Legislature(2013 - 2014)BELTZ 105 (TSBldg)

02/13/2014 01:30 PM Senate LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 80 OUT-OF-STATE PHYSICIAN LICENSE TELECONFERENCED
Heard & Held
*+ SB 129 EXTEND BOARD OF REAL ESTATE APPRAISERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
              SB  80-OUT-OF-STATE PHYSICIAN LICENSE                                                                         
                                                                                                                                
1:38:08 PM                                                                                                                    
CHAIR DUNLEAVY  announced the consideration  of SSSB 80.  "An Act                                                               
relating to  the practice of  telemedicine; relating  to licenses                                                               
for   out-of-state   physicians   or  podiatrists   to   practice                                                               
telemedicine  in  this  state under  certain  circumstances;  and                                                               
relating to insurance coverage for  telemedicine." He asked for a                                                               
motion  to adopt  the work  draft committee  substitute (CS)  for                                                               
SSSB 80.                                                                                                                        
                                                                                                                                
SENATOR MICCICHE moved to adopt  CS for Sponsor Substitute for SB
80, labeled 28-LS0615\P, as the working document.                                                                               
                                                                                                                                
CHAIR DUNLEAVY objected for discussion purposes.                                                                                
                                                                                                                                
1:38:33 PM                                                                                                                    
CHUCK KOPP,  Staff, Senator Fred  Dyson, introduced CSSSSB  80 on                                                               
behalf  of  the  sponsor.  He  spoke  to  the  following  sponsor                                                               
statement: [Original punctuation provided.]                                                                                     
                                                                                                                                
     CS SSSB  80 introduces  into Alaska's  Medical Practice                                                                    
     Act the  practice of telemedicine, sets  parameters for                                                                    
     prescription  of controlled  substances without  an in-                                                                    
     person   contact   between   physician   and   patient,                                                                    
     establishes   a   definition  for   telemedicine,   and                                                                    
     provides that health care insurers  may not require in-                                                                    
     person  contact between  a health  care provider  and a                                                                    
     patient  before  payment  is made  for  services.  With                                                                    
     Alaska's  large rural  and remote  areas, the  need for                                                                    
     telemedicine  is  especially  acute with  much  of  the                                                                    
     state  designated  as   medically  underserved  by  the                                                                    
     federal Health Resources and Services Administration.                                                                      
                                                                                                                                
     CS  SSSB  80  will  provide  expanded  opportunity  for                                                                    
     health  care delivery  for  individuals and  businesses                                                                    
     throughout   Alaska.  Today,   the  only   delivery  of                                                                    
     telehealth in  Alaska is via the  Alaska Federal Health                                                                    
     Care Access  Network (AFHCAN),  established in  1998 to                                                                    
     provide telehealth  services for  Federal beneficiaries                                                                    
     in Alaska, including Alaska  Natives. The Alaska Native                                                                    
     Tribal  Health  Care  Consortium  (ANTHC)  manages  the                                                                    
     telehealth  program and  provides statewide  health and                                                                    
     information technology  services to Alaska  Natives and                                                                    
     American  Indians,  in  addition  to  supporting  local                                                                    
     tribal health organizations. CS  SSSB 80 will allow the                                                                    
     cost-savings  and  efficiencies  of  telehealth  to  be                                                                    
     delivered to  the many  other constituencies  in Alaska                                                                    
     that  do  not  qualify  to  participate  in  the  ANTHC                                                                    
     telehealth program.                                                                                                        
                                                                                                                                
