Legislature(2005 - 2006)CAPITOL 106

02/02/2006 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES


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03:04:17 PM Start
03:04:35 PM Overview(s) || Department of Health and Social Services on Medicare Part D
04:39:43 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Dept. of Health and TELECONFERENCED
Social Services on Medicare Part D
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                        February 2, 2006                                                                                        
                           3:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Paul Seaton, Vice Chair                                                                                          
Representative Vic Kohring                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Tom Anderson                                                                                                     
Representative Carl Gatto                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S):  DEPARTMENT OF HEALTH AND SOCIAL SERVICES ON                                                                       
MEDICARE PART D                                                                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No action to record                                                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ESSIEN UKOIDEMABIA, Director                                                                                                    
State Health Insurance Assistance Program (SHIP)                                                                                
Division of Senior and Disabilities Services                                                                                    
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented the overview on Medicare Part D.                                                                 
                                                                                                                                
JON SHERWOOD, Medical Assistant Administrator for Medicaid                                                                      
Office of Program Review                                                                                                        
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding Medicare Part                                                                 
D.                                                                                                                              
                                                                                                                                
BILL ALTLAND, Owner                                                                                                             
Whale Tail Pharmacy;                                                                                                            
Member, Pharmacy Board                                                                                                          
Craig, Alaska                                                                                                                   
POSITION  STATEMENT:     Testified  as  a   pharmacist  regarding                                                               
Medicare Part D.                                                                                                                
                                                                                                                                
DIRK WHITE, Owner                                                                                                               
Harry Race Pharmacy & Photo                                                                                                     
Sitka, Alaska                                                                                                                   
POSITION  STATEMENT:     Testified  as  a   pharmacist  regarding                                                               
Medicare Part D.                                                                                                                
                                                                                                                                
DON ROBERTS                                                                                                                     
Kodiak, Alaska                                                                                                                  
POSITION  STATEMENT:     Testified  as  a   disability  recipient                                                               
eligible for Medicare Part D.                                                                                                   
                                                                                                                                
BARRY CHRISTENSEN, Pharmacist                                                                                                   
Ketchikan, Alaska                                                                                                               
POSITION  STATEMENT:     Testified  as  a   pharmacist  regarding                                                               
Medicare Part D.                                                                                                                
                                                                                                                                
JENNIFER ADAMS, Representative                                                                                                  
Anchorage Community Mental Health Services (ACMHS);                                                                             
Program Coordinator, Medicare Plan D                                                                                            
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:     Testified  regarding  administration  of                                                               
Medicare Part D.                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:04:17  PM.                                                             
Representatives  Kohring,  Seaton,  Cissna, Gardner,  and  Wilson                                                               
were present at the call to order.                                                                                              
                                                                                                                                
^OVERVIEW(S)                                                                                                                  
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES ON MEDICARE PART D                                                                  
                                                                                                                                
3:04:35 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the only order of  business would be                                                               
a presentation  by the Department  of Health and  Social Services                                                               
(DHSS) on the implementation of Medicare Part D.                                                                                
                                                                                                                                
3:05:55 PM                                                                                                                    
                                                                                                                                
ESSIEN UKOIDEMABIA,  Director, State Health  Insurance Assistance                                                               
Program  (SHIP), Division  of Senior  and Disabilities  Services,                                                               
Department of Health and Social  Services (DHSS), stated that the                                                               
federal government funds  a SHIP director in  every state through                                                               
the  Centers   for  Medicare  Services  (CMS)   and  Medicaid  in                                                               
conjunction with the U.S. Administration  on Aging and the Senior                                                               
Medicare  Patrol.   The SHIP  office  distributes information  on                                                               
Medicare and other federal, state,  and private health care plans                                                               
that  interface  with  Medicare  programs.    She  explained  the                                                               
elevated  demand for  information  and assistance  that began  in                                                               
2005 due to the implementation  of the Medicare prescription drug                                                               
plan,  Medicare  Part D.    This  revised program  provides  drug                                                               
assistance  benefits  for  those   individuals  covered  by  both                                                               
Medicaid and  Medicare through  pharmacy benefit  plan companies.                                                               
She  described the  volunteer program  that  SHIP established  in                                                               
Alaska to handle the workload.   The focus, she said, has been to                                                               
train volunteers  who then train  more volunteers to  provide one                                                               
on  one  assistance  for  the  elderly  and  disabled  statewide.                                                               
Responding  to Chair  Wilson, she  said that  of the  initial 100                                                               
volunteers, 51  provide the elderly and  disabled with assistance                                                               
to  enroll in  Medicare  Part D,  and stressed  that  all of  the                                                               
information and  enrollment criteria  is easily accessed  via the                                                               
internet  at www.seniorcarealaska.gov.    Further, she  clarified                                                               
that her  position with the  state is funded through  two federal                                                               
grants.                                                                                                                         
                                                                                                                                
3:09:05 PM                                                                                                                    
                                                                                                                                
MS.  UKOIDEMABIA described  the three  concurrent programs  which                                                               
SHIP administers:   information dissemination and  enrollment for                                                               
new  Medicare Part  D enrollees,  or  re-enrollment for  existing                                                               
clients;  Social  Security  Extra  Help program  for  low  income                                                               
individuals who  need assistance to cover  the Medicare "doughnut                                                               
hole;" and  the Alaskan SeniorCare  (ASC) prescription  drug plan                                                               
that  serves as  a wrap  around for  the Medicare  program.   She                                                               
fully described  the parameters for  enrollment in each  of these                                                               
programs  and  delineated  the various  eligibility  requirements                                                               
based on age, income, and assets.                                                                                               
                                                                                                                                
