Legislature(2013 - 2014)CAPITOL 106

03/28/2013 03:00 PM House HEALTH & SOCIAL SERVICES


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03:07:39 PM Start
03:09:27 PM HB134
04:23:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 134 MEDICAID PAYMENT FOR MEDISET PRESCRIPTION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         March 28, 2013                                                                                         
                           3:07 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lance Pruitt                                                                                                     
Representative Lora Reinbold                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 134                                                                                                              
"An Act requiring Medicaid payment for scheduled unit dose                                                                      
prescription drug packaging and dispensing services for                                                                         
specified recipients."                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 134                                                                                                                  
SHORT TITLE: MEDICAID PAYMENT FOR MEDISET PRESCRIPTION                                                                          
SPONSOR(s): REPRESENTATIVE(s) COSTELLO                                                                                          
                                                                                                                                
02/20/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/13       (H)       HSS, FIN                                                                                               
03/19/13       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/19/13       (H)       Heard & Held                                                                                           
03/19/13       (H)       MINUTE(HSS)                                                                                            
03/28/13       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHARLES GUINCHARD, Staff                                                                                                        
Representative Mia Costello                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 134 on behalf of                                                                            
Representative Costello, sponsor of the bill.                                                                                   
                                                                                                                                
ROBIN COOK, President                                                                                                           
Alaska Pharmacist Association                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
KATRINA BETTS                                                                                                                   
Ark of Anchorage                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
PAUL BROTHERTON, Manager                                                                                                        
Anchorage Medset Pharmacy, Inc. (AMP Pharmacy)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
SHERRY METTLER                                                                                                                  
Assisted Living Industry                                                                                                        
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
THERESA BRINSKY, RN                                                                                                             
Marlow Manor Assisted Living                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
KAHALANI DREW                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
JON SHERWOOD, Medicaid Special Projects                                                                                         
Office of the Commissioner                                                                                                      
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
MARY MUNDELL                                                                                                                    
Susitna Mediset Services                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:07:39 PM                                                                                                                    
                                                                                                                                
CHAIR PETE  HIGGINS called the  House Health and  Social Services                                                             
Standing   Committee    meeting   to    order   at    3:07   p.m.                                                               
Representatives Higgins, Nageak,  Keller, Tarr, Seaton, Reinbold,                                                               
and Pruitt were present at the call to order.                                                                                   
                                                                                                                                
        HB 134-MEDICAID PAYMENT FOR MEDISET PRESCRIPTION                                                                    
                                                                                                                                
3:09:27 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS announced that the  only order of business would be                                                               
HOUSE  BILL  NO. 134,  "An  Act  requiring Medicaid  payment  for                                                               
scheduled unit  dose prescription  drug packaging  and dispensing                                                               
services for specified  recipients."  [In front  of the committee                                                               
was  Version  28-LS0303\P,  Mischel,   3/18/13,  adopted  as  the                                                               
working document on March 19, 2013.]                                                                                            
                                                                                                                                
3:09:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB   134,  labeled  28-LS0303\Y,  Mischel,                                                               
3/23/13, as the working document.                                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON   objected  for  an  explanation   to  the                                                               
changes.                                                                                                                        
                                                                                                                                
3:10:08 PM                                                                                                                    
                                                                                                                                
CHARLES  GUINCHARD, Staff,  Representative  Mia Costello,  Alaska                                                               
State  Legislature,  explaining  the   changes  to  the  proposed                                                               
working document,  directed attention to  page 2, lines  3-12, of                                                               
Version  Y.   He  explained  that the  Department  of Health  and                                                               
Social Services used criteria to  consider the fee for dispensing                                                               
services of  a prescription,  and he  shared that  these criteria                                                               
had  now been  refined  to "eliminate  duplicative and  ambiguous                                                               
language."    He noted  that  language  regarding the  review  of                                                               
returned medication  packaging and the  necessity for a  24 hour,                                                               
on-call  pharmacist  had been  deleted.    He reported  that  the                                                               
provision regarding  quarterly review  had been amended  to allow                                                               
the review  to be  conducted by  phone, and  would ensure  that a                                                               
pharmacist  was not  operating in  excess of  the scope  of their                                                               
practice.  He stated that  the provision regarding local delivery                                                               
had been clarified  to ensure the most cost  effective method for                                                               
delivery.                                                                                                                       
                                                                                                                                
