Legislature(2007 - 2008)BUTROVICH 205

03/26/2008 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
+= SB 280 MEDICAID/ INS FOR CANCER CLINICAL TRIALS TELECONFERENCED
Moved CSSB 280(HES) Out of Committee
+= HB 284 PFD ALLOWABLE ABSENCE: FELLOWSHIPS TELECONFERENCED
Moved CSHB 284(FIN) Out of Committee
+= HJR 29 FEDERAL FUNDING FOR SPECIAL EDUCATION TELECONFERENCED
Moved HJR 29 Out of Committee
         SB 280-MEDICAID/ INS FOR CANCER CLINICAL TRIALS                                                                    
                                                                                                                                
2:03:36 PM                                                                                                                    
CHAIR DAVIS announced consideration of SB 280 and noted the                                                                     
proposed committee substitute (CS).                                                                                             
                                                                                                                                
TOM OBERMEYER, Staff to Senator Davis, read an overview of                                                                      
version \E CS to SB 280, labeled 25-LS1464\E.                                                                                   
                                                                                                                                
     The E  version reflects and defines  language routinely                                                                    
     found  in  other  state  statutes  concerning  clinical                                                                    
     trials. These changes make clear  the objective of this                                                                    
     bill to require insurers to  cover no more than routine                                                                    
     patient  care  costs  and  specifically  exclude  other                                                                    
     extraordinary non-clinical costs  of housing, companion                                                                    
     costs, etc related to clinical trials.                                                                                     
                                                                                                                                
     In detail, the "E" version:                                                                                                
                                                                                                                                
     1. Replaces "coverage  of the  costs  of medical  care"                                                                    
        with "routine patient care costs" as defined on page                                                                    
        2, lines 30-31, ending page 3, line 17.                                                                                 
        Specifically,                                                                                                           
        a. Routine patient care costs are medical care costs                                                                    
          which are  related to cancer that  would otherwise                                                                    
          be covered  under a health care  insurance plan if                                                                    
          the  medical care  was not  in connection  with an                                                                    
          approved   clinical  trial   related  to   cancer,                                                                    
          including cost of  transportation essential to the                                                                    
          medical care.                                                                                                         
        b. This section excludes:                                                                                               
          1) A drug or  device associated with  the clinical                                                                    
             trial not approved by US Food & Drug                                                                               
             Administration;                                                                                                    
          2) Housing,   companion    expenses,   or    other                                                                    
             nonclinical expenses associated with the trial;                                                                    
          3) An item or  service provided solely  to satisfy                                                                    
             data collection and analysis and not used in                                                                       
             the clinical management of the patient;                                                                            
          4) An item or service excluded from coverage under                                                                    
            the patient's health care insurance plan; and                                                                       
          5) An item or service paid for or customarily paid                                                                    
             for through grants or other funding.                                                                               
                                                                                                                                
     2. Requires insurer to provide coverage under this                                                                         
        section only if:                                                                                                        
        a. There   were    clearly    no    superior    non-                                                                    
          investigational treatment alternative; and                                                                            
        b. Available clinical or preclinical data provide a                                                                     
          reasonable   expectation    that   the   treatment                                                                    
          provided in  the clinical trial  will be  at least                                                                    
          as "efficacious"  (i.e., capable of  producing the                                                                    
          desired   effect)   as   any   non-investigational                                                                    
          alternative.  (ref:  page  1, line  13,  beginning                                                                    
          with "The  health care..., and  ending on  page 2,                                                                    
          line 7).                                                                                                              
                                                                                                                                
     3. Coverage is subject to the standard policy                                                                              
        provisions applicable to other benefits, including                                                                      
        deductible or copayment provisions (page 2, lines                                                                       
        10-11).                                                                                                                 
                                                                                                                                
CHAIR DAVIS  added that  these changes had  been provided  to the                                                               
people who  asked that  the bill  be introduced  and they  had no                                                               
problem with them.  She said they had also met  with the Division                                                               
of  Insurance   and  the   changes  were   in  line   with  their                                                               
recommendations.  Although this  was  a Labor  & Commerce  Issue,                                                               
since the  bill was  in their  presence she  decided to  go ahead                                                               
with the modifications.                                                                                                         
                                                                                                                                
SENATOR DYSON  asked if this  had to go  to Labor &  Commerce and                                                               
whether there were any other referrals.                                                                                         
                                                                                                                                
CHAIR DAVIS answered yes, it had  to go to Labor & Commerce, then                                                               
Finance.                                                                                                                        
                                                                                                                                
SENATOR  THOMAS  said,  as  he   understood  it,  unless  he  was                                                               
misunderstanding the routine patient  care costs, it specifically                                                               
addressed  only  care  that  directly  related  to  the  clinical                                                               
procedures  and  would rule  out  other  diagnoses or  any  other                                                               
issues that  might arise during the  trial. He asked if  that was                                                               
correct.                                                                                                                        
                                                                                                                                
MR.  OBERMEYER  responded  that  it  was  directed  only  to  the                                                               
clinical  trial and  if routine  patient care  were to  include a                                                               
contemporaneous  discovery of  other diseases  or ailments,  that                                                               
might be  included but he did  not know; he suggested  that might                                                               
be a question for the medical doctors or even the insurers.                                                                     
                                                                                                                                
SENATOR THOMAS assumed  that if it was  considered something that                                                               
might be  due to the treatment  itself, it would be  taken are of                                                               
by this bill.                                                                                                                   
                                                                                                                                
