Legislature(2007 - 2008)BELTZ 211

01/29/2008 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 183 REPEAL DEFINED CONTRIB RETIREMENT PLANS TELECONFERENCED
Heard & Held
*+ SB 196 PRESCRIPTION DATABASE TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
                  SB 196-PRESCRIPTION DATABASE                                                                              
                                                                                                                              
2:43:50 PM                                                                                                                  
CHAIR ELLIS announced SB 196 to be up for consideration.                                                                        
                                                                                                                                
GINGER  BLAISDELL, staff  to Senator  Green, sponsor  of SB  196,                                                               
presented  an overview  on Prescription  Drug Monitoring  Program                                                               
(PDMP).  She  said  PDMP  is  referred  to  as  the  prescription                                                               
database in the bill.                                                                                                           
                                                                                                                                
She said  that all states  have laws and regulations  that govern                                                               
the  distribution of  controlled substances,  but Alaska  doesn't                                                               
have a  way to track  it. Diversion of controlled  substances and                                                               
other  pharmaceuticals  is  generally  recognized  as  a  serious                                                               
problem  throughout the  US. The  White House  is starting  a new                                                               
media campaign to start educating everyone about this problem.                                                                  
                                                                                                                                
Most states  have found the prescription  monitoring programs are                                                               
the most effective  tools because they stop some of  the abuse at                                                               
the front  end at the  prescriber or  the pharmacy. The  goals of                                                               
the  programs vary  from  state to  state -  some  are under  the                                                               
Department of  Law or  a health and  social service  agency. Most                                                               
states have found,  however, they get the best  results by having                                                               
them  located   in  their  Board  of   Pharmacy  because  medical                                                               
professionals  are reviewing  the data  for abnormal  patterns of                                                               
use by doctors or patients.                                                                                                     
                                                                                                                                
2:45:02 PM                                                                                                                    
Slide 6  showed how  prescription drug  diversion accounts  for 2                                                               
percent of private insurance and  Medicaid claims. In Alaska that                                                               
would amount to a $1.4  million savings to insurance providers as                                                               
well   as  Medicaid.   Diversion  and   inappropriate  drug   use                                                               
promulgates other criminal activity.                                                                                            
                                                                                                                                
2:45:38 PM                                                                                                                    
MS. BLAISDELL  said the  national and  state goals  are education                                                               
and   information   about   misuse  of   pharmaceuticals.   Early                                                               
intervention  is  the  key  for  prescribers  and  dispensers  by                                                               
reducing the availability of prescriptions.                                                                                     
                                                                                                                                
The  goals of  PDMPs  are to  promote  pharmaceutical care  while                                                               
deterring diversion  through education and law  enforcement. They                                                               
are aimed  at upholding  statutory mandates in  a manner  that is                                                               
most supportive of  and least disruptive to  medical and pharmacy                                                               
practice.                                                                                                                       
                                                                                                                                
2:46:47 PM                                                                                                                    
She hoped  the Board of  Pharmacy would consider looking  at some                                                               
of  the  national  computer  databases  that  have  already  been                                                               
designed. It  seems to  take most pharmacies  two minutes  at the                                                               
end  of every  day to  provide data  to the  feds and  they could                                                               
provide the state with the same data.                                                                                           
                                                                                                                                
Statistics on  2005 data show that  9 - 12.6 percent  of Alaskans                                                               
ages   12  and   over  use   illicit  drugs.   The  reason   that                                                               
prescriptions are listed with illicit  drugs show that nonmedical                                                               
pain  relievers are  starting  to be  used.  The medications  are                                                               
illicit because of the ways they are used.                                                                                      
                                                                                                                                
