Legislature(2013 - 2014)CAPITOL 106

03/20/2014 03:00 PM House HEALTH & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 319 DRUG/DEVICE DISTRIBUTORS; COMPOUNDED RX TELECONFERENCED
Heard & Held
*+ HB 356 ADVISORY COMMITTEE ON WELLNESS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 324 CONTROLLED SUBST. PRESCRIPTION DATABASE TELECONFERENCED
Moved CSHB 324(HSS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         March 20, 2014                                                                                         
                           3:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lance Pruitt                                                                                                     
Representative Lora Reinbold                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 324                                                                                                              
"An Act relating to the controlled substance prescription                                                                       
database."                                                                                                                      
                                                                                                                                
     - MOVED CSHB 324(HSS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 319                                                                                                              
"An Act relating to wholesale drug or device distributors;                                                                      
relating to prescription benefits under the state health                                                                        
insurance plan; and providing for an effective date."                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 356                                                                                                              
"An Act establishing the Advisory Committee on Wellness; and                                                                    
relating to the administration of state group health insurance                                                                  
policies."                                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 324                                                                                                                  
SHORT TITLE: CONTROLLED SUBST. PRESCRIPTION DATABASE                                                                            
SPONSOR(s): REPRESENTATIVE(s) KELLER                                                                                            
                                                                                                                                
02/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (H)       HSS, FIN                                                                                               
03/04/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/04/14       (H)       Heard & Held                                                                                           
03/04/14       (H)       MINUTE(HSS)                                                                                            
03/18/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/18/14       (H)       Heard & Held                                                                                           
03/18/14       (H)       MINUTE(HSS)                                                                                            
03/20/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 319                                                                                                                  
SHORT TITLE: DRUG/DEVICE DISTRIBUTORS; COMPOUNDED RX                                                                            
SPONSOR(s): REPRESENTATIVE(s) T.WILSON                                                                                          
                                                                                                                                
02/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (H)       HSS, L&C                                                                                               
03/20/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 356                                                                                                                  
SHORT TITLE: ADVISORY COMMITTEE ON WELLNESS                                                                                     
SPONSOR(s): REPRESENTATIVE(s) SEATON                                                                                            
                                                                                                                                
02/26/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/26/14       (H)       HSS, STA                                                                                               
03/20/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JIM POUND, Staff                                                                                                                
Representative Wes Keller                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of the proposed Amendment 1 to CSHB 324 for the bill                                                                 
sponsor, Representative Wes Keller.                                                                                             
                                                                                                                                
REPRESENTATIVE TAMMIE WILSON                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 319 as the sponsor of the                                                                   
bill.                                                                                                                           
                                                                                                                                
MARCIA HOLT                                                                                                                     
North Pole, Alaska                                                                                                              
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
MEMOREE CUSHING                                                                                                                 
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
JAMES McCLAIN                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
RICHARD HOLM, Pharmacist                                                                                                        
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
LIS HOUCHEN, Director                                                                                                           
State Government Affairs                                                                                                        
National Association of Chain Drug Stores                                                                                       
Olympia, Washington                                                                                                             
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
DIRK WHITE, Chairman                                                                                                            
Board of Pharmacy                                                                                                               
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of HB 319.                                                                          
                                                                                                                                
SUSAN ALT                                                                                                                       
No address provided                                                                                                             
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
GERALD BROWN, Pharmacist                                                                                                        
Circle, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
BARRY CHRISTENSEN, Pharmacist                                                                                                   
Co-Chair                                                                                                                        
Legislative Committee                                                                                                           
Alaska Pharmacists Association                                                                                                  
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
SCOTT WATTS, Pharmacist                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 319.                                                                          
                                                                                                                                
DON HABEGER, Director                                                                                                           
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community & Economic Development                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of HB 319.                                                                   
                                                                                                                                
MIKE BARNHILL, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Answered questions during  discussion of HB
319 and HB 356.                                                                                                                 
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:05:02 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  WES  KELLER  called  the  House  Health  and  Social                                                             
Services  Standing  Committee  meeting  to  order  at  3:05  p.m.                                                               
Representatives  Keller,   Nageak,  Seaton,  and   Reinbold  were                                                               
present at  the call to  order.  Representatives Tarr  and Pruitt                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
         HB 324-CONTROLLED SUBST. PRESCRIPTION DATABASE                                                                     
                                                                                                                                