3:12:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked to define the  most cost effective                                                               
method for  delivery, as she  had been under the  impression that                                                               
it was to be delivery by the USPS.                                                                                              
                                                                                                                                
MR. GUINCHARD, directing attention to  page 2, line 12, said that                                                               
local  delivery would  use the  most cost  effective method.   He                                                               
indicated page 2, line 13,  and specified that non-local delivery                                                               
was to also use the  most cost effective method, "specifically by                                                               
mail."                                                                                                                          
                                                                                                                                
3:13:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT asked  to clarify  whether the  definition                                                               
for mail included UPS and Fed Ex, as well as USPS.                                                                              
                                                                                                                                
MR. GUINCHARD,  in response, stated  that the proposed  bill only                                                               
specified  that it  be the  most cost  effective method  by mail,                                                               
when  local service  was not  available.   He offered  his belief                                                               
that  the method  could include  any of  the aforementioned  mail                                                               
services.                                                                                                                       
                                                                                                                                
3:14:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON directed attention to  page 2, line 15, and                                                               
asked to clarify if "mail" included package delivery services.                                                                  
                                                                                                                                
MR. GUINCHARD,  in response  to Representative  Seaton, indicated                                                               
that there was not a  memorandum from Legislative Legal Services,                                                               
but that, although  the request for changes  had explicitly asked                                                               
for an insert of language to  include USPS, Fed Ex, and UPS, this                                                               
language had been the response.   He offered his belief that this                                                               
allowed the flexibility for use of any of the delivery services.                                                                
                                                                                                                                
REPRESENTATIVE SEATON  asked to have these  services more clearly                                                               
defined to include those other than USPS.                                                                                       
                                                                                                                                
MR. GUINCHARD replied that it would be done.                                                                                    
                                                                                                                                
3:15:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER, indicating page 1,  line 9, asked if there                                                               
were any  statutory guidelines for  criteria to a  physician that                                                               
required   "scheduled  unit   doses   in  medication   compliance                                                               
packaging."                                                                                                                     
                                                                                                                                
MR. GUINCHARD, in  response, opined that it was  not clarified in                                                               
statute; however, page 1, line  11, would give DHSS the authority                                                               
to   promulgate  regulations   specifying  the   eligibility  for                                                               
patients.                                                                                                                       
                                                                                                                                
3:17:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER expressed  his  concern  with any  program                                                               
that was  expanding its  services.  He  declared his  support for                                                               
the packaging program, but declared  that he "was struggling with                                                               
the whole concept"  and possibility for expansion to  the cost of                                                               
prescriptions.                                                                                                                  
                                                                                                                                
MR. GUINCHARD  pointed to page  1, line  12, and stated  that the                                                               
packaging  was  to assist  patients  "to  adhere to  a  difficult                                                               
dosing  regimen."   He  reported  that  DHSS  had a  category  of                                                               
recipients  for mediset  and  directed attention  to  a State  of                                                               
Alaska  letter  titled,  "RE:  Mediset   fee  FAQ  and  guidance"                                                               
[Included  in   members'  packets].     He   read  the   list  of                                                               
qualifications  for  mediset,  which   included:    living  in  a                                                               
congregate  home; recipient  of home  and community-based  waiver                                                               
services;  eligible   for  Medicaid   due  to  a   disability  or                                                               
blindness;  adult  experiencing  a serious  mental  illness;  or,                                                               
child  experiencing a  severe emotional  disturbance.   He opined                                                               
that  the intent  of the  sponsor was  for the  proposed bill  to                                                               
apply to this same group of recipients.                                                                                         
                                                                                                                                
REPRESENTATIVE KELLER  requested that these criteria  be included                                                               
in the proposed bill.                                                                                                           
                                                                                                                                