3:10:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA   described  the  possibility   that  some                                                               
eligible individuals  may require one  on one assistance  to help                                                               
them with  this change,  and asked how  SHIP is  instituting this                                                               
outreach aspect.                                                                                                                
                                                                                                                                
MS.  UKOIDEMABIA stated  that  the department  is  aware of  such                                                               
situations, thus  SHIP volunteers make in-home  welfare checks to                                                               
assist  residents.    She  assured   the  committee  that  SHIP's                                                               
outreach  program   is  extensive,  and  described   the  contact                                                               
procedures being implemented, particularly in the villages.                                                                     
                                                                                                                                
3:16:06 PM                                                                                                                    
                                                                                                                                
MS.  UKOIDEMABIA  explained  that  CMS finances  the  three  SHIP                                                               
programs  which  are  in  turn   supported  by  11  participating                                                               
pharmacy  benefit plan  companies which  provide 28  plan options                                                               
for Alaskans.  She described  issues that have arisen during this                                                               
time of  change, particularly with participating  pharmacists who                                                               
have   reported  experiencing   an   inefficiency  in   accessing                                                               
client/program details, with resultant delays to the consumer.                                                                  
                                                                                                                                
3:17:23 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked whether every  Medicare client  was defaulted                                                               
to an  option with a new  benefit plan company assigned  to cover                                                               
their  pharmaceutical needs,  when Medicare  Part D  was enacted,                                                               
and  furthermore, if  each client  must now  access this  default                                                               
information to ascertain whether  they are appropriately enrolled                                                               
and make any necessary changes.                                                                                                 
                                                                                                                                
3:18:07 PM                                                                                                                    
                                                                                                                                
MS.  UKOIDEMABIA clarified  that it  was only  the dual  eligible                                                               
Medicaid and  Medicare enrollees, who were  randomly defaulted to                                                               
a new plan in  January 2006, and who now have  one year to select                                                               
from the various  plans and re-enroll in the  one appropriate for                                                               
them.   In  response  to  Chair Wilson,  she  explained how  SHIP                                                               
volunteers  help  the enrollees  to  compare  and choose  a  cost                                                               
effective prescription  drug plan.   She stressed that  this help                                                               
is  provided to  the enrollees  for  any of  the three  described                                                               
programs, utilizing translators when necessary.                                                                                 
                                                                                                                                
3:20:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  how  benefit  plan assignments  are                                                               
being rectified  for the dual  eligible clients who reside  in an                                                               
assisted  living facility  which  doesn't  recognize the  default                                                               
plan, effectively leaving the  resident without prescription drug                                                               
coverage.  Further,  he asked whether there is a  30 day delay in                                                               
benefit start-up from when the  client enrolls in the appropriate                                                               
plan.                                                                                                                           
                                                                                                                                
JON  SHERWOOD,  Medical  Assistant  Administrator  for  Medicaid,                                                               
Office of Program Review, Office  of the Commissioner, Department                                                               
of  Health and  Social  Services (DHSS),  explained that  nursing                                                               
care and assisted living care  facilities operate under different                                                               
rules; however, clients in both  facilities have been effected by                                                               
being  randomly assigned  to  a  new benefit  plan  company.   He                                                               
explained that  a client may  be assigned  to a plan  that hasn't                                                               
contracted with  their facilities  participating pharmacy.   In a                                                               
nursing  home,  a  plan  is   obligated  to  provide  drugs,  via                                                               
authorizing an  "out of network exception"  purchase, through the                                                               
long-term  facilities  regular  pharmacy.    In  assisted  living                                                               
facilities,  the requirements  provide  residents  the option  to                                                               
continue  to  receive  prescription  drugs   via  their  previous                                                               
provider  while  they establish  enrollment  with  a new  benefit                                                               
plan.  Once  a client's appropriate enrollment  is established or                                                               
changed, coverage takes affect at  the beginning of the following                                                               
month, which  can create a transitional  lapse requiring coverage                                                               
through the  "out of network"  proviso.  In further  response, he                                                               
clarified  that if  a  client  is enrolled  in  "plan  A" and  is                                                               
changing  to   "plan  B",  "plan   A"  is  expected   to  provide                                                               
prescription  drugs  until such  time  as  "plan B"  assumes  the                                                               
responsibility, thus creating a seamless change-over.                                                                           
                                                                                                                                
CHAIR  WILSON described  a situation  in which  a pharmacist  was                                                               
denied a contract  with a particular benefit  plan company making                                                               
it impossible to  dispense prescription drugs to  the clients who                                                               
were  assigned  or  had  chosen   that  particular  benefit  plan                                                               
company.    She  asked  how  this  type  of  situation  is  being                                                               
addressed.                                                                                                                      
                                                                                                                                