2:49:01 PM                                                                                                                    
MS. BLAISDELL  said the legislation  supports practices  that are                                                               
already  being  done. The  Department  of  Commerce, Community  &                                                               
Economic  Development  has already  started  to  do some  of  the                                                               
planning and they already have  an investigator who is conducting                                                               
research on  drug diversion and  use. A database  would certainly                                                               
help him;  law enforcement could  also use this  information. She                                                               
added  that   this  bill   streamlines  current   paper  tracking                                                               
practices.                                                                                                                      
                                                                                                                                
2:49:56 PM                                                                                                                    
She  said  that   over  the  summer  a  number   of  doctors  and                                                               
pharmacists  contacted the  sponsor's  office on  this issue.  An                                                               
interesting quote said,  "You don't want to be the  low spot when                                                               
everyone else is  draining their swamps." This  means that people                                                               
who abuse  prescription drugs are  going to those states  that do                                                               
not  track  and control  how  they  are  managed. She  said  that                                                               
federal funding is available for setting up these systems.                                                                      
                                                                                                                                
2:50:50 PM                                                                                                                    
On November  26 she said  CNN reported that  Alaska is one  of 15                                                               
states  without  a  prescription monitoring  program.  The  20/20                                                               
program had a show about  a university study that contacted every                                                               
person  returning from  Iraq. It  found that  rather than  the 10                                                               
percent  of  military  personnel  using  prescription  drugs,  50                                                               
percent were  using them. Further  she said that  while President                                                               
Bush's five-year  goal to reduce  illicit drug use by  25 percent                                                               
was almost there at 24  percent, prescription abuse has increased                                                               
by about 52 - 53 percent.                                                                                                       
                                                                                                                                
She said  a survey of  teenagers by  the Partnership for  a Drug-                                                               
Free  America found  that  1  in 5  teens  has  tried Vicodin,  a                                                               
powerful  addictive narcotic  pain reliever;  1 in  10 has  tried                                                               
Oxycontin, another  prescription narcotic; 1  in 10 has  used the                                                               
stimulants Ritalin or Adderall for  nonmedical purposes; and 1 in                                                               
11 teens has admitted to getting high on cough medicine.                                                                        
                                                                                                                                
2:51:44 PM                                                                                                                    
Slide 17 indicated that controlled  substance abuse has increased                                                               
by 81 percent before 2003 and  it has almost doubled that by now.                                                               
Over 15 million  people in the US are  abusing prescription drugs                                                               
and   the  rate   of  individuals   using  controlled   substance                                                               
prescriptions  has increased  at a  rate greater  than all  other                                                               
prescription medications; and pain  reliever use is increasing in                                                               
Alaska at four times the national rate.                                                                                         
                                                                                                                                
MS.  BLAISDELL  stated   that  over-the-counter  medications  are                                                               
becoming the  new party  drugs. An  unfortunate college  trend is                                                               
for kids  to grab whatever  pills they  can find at  a relative's                                                               
house and  put them in  a bowl  for people to  take. Prescription                                                               
drugs are  perceived to be  safer than illegal street  drugs, but                                                               
that's rapidly changing.                                                                                                        
                                                                                                                                
2:53:26 PM                                                                                                                    
Another  chart from  Substance Abuse  and Mental  Health Services                                                               
Administration (SAMHSA)  showed that for  the first time  in 2006                                                               
the  number of  first-time users  of drugs  is higher  than first                                                               
time  marijuana-use. Further,  she said,  numerous websites  tell                                                               
anyone how  to make these  drugs more powerful. Forty  percent of                                                               
all Myspace.com  websites have a  drug abuse link.  Most commonly                                                               
used   are   pain    medications,   stimulants,   sedatives   and                                                               
tranquilizers   and  over-the-counter   drugs.  She   found  that                                                               
pharmacists  are now  prescribing  fewer Vicodin  and going  with                                                               
Oxycontin because it is less  euphoric, but Oxycontin seems to be                                                               
the illicit drug of choice right now.                                                                                           
                                                                                                                                