3:20:46 PM                                                                                                                    
                                                                                                                                
MR. GUINCHARD remarked  that the second major  change for Version                                                               
Y was  on page 2,  line 13,  and that Legislative  Legal Services                                                               
had been  requested to insert language  regarding courier service                                                               
for non-local delivery.                                                                                                         
                                                                                                                                
3:21:38 PM                                                                                                                    
                                                                                                                                
MR.  GUINCHARD reported  that the  last change  to Version  Y had                                                               
been  to  delete  a  section   which  had  referenced  pharmacies                                                               
including prescriptions  in a  mediset, even  if mediset  had not                                                               
been noted in the prescription.   This had been determined by the                                                               
sponsor to be confusing and  unnecessary, as it could create some                                                               
unintended consequences.   He  stated that  it was  now necessary                                                               
for  every prescription  to  have  mediset written  on  it to  be                                                               
included for reimbursement.                                                                                                     
                                                                                                                                
3:22:56 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS asked  to clarify that there had  been agreement to                                                               
bundle the five criteria for  reimbursement, and he questioned if                                                               
that had occurred.                                                                                                              
                                                                                                                                
MR. GUINCHARD  offered his  belief that  DHSS would  consider all                                                               
five criteria  as associated costs  in its fee  calculations, and                                                               
then aggregate the data to  establish one fee which reflected all                                                               
five criteria.                                                                                                                  
                                                                                                                                
3:24:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON removed  his objection to Version  Y as the                                                               
working  document.    There  being   no  further  objection,  the                                                               
proposed  committee  substitute  (CS)  for HB  134,  labeled  28-                                                               
LS0303\Y, Mischel, 3/23/13, was adopted as the working document.                                                                
                                                                                                                                
3:25:19 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS opened public testimony.                                                                                          
                                                                                                                                
ROBIN  COOK,  President,  Alaska Pharmacist  Association,  stated                                                               
that the association  had been concerned with the  wording in the                                                               
original bill, Version  N, but these concerns  had been addressed                                                               
with the  revisions.   She explained  that the  specific concerns                                                               
had included the need for  a definition for a qualified pharmacy,                                                               
as all  pharmacies licensed  in the State  of Alaska,  which were                                                               
capable, should be able to provide  this service to clients.  She                                                               
noted the  requirement that  it was necessary  for a  pharmacy to                                                               
have  70 percent  of  its business  as mediset,  in  order to  be                                                               
recognized as  a mediset pharmacy,  had been removed.   She asked                                                               
that  the  proposed  bill  clarify the  services  that  would  be                                                               
reimbursed,  and to  clarify whether  a pharmacy  would bill  for                                                               
each service separately  or as a bundle.  She  offered her belief                                                               
that,  although the  fee  would  be determined  by  the State  of                                                               
Alaska through  Medicaid, it would  be fair to the  pharmacy with                                                               
no  hidden costs  to Medicaid.   She  suggested that  the wording                                                               
"unit dose" was  incorrect, and would be better  defined as "unit                                                               
of use."   She expressed  gratitude to  the sponsor of  the bill,                                                               
declaring that  medisets were an  important vehicle for  safe and                                                               
effective care  to at-risk  patients.   She declared  support for                                                               
Version Y.                                                                                                                      
                                                                                                                                
3:28:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked for clarification to "unit of use."                                                                 
                                                                                                                                
MS. COOK explained that the definition  of unit dose was a single                                                               
dose packaged  as a single dose  unit.  She pointed  out that all                                                               
of these  single doses,  when packaged  with other  single doses,                                                               
became a  unit of use, the  medication plan.  She  clarified that                                                               
"does  not  include  a  refill"   was  not  part  of  the  formal                                                               
definition of "unit  dose."  Each slot that was  designated for a                                                               
specific time of the day was a "unit of use."                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  asked to clarify  that a bubble  pak, with                                                               
medications  which all  were to  be  taken at  the same  specific                                                               
time, would be  designated as a "unit  of use."  He  asked if the                                                               
proposed bill  should include the terminology,  "does not include                                                               
a refill," page 2, line 29.                                                                                                     
                                                                                                                                