MR.  SHERWOOD  explained  that   the  state  has  been  providing                                                               
prescription  drugs for  the  dual eligible  clients,  but as  of                                                               
January  1,  2006, this  became  the  obligation of  the  private                                                               
benefit plan  companies through  Medicare Part  D.   He described                                                               
the four  major steps taken  by the department to  implement this                                                               
change.   During the last week  of December 2005, 30  day refills                                                               
were  authorized  for  all   non-controlled  drugs  for  Medicaid                                                               
recipients,  to provide  clients a  supply buffer  for the  first                                                               
transitional month.   Additionally,  procedures were sent  out to                                                               
the dual recipient clients to  present to their pharmacists which                                                               
ensured  that   reimbursement  would   be  forthcoming   for  the                                                               
pharmaceutical services  rendered.   Included in  the information                                                               
was  a  hot  line  number   for  prescription  authorization  via                                                               
Medicaid's  fiscal agent  First  Health.   In  response to  Chair                                                               
Wilson,  he  explained  that  authorization  is  accomplished  by                                                               
entering a pre-authorization code into  the system, which is then                                                               
used by the pharmacist for  billing purposes to provide immediate                                                               
claim processing and weekly reimbursement.                                                                                      
                                                                                                                                
3:29:21 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  reported that pharmacists are  reporting difficulty                                                               
in  getting through  on the  toll free  telephone number,  to the                                                               
detriment of  the customers  and the business.   She  asked where                                                               
the  toll  free telephone  numbers  originate,  and whether  this                                                               
heretofore-cumbersome situation has been improved.                                                                              
                                                                                                                                
MR.  SHERWOOD  stated that  the  toll  free lines  are  sometimes                                                               
answered in Alaska  but primarily route to Virginia,  and that to                                                               
his knowledge  the system is  improving.  He explained  where the                                                               
bottleneck occurs, and  said that CMS has  issued instructions to                                                               
all  of   the  benefit  plan  companies   to  provide  additional                                                               
telephone  lines,  including  "specialized" lines.    In  further                                                               
response, he stated that he is  not sure how many total lines are                                                               
available in Alaska or nation wide.                                                                                             
                                                                                                                                
3:31:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  asked  whether  it is  First  Health  who                                                               
covers  these  lines,  and  whether  First  Health  is  not  also                                                               
responsible for fielding a myriad of other authorization calls.                                                                 
                                                                                                                                
MR. SHERWOOD  confirmed that  First Health  does field  calls for                                                               
other  agencies,  but  pointed   out  that  the  pharmacies  were                                                               
dedicated a line for Medicaid authorization purposes.                                                                           
                                                                                                                                
3:32:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  suggested that  it would  be illuminating                                                               
to have  someone at this  hearing call one  of the help  lines to                                                               
check the accessibility and response time.                                                                                      
                                                                                                                                
3:32:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  noted  a significant  difference  in  the                                                               
program costs,  and asked whether  there is  reimbursable subsidy                                                               
limit for the dual eligible clients.                                                                                            
                                                                                                                                
3:33:23 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD  explained that there  is a  limit to the  amount of                                                               
the  premium that  the federal  government subsidies  based on  a                                                               
formula  called  the  "Alaska   Benchmark,"  currently  rated  at                                                               
$34.66.  Any dual eligible  client who was automatically assigned                                                               
to a plan  was assigned to one of the  seven Alaskan plans priced                                                               
at  or  below  this  benchmark  amount.    He  pointed  out  that                                                               
enrollees may elect to sign up  for a plan that requires a higher                                                               
premium and pay  the difference out of pocket.   Asked to explain                                                               
the advantages  of the  higher premium  plans, he  responded that                                                               
the  primary  difference is  the  price  reduction on  drugs  not                                                               
otherwise covered;  commonly referred to as  "the doughnut hole."                                                               
Furthermore, he  assured that the  seven available  Alaskan plans                                                               
all  cover 75  to  95  percent of  the  100  drugs most  commonly                                                               
prescribed  to  Medicare clients.    Additionally,  each plan  is                                                               
required  to allow  beneficiaries  the opportunity  to apply  for                                                               
preferential treatment if they have  a medical necessity to use a                                                               
drug  not  otherwise covered.    He  stated that  this  formulary                                                               
exception provision also allows for an appeals process.                                                                         
                                                                                                                                
3:36:08 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked how  easy it  is to  apply for  the formulary                                                               
exception/appeal, whether it  can be managed over  the phone, and                                                               
who helps the elderly and disabled clients through the process.                                                                 
                                                                                                                                
MR.  SHERWOOD  responded  that usually  the  client's  doctor  or                                                               
prescribing  physician,  and  sometimes the  pharmacist  provides                                                               
assistance.  He  explained that CMS is targeting  the doctors and                                                               
pharmacists to receive instructions on  how to obtain a formulary                                                               
exception, as  it usually requires some  medical justification or                                                               
explanation.                                                                                                                    
                                                                                                                                
CHAIR WILSON pointed out that  this could be a significant burden                                                               
for the  doctors or pharmacists.   She  asked Mr. Sherwood  if he                                                               
could report  on how  the pharmacists  are handling  this imposed                                                               
obligation,  whether the  department  has been  contacted by  any                                                               
pharmacists, and how DHSS has responded to their needs.                                                                         
                                                                                                                                