2:55:06 PM                                                                                                                    
She said that stimulants like Ritalin  that are used on ADHD kids                                                               
can  be very  addictive and  can cause  heart attacks  when mixed                                                               
with over-the-counter decongestants.  Tranquilizers, like Valium,                                                               
can be  mixed with  cold and allergy  medications for  an extreme                                                               
effect.  Over the  counter drugs  like Alka-Seltzer  and Coldease                                                               
can  cause   liver  damage  and   coma.  Just   recently,  health                                                               
professionals started saying small  children should not take cold                                                               
medicines.                                                                                                                      
                                                                                                                                
2:56:55 PM                                                                                                                    
MS.  BLAISDELL explained  that the  prescription  abuser type  is                                                               
very  different from  the  regular street  drug  abuser type.  It                                                               
could be  a child who needs  a pain reliever that  the parent has                                                               
left  over  from  dental  surgery.   She  said  people  who  find                                                               
themselves in  a financial crisis are  filling their prescription                                                               
and maybe  selling half  to pay for  their ongoing  living costs.                                                               
Most drugs are being supplied by a friend or relative for free.                                                                 
                                                                                                                                
2:57:16 PM                                                                                                                    
Alaska's prescription  drug problem is  that more schedule I  - V                                                               
drugs are prescribed here per  capita than any other state. While                                                               
she was  unable to  find evidence of  this, every  pharmacist she                                                               
spoke to  said that. Alaska is  in the top 10  percent nationally                                                               
for prescription  drug abuse; we  have transient  populations and                                                               
use a lot of mail order drugs and telemedicine.                                                                                 
                                                                                                                                
2:58:23 PM                                                                                                                    
She  explained  this  bill  would  establish  a  drug  monitoring                                                               
database program with the responsibilities  being governed by the                                                               
Board  of  Pharmacy.  All  data   from  every  prescription  that                                                               
dispensed  schedule I-V  drugs would  be provided  electronically                                                               
for drugs  under both state  and federal  law. She said  that all                                                               
data would be confidential and not subject to public disclosure.                                                                
                                                                                                                                
3:00:07 PM                                                                                                                    
MS.  BLAISDELL stated  the data  could be  used by  the Board  of                                                               
Pharmacy  for  license  inquiries,  for  operational  and  review                                                               
purposes,  and  it can  be  requested  through  the board  by  an                                                               
individual who  is the  recipient of  a controlled  substance. It                                                               
can   be  used   by  licensed   practitioners  when   considering                                                               
prescribing,   licensed  or   registered   pharmacists  who   are                                                               
considering dispensing  a controlled  substance to  an individual                                                               
and  by  law   enforcement  by  request  through   the  board  by                                                               
affidavit,  subpoena or  court  order.  Possible data  requesters                                                               
include  Medicaid and  Medicaid fraud  units, Medicare,  Workers'                                                               
Compensation,  Department of  Corrections,  Medical Examiner  and                                                               
others, but it is up to the Board to fulfill those requests.                                                                    
                                                                                                                                
3:00:53 PM                                                                                                                    
She said  misuse of the  database is  a Class A  misdemeanor; and                                                               
intentional access to alter or  destroy data without authority is                                                               
a Class C  felony. She concluded that this  legislation is trying                                                               
to stop the problem at the front end.                                                                                           
                                                                                                                                
3:02:10 PM                                                                                                                    
SENATOR BUNDE asked  her how this would coincide  with the Health                                                               
Insurance    Portability   and    Accountability   Act    (HIPAA)                                                               
requirements.                                                                                                                   
                                                                                                                                
MS. BLAISDELL  replied she found  that all states qualify  to use                                                               
an exception to  the HIPAA rule, which says basically  if a state                                                               
implements a drug or prescription  monitoring program in statute,                                                               
it is exempt from  HIPAA rules - as long as  there are controls -                                                               
which Alaska has.                                                                                                               
                                                                                                                                