MS. COOK  replied that the  terminology was nebulous and  did not                                                               
belong.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON   expressed  his  confusion   whether  the                                                               
terminology regarding a refill should be removed.                                                                               
                                                                                                                                
3:31:40 PM                                                                                                                    
                                                                                                                                
MS.  COOK,  in  response  to  Chair  Higgins  and  Representative                                                               
Seaton, said  that "does  not include  a refill"  was not  in the                                                               
formal definition  for "unit dose."   She recommended eliminating                                                               
"does not  include a  refill," or  using the  correct terminology                                                               
for  a mediset,  "unit of  use."   She explained  that "does  not                                                               
include a refill" referred to one  drug, a "unit dose," which was                                                               
packaged separately.                                                                                                            
                                                                                                                                
3:33:40 PM                                                                                                                    
                                                                                                                                
MR.  GUINCHARD,  in  response  to  Representative  Tarr,  brought                                                               
attention  to  Amendment  Y.2,  labeled  28-LS0303\Y.2,  Mischel,                                                               
3/28/13, which read:                                                                                                            
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "dose"                                                                                                       
          Insert "of use"                                                                                                     
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "unit doses"                                                                                                   
          Insert "units of use"                                                                                                 
                                                                                                                                
     Page 1, line 12:                                                                                                           
          Delete "difficult"                                                                                                    
          Insert "specific"                                                                                                     
                                                                                                                                
     Page 2, line 25:                                                                                                           
          Delete "dose"                                                                                                         
          Insert "of use"                                                                                                       
                                                                                                                                
     Page 2, line 28:                                                                                                           
          Delete the first occurrence of "dose"                                                                                 
          Insert "of use"                                                                                                       
                                                                                                                                
Referencing  page  2, line  28  in  proposed Amendment  1,  which                                                               
recommended deleting "dose" and inserting  "of use" in Version Y,                                                               
he declared  that this amended  language would be  the definition                                                               
for a unit of  use, and he pointed out that  the remainder of the                                                               
text on lines 28  and 29 of Version Y would remain  the same.  He                                                               
stated  that  the  remainder  of  the  proposed  amendment  would                                                               
conform to this definition change.                                                                                              
                                                                                                                                
REPRESENTATIVE TARR  opined that  testimony by  Ms. Cook  had now                                                               
indicated  that  this  proposed amendment  was  not  the  correct                                                               
definition, and she offered to consider a further amendment.                                                                    
                                                                                                                                
3:34:41 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS asked  if this change from "unit dose"  to "unit of                                                               
use" would correct the definition.                                                                                              
                                                                                                                                
MS. COOK, in  response, offered to supply  the correct definition                                                               
for "unit of use."                                                                                                              
                                                                                                                                
3:35:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER asked for  clarification of the proposal in                                                               
Amendment 1 to  delete "difficult" and insert  "specific" on page                                                               
1, line 12.                                                                                                                     
                                                                                                                                
MS.  COOK  offered  her  belief that  "specific"  would  be  more                                                               
effective.                                                                                                                      
                                                                                                                                
REPRESENTATIVE KELLER declared that,  as there were no guidelines                                                               
in the  current Version  Y for the  appropriate use  of medisets,                                                               
"this would  be it."   He  opined that  the definition  which was                                                               
used in regulation should be used in this version.                                                                              
                                                                                                                                
3:37:04 PM                                                                                                                    
                                                                                                                                
MS. COOK,  in response, explained  that a patient, who  could not                                                               
manage  medication,  was often  referred  by  a pharmacist  to  a                                                               
mediset pharmacy.  She clarified  that, although this was usually                                                               
initiated  by   the  physician's  office  after   many  treatment                                                               
failures,  the pharmacy  providers  could determine  this was  an                                                               
option.                                                                                                                         
                                                                                                                                
3:37:51 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:38:37 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS brought the committee back to order.                                                                              
                                                                                                                                