3:37:51 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD  stated, "They  have certainly  let us  know they're                                                               
having problems,  and they are  having to  work long and  hard to                                                               
work through  the problems with  plans, and the backup  plan, and                                                               
CMS."    He described  the  difficulties,  confusion, and  delays                                                               
being  experienced by  the pharmacists  as they  attempt to  fill                                                               
Medicare  prescriptions  through   the  newly  defaulted/assigned                                                               
plans,  ascertaining  which  plan applies,  establishing  whether                                                               
it's the  appropriate plan for  the client, and dealing  with the                                                               
miscommunications  from  Medicare  regarding  a  client's  co-pay                                                               
applicability.    The   department  has  implemented  contingency                                                               
procedures to enable clients to  receive their prescription drugs                                                               
via  a pre-authorization  code.    Theoretically, the  pharmacist                                                               
accesses the  code through the  First Health help  desk telephone                                                               
number,  and the  state provides  follow-up to  bill the  benefit                                                               
plan  for  the  claim.    Additionally, he  said  that  DHSS  has                                                               
recently become  aware of situations  in small  communities where                                                               
the pharmacists  don't have a  contract with the  clients benefit                                                               
plan  provider, or  the plan  is  not recognized  in the  system,                                                               
creating a  problem that is  still being addressed.   He stressed                                                               
that monitoring  and modifying the contingency  plan is on-going,                                                               
and  that individual  attention  is being  provided  by the  DHSS                                                               
staff on a case-by-case basis for correct claim submission.                                                                     
                                                                                                                                
3:41:10 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON stressed that this  has not been an easy transition,                                                               
and  asked how  DHSS is  responding to  the pharmacists  who have                                                               
supplied   clients   with   prescription  drugs   and   are   now                                                               
experiencing significant  delays in receiving  reimbursement from                                                               
Medicare, effectively incapacitating the business.                                                                              
                                                                                                                                
3:42:29 PM                                                                                                                    
                                                                                                                                
MR.  SHERWOOD offered  that there  could be  various reasons  why                                                               
Medicare has  not paid  claims, but he  offered that  through the                                                               
DHSS  contingency plan  pharmacists  can  submit/resubmit to  the                                                               
state for payment.                                                                                                              
                                                                                                                                
3:43:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   recalled  that  the   Alaska  SeniorCare                                                               
prescription  drug  program   authorization  passed  through  the                                                               
legislature  as an  interim  measure,  and he  asked  when it  is                                                               
scheduled to terminate.                                                                                                         
                                                                                                                                
MS. UKOIDEMABIA responded that  the SeniorCare authorization, the                                                               
SeniorCare  cash assistance,  and the  "wrap-around" to  Medicare                                                               
programs each have a sunset date of June 30, 2007.                                                                              
                                                                                                                                
MR.  SHERWOOD explained  that last  year's  legislature passed  a                                                               
bill  to extend  the  SeniorCare program  and  extended the  drug                                                               
benefit to  a wrap-around for  Medicare, with an 18  month limit.                                                               
He explained  that the  wrap-around pays for  the premium  or the                                                               
deductible  that an  eligible client  would be  required to  meet                                                               
under a  Medicare Part D  plan or a comparable  prescription drug                                                               
plan.   In response  to Representative  Seaton, he  reported that                                                               
the  SeniorCare  prescription  drug  plan  is  not  being  widely                                                               
utilized with  less than  100 people thus  far enrolled,  but the                                                               
SeniorCare cash  plan has an  enrollment of  approximately 7,000.                                                               
With  the  exception  of  the  dual  eligible  clients  who  were                                                               
defaulted into  the system, enrollment  in Medicare Part  D plans                                                               
in Alaska  is low.   He recalled that  the statistics in  the CMS                                                               
report, published in  January 13, 2006, show that  four fifths of                                                               
the enrollees are  the dual eligible clients.   Feedback from the                                                               
SeniorCare  office indicates  that participants  are "waiting  to                                                               
see  ... how  these first  months play-out  before they  enroll."                                                               
The open  enrollment period  runs through  May 15,  2006, without                                                               
penalty, and  he said  some people are  possibly trying  to avoid                                                               
the "start-up headaches" by waiting.                                                                                            
                                                                                                                                
3:47:22 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  stressed that  every effort should  be made  to get                                                               
people signed  up to  prevent them  from incurring  the permanent                                                               
penalty rate, and she asked  if there is an additional, intensive                                                               
outreach  program  planned  should  the  enrollment  figures  not                                                               
increase by March 30, 2006.                                                                                                     
                                                                                                                                
MS. UKOIDEMABIA  explained that information/counseling  sites are                                                               
available throughout  the state  to assist  people in  choosing a                                                               
plan and enrolling.   She stated that SHIP plans  to increase the                                                               
number of  volunteers in expectation of  a run on these  sites in                                                               
March and April, following a stepped-up advertising campaign.                                                                   
                                                                                                                                
3:49:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked whether  there is adequate funding to                                                               
provide enough  dedicated staff  for facilitating  the enrollment                                                               
of the known  eligible clients.  She reported a  lack of outreach                                                               
information  being disseminated  in her  district, and  expressed                                                               
concern about  the ability  of the  volunteers to  provide enough                                                               
statewide services  to the  "very people who  need it  the most."                                                               
She inquired  if additional  funding is  needed and  available to                                                               
Ms. Ukoidemabia's office to accomplish this task.                                                                               
                                                                                                                                