3:03:18 PM                                                                                                                    
GINNY  STRICKLER,,  Chief  Licenser,, Division  of  Corporations,                                                               
Business  and  Professional  Licensing,   in  the  Department  of                                                               
Commerce,  Community  &  Economic Development,  turned  testimony                                                               
over to her investigator, Brian Howes.                                                                                          
                                                                                                                                
3:04:06 PM                                                                                                                    
BRIAN  HOWES,  Senior  Investigator,  Division  of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community  &  Economic  Development,  said he  was  available  to                                                               
answer  questions  on  SB  196.   He  supported  Ms.  Blaisdell's                                                               
explanation of the programs features.                                                                                           
                                                                                                                                
CHAIR ELLIS asked if this is  a significant problem in Alaska and                                                               
if the bill was a good approach.                                                                                                
                                                                                                                                
3:04:59 PM                                                                                                                    
MR. HOWES  replied yes  and yes.  SB 196 is  a solution  for this                                                               
problem because it gets a  handle on what prescriptions are going                                                               
out and  the problems that  might come from  multiple prescribers                                                               
and  individuals who  don't always  know what  prescriptions they                                                               
are on. It  provides cost savings in the  division's process when                                                               
a case  of overprescribing  occurs - in  which case  he explained                                                               
the division sends  out letters to each of the  400 pharmacies in                                                               
the state. Their information comes back  in a paper format and in                                                               
one  case  they had  10,000  scripts  come  in  and it  took  the                                                               
division three  months to put the  data into an excel  program so                                                               
they could make some  sense out of it. It would  also save lot of                                                               
time in  spelling of drugs.  Having a  database would make  him a                                                               
more effective investigator.                                                                                                    
                                                                                                                                
3:07:03 PM                                                                                                                    
SENATOR BUNDE asked who actually provides the enforcement.                                                                      
                                                                                                                                
MR. HOWES replied that the  board would develop an administrative                                                               
case.  Something criminal  would  be referred  out.  He said  his                                                               
division  is in  the  same office  as  35 different  professional                                                               
boards.                                                                                                                         
                                                                                                                                
                                                                                                                                
3:08:07 PM                                                                                                                    
WILLIAM  STREUR, Deputy  Commissioner, Medicaid  and Health  Care                                                               
Policy,  Department   of  Health  and  Social   Services  (DHSS),                                                               
supported SB 196. He said it  will save money and create a better                                                               
society  for us  all.  He  estimated it  would  save $160,000  to                                                               
$200,000/year  or   more.  He  said   that  last   year  Medicaid                                                               
expenditures  in  Alaska  came  to $68  million  and  he  thought                                                               
additional savings could be found in a monitoring program.                                                                      
                                                                                                                                
3:10:09 PM                                                                                                                    
DAVE   CAMPANA,   Pharmacist,   HCS  Health   Purchasing   Group,                                                               
Department  of Health  and Social  Services (DHSS),  supported SB
196. He  said it brings a  balance between safe use  of drugs and                                                               
the  need  to  prevent  illegal  activity  associated  with  drug                                                               
diversion of  controlled substances. He described  drug diversion                                                               
as  an activity  where  a  person obtains  a  prescription for  a                                                               
controlled  substance  such as  Oxycontin  for  an intended  pain                                                               
problem  and illegally  sells the  contents of  the prescription.                                                               
This  unintended use  adds to  the cost  of the  Medicaid program                                                               
through improper use of drugs  and medical visits to obtain them.                                                               
A  program  like  this,  he said,  would  also  assist  insurance                                                               
companies   statewide   by    preventing   drug   diversion   and                                                               
inappropriate  expenditures for  diverted  drugs.  It would  also                                                               
help reduce fragmented care when  people obtain care from several                                                               
health   care  centers   or  providers.   The  program   promotes                                                               
coordination of  care where health  care providers  work together                                                               
for the good of the patient.                                                                                                    
                                                                                                                                