REPRESENTATIVE  PRUITT moved  to adopt  Amendment 1,  labeled 28-                                                               
LS0303\Y.2, Mischel, 3/28/13.  [Text included above]                                                                            
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion.                                                                                  
                                                                                                                                
MR.  GUINCHARD explained  that  Amendment 1  was  in response  to                                                               
discussion   with   the   Alaska  Pharmacists   Association   for                                                               
substitutions which  would strengthen and maintain  the intent of                                                               
the bill.  He  pointed to the proposed change on  page 1, line 6,                                                               
and noted  that this  was an  attempt to  better define  "unit of                                                               
use" throughout Version Y.                                                                                                      
                                                                                                                                
3:39:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER,  pointing to  the proposed change  on page                                                               
2, line 25, suggested that  the change would create a grammatical                                                               
error.   He opined  that the  proper wording  would be  "units of                                                               
use."                                                                                                                           
                                                                                                                                
MR. GUINCHARD  expressed agreement for a  conceptual amendment to                                                               
Amendment 1, a  grammatical correction on page 2,  line 25, which                                                               
would delete "unit doses" and insert "units of use."                                                                            
                                                                                                                                
[The committee treated Conceptual Amendment 1 as adopted.]                                                                      
                                                                                                                                
3:42:04 PM                                                                                                                    
                                                                                                                                
MR. GUINCHARD  explained that the Alaska  Pharmacists Association                                                               
had suggested the  change on page 1, line 12,  which would delete                                                               
"difficult" and insert "specific."                                                                                              
                                                                                                                                
REPRESENTATIVE NAGEAK asked for an explanation.                                                                                 
                                                                                                                                
3:42:47 PM                                                                                                                    
                                                                                                                                
MS. COOK, in response to  Representative Nageak, explained that a                                                               
patient could have  numerous medications, but if  the patient was                                                               
non-compliant,  they   would  not  be  receiving   the  necessary                                                               
treatment.    She  said  that the  proposed  change  would  allow                                                               
packaging of a small number of medications to ensure compliance.                                                                
                                                                                                                                
REPRESENTATIVE  NAGEAK  asked  to  clarify that  this  linked  to                                                               
packaging.                                                                                                                      
                                                                                                                                
MS. COOK expressed  her agreement that the  proposed change would                                                               
allow packaging and payment as a mediset.                                                                                       
                                                                                                                                
3:44:26 PM                                                                                                                    
                                                                                                                                
MR. GUINCHARD  explained that "difficult" was  a subjective term,                                                               
in that  its reference  was for  a dosing  regimen for  a capable                                                               
person.   He noted that  a simple  dosing regimen could  still be                                                               
difficult for  a patient  not able to  manage their  own regimen,                                                               
and that the proposed use of  "specific" would add clarity to the                                                               
proposed bill.                                                                                                                  
                                                                                                                                
3:45:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KELLER  declared   his  objection   to  proposed                                                               
Amendment 1.   He asked for  a definition to both  "specific" and                                                               
"difficult."                                                                                                                    
                                                                                                                                
CHAIR HIGGINS opened public testimony.                                                                                          
                                                                                                                                
3:46:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  removed   his   objection  to   proposed                                                               
Amendment  1,  but  requested  that  there  be  clarity  for  the                                                               
conceptual  amendment  and  for  the  request  by  Representative                                                               
Keller.                                                                                                                         
                                                                                                                                
3:47:07 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:47:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT withdrew proposed Amendment 1.                                                                            
                                                                                                                                
3:48:05 PM                                                                                                                    
                                                                                                                                
KATRINA  BETTS, Ark  of Anchorage,  stated  that the  individuals                                                               
outlined  by the  guidelines for  waiver services  and behavioral                                                               
health services  had already qualified  for these services  to be                                                               
written into a  treatment plan through a physician.   She pointed                                                               
out that  these individual recipient guidelines  already existed.                                                               
She emphasized that the individuals  really needed these services                                                               
to maintain  independence and quality  of life.  She  noted that,                                                               
without  these  services,  there   would  be  higher  costs  from                                                               
emergency room visits, jail, and  other incidences.  She declared                                                               
that  provider  agencies and  physicians  worked  to ensure  that                                                               
these  supports for  individuals remained  in place  to obtain  a                                                               
quality of life.                                                                                                                
                                                                                                                                
