Legislature(2011 - 2012)BARNES 124

04/02/2012 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 251 PRACTICE OF VETERINARY MEDICINE TELECONFERENCED
Moved CSHB 251(L&C) Out of Committee
+= HB 259 PHARMACY AUDITS TELECONFERENCED
Heard & Held
+= HB 266 PRACTICE OF NATUROPATHY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                     HB 259-PHARMACY AUDITS                                                                                 
                                                                                                                                
3:29:13 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL   NO.  259,  "An  Act   establishing  procedures  and                                                               
guidelines for  auditing pharmacy  records; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR   OLSON  reminded   members  that   at  previous   hearings                                                               
amendments were moved, discussed, and  tabled.  He then announced                                                               
his intention  to dispense with the  amendments, begin discussion                                                               
of the draft  committee substitute, and set it  aside for members                                                               
to review.                                                                                                                      
                                                                                                                                
3:29:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved to take  from the table Amendment 4,                                                               
labeled 27-LS0675\I.5, Martin, 3/14/12, which read, as follows:                                                                 
                                                                                                                                
     Page 3, lines 15 - 16:                                                                                                     
          Delete all material and insert:                                                                                       
          "(b)  This section does not apply to                                                                                  
               (1) a criminal investigation; or                                                                                 
               (2)  an investigation or audit by a                                                                              
    governmental    agency,   including    state   Medicaid                                                                     
     programs."                                                                                                                 
                                                                                                                                
There being no objection, Amendment 4 was before the committee.                                                                 
                                                                                                                                
[The committee treated  the amendment as though  an objection had                                                               
been made for the purpose of discussion.]                                                                                       
                                                                                                                                
3:29:59 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  Staff, Representative  Kurt Olson,  Alaska State                                                               
Legislature,  on behalf  of  Representative  Olson, Chair,  House                                                               
Labor and  Commerce Standing Committee,  stated that  Amendment 4                                                               
was previously  discussed at the  March 26, 2012 House  Labor and                                                               
Commerce  Standing   Committee  meeting.     He   explained  that                                                               
Amendment 4  would exempt audits  from governmental  agencies and                                                               
has  been incorporated  into  the  proposed committee  substitute                                                               
(CS) [Version D],  which the committee will take up  later in the                                                               
meeting.                                                                                                                        
                                                                                                                                
3:31:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  withdraw the  motion to  adopt                                                               
Amendment  4.    There  being   no  objection,  Amendment  4  was                                                               
withdrawn.                                                                                                                      
                                                                                                                                
3:31:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved to take  from the table Amendment 3,                                                               
labeled 27-LS0675\I.4, Martin, 3/14/12, which read:                                                                             
                                                                                                                                
     Page 2, line 30, following "provider,":                                                                                    
                                                                                                                                
          Insert "documented telephone calls from the                                                                           
     prescriber or prescriber's agent,"                                                                                         
                                                                                                                                
There being no objection, Amendment 3 was before the committee.                                                                 
                                                                                                                                
[The committee treated  the amendment as though  an objection had                                                               
been made for purpose of discussion.]                                                                                           
                                                                                                                                
3:31:42 PM                                                                                                                    
                                                                                                                                
MR. JACKSON explained  Amendment 3 was previously  discussed.  He                                                               
referred  to  page 2,  line  29  of  the bill,  which  read,"...a                                                               
pharmacy  may use  any record...."    He explained  that since  a                                                               
pharmacy  keeps  a  record  of   any  calls  to  prescribers  and                                                               
prescribers'  agents that  the  language in  Amendment  3 is  not                                                               
needed.  He clarified that this  language will not be included in                                                               
the proposed CS since it was deemed unnecessary.                                                                                
                                                                                                                                
3:32:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  withdraw the  motion to  adopt                                                               
Amendment  3.    There  being   no  objection,  Amendment  3  was                                                               
withdrawn.                                                                                                                      
                                                                                                                                
3:32:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved to take  from the table Amendment 2,                                                               
labeled 27-LS0675\I.3, Martin, 3/14/12, which read:                                                                             
                                                                                                                                
     Page 2, following line 23:                                                                                                 
                                                                                                                                
     Insert a new paragraph to read:                                                                                            
               "(11)  an auditor may not assess a charge-                                                                       
     back, recoupment,  or other penalty against  a pharmacy                                                                    
     based on a prescription that  is mailed or delivered by                                                                    
     request  of a  patient as  part of  a routine  business                                                                    
     practice;"                                                                                                                 
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
There being no objection, Amendment 2 was before the committee.                                                                 
                                                                                                                                
[The committee treated  the amendment as though  an objection had                                                               
been made for purpose of discussion.]                                                                                           
                                                                                                                                
3:32:41 PM                                                                                                                    
                                                                                                                                
MR. JACKSON explained that Amendment  2 addressed a concern about                                                               
clarification  on wording.   He  said that  Amendment 2  has been                                                               
incorporated into the proposed CS  that members will see shortly.                                                               
The language was modified on line  3 of the amendment by deleting                                                               
"based on" and  inserting "solely because" and  deleting the word                                                               
"that"  after the  word "prescription"  to  further clarify  that                                                               
chargebacks  or assessments  would  not be  based  solely on  the                                                               
mailing or delivery  of a prescription.  He  reiterated that this                                                               
language would clarify  that if a prescription is  mailed out the                                                               
pharmacists will not be penalized.                                                                                              
                                                                                                                                
3:33:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked him to reference the bill version.                                                                 
                                                                                                                                
