                                                                                                                                
VICE CHAIR  HALCRO:   Yes.   So, the  amendment [to  Amendment 3]                                                               
passes 3  to 2.   Back  on the main  amendment; is  there further                                                               
discussion?  Could we get a roll call vote, please?                                                                             
                                                                                                                                
COMMITTEE SECRETARY:  Representative Kott.                                                                                      
                                                                                                                                
REPRESENTATIVE KOTT:  No.                                                                                                       
                                                                                                                                
COMMITTEE SECRETARY:  Representative Crawford.                                                                                  
                                                                                                                                
REPRESENTATIVE CRAWFORD:  Yes.                                                                                                  
                                                                                                                                
COMMITTEE SECRETARY:  Representative Hayes.                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES:  Yes.                                                                                                     
                                                                                                                                
COMMITTEE SECRETARY:  Representative Meyer.                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER:  Nope.                                                                                                    
                                                                                                                                
COMMITTEE SECRETARY:  Chairman Halcro.                                                                                          
                                                                                                                                
VICE CHAIR  HALCRO:  Yes.   And so the amendment  [Amendment 3 as                                                               
amended] passes  3 to 2.   It is adopted.   That brings  the bill                                                               
before us.  Is there any  other amendments?  Seeing none, what is                                                               
the will of the committee?                                                                                                      
                                                                                                                                
Number 0850                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD:  I move the bill.                                                                                      
                                                                                                                                
REPRESENTATIVE KOTT:  I'll object.                                                                                              
                                                                                                                                
VICE  CHAIR  HALCRO:    There's objection  to  moving  the  bill.                                                               
Discussion.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER:   Mr.  Chairman,  ...  I just  think  that                                                               
you've  changed   the  sponsor's  bill  dramatically   with  that                                                               
amendment.      And,   again,   I'm   not   opposed   to   adding                                                               
contraceptives.    I agree  with  Representative  Kott:   there's                                                               
different  kinds  of contraceptives.    You  know, the  ones  I'm                                                               
familiar with,  that my wife [uses],  are the ones that  you take                                                               
to prevent  pregnancy, and ...  now there's others that  you take                                                               
the morning  after.  The  discussion for this  is not in  Labor &                                                               
Commerce;  I  think the  discussion  for  contraceptives is  more                                                               
appropriate in HES.   And that's where the bills  are, and that's                                                               
where  the  bills  should  be  discussed.   I  don't  think  this                                                               
amendment or this discussion is appropriate in Labor & Commerce.                                                                
                                                                                                                                
VICE CHAIR  HALCRO:  Any other  discussion?  Well, ...  I'll just                                                               
say  this:   it's  funny  because, you  know,  it  seems in  this                                                               
building when we address legislation,  we tailor our arguments to                                                               
whatever the topic is and whether  we support a bill or we oppose                                                               
a bill.  About two weeks ago, I  remember we had a Senate bill in                                                               
here that was  opposed not only by everybody  that testified, but                                                               
even  the Federal  Trade Commission.   And  when we  amended that                                                               
bill, ... the comment was made,  with this amendment, the bill is                                                               
moot.  And the sponsor sat at the  end of the table and said that                                                               
he was going to do everything  he could to put that language back                                                               
in.   This  committee  voted to  move the  bill  forward with  no                                                               
objections.   There [were] no  concerns.   There was no,  "Hey, I                                                               
don't think this is appropriate."  We just did it.                                                                              
                                                                                                                                
VICE CHAIR  HALCRO:  The ...  idea that this is  inappropriate is                                                               
... baseless.  This is appropriate.   We are talking about health                                                               
care coverage  for a specific part  of health care.   That's what                                                               
we are  talking about.  This  is the Labor &  Commerce Committee.                                                               
We've  had bills  in  this  committee in  the  last three  years.                                                               
We've talked about mental health  coverage.  We have talked about                                                               
coverage for  diabetes.  We've  talked about breast  and cervical                                                               
cancer.   We talk  about health care  coverage on  various items,                                                               
every year in  this committee, and this is no  different.  I know                                                               
this discussion and this topic  makes some uncomfortable, but you                                                               
know what:   it  is time that  this legislature  start protecting                                                               
the women of this state.                                                                                                        
                                                                                                                                