3:50:24 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  declared  that  there   was  not  any  intent  to                                                               
eliminate the mediset program, but to "improve upon it."                                                                        
                                                                                                                                
3:50:53 PM                                                                                                                    
                                                                                                                                
PAUL BROTHERTON,  Manager, Anchorage  Medset Pharmacy,  Inc. (AMP                                                               
Pharmacy) explained  that the mediset  program allowed  a patient                                                               
to  take  medication out  of  one  slot  in  a package  for  each                                                               
specific time on  each specific day.  He  suggested amending page                                                               
2, line 24  to read:  "one or more  prescription medications that                                                               
have  been divided  by a  provider  into individual  doses to  be                                                               
taken over  a specified  period..."  He  offered his  belief that                                                               
this would  eliminate the necessity  of the  definition currently                                                               
on page 2, lines 28-29.                                                                                                         
                                                                                                                                
3:52:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  asked Ms.  Betts if  the revised  version of                                                               
the proposed bill had persuaded her organization to testify.                                                                    
                                                                                                                                
MS.  BETTS replied  that, although  her organization  appreciated                                                               
the  changes,  it  had  been   a  scheduling  conflict  that  had                                                               
prevented earlier testimony.                                                                                                    
                                                                                                                                
3:53:30 PM                                                                                                                    
                                                                                                                                
SHERRY  METTLER,  Assisted  Living   Industry,  stated  her  full                                                               
support  for adopting  this  into  statute, in  order  not to  be                                                               
"revisiting  this issue  time  and  time and  time  again."   She                                                               
declared  that medisets  were important  to assisted  living home                                                               
residents.                                                                                                                      
                                                                                                                                
3:54:13 PM                                                                                                                    
                                                                                                                                
THERESA BRINSKY,  RN, Marlow Manor  Assisted Living,  referred to                                                               
her  prior testimony  to  the House  Health  and Social  Services                                                               
Standing Committee  on March 19,  2013.  She declared  that there                                                               
would  be  a  significant  increase  of  costs  in  other  areas,                                                               
including  emergency rooms,  correctional facilities,  and Alaska                                                               
Psychiatric Institute, if medisets were eliminated.                                                                             
                                                                                                                                
3:55:36 PM                                                                                                                    
                                                                                                                                
KAHALANI DREW shared that she  was "first and foremost, a mother"                                                               
of  eight children,  seven of  whom were  adopted from  Office of                                                               
Children Service-type organizations.   She declared that, because                                                               
of  her  children's  disabilities,  she counted  on  the  mediset                                                               
regimen  for  her  children  to  function,  and  she  offered  an                                                               
anecdotal account about one of her children.                                                                                    
                                                                                                                                
4:01:59 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS said that he would leave public testimony open.                                                                   
                                                                                                                                
4:02:17 PM                                                                                                                    
                                                                                                                                
JON   SHERWOOD,  Medicaid   Special  Projects,   Office  of   the                                                               
Commissioner,  Department  of  Health  and  Social  Services,  in                                                               
response,  clarified that  the fiscal  note had  been written  in                                                               
response  to an  earlier  Committee Substitute  (CS)  to HB  134,                                                               
Version 28-LS0303\P,  Mischel, 3/18/13,  which the  committee had                                                               
adopted as  the working  draft on  March 19,  2013.   He reported                                                               
that the fiscal  note reflected an appropriation  of $414,000 for                                                               
FY 14,  which was awarded  using a  match of state  general funds                                                               
with  federal   funds.    He   stated  that  this   assumed  that                                                               
implementing regulations  were in  effect for the  proposed bill.                                                               
He pointed out that the  fiscal note would increase in subsequent                                                               
years to $1,657,000, which would  continue to be derived from the                                                               
match of  state general funds  with federal funds.   He explained                                                               
that  this  increased  fiscal  note was  the  result  of  weekly,                                                               
instead of  monthly, dispensing of medications  and mediset fees,                                                               
and an increase by the providers to include the Fairbanks area.                                                                 
                                                                                                                                