     In  Alaska and  nationwide, the  ongoing discussion  of                                                                    
     how  to provide  greater  access to  health  care at  a                                                                    
     reasonable  cost   is  becoming  ever   more  relevant.                                                                    
     Telemedicine  is  emerging  as  a key  element  in  the                                                                    
     delivery of  health services  to children,  seniors and                                                                    
     other  vulnerable populations  through the  integration                                                                    
     of   technology   and   provider  care.   The   Patient                                                                    
     Protection  and  Affordable  Care  Act  is  leading  to                                                                    
     increased  demand that  physicians  interact with  more                                                                    
     patients.  Telemedicine  allows physicians  to  consult                                                                    
     with more  patients, and enables patients  to meet with                                                                    
     their physicians in a shorter  time period. In terms of                                                                    
     economic  advantages,  telemedicine saves  travel  time                                                                    
     and expense  for patients who  otherwise have  to leave                                                                    
     home and work  to see a health  care provider, provides                                                                    
     for  more timely  diagnosis  of  ailments, and  reduces                                                                    
     unnecessary ER visits.                                                                                                     
                                                                                                                                
MR. KOPP highlighted the changes  between the CS and the original                                                               
version of the bill.                                                                                                            
                                                                                                                                
Section 1 adds  a new Sec. 08.64.245 in the  Medical Practice Act                                                               
establishing the practice of telemedicine.                                                                                      
                                                                                                                                
Section 2 establishes three rules  for prescribing, dispensing or                                                               
administering prescription  drugs without a  physical examination                                                               
if 1)  the prescription  drug is not  a controlled  substance; 2)                                                               
the  physician  is  located in-state  and  available  to  provide                                                               
follow-up care; and 3) the  person receiving the care consents to                                                               
sending a copy  of the records of the encounter  to their primary                                                               
care provider if  the prescribing physician is  not their primary                                                               
care  provider,  and  the  physician sends  the  records  to  the                                                               
person's primary care provider.                                                                                                 
                                                                                                                                
This section no longer has  the original license provision for an                                                               
out-of-state  licensing  option  for out-of-state  physicians  to                                                               
practice the delivery of telemedicine within the state.                                                                         
                                                                                                                                
Section 3 adds a new paragraph  (7) to AS 08.64.380 to define the                                                               
practice of telemedicine.                                                                                                       
                                                                                                                                
Section  4  adds a  new  Sec.  21.54.102  that provides  that  an                                                               
insurance company  may not require  an in-person visit  between a                                                               
physician and patient before payment for services is covered.                                                                   
                                                                                                                                
Section 5 provides an effective date for the Act.                                                                               
                                                                                                                                
1:43:28 PM                                                                                                                    
MR. KOPP noted that Premera  Blue Cross recommended that the bill                                                               
state   that  if   an  insurance   plan  provides   coverage  for                                                               
telemedicine, then prior in-person  contact between a health care                                                               
provider and  a patient is  not mandated to receive  coverage for                                                               
that service. The sponsor agreed.                                                                                               
                                                                                                                                
1:44:16 PM                                                                                                                    
SENATOR  OLSON asked  if the  Medical Board  is in  favor of  the                                                               
bill.                                                                                                                           
                                                                                                                                
MR.  KOPP  said  that  the  Medical  Board  opposed  the  initial                                                               
legislation  that included  the out-of-state  license. They  have                                                               
not articulated their position since  that provision was removed.                                                               
The  State Medical  Association  is neutral  on the  legislation.                                                               
Responding to a  further question, he said he  hasn't spoken with                                                               
the Alaska Physicians & Surgeons Association.                                                                                   
                                                                                                                                
SENATOR OLSON referenced the reporting  requirements in Section 2                                                               
and asked  what happens if a  person doesn't have a  primary care                                                               
physician.                                                                                                                      
                                                                                                                                
MR.  KOPP explained  that  if  there is  no  primary health  care                                                               
provider,  the requirement  that the  records be  forwarded would                                                               
not be necessary.                                                                                                               
                                                                                                                                
SENATOR OLSON asked  how Indian Health Service  (IHS) patients in                                                               
rural Alaska participate in this program.                                                                                       
                                                                                                                                
MR. KOPP  said any  IHS-eligible person  is eligible  through the                                                               
Alaska  Federal  Healthcare  Access   Network  (AFHAN)  [that  is                                                               
managed by the Alaska Native  Tribal Health Care Consortium.] The                                                               
bill expands  the law to  apply to anybody  who is not  a federal                                                               
entity and is  not otherwise in an eligible class  such as Alaska                                                               
Native.                                                                                                                         
                                                                                                                                