MR.  JACKSON noted  that  the working  document  is the  original                                                               
version of HB 259.  He pointed  out that a proposed CS, Version D                                                               
is prepared, but is not yet before the committee.                                                                               
                                                                                                                                
3:34:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  withdraw Amendment  2.   There                                                               
being no objection, Amendment 2 was withdrawn.                                                                                  
                                                                                                                                
3:34:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved to take  from the table Amendment 1,                                                               
labeled 27-LS0675\I.2, Martin, 3/14/12, which read:                                                                             
                                                                                                                                
     Page 2, following line 5:                                                                                                  
                                                                                                                                
     Insert a new paragraph to read:                                                                                            
               "(3)  an auditor may not audit more than 75                                                                      
     prescriptions during a single audit;"                                                                                      
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
There being no objection, Amendment 1 was before the committee.                                                                 
                                                                                                                                
[The committee treated  the amendment as though  an objection had                                                               
been made for purpose of discussion.]                                                                                           
                                                                                                                                
3:34:53 PM                                                                                                                    
                                                                                                                                
MR. JACKSON explained that Amendment  1 would limit the number of                                                               
prescriptions requested during  an audit to 75.   He related that                                                               
audits  take considerable  time  for the  pharmacists to  prepare                                                               
for;  however, the  administration  expressed  concern that  when                                                               
substantial errors  occur during an  audit once the  threshold is                                                               
reached the  limit to 75  prescriptions creates  difficulties for                                                               
the  auditors.   The language  in the  proposed CS  - soon  to be                                                               
before the committee  [Version D] - is that the  language will be                                                               
revised to  include a  10 percent  trigger.   He explained  if an                                                               
auditor discovers  a 10 percent  or greater error rate  during an                                                               
audit the 75 prescription cap goes away.                                                                                        
                                                                                                                                
3:35:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON withdrew  Amendment  1.   There being  no                                                               
objection, Amendment 1 was withdrawn.                                                                                           
                                                                                                                                
3:35:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  adopt  the proposed  committee                                                               
substitute  (CS)   for  HB  259,  labeled   27-LS0675\D,  Martin,                                                               
3/30/12.                                                                                                                        
                                                                                                                                
CHAIR OLSON  objected for purpose  of discussion. [Version  D was                                                               
before the committee.]                                                                                                          
                                                                                                                                
3:36:28 PM                                                                                                                    
                                                                                                                                
MR. JACKSON  explained the changes  contained in the  proposed CS                                                               
for HB  259, Version  D.  He  referred to page  2, lines  9-12 to                                                               
paragraph (4).   The  original bill  imposed a  cap of  two years                                                               
after the  date the  claim was  submitted.   The new  language in                                                               
paragraph 4 would allow  for a cap of two years or  the term of a                                                               
contract to apply.                                                                                                              
                                                                                                                                
MR. JACKSON referred  to page 2, lines 13-15 to  paragraph (5) of                                                               
version D,  which was  changed to allow  for consultation  with a                                                               
pharmacist  licensed in  this  state  or in  another  state.   He                                                               
pointed out  if the  consultation was  limited to  pharmacists in                                                               
Alaska that not enough consultants would be available.                                                                          
                                                                                                                                
MR. JACKSON  stated that Version  D removed paragraphs  (6), (7),                                                               
(8), (11),  (16), and (18)  from the  original version of  HB 259                                                               
since  the Department  of Administration  (DOA) and  Mr. Barnhill                                                               
had serious concerns with the language in those paragraphs.                                                                     
                                                                                                                                
MR.  JACKSON referred  to page  2, lines  6-8, to  paragraph (3),                                                               
which inserts  the language in previously  withdrawn Amendment 1.                                                               
He  reiterated that  this  amendment was  just  withdrawn.   This                                                               
language  would  remove the  cap  of  75 prescriptions  during  a                                                               
single audit in the event of a 10 percent or greater error rate.                                                                
                                                                                                                                
3:38:03 PM                                                                                                                    
                                                                                                                                
MR. JACKSON  referred to page  2, lines 24-26, to  paragraph (9),                                                               
which inserts  the language in previously  withdrawn Amendment 2,                                                               
which would disallow  assessments solely on the  basis of mailing                                                               
or delivering a prescription.                                                                                                   
                                                                                                                                
MR. JACKSON referred  to page 3, lines 13-16,  to subsection (b),                                                               
which inserts  the language in previously  withdrawn Amendment 4,                                                               
which would exempt governmental agencies.                                                                                       
                                                                                                                                
MR.  JACKSON explained  the last  change is  to add  an effective                                                               
date of July 1, 2013, to  give people an opportunity to allow for                                                               
a transition period for HB 259.                                                                                                 
                                                                                                                                
3:38:31 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON removed his objection.                                                                                              
                                                                                                                                
[HB 259 was held over.]                                                                                                         
                                                                                                                              

Document Name Date/Time Subjects
SSHB251 Draft Proposed CS ver O.pdf HL&C 4/2/2012 3:15:00 PM
HB 251
SSHB251 Sponsor Statement ver O.pdf HL&C 4/2/2012 3:15:00 PM
HB 251
SSHB251 Explanation of Changes ver R to ver O.pdf HL&C 4/2/2012 3:15:00 PM
HB 251
SSHB251 Explanation of Changes-Original bill to ver O.pdf HL&C 4/2/2012 3:15:00 PM
HB 251
SSHB251 Sectional Analysis of Draft CS ver O.pdf HL&C 4/2/2012 3:15:00 PM
HB 251
HB259 Draft Proposed CS ver D.pdf HL&C 4/2/2012 3:15:00 PM
HB 259