3:50:38 PM                                                                                                                    
                                                                                                                                
MS. UKOIDEMABIA  described the  make-up of  the SeniorCare/Senior                                                               
Information  office, which  has  three  employees including  her;                                                               
however,  SeniorCare   has  recently  authorized   a  much-needed                                                               
additional administrative position.  She  pointed out that on the                                                               
SeniorCare website  a full list  of the volunteers  is available,                                                               
and  she  stated  that  primarily  the  volunteers  are  provided                                                               
through  professional  agencies.     She  stressed  that  in  the                                                               
villages  the  volunteers  visit   the  recipient's  homes,  with                                                               
wireless laptop  computers to accomplish the  enrollment process.                                                               
State  money  would  be  helpful to  fund  more  outreach,  train                                                               
additional volunteers, and augment the federal grants, she said.                                                                
                                                                                                                                
3:53:28 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  inquired if DHSS  submitted a state  budget request                                                               
to  make  funds available  in  anticipation  of these  needs  for                                                               
fiscal year  2005 or 2006,  whether the funding was  granted, and                                                               
if Ms.  Ukoidemabia considers  the situation  to have  peaked and                                                               
that activity will now begin to "simmer down."                                                                                  
                                                                                                                                
MS.  UKOIDEMABIA  declined to  answer  the  budget question,  but                                                               
opined that enrollment will not  simmer down "anytime soon."  She                                                               
explained  the continued  need for  additional  office staff,  as                                                               
volunteers fall away  following the initial enrollment  rush.  To                                                               
further questions,  she described  the $40,000  outreach campaign                                                               
that is now underway, and  she provided assurance that a computer                                                               
is not  necessary in order  to obtain information  about Medicare                                                               
Part D.                                                                                                                         
                                                                                                                                
3:55:21 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON inquired whether there  is a statewide list of known                                                               
eligible clients which  could be accessed and  utilized to assure                                                               
that every known recipient has been assisted.                                                                                   
                                                                                                                                
MS.  UKOIDEMABIA  responded  that  SHIP relies  on  the  national                                                               
Medicare database as its resource.                                                                                              
                                                                                                                                
3:56:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  emphasized the need for  physical outreach                                                               
to access residents in their homes.                                                                                             
                                                                                                                                
MS. UKOIDEMABIA agreed that person  to person contact is the best                                                               
way  to provide  assistance,  and  additional state-funded  staff                                                               
positions  would be  very  helpful towards  that  end, and  could                                                               
provide support to the volunteers.                                                                                              
                                                                                                                                
3:57:50 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked  what issues are addressed  in the contingency                                                               
plan circulated by DHSS on February 2, 2006.                                                                                    
                                                                                                                                
MR. SHERWOOD  explained that it  directs pharmacists who  are not                                                               
able to  get a  claim paid  through a  client's benefit  plan, to                                                               
call the First Health pharmacy  line and receive an authorization                                                               
for the claim to be paid by Medicaid.                                                                                           
                                                                                                                                
3:59:07 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON, opening  public testimony,  addressed the  on-line                                                               
witnesses  and asked  them to  limit their  testimony to  recent,                                                               
relevant experiences of the past 7-10 days.                                                                                     
                                                                                                                                
3:59:58 PM                                                                                                                    
                                                                                                                                
BILL  ALTLAND,  Owner,  Whale  Tail  Pharmacy;  Member,  Pharmacy                                                               
Board,  explained that  he and  his  wife are  the co-owners  and                                                               
attending pharmacists  of the  only pharmacy  on Prince  of Wales                                                               
Island.  He  related an incident that he said  is typical of what                                                               
has been occurring since December 2005:                                                                                         
                                                                                                                                