SENATOR MICCICHE stated support  for the provision that prohibits                                                               
prescribing controlled substances telephonically.                                                                               
                                                                                                                                
1:47:26 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:48:12 PM                                                                                                                    
CHAIR DUNLEAVY reconvened the hearing.                                                                                          
                                                                                                                                
1:48:22 PM                                                                                                                    
HENRY  DEPHILLIPS, MD.,  Chief  Medical  Officer, Teladoc,  Inc.,                                                               
Greenwich, Connecticut, stated that  he was speaking primarily as                                                               
a subject  matter expert on  the telemedicine industry.  He would                                                               
clarify when his comments were specific to Teladoc.                                                                             
                                                                                                                                
SENATOR MICCICHE noted  the substance abuse issues  in Alaska and                                                               
asked  Dr.  DePhillips  to  discuss the  reasons  that  the  bill                                                               
prohibits prescribing controlled substances.                                                                                    
                                                                                                                                
DR.   DEPHILLIPS  explained   that   the  telemedicine   industry                                                               
typically uses the  standard of not allowing  the prescription of                                                               
any Drug Enforcement  Administration (DEA) controlled substances.                                                               
Telemedicine is relatively  new to the medical field  and most of                                                               
the companies  in the industry  understand that the bar  needs to                                                               
be  fairly   high.  Thus,  the  industry   excludes  DEA  defined                                                               
controlled substances at both the federal and state level.                                                                      
                                                                                                                                
SENATOR  MICCICHE  asked  Dr. DePhillips  to  discuss  the  cross                                                               
coverage exemption and how this  isn't overstepping the bounds of                                                               
current practice.                                                                                                               
                                                                                                                                
DR.  DEPHILLIPS explained  that  to  combat Internet  prescribing                                                               
scams that  cropped up in  the 1990s, most state  medical boards,                                                               
including   Alaska's,   instituted   a  prior   in-person   visit                                                               
requirement  for physicians.  This  was very  successful, but  in                                                               
about  2005 it  occurred to  some folks  that cross  covering was                                                               
technically   a   violation   of  the   prior   in-person   visit                                                               
requirement.                                                                                                                    
                                                                                                                                
To address  this technical violation,  many state  medical boards                                                               
have said  that physicians who  agree to cross cover  one another                                                               
may treat the patient over the  phone or remotely without a prior                                                               
in-person visit.  However, legislation  such as  SB 80  is needed                                                               
because there  has been  a difference  of interpretation  of that                                                               
segment of the rules.                                                                                                           
                                                                                                                                
DR.  DEPHILLIPS  explained  that   counsel  for  Teladoc  did  an                                                               
evaluation of the regulations on  a state-by-state basis and came                                                               
to  the  conclusion  that  Teladoc  and  its  competitors  are  a                                                               
physician  cross coverage  service, and  would therefore  qualify                                                               
under the cross  coverage exception to the  prior in-person visit                                                               
requirement.  Most of  the telemedicine  companies have  operated                                                               
this way  in most  states, but occasionally  a medical  board has                                                               
intervened with  one of the  physicians. That happened  in Alaska                                                               
when  the   State  Medical  Board   intervened  with   a  Teladoc                                                               
physician.                                                                                                                      
                                                                                                                                
Teladoc was unable  to come to a mutual agreement  with the State                                                               
Medical Board  and decided  to take  a legislative  approach. The                                                               
premise is that the quality of  the cross coverage service in the                                                               
telemedicine  industry is  at least  equal  to traditional  cross                                                               
coverage.  The data  supports this.  Teladoc has  done more  than                                                               
half  a  million   consults  with  15  million   Americans  in  a                                                               
telemedicine  program  without   any  liability  issues.  Patient                                                               
safety and patient care has not been compromised.                                                                               
                                                                                                                                