4:04:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    KELLER,    referencing    the    aforementioned                                                               
regulations  to  be  set  for  the  mediset  pharmacy  providers,                                                               
offered his  belief that it  was necessary "to be  really, really                                                               
careful" with any  increased costs to health care  expansion.  He                                                               
asked for  further explanation that  "if somebody is served  at a                                                               
home, or a  community based waiver, and they're  given a service,                                                               
give  me an  idea, to  be  eligible for  a home  waiver for  care                                                               
really doesn't have  any direct ramifications on  the person that                                                               
is being  served, their  mental state, whether  or not  they have                                                               
family support, all that kind  of thing, aren't really definitive                                                               
as to whether  or not the service  is needed or not,  right?"  He                                                               
asked  to clarify  that there  was more  Medicaid eligibility  by                                                               
qualifying for  disability under  social security.   He  asked if                                                               
the  fiscal   note  for  expansion  was   beyond  a  geographical                                                               
expansion,  and would  be an  increase  of service  to a  greater                                                               
number of individuals.                                                                                                          
                                                                                                                                
MR.  SHERWOOD, in  response to  Representative Keller,  said that                                                               
the  increase to  the fiscal  note was  strictly geographic,  and                                                               
would not  change the scope  of the mediset  eligible population.                                                               
He  explained that  eligibility for  a home  and community  based                                                               
waiver was determined by a nursing  home level of care, or a care                                                               
facility  for intellectual  or  developmental  disabilities.   He                                                               
offered  his belief  that  DHSS "thought  it  was an  appropriate                                                               
target  group   when  we  made   our  regulations."     Regarding                                                               
disabilities,  he stated  that the  social security  criteria had                                                               
not  changed.     He  noted   that,  with  the  wide   range  for                                                               
disabilities,  some  would  need  assistance  with  adherence  to                                                               
medication.                                                                                                                     
                                                                                                                                
4:08:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  stated  that,   although  mediset  was  a                                                               
wonderful  service,   his  concern   was  for   an  inappropriate                                                               
expansion.  He asked if  Mr. Sherwood was comfortable enough with                                                               
the regulatory  criteria to  place it into  statute.   He offered                                                               
his belief  that there  was an incentive  for both  providers and                                                               
beneficiaries to have  this service made available.   He asked if                                                               
it was necessary to put these regulations into statute.                                                                         
                                                                                                                                
MR. SHERWOOD  replied that DHSS  did not  have a position  on the                                                               
language, and noted that any  changes to the regulatory structure                                                               
for licensing and regulations would have to be made in statute.                                                                 
                                                                                                                                
4:11:18 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  asked for  a  response  to  his belief  that  the                                                               
mediset program was better in regulation than in statute.                                                                       
                                                                                                                                
MR.  SHERWOOD replied  that  the administration  did  not have  a                                                               
position on the proposed bill.                                                                                                  
                                                                                                                                
CHAIR HIGGINS  opined that the crux  of the problem was  that, as                                                               
DHSS were  the experts on  administering programs for  the state,                                                               
and that the House Health  and Social Services Standing Committee                                                               
wanted  to ensure  that  DHSS  had the  necessary  tools, it  was                                                               
necessary  for  the  committee  to  understand  the  department's                                                               
position  on the  proposed  bill.   He  offered  his belief  that                                                               
regulations could be more quickly adapted than statutes.                                                                        
                                                                                                                                
MR.  SHERWOOD   replied  that  DHSS  believed   it  had  adequate                                                               
statutory authority  to provide mediset reimbursement.   He noted                                                               
that, as  specific criteria  was not  in statute,  the department                                                               
had  more flexibility.    He reported  that  DHSS contended  with                                                               
providing access  to appropriate care, while  meeting the federal                                                               
criteria, and  having payment  methodologies that  were efficient                                                               
and cost effective.  He expressed  his agreement that there was a                                                               
benefit to flexibility.                                                                                                         
                                                                                                                                