     We had  a dual eligible  come into our drug  store this                                                                    
     morning, he was  [randomly] enrolled in a  plan that we                                                                    
     do not  have a contract with.   The reason [why]  we do                                                                    
     not have  a contract with  this plan [is]  because they                                                                    
     didn't  offer us  one, or  we didn't  ever hear  [back]                                                                    
     from them.   The  contingency or transition  plan, [was                                                                    
     to  be] Wellpoint/Anthem,  ... [but]  we  don't have  a                                                                    
     contract with  [them either] ....  ... This  ... Native                                                                    
     elder ... had maintenance  medicines [which] he needed.                                                                    
     [The  claim]  wouldn't  go  through  on  the  [Medicare                                                                    
     assigned]  plan, [which]  said our  pharmacy was  not a                                                                    
     participating  member [the]  Wellpoint/Anthem, ...  14-                                                                    
     step mechanism ...  didn't work ... [nor  could we] get                                                                    
     through  to Wellpoint/Anthem's  help desk.  ... I  went                                                                    
     ahead  and   transmitted  these  claims   to  Medicaid.                                                                    
     Medicaid rejected,  [and] said that this  [man is] dual                                                                    
     eligible ...  on Medicare ....  ... We called  the help                                                                    
     desk  [at]  Medicare.    The  pharmacy  help  desk  was                                                                    
     mentioned [earlier  in testimony],  that's about  a six                                                                    
     step process to get a real  person, and it takes a long                                                                    
     time in itself just to  get to somebody on the Medicaid                                                                    
     First Health help desk, ....   So, all these steps take                                                                    
     a long time.   I ended up spending over  an hour to get                                                                    
     to  the point  where I  [spoke with]  an actual  person                                                                    
     from First  Health, ... and  they said they'd  get back                                                                    
     to me.  ... I'd gone  through all the steps to get down                                                                    
     to the step where Medicaid  is the last payer, .... ...                                                                    
     By this time  the patient had been in  our pharmacy for                                                                    
     over  an  hour, so  we  went  ahead and  dispensed  the                                                                    
     medications.    [The  drugs] ...  weren't  paid  [for],                                                                    
     [but] ...  we did get a  call back from ...  the Alaska                                                                    
     Medicaid  pharmacist.   He was  concerned and  helpful,                                                                    
     but still we did  not have any payment [authorization].                                                                    
     ... First Health  did call back this  afternoon, and my                                                                    
     wife  was   on  the  phone   ...  trying  to   get  ...                                                                    
     [reimbursement] set-up  to go  through on  Medicaid and                                                                    
     that in  itself took  45 minutes; tied  up both  of our                                                                    
     pharmacy business  lines ....  ... Hopefully  this will                                                                    
     be getting  better but it's  just an indication  of how                                                                    
     much  time  it  takes   to  transmit  claims  in  rural                                                                    
     area[s]. ... One  last thing I want to  mention is that                                                                    
     this  [man] really  had no  idea what  this meant,  ...                                                                    
     [his]  prescription drug  plan going  from Medicaid  to                                                                    
     Medicare.  ... There's  been no  trainer  to Prince  of                                                                    
     Wales  Island, there  has been  no training  of seniors                                                                    
     that I know  of .... ... I don't know  if it's that way                                                                    
     in the  other rural areas of  the state, but ...  I had                                                                    
     to  train two  pharmacy  technicians to  work with  our                                                                    
     seniors and ... folks really don't have a clue.                                                                            
                                                                                                                                
4:05:16 PM7                                                                                                                   
                                                                                                                                
CHAIR WILSON asked how Mr.  Altland's technicians have managed to                                                               
determine the  appropriate plans  for their clients,  without the                                                               
benefit of training.                                                                                                            
                                                                                                                                
MR. ALTLAND  answered that the amount  of instructional materials                                                               
arriving from  the various agencies,  via mail and FAX,  has been                                                               
overwhelming  and  difficult  to  keep  up  with.    However,  he                                                               
explained that the  information has allowed them  to become self-                                                               
educated  on the  topic.    He also  reported  that  he hired  an                                                               
additional employee in December to  help with this transition and                                                               
to create a  list of their eligible clients, which  has been used                                                               
for outreach purposes.  In short,  he said, "It's taken a ... lot                                                               
of time."                                                                                                                       
                                                                                                                                
4:06:30 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON asked  how many  of the  new benefit  plans he  has                                                               
contacted  and  requested  a  contract   from,  with  or  without                                                               
success.                                                                                                                        
                                                                                                                                
MR.  ALTLAND   answered  that  he  has   contacted  and  received                                                               
responses  from  the seven  Alaska  plans,  but only  four  would                                                               
contract with his  pharmacy.  He pointed out that  he does have a                                                               
percentage  of customers  who  were assigned  to  the three  plan                                                               
providers unavailable to his pharmacy.   Currently, he is working                                                               
with  these  clients  to choose  an  alternative  plan  provider.                                                               
Also, the local  Native clinic has been sending  their seniors to                                                               
his  pharmacy  for  assistance,  even though  they  are  not  his                                                               
regular  customers.   He said  that the  Native clinic  was at  a                                                               
loss, not  having received  training and  without the  benefit of                                                               
computer  access.   Finally,  he  stated,  ... "It's  very,  very                                                               
confusing, 11  plans, 28 options.   ...   I've been  a pharmacist                                                               
for 25  years, ... it's really  confusing to me, I  don't see how                                                               
most seniors would have a clue."                                                                                                
                                                                                                                                
CHAIR WILSON explored whether it  would be helpful if each Native                                                               
clinic would try to do some training.                                                                                           
                                                                                                                                
MR. ALTLAND said  that he is not familiar  with how reimbursement                                                               
works for  third parties under  the Native health system,  but he                                                               
can report  that many  of the local  Native elders  don't utilize                                                               
the system,  perhaps because they  have private insurance  or are                                                               
on Medicare.  Neither, he conceded,  could he say for certain how                                                               
much training  may have taken place.   But, he added,  the Native                                                               
Health system does  have a limited formulary, and  he often fills                                                               
prescriptions for  the clinic's  patients.  He  expressed concern                                                               
for  the  Natives  who  have  been  assigned  one  of  the  three                                                               
unavailable plans and are not receiving help to re-enroll.                                                                      
                                                                                                                                