3:12:32 PM                                                                                                                    
He explained  the way it  would work is that  after prescriptions                                                               
are filled their information would  be sent electronically to the                                                               
database through  a secure file  transfer protocol - on  either a                                                               
daily or a weekly basis.  The diversion prevention feature allows                                                               
prescribers and pharmacists  to ask questions of  the database to                                                               
determine  who has  been prescribing  which controlled  drugs for                                                               
their  patients. One  state's database  found a  Medicaid patient                                                               
who  received prescriptions  for  controlled drugs  from over  40                                                               
doctors over three  months. A prescriber will be able  to see his                                                               
name and  the drugs associated with  it; if he didn't  write them                                                               
he could quickly notify the board or law enforcement.                                                                           
                                                                                                                                
3:13:53 PM                                                                                                                    
MR. CAMPANA  said the department  recommends two  amendments; one                                                               
adding  the Medicaid  Agency  as  an entity  that  can query  the                                                               
database.  The  second amendment  would  allow  the pharmacy  the                                                               
ability to  add a non-controlled  substance to the  database when                                                               
necessary  -  like cough  or  cold  drugs  that can  enhance  the                                                               
effects  of   controlled  substances.  He  also   wanted  to  see                                                               
prescription  data from  Indian health  and military  facilities,                                                               
because it could be very beneficial to those entities.                                                                          
                                                                                                                                
CHAIR ELLIS agreed with him and  stated his opinion that the more                                                               
Medicaid fraud squeezed  out of the system, the  more respect and                                                               
political support the program would get.                                                                                        
                                                                                                                                
3:15:42 PM                                                                                                                    
JEFF JESSE,  Chief Executive Officer, Alaska  Mental Health Trust                                                               
Authority, supported  SB 196. He related  his personal experience                                                               
with a separated  shoulder and how easily he  could have obtained                                                               
a  controlled   substance.  Also  he  believed   that  having  an                                                               
electronic database would improve prescribing practices.                                                                        
                                                                                                                                
3:17:09 PM                                                                                                                    
CAPTAIN KEITH  MALLARD, Commander,  Alaska Bureau of  Alcohol and                                                               
Drug  Enforcement, Alaska  State Troopers,  Department of  Public                                                               
Safety  (DPS),  supported  SB  196   and  said  he  would  answer                                                               
questions.                                                                                                                      
                                                                                                                                
CHAIR ELLIS asked if he sees this as a significant problem.                                                                     
                                                                                                                                
CAPTAIN  MALLARD replied  yes; the  number of  prescriptions that                                                               
are  being  diverted  for  illegal  use  is  increasing  and  the                                                               
database would be useful in case investigation.                                                                                 
                                                                                                                                
3:18:12 PM                                                                                                                    
PATRICIA  SENNER,  Chair,  Legislative Committee,  Alaska  Nurses                                                               
Association,  said over  the  last several  years  they had  been                                                               
debating  the   pros  and  cons  of   establishing  a  controlled                                                               
substance  prescription  database.  On  the pro  side  it  has  a                                                               
preventive possibility; on the other  side, safeguards have to be                                                               
in  place  so the  patients'  confidentiality  is not  lost.  The                                                               
concern exists  also that someone  might access the  database and                                                               
"go  fishing"  for information  about  individuals  they are  not                                                               
currently  treating.  She  mentioned that  licensed  health  care                                                               
professionals  often  delegate the  job  of  collecting data  for                                                               
their  patients to  unlicensed health  care workers  and she  saw                                                               
that  as  a problem.  Just  using  a  DEA  number is  not  enough                                                               
protection  as  some  health  care providers  have  it  on  their                                                               
prescription pad.                                                                                                               
                                                                                                                                
3:19:48 PM                                                                                                                    
Even  more  alarming is  the  prospect,  she said,  that  someone                                                               
working in  a health care  provider's office could go  fishing on                                                               
the database  so they would know  which homes to enter  to obtain                                                               
controlled substances.                                                                                                          
                                                                                                                                