DR. DEPHILLIPS  highlighted that  the Rand  Corporation conducted                                                               
and published an independent study  in the journal Health Affairs                                                               
just  last  week. It  talked  about  the fact  that  telemedicine                                                               
reduces emergency  room use for non-emergency  problems, improves                                                               
access for patients who don't  have a primary care physician, and                                                               
improves access for patients who  can't get to their primary care                                                               
physician timely.  He encouraged the committee  members to review                                                               
the summary of that study.                                                                                                      
                                                                                                                                
1:55:30 PM                                                                                                                    
SENATOR  MICCICHE  asked  him  to   discuss  choosing  the  right                                                               
treatment for a particular malady.                                                                                              
                                                                                                                                
DR.  DEPHILLIPS explained  that  the  telemedicine industry  generally                                                          
treats  common, uncomplicated  medical problems  that are  unlikely to                                                          
become complex or worrisome. The general  process is that a call comes                                                          
in  to a  call center  either  telephonically or  online requesting  a                                                          
consultation. The person indicates their  location, age and the nature                                                          
of the request. A medical history  is required at the beginning of the                                                          
process and the  patient does not receive access to  a physician until                                                          
that  medical  record is  complete.  Then  the  case  is sent  to  the                                                          
appropriate licensed physician and  he/she reviews the medical record.                                                          
Teladoc,  and  perhaps  other companies,  requires  the  physician  to                                                          
review the  data in the medical  record before he/she is  given access                                                          
to  the patient  for  the consultation  visit. There  is  a real  time                                                          
interaction and if  the physician has any level  of discomfort, he/she                                                          
is  empowered to  tell  the patient  he/she must  see  a physician  in                                                          
person. Teladoc statistics  show that this happens  about four percent                                                          
of the time. He noted that  the physician gets paid for rendering care                                                          
regardless  of  the recommendation  so  that  doesn't enter  into  the                                                          
decision.                                                                                                                       
                                                                                                                                
1:59:12 PM                                                                                                                    
SENATOR  OLSON asked  Dr.  DePhillips where  he  went to  medical                                                               
school                                                                                                                          
                                                                                                                                
DR. DEPHILLIPS  replied he attended Hahnemann  University that is                                                               
now known as Drexel University  in Philadelphia, Pennsylvania. He                                                               
is a board certified family physician, licensed in Tennessee.                                                                   
                                                                                                                                
SENATOR  OLSON  asked him  to  discuss  the State  Medical  Board                                                               
objections to  out-of-state physicians essentially  practicing in                                                               
the state.                                                                                                                      
                                                                                                                                
DR. DEPHILLIPS explained  that the perceived concern  is that the                                                               
care  of  the  citizens  of  Alaska  will  start  going,  through                                                               
telemedicine,  to physicians  in  other  states. The  legislation                                                               
addresses this  concern with the  requirement that  the physician                                                               
taking  the  consultation  must  be  licensed  in  Alaska  and  a                                                               
resident in the state of  Alaska. Teladoc is comfortable with the                                                               
requirement and that is their business model.                                                                                   
                                                                                                                                
Alaska and  other medical boards  have also voiced  concern about                                                               
patient safety, but two data  points argue against that. First is                                                               
the cross  coverage situation that  has existed for  decades. The                                                               
second is  the more than  half a million consultations  that have                                                               
been done  through telemedicine without  a bad outcome or  even a                                                               
liability claim. He opined that  the requirement for an in-person                                                               
visit with the  primary physician was a good idea  about 15 years                                                               
ago, but  technology has come  to a point where  it's appropriate                                                               
to set that aside.                                                                                                              
                                                                                                                                
2:03:04 PM                                                                                                                    
SENATOR  OLSON spoke  to the  difficulty of  getting people  from                                                               
outside Alaska  to appreciate what remote  living actually means.                                                               
He cited the example of  an elderly person having an anaphylactic                                                               
reaction and asked about protection for that person.                                                                            
                                                                                                                                
DR. DEPHILLIPS said the same risk  exists for a person who visits                                                               
a physician  in person; they might  go home, take the  first dose                                                               
of a  prescription medicine, and  have an  anaphylactic reaction.                                                               
The safeguard  in telemedicine is  that the  consulting physician                                                               
can tell the patient they need an in-person visit.                                                                              
                                                                                                                                