VICE CHAIR  HALCRO:   This amendment  derives out  of frustration                                                               
that  for   the  last  three   years  that  I've  been   in  this                                                               
legislature, there  has been a prescription-equity  bill on file,                                                               
every single year.  And it has  gone nowhere.  And just because a                                                               
few  committee chairmen  refuse  to hear  it -  on  the basis  of                                                               
ideology,  completely overlooking  not only  the health  benefits                                                               
but the economic cost savings -  is unbelievable.  It is pure bad                                                               
business.   This amendment is germane.   It is something  that is                                                               
well within  the purview  of this  committee.   And I  think it's                                                               
about  time we  start to  recognize  these issues  and deal  with                                                               
them,  rather than  just sweep  them  under the  rug and  pretend                                                               
they're not there until we sign out at the end of the session.                                                                  
                                                                                                                                
Number 1045                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER:   Mr. Chairman,  if I  may follow  up.   I                                                               
don't  disagree with  what you're  saying, and  I don't  disagree                                                               
with your  frustration for  trying to  get this  issue heard.   I                                                               
think the better place would've been  to go to those chairmans of                                                               
the Senate  and the  House and  say, "Hey,  look, why  aren't you                                                               
hearing this  bill?  I think  it's important."  Maybe  get up and                                                               
do some special orders on the floor  or whatever.  But I think to                                                               
ambush poor  Representative Coghill  here with this  amendment to                                                               
his  small, simple  bill, I  frankly think  was not  right.   But                                                               
that's my opinion.                                                                                                              
                                                                                                                                
VICE  CHAIR HALCRO:    I respect  and  appreciate your  comments.                                                               
But, once again, this is  the legislative process, Representative                                                               
Meyer.  And in  all my years in the business  in this building, I                                                               
can't  tell you  how many  times I've  had a  bill go  before the                                                               
committee and it came out  dramatically different than the way it                                                               
came  in.    That's  the   process,  and  that's  why  we're  all                                                               
individually elected and  sit on these committees.   Is there any                                                               
other discussion?  Representative Kott.                                                                                         
                                                                                                                                
Number 1093                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT:   Thank  you,  Mr.  Chairman.   You're  ...                                                               
correct  in your  assessment.   This is  the democratic  process;                                                               
this is  how a bill  becomes law.   Oftentimes, we don't  want to                                                               
know how  it gets  to the  end.   But when  we sit  through these                                                               
laborious hearings, you  get a pretty good  appreciation for what                                                               
goes on.  My only concern, Mr.  Chairman, is I haven't sat on any                                                               
of these committees  in the last two  or three years.   This is a                                                               
major  policy call.   We  haven't heard  the impact  on insurance                                                               
rates, haven't heard  from industry.  In general,  when we've had                                                               
these  particular matters  before  us, whether  it was  cervical,                                                               
breast cancer,  prostrate, we  had a  full-blown hearing  on that                                                               
issue.  So we  knew the impact, knew what kind  of drugs were out                                                               
there.   They're just so  many things that  ... I don't  have the                                                               
information and  access to,  I can't  make a  conscientious, good                                                               
statement to support it.                                                                                                        
                                                                                                                                