Another question  she had about  the criteria was what  bar would                                                               
be used  to determine  who is  abusing prescriptive  privileges -                                                               
the concern  being that health  care providers will be  afraid to                                                               
adequately treat  pain experienced  by their patients  because of                                                               
fear of being accused of prescribing too much medication.                                                                       
                                                                                                                                
She was also  concerned that the database  would have information                                                               
about who picks up medications  and maybe family members might be                                                               
reluctant to pick  up pain medications for relatives  for fear of                                                               
being  labeled as  drug seekers.  The database  should have  some                                                               
place to indicate  the relationship of the person  picking up the                                                               
medication to the person it  was prescribed for. She concluded if                                                               
the  committee could  address these  concerns about  privacy, the                                                               
Nurses Association would support the bill.                                                                                      
                                                                                                                                
3:21:17 PM                                                                                                                    
BARRY  CHRISTIANSON, Co-Chair,  Alaska Pharmacists'  Association,                                                               
emphasized  that  for   this  program  to  work  it   has  to  be                                                               
preventative. So any  program that is implemented has  to be user                                                               
friendly  and   must  interface   with  pharmacy   databases.  He                                                               
explained  that  all  pharmacies  use  different  databases.  For                                                               
example, his pharmacy could not comply  right now with the log of                                                               
pickup persons.                                                                                                                 
                                                                                                                                
Secondly,  he was  concerned that  since the  Alaska Pharmacists'                                                               
Association is  funded only through  license fees, that  down the                                                               
road  it wouldn't  be  able  to fund  this  $400,000 program.  He                                                               
wanted to see language saying  the burden of funding this program                                                               
would not fall upon the board's license fees.                                                                                   
                                                                                                                                
3:23:37 PM                                                                                                                    
CHAIR  ELLIS said  he  and  the sponsor  would  work together  to                                                               
address these issues  in a CS - they include  adding the Medicare                                                               
Agency  to the  list of  entities that  can make  queries, adding                                                               
non-controlled  substances  to   the  database,  address  privacy                                                               
issues, the interface  concern, and the future  costs issue after                                                               
federal grant  funding goes away.  He asked Ms. Blaisdell  if she                                                               
had any reaction to these suggestions.                                                                                          
                                                                                                                                
MS.  BLAISDELL replied  that she  had already  addressed some  of                                                               
them.  She  said  the concern  with  the  additional  information                                                               
gathering requirements  is if you  had to collect  information on                                                               
the  people actually  picking up  the  prescription, most  states                                                               
felt that was a very strong  indicator of someone who might be an                                                               
abuser and  that was very  good information to have.  However, it                                                               
doubles the workload for pharmacists  who gather that information                                                               
and some  people don't have  an i.d.  with them. So,  some states                                                               
just  keep a  paper log  for people  who pick  up a  prescription                                                               
medication for another person.                                                                                                  
                                                                                                                                
She explained  that one  looks for trends  in the  database. They                                                               
look  very different  for someone  using a  substance for  a true                                                               
medical purpose  than someone who  is abusing it  personally. But                                                               
the  sponsor  was willing  to  take  that  provision out  of  the                                                               
statute and  let the Board of  Pharmacy add it where  it would be                                                               
more acceptable.                                                                                                                
                                                                                                                                
On the continued funding, she said  the first year of the program                                                               
would probably  cost $400,000;  but the  second year  those costs                                                               
are typically  greatly reduced. New  Mexico's annual cost  is now                                                               
$13,000 a  year. However, their  investigator was already  on the                                                               
payroll before the program started, though he did say that drug                                                                 
diversion has increased so much that he now spends all his time                                                                 
on drug monitoring issues.                                                                                                      
                                                                                                                                
CHAIR ELLIS asked her to work with the state Medicaid folks, the                                                                
nurses association and the pharmacists, and staff to address                                                                    
those concerns in a CS.                                                                                                         

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