2:05:48 PM                                                                                                                    
SENATOR OLSON pointed out that  somebody in a remote location who                                                               
is complaining of chest pain might  not have the option of vising                                                               
a physician in person.                                                                                                          
                                                                                                                                
DR. DEPHILLIPS maintained that having  telephonic or audio visual                                                               
access  to a  physician  is  a step  in  the  right direction  if                                                               
implemented   well.  Responding   to  a   further  question,   he                                                               
reiterated that Teladoc provides  the liability insurance for its                                                               
doctors and has never had a claim.                                                                                              
                                                                                                                                
SENATOR OLSON  asked about protection  when someone is on  a boat                                                               
outside the bounds of state  waters and subsequently enters state                                                               
waters.                                                                                                                         
                                                                                                                                
DR. DEPHILLIPS  said that in  public safety and  most professions                                                               
there is a justification defense for emergencies.                                                                               
                                                                                                                                
SENATOR  MICCICHE asked  if there  isn't a  waiver for  emergency                                                               
treatment in most situations.                                                                                                   
                                                                                                                                
DR. DEPHILLIPS said  he isn't an attorney but  the Good Samaritan                                                               
rule exists in many, but not all, places.                                                                                       
                                                                                                                                
SENATOR  OLSON related  a personal  story of  getting sued  after                                                               
rendering help.                                                                                                                 
                                                                                                                                
2:08:57 PM                                                                                                                    
DON HABEGER,  Director, Division  of Corporations,  Business, and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development  (DCCED), explained  that the  State Medical                                                               
Board   promulgated  a   regulation   that  addresses   emergency                                                               
situations. It says that  prescribing, dispensing, and furnishing                                                               
prescription  medication   is  excluded  for  use   in  emergency                                                               
situations.                                                                                                                     
                                                                                                                                
2:09:56 PM                                                                                                                    
CHAIR  DUNLEAVY   removed  his  objection.  Finding   no  further                                                               
objection, he stated that CSSSSB 80 was adopted.                                                                                
                                                                                                                                
SHEELA TALLMAN, Senior Manager of Legislative Policy, Premera                                                                   
Blue Cross, offered to answer questions. There were none.                                                                       
                                                                                                                                
CHAIR DUNLEAVY found no public testimony.                                                                                       
                                                                                                                                
SENATOR OLSON said he'd like to hear the State Medical Board's                                                                  
opinion of the committee substitute.                                                                                            
                                                                                                                                
MR. KOPP said the sponsor has requested that.                                                                                   
                                                                                                                                
CHAIR DUNLEAVY announced he would keep public testimony open and                                                                
hold SB 80 in committee for further consideration.                                                                              

Document Name Date/Time Subjects
4 SS SB80.pdf SL&C 2/13/2014 1:30:00 PM
SB 80
2 CS SS SB80 - An Act relating to practice of telemedicine.pdf SL&C 2/13/2014 1:30:00 PM
SB 80
1 CS SSSB 80 - Sponsor Statement.pdf SL&C 2/13/2014 1:30:00 PM
SB 80
3 CS for SSSB80 - Section Analysis.pdf SL&C 2/13/2014 1:30:00 PM
SB 80
SB 129 Ver A.pdf SL&C 2/13/2014 1:30:00 PM
SB 129
SB 129 Sponsor Statement.pdf SL&C 2/13/2014 1:30:00 PM
SB 129
SB 129 Supp Doc-DCCED BCREA Audit 2013.pdf SL&C 2/13/2014 1:30:00 PM
SB 129
CS SSSB 80 - Letter of Support.PDF SL&C 2/13/2014 1:30:00 PM
SB 80
Telemedicine saves dollars and makes sense for Alaskans.pdf SL&C 2/13/2014 1:30:00 PM
CS SS SB80
SB080SS-DCCED-CBPL-02-07-14.pdf SL&C 2/13/2014 1:30:00 PM
SB 80