4:09:21 PM                                                                                                                    
                                                                                                                                
DIRK  WHITE,  Owner, Harry  Race  Pharmacy  & Photo,  echoed  Mr.                                                               
Altland's  testimony,  that it  is  a  time-consuming process  to                                                               
obtain a response  via the telephone, estimating  his labor costs                                                               
to date to be approximately $24,000  "in time that we've paid ...                                                               
to have  people sit  on hold."   He described  the impact  to his                                                               
business,  when his  eight phone  lines are  tied up  in Medicare                                                               
related calls,  his staff  cannot tend  to regular  business, and                                                               
customers are frustrated.  Further,  he reported that because his                                                               
policy is to  provide a client medications, he  estimates that he                                                               
is   currently   holding    outstanding   claims   amounting   to                                                               
approximately $40,000, "and  we have no idea when  we're going to                                                               
get paid."  The Wellpoint/Anthem has  not been helpful, nor is it                                                               
an option  as a  contract is  required to  be compliant  with the                                                               
Health  Insurance  Portability  and Accountability  Act  (HIPPA).                                                               
Also,  he  described  the recent  discovery  that  dual  eligible                                                               
clients are  arbitrarily being "switched  over" to  Medicare Part                                                               
D, without  notification.  He  begged the need for  a streamlined                                                               
process to  be enacted  to provide the  pharmacists with  an easy                                                               
means to serve  the Medicare clients, and  suggested an "override                                                               
code."   He said,  "I hope we  can find somebody  to ...  give us                                                               
some  help and  some relief  so  we can  go back  to helping  our                                                               
patients ... instead of being insurance agents."                                                                                
                                                                                                                                
4:16:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA thanked the  pharmacists for their efforts,                                                               
and stressed the importance of their work the community.                                                                        
                                                                                                                                
4:17:19 PM                                                                                                                    
                                                                                                                                
DON ROBERTS introduced himself as  a recipient of social security                                                               
disability and  a nonparticipating  eligible for Medicare  Part D                                                               
benefits stating,  "Quite frankly,  any governmental  ... program                                                               
seems to  be like a  nightmare just to  ... get registered."   He                                                               
opined  that the  information  issued  from Medicaid/Medicare  to                                                               
help  people make  this change  has been  "difficult, convoluted,                                                               
and devious."   He stressed that anyone would  have difficulty in                                                               
understanding how to choose an  appropriate plan from the options                                                               
given and the instructions provided.   "You should be outraged at                                                               
what  people  are  going  through," he  said,  and  made  several                                                               
predictions of  widespread angst  and crime  that may  occur when                                                               
people are not able to obtain their necessary medication(s).                                                                    
                                                                                                                                
4:20:13 PM                                                                                                                    
                                                                                                                                
BARRY  CHRISTENSEN, Pharmacist,  stated that  the major  problems                                                               
have been adequately outlined by  the previous callers.  Still an                                                               
issue, however, is the communication  link between the pharmacies                                                               
and the  state.  He reported  that the last time  information and                                                               
instructions were  issued from  DHSS it took  about five  days to                                                               
reach Ketchikan, and he cited  the non-arrival of the information                                                               
that Mr.  Sherwood reported as being  disseminated to pharmacists                                                               
earlier today.   Further, he  stressed that  the Wellpoint/Anthem                                                               
is  not  a   workable  backup  and  should   be  dispensed  with,                                                               
reiterating the "no contract" problem.   He reported that the co-                                                               
payment reimbursement  that the state has  established does work,                                                               
albeit slowly.                                                                                                                  
                                                                                                                                
CHAIR WILSON asked whether it  is possible for DHSS to distribute                                                               
information directly to the pharmacists via e-mail.                                                                             
                                                                                                                                
4:22:34 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD  explained that  after it was  made apparent  to the                                                               
department  that  the  pharmacists were  experiencing  delays  in                                                               
receiving  departmental  communication, DHSS  began  transmitting                                                               
communications directly to  the Alaska Pharmaceutical Association                                                               
(AkPhA) for distribution.                                                                                                       
                                                                                                                                
MS. UKOIDEMABIA confirmed that Nancy  Davis, Director, AkPhA, has                                                               
a master pharmaceutical  e-mail list that is  available and being                                                               
used.                                                                                                                           
                                                                                                                                
4:23:25 PM                                                                                                                    
                                                                                                                                
JENNIFER  ADAMS,   Representative,  Anchorage   Community  Mental                                                               
Health Services  (ACMHS); Program  Coordinator, Medicare  Plan D,                                                               
reported  that  ACMHS  has  600 consumers  who  are  affected  by                                                               
Medicare Plan D.   She stated that since  August this change-over                                                               
has become  her full-time  job.   The goal of  ACMHS has  been to                                                               
provide  enrollment support  for their  clients in  an effort  to                                                               
keep  them  as  stable  as  possible.   Unaware  of  the  various                                                               
training possibilities, she said  that she has primarily educated                                                               
herself on how  to administer the program.  She  pointed out that                                                               
a recent article in the  local newspaper was grossly erroneous in                                                               
reporting that  Medicare Plan  D has  been successful  in Alaska.                                                               
Everyday a number of her  clients have trouble in accessing their                                                               
medications.   Currently, she knows  of two patients who  are off                                                               
their medications  entirely because  they can neither  afford the                                                               
co-pays  nor  handle   the  angst  of  trying   to  access  their                                                               
medications,  which includes  calling multiple  locations, having                                                               
to hold  for over an hour  at a time, and  the other difficulties                                                               
involved  with  the  new  system.   "The  results  of  going  off                                                               
psychotherapeutic  medications  can  be devastating,"  she  said,                                                               
stressing  that  the  ACMHS community  is  suffering  because  of                                                               
Medicare Plan  D.  The  pharmacies that  she works with  have had                                                               
difficulty and  denied her patients  their medications,  when the                                                               
Wellpoint/Anthem  option fell  through and  the assigned  benefit                                                               
plans could  not be accessed.   Because it  takes so long  on the                                                               
phone, she said she is only  able to assist eight individuals per                                                               
day.   While the  various agencies are  blaming each  other, none                                                               
are responding to her pleas, and  she has some clients who are on                                                               
their  seventh  day  without critical  medications.    Contacting                                                               
Senator Lisa  Murkowski's office  proved to be  somewhat helpful,                                                               
and  she  attributed  a  ray  of success  due  to  that  contact.                                                               
However,  she stressed  that this  is more  than frustrating  and                                                               
people are suffering the effects of a failed government system.                                                                 
                                                                                                                                