VICE CHAIR  HALCRO:   And ...  once again,  I would  respect your                                                               
comments  too.   But  I  would, once  again,  point  to how  many                                                               
[times]  we've  sat  in  individual  committees  when  pieces  of                                                               
legislation  have   been  before  us  or   amendments  have  been                                                               
proposed,  and those  bills have  been ushered  out of  committee                                                               
with little  or no discussion.   And so, just because  ... we are                                                               
uncomfortable with this  topic doesn't make the  proposal of this                                                               
amendment or  the adoption of  that amendment any  different than                                                               
any of  the other  uncomfortable or  ... poorly  discussed issues                                                               
we've had before  us.  And this,  on its merits, is  a ... health                                                               
issue.   It is  a Labor &  Commerce issue.   And it  certainly is                                                               
one, I believe,  that is important to the health  of the women in                                                               
this state.  Representative Crawford.                                                                                           
                                                                                                                                
Number 1179                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD:   Thank you,  Mr. Chairman.   We're five                                                               
men sitting here deciding an issue  that affects women.  And each                                                               
and  every one  of us  sitting here,  I'm sure,  abhors abortion.                                                               
This is a  way to ... head off many  unwanted pregnancies and the                                                               
need for  abortions.   I think  this is ...  time that  we should                                                               
have this  discussion and move this  bill on further so  that ...                                                               
we can  continue this discussion.   I'm sorry  for Representative                                                               
Coghill being the ... recipient of  ... it, but ... it's a policy                                                               
call I'd  like to have  us discuss and move  on.  Thank  you, Mr.                                                               
Chairman.                                                                                                                       
                                                                                                                                
Number 1240                                                                                                                     
                                                                                                                                
VICE  CHAIR HALCRO:    Any other  committee  discussion?   Seeing                                                               
none, we'll  take a roll  call vote  for moving the  bill [CSSSHB
282,  version   22-LS1066\J,  Ford,  2/5/02,  as   amended]  from                                                               
committee.                                                                                                                      
                                                                                                                                
COMMITTEE SECRETARY: Representative Crawford.                                                                                   
                                                                                                                                
REPRESENTATIVE CRAWFORD:  Yes.                                                                                                  
                                                                                                                                
COMMITTEE SECRETARY:  Representative Hayes.                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES:  Yes.                                                                                                     
                                                                                                                                
COMMITTEE SECRETARY:  Representative Meyer.                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER:  Nope.                                                                                                    
                                                                                                                                
COMMITTEE SECRETARY:  Representative Kott.                                                                                      
                                                                                                                                
REPRESENTATIVE KOTT:  Nope.                                                                                                     
                                                                                                                                
COMMITTEE SECRETARY:  Chairman Halcro.                                                                                          
                                                                                                                                
VICE CHAIR  HALCRO:  Yes.   So, the bill [CSSSHB  282(L&C)] moves                                                               
on a vote of 3 to 2 from committee.                                                                                             
                                                                                                                                
REPRESENTATIVE KOTT:  Mr. Chairman.                                                                                             
                                                                                                                                
VICE CHAIR HALCRO:  Representative Kott.                                                                                        
                                                                                                                                
REPRESENTATIVE KOTT:   As a matter  of policy, I believe  to move                                                               
the bill out of this committee  you need four votes, the majority                                                               
of  the total  membership.   To  move an  amendment,  you need  a                                                               
majority of the quorum, which would be  four.  So you can move an                                                               
amendment on a 2-to-1 -- or a ...  3-to-1 vote.  To move the bill                                                               
out, you need four votes.                                                                                                       
                                                                                                                                
Number 1259                                                                                                                     
                                                                                                                                
VICE CHAIR  HALCRO:   I don't  believe that's  correct.   I think                                                               
we've  had this  discussion in  the  past.   I think  you need  a                                                               
majority  of the  quorum to  move a  bill from  committee.   With                                                               
that, there's nothing  further.  We will meet  again Monday, 3:15                                                               
[p.m.]; the chairman  will be back at that time.   And with that,                                                               
we're adjourned at 5:20 [p.m.]                                                                                                  
                                                                                                                                
[It was later decided that CSSSHB  282(L&C) failed to move out of                                                               
the House Labor and Commerce Standing Committee.]                                                                               

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