4:13:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  referring to  page  2,  line 3,  of  the                                                               
fiscal note [included in members'  packets], asked if it was more                                                               
cost  effective to  change medications  during a  monthly mediset                                                               
cycle and lose  the value for unused medication or  to use a more                                                               
costly  weekly  mediset  dispensing   cycle,  which  allowed  for                                                               
changes  to  medication  and  a minimal  value  loss  for  unused                                                               
medication.                                                                                                                     
                                                                                                                                
MR. SHERWOOD, in response, explained  that the monthly dispensing                                                               
fee did  not restrict the  dispensing to once  a month.   It only                                                               
restricted the number of times for  receiving a fee.  He reported                                                               
that a new prescription for  a different dosage or drug initiated                                                               
a new  dispensing fee.   He  opined that  there were  not general                                                               
concerns for the dispensing fees,  although he was not the expert                                                               
with the pharmacy issues.                                                                                                       
                                                                                                                                
4:16:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON stated  that he  was  not able  to find  a                                                               
basis  for comparison  of the  weekly  versus monthly  dispensing                                                               
fee, with regard to the  loss of medication values resulting from                                                               
changes to prescriptions.                                                                                                       
                                                                                                                                
MR. SHERWOOD offered  to research the records  available, and see                                                               
if that information was in the claims data.                                                                                     
                                                                                                                                
4:18:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  clarified  that he  was  only  requesting                                                               
estimation for wasted prescriptions,  in order to give parameters                                                               
to the fiscal note.                                                                                                             
                                                                                                                                
4:19:06 PM                                                                                                                    
                                                                                                                                
MARY  MUNDELL,   Susitna  Mediset   Services,  stated   that  she                                                               
appreciated the committee  support for the mediset  program.  She                                                               
shared that new regulations proposed  by the Centers for Medicare                                                               
and Medicaid Services would decrease  reimbursement by 7 percent.                                                               
She  offered her  belief that  the  information was  based on  an                                                               
error in  the cost  of dispensing survey,  which resulted  in the                                                               
decrease.   She said that  mediset pharmacies would no  longer be                                                               
able to offer  services with this decrease, as it  was "way below                                                               
our cost  of doing business."   She offered to  provide financial                                                               
information    to   better    understand   the    importance   of                                                               
reimbursements.                                                                                                                 
                                                                                                                                
[HB 134 was held over.]                                                                                                         
                                                                                                                                
4:23:24 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 4:23 p.m.                                                                                                          

Document Name Date/Time Subjects
HB134 - Amendment Y.1 - Tarr.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 CS - Amendment Y 2.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS version R.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS Explanation of Changes (version Y to version R).pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS Explanation of Changes version Y.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS version Y.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Sponsor Statement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Explanation of Changes - Blank CS .pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Sectional Analysis - Blank CS .pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Ver N.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Sectional Analysis.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - AK Mental Health Board.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Chugiak Eagle River Senior Center.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Congressional Budget Office - Prescription Drug Use.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Healthcare Compliance Packaging Council - Improving Patiant Adherence and Outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Journal of American Pharmacists Association - Impact of medication packaging on adherence and treatment outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - New England Healthcare Institute - Thinking outside the pillbox.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - New York Times - When the Patient is Noncompliant.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Patient Compliance & Medicaton Adherence.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB0134 Supporting Document - Proposed Reg Changes to Pharmacy Reimbursement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - The American Journal of Geriatric Pharmacotherapy.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - The American Journal of Pharmacy Benefits - Adherence & Outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Summary of Proposed Reg Changes to Pharmacy Reimbursement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Other - Geneva Woods Health Care Services - Response to Questions 20130307.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Research Report - LRS Report 13-129 Costs of Mediset Medication Management Service.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - AK Commission on Aging.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - AK Mental Health Trust Authority.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - AK Nurses Association.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - Assets Inc.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - Governor's Council on Disabilities & Special Education.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Documents - Hope Community Resources.pdf HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Fiscal Note - HB134CS(HSS)-HCMS-3-27-13.pdf HHSS 3/28/2013 3:00:00 PM
HB 134