4:27:54 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked for an example  of what the co-pay  costs are                                                               
for her clients.                                                                                                                
                                                                                                                                
MS. ADAMS responded that the  co-pay costs range from $15.00 into                                                               
the hundreds of  dollars, explaining that even a  co-pay of $5.00                                                               
is exorbitant  for someone  who has  24 medications  to purchase.                                                               
She pointed out  that it is unaffordable for the  people who live                                                               
on a low  or fixed income.  She described  the roster system that                                                               
she has  used to reach  her eligible  clients and enroll  them in                                                               
the  appropriate plan,  and stressed  that these  are individuals                                                               
who  are unable  to self  advocate  or maintain  enough focus  of                                                               
their energy to enroll.  In  attempting to help these persons who                                                               
are mentally disabled,  she reported that she  and the clinicians                                                               
at  ACMHS are  entirely overburdened  with the  administration of                                                               
Medicare Part  D.  In response  to a question, she  said that she                                                               
has thus  far managed to  enroll about 400  of the 600  people on                                                               
her client list.  Continuing,  Ms. Adams explained how enrollment                                                               
was done  in-mass beginning in  November to ensure that  when the                                                               
roll-over happened  in January, every client  would have received                                                               
a new card,  understand the new plan, and not  experience gaps in                                                               
coverage.  Despite  these efforts, enrollment did  not happen, no                                                               
cards  or  multiple cards  were  received,  and she  said,  "Come                                                               
January  3rd  ...  all  of   my  efforts  went  down  the  tubes,                                                               
basically."                                                                                                                     
                                                                                                                                
CHAIR  WILSON  conjectured that  perhaps  the  pharmacies in  the                                                               
villages have been more accommodating  than the pharmacies in the                                                               
larger cities.                                                                                                                  
                                                                                                                                
4:31:33 PM                                                                                                                    
                                                                                                                                
MS. UKOIDEMABIA  asked Ms. Adams  whether she has  been accessing                                                               
the  Alaska  SeniorCare  (ASC) hotline  to  receive  support  and                                                               
assistance.   She provided Ms.  Adams with  appropriate telephone                                                               
numbers  for  statewide and  local  dialing,  and explained  that                                                               
although  a message  will need  to be  left, a  same-day response                                                               
will be received.                                                                                                               
                                                                                                                                
4:33:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  emphasized  that  there  are  only  three                                                               
people  trying to  field  an obvious  statewide  problem that  is                                                               
reaching crisis levels.  She asked  what action could be taken to                                                               
correct this oversight.                                                                                                         
                                                                                                                                
4:33:55 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  pointed out that  this is a  nation-wide situation,                                                               
and the  federal government was  not prepared for  the "glitches"                                                               
that  have surrounded  this change-over.   She  agreed that  more                                                               
assistance is needed, particularly to help the pharmacists.                                                                     
                                                                                                                                
4:34:28 PM                                                                                                                    
                                                                                                                                
MS. UKOIDEMABIA  explained that in  her conversations  with AkPhA                                                               
it  was determined  how  training for  the  pharmacists could  be                                                               
incorporated into  her "seniors" training classes.   However, due                                                               
to  the lack  of flexibility  with  the federal  funding and  not                                                               
being provided state funding to  accomplish this task, it has not                                                               
been possible to create a joint program.                                                                                        
                                                                                                                                
CHAIR WILSON indicated  it appears that the  pharmacists now have                                                               
an understanding  of the  program options and  how to  enroll the                                                               
eligible people,  but that the communication  lines are basically                                                               
jammed, prohibiting access.                                                                                                     
                                                                                                                                
4:36:33 PM                                                                                                                    
                                                                                                                                
MR.  SHERWOOD highlighted  that  most dual  eligible clients  are                                                               
working   with  their   pharmacists,  but   for  anyone   who  is                                                               
experiencing  problems  he  provided   the  recipient  help  line                                                               
telephone numbers, which should provide  a same-day response.  He                                                               
also stated that  the state contingency plan is  being revised as                                                               
needs  arise,  but  he  explained   that  this  change  over  was                                                               
configured  by the  federal government  to  expressly make  state                                                               
government   assistance  a   last   resort  option,   effectively                                                               
minimizing  what  the  department  is  legally  able  to  provide                                                               
through Medicaid.                                                                                                               
                                                                                                                                
4:39:03 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  stated that regardless  of whose  responsibility it                                                               
falls under, when people are  unable to receive their medications                                                               
it causes  problems, and  she stressed that  measures need  to be                                                               
taken.                                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health, Education and Social  Services Standing Committee meeting                                                               
was adjourned at 4:39:43 PM.                                                                                                  

Document Name Date/Time Subjects