MR. OBERMEYER  answered yes,  and said the  language of  the bill                                                               
itself defined  the types of  diseases and cancers that  might be                                                               
discovered.                                                                                                                     
                                                                                                                                
SENATOR COWDERY asked what other  states had instituted this type                                                               
of language.                                                                                                                    
                                                                                                                                
MR.  OBERMEYER replied  that with  5,000 to  6,000 cancer  trials                                                               
going on  at any one  time, virtually  every state in  the United                                                               
States  had  trials  going  on; and  he  carefully  examined  the                                                               
statutes  of  a number  of  states  before  coming up  with  this                                                               
language.                                                                                                                       
                                                                                                                                
SENATOR DYSON questioned what would  happen if the treatment in a                                                               
clinical trial  turned out  to be  10 times  as expensive  as the                                                               
usual  treatment   and  whether  this  bill   would  require  the                                                               
insurance company to pay the unexpected cost.                                                                                   
                                                                                                                                
CHAIR  DAVIS   responded  that  she   would  need  to   get  more                                                               
information in order to answer  Senator Dyson's question; but she                                                               
expected that the  oncologists involved in the  trial would bring                                                               
in other doctors  to handle any other  diseases discovered during                                                               
treatment.                                                                                                                      
                                                                                                                                
SENATOR  DYSON clarified  that he  was talking  about [treatment]                                                               
for the cancer.                                                                                                                 
                                                                                                                                
2:13:52 PM                                                                                                                    
TOM  OBERMEYER answered  that the  [cost of  the] clinical  trial                                                               
would be completely separate. Routine  costs meant the same costs                                                               
the patients would incur for  treatment if they were not involved                                                               
in  a clinical  trial. This  bill  sought simply  to ensure  that                                                               
patients did not  have to fear losing coverage  for their routine                                                               
care through participation in a clinical trial.                                                                                 
                                                                                                                                
SENATOR  DYSON  said  Mr.  Obermeyer had  answered  part  of  his                                                               
question.  He persisted  that  if  the cost  of  treatment for  a                                                               
patient involved in a clinical trial  was 10 times as much as the                                                               
alternative [treatment]  would have  been, he  wanted to  know if                                                               
the insurance  company would be  on the hook  to pay 10  times as                                                               
much for the treatment because they had passed this bill.                                                                       
                                                                                                                                
MR. OBERMEYER said that was  already remedied in the "E" version.                                                               
It required the insurer to provide coverage only if there was:                                                                  
                                                                                                                                
     a) clearly no superior "non-investigational" treatment                                                                     
     alternative; and                                                                                                           
     b)  available clinical  or preclinical  data provide  a                                                                    
     reasonable expectation  that the treatment  provided in                                                                    
     the clinical  trial will be  at least  as "efficacious"                                                                    
     as any non-investigational alternative                                                                                     
                                                                                                                                
He  continued  that   they  did  not  want  to   drive  up  costs                                                               
unreasonably.                                                                                                                   
                                                                                                                                
CHAIR  DAVIS interjected  that testimony  from  patients who  had                                                               
been  involved  in  clinical  trials  indicated  that  they  were                                                               
concerned about whether their  insurance companies would continue                                                               
to  cover them.  One individual  said her  insurance company  had                                                               
approved coverage for the trial.                                                                                                
                                                                                                                                
SENATOR DYSON stated that it was  not a doctor question; it was a                                                               
legal question.                                                                                                                 
                                                                                                                                
CHAIR DAVIS said they could get a legal opinion.                                                                                
                                                                                                                                
2:17:43 PM                                                                                                                    
SENATOR THOMAS asked  for clarification on paragraph  (d) on page                                                               
2, line 12:  "This section does not apply to  a fraternal benefit                                                               
society."                                                                                                                       
                                                                                                                                
MR. OBERMEYER said the drafter  explained during the last hearing                                                               
that this  needed to  be in  here because  there was  language in                                                               
other statutes that required it.                                                                                                
                                                                                                                                
SENATOR THOMAS moved to adopt  the proposed committee substitute,                                                               
CSSB 280,  Version E, as  the working document of  the committee.                                                               
There being no objection, the motion carried.                                                                                   
                                                                                                                                
CHAIR DAVIS expressed her desire to move this out of committee.                                                                 
                                                                                                                                
2:19:37 PM                                                                                                                    
EMILY  NEENAN,  Alaska  Government Relations  Director,  American                                                               
Cancer Society, responded to Senator  Dyson that, in general, the                                                               
impetus behind this  kind of legislation was not  to increase any                                                               
cost to  the insurance  company, simply to  make sure  people had                                                               
access to clinical  trials. That was what the  whole piece around                                                               
routine  care costs  was referring  to. She  added that  20 other                                                               
states had  this provision in statute  and 4 that had  worked out                                                               
voluntary  agreements  with all  of  the  insurance companies  in                                                               
their states.                                                                                                                   
                                                                                                                                
CHAIR DAVIS  asked if  there was  further testimony.  There being                                                               
none, she asked for a motion.                                                                                                   
                                                                                                                                
2:21:43 PM                                                                                                                    
SENATOR  THOMAS  moved  to  report CSSB  280,  Version  \E,  from                                                               
committee  with  individual   recommendations  and  the  attached                                                               
fiscal note(s). There being no objection, CSSB 280(HES).                                                                        
                                                                                                                                

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