Legislature(2001 - 2002)
03/21/2002 03:35 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 306-PRESCRIPTION DRUG ASSISTANCE TASK FORCE
SENATOR BETTYE DAVIS, bill sponsor, stated that she has spent a
lot of time reviewing prescription drug issues. She is currently
serving on the Committee on Aging for the Council of State
Governments and recently attended a conference on prescription
drugs. Representative Joe Hayes is the sponsor of the same bill
on the House side and asked that she mirror his bill in the
Senate. She hopes that this legislation will help to find ways to
aid senior citizens in the purchase of prescription drugs.
RICHARD BENAVIDES, aide to Senator Davis, explained that while
Congress has been debating proposals to add a prescription drug
benefit to Medicare, many states are taking steps to protect
their more vulnerable residents from rising out of pocket costs
and declining insurance coverage for prescription drugs.
According to the National Conference of State Legislatures, over
40 states have considered legislation to help seniors and the
disabled address these issues. SB 306 only involves Alaska's
growing senior population. American Association of Retired People
(AARP) statistics report that the annual growth rate for Medicaid
spending on medications in Alaska rose 23.4 percent between 1996
and 1998. They also reported that about 11,000 seniors have no
prescription drug coverage whatsoever.
Between October 31, 1999 and October 31, 2000, over 5,500
Alaskans aged 65 and above who were eligible for the state's
Medicaid program, received 263,000 prescriptions at a cost to the
state of over $10 million. SB 306 would create a method to look
at ways to provide meaningful relief to seniors without creating
large new expenditure programs.
STEVE ASHMAN, Director of the Division of Senior Services,
testified via teleconference that the Department of
Administration would be charged with putting together the task
force called for in the legislation. Currently they don't have
accurate information on the number of seniors in need of
prescription drug relief but there are certainly a number of
anecdotal cases. It is a significant problem and one of the goals
of the legislation is to investigate the options that are
available as well as other states' practices.
He looks forward to working with the sponsor and will help in any
way possible.
GENE DAU, AARP member testified in support of SB 306. He noted
AARP Alaska sent a letter in support as well. Washington state
doctors are now able to fax prescriptions directly to pharmacists
in Canada who will mail the medicine to you in the U.S. He asked
why this wouldn't be possible in the state of Alaska.
CHAIRMAN THERRIAULT commented he didn't know that you couldn't do
that here.
SENATOR DAVIS stated that would be an option the task force could
look into.
SENATOR STEVENS asked if the method of payment was a credit card
or similar and not a credit against a U.S. based program.
MR. DAU replied payment was cash.
3:50 p.m.
JOHN FURUNESS, National Association of Retired Federal Employees
(NARFE), testified in support of SB 306. Prescription drugs need
to be made more affordable.
MARIE DARLIN, AARP member, testified in support of SB 306. She is
the coordinator for the Capital City Task Force and although they
are following many bills this session, this is of particular
concern. The AARP letter of support is in the bill file.
CHAIRMAN THERRIAULT asked Ms. Darlin whether she had a comment on
the makeup of the task force.
MS. DARLIN said she was pleased with the composition of the task
force.
CHAIRMAN THERRIAULT asked whether the Department of Social
Services had any concern about the makeup of the proposed task
force.
NANCY WILLER, a representative from the Division of Medical
Assistance, said they had no concerns with its makeup. They
understand that most of the federal proposals that are in the
President's budget use Medicaid as a funding source for providing
prescription drug coverage to additional senior populations. They
would be available to provide assistance to the task force.
CHAIRMAN THERRIAULT asked Mr. Benavides about the meaning on page
2, lines 4-6.
MR. BENAVIDES said the wording came from the drafters and legal
terminology isn't always easy for the layperson to understand.
SENATOR DAVIS explained the meaning is that we would have to
adopt other state's strategies to fit Alaska. She said she
supports the statement but was receptive to more artful wording.
CHAIRMAN THERRIAULT moved conceptual amendment number one to
replace page 2, lines 4-6 with something similar to the
following: "In considering the adoption of a strategy to help
senior citizens cope with the cost of prescription drugs, the
State of Alaska should review what has been done in other
states."
SENATOR DAVIS said she could support the change.
CHAIRMAN THERRIAULT said he would work with Senator Davis and the
drafters rather that holding the bill and presenting a proposed
CS at the next meeting.
There was no objection to the conceptual amendment.
He asked Mr. Benavides to explain the fiscal note.
MR. BENAVIDES said the second page of the fiscal note explained
this would cover the cost of three meetings if travel, lodging,
per diem and telephonic costs were incurred. Mr. Ashman was the
author of the note and could answer specific questions.
CHAIRMAN THERRIAULT said he didn't have any particular questions
and the bill had a referral to the Finance Committee where fiscal
questions would be addressed.
There were no further amendments.
He asked for the will of the committee.
SENATOR STEVENS made a motion to move CSSB 306 (STA) and attached
fiscal note from committee with individual recommendations.
There being no objection, CSSB 306 (STA) moved from committee.
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