VICE  CHAIR KELLER  announced that  the first  order of  business                                                               
would be HOUSE  BILL NO. 324, "An Act relating  to the controlled                                                               
substance prescription  database."   [In front of  the committee,                                                               
was the  proposed committee substitute  (CS) for HB  324, labeled                                                               
28-LS1427\N, Strasbaugh,  3/7/14, which  had been adopted  as the                                                               
working draft on March 18, 2014]                                                                                                
                                                                                                                                
VICE  CHAIR KELLER,  as sponsor  of the  proposed bill,  reported                                                               
that he had  had discussions with the Chair of  the House Finance                                                               
Committee,  the next  committee of  referral.   He closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
3:06:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to  adopt  proposed  Amendment  1,                                                               
labeled 28-LS1427\N.1, Strasbaugh, 3/20/14, which read:                                                                         
                                                                                                                                
     Page 2, line 31, through page 3, line 1:                                                                                   
          Delete "other than the state"                                                                                     
                                                                                                                                
VICE CHAIR KELLER objected for discussion.                                                                                      
                                                                                                                                
3:06:44 PM                                                                                                                    
                                                                                                                                
JIM  POUND,  Staff,  Representative   Wes  Keller,  Alaska  State                                                               
Legislature, explained  that this  amendment would open  up other                                                               
sources  of funding  for the  database, and  would eliminate  any                                                               
confusion regarding state funding.                                                                                              
                                                                                                                                
VICE CHAIR KELLER removed his  objection.  There being no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:07:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NAGEAK  moved to  report  CSHB  324, Version  28-                                                               
LS1427\N, Strasbaugh,  3/7/14, as amended, out  of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being no  objection, CSHB  324  (HSS) was  moved from  the                                                               
House Health and Social Services Standing Committee.                                                                            
                                                                                                                                
3:08:38 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
         HB 319-DRUG/DEVICE DISTRIBUTORS; COMPOUNDED RX                                                                     
                                                                                                                                
3:09:30 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR KELLER  announced  that the  next  order of  business                                                               
would be HOUSE  BILL NO. 319, "An Act relating  to wholesale drug                                                               
or device  distributors; relating to prescription  benefits under                                                               
the state health  insurance plan; and providing  for an effective                                                               
date."                                                                                                                          
                                                                                                                                
3:10:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TAMMIE WILSON,  Alaska State  Legislature, stated                                                               
that the proposed  bill had started as a simple  bill that "got a                                                               
little bit  more complicated  along the way,"  and she  read from                                                               
the sponsor statement:                                                                                                          
                                                                                                                                
                                                                                                                                
     Currently wholesale companies of drugs and medical                                                                         
     devices that are outside the state of Alaska are not                                                                       
     required to be licensed with the State creating an                                                                         
     unfair disadvantage to our local businesses.  This                                                                         
     bill will level the playing field by requiring these                                                                       
     out of state wholesalers to be licensed as those are                                                                       
     in the state.  Additionally, with the potential for                                                                        
     the counter fitting of products by rogue companies,                                                                        
     this legislation will help insure Alaskans receive                                                                         
     quality products.                                                                                                          
                                                                                                                                
     It also adds verbiage which would include "pharmacy or                                                                     
     pharmacist" as a "provider" under section 6 (d) which                                                                      
     defines those occupations in which unfair                                                                                  
     discrimination is prohibited against a person who                                                                          
     provides a service within the scope of the providers                                                                       
     occupational license.  This bill would also require                                                                        
     the State of Alaska to pay for and/or reimburse                                                                            
     compounded prescription within the same scope and                                                                          
     manner as manufactured prescriptions.  Pharmacy                                                                            
     compounding is the creation of a particular                                                                                
     pharmaceutical product to fit the unique need of a                                                                         
     patient.  To do this, compounding pharmacists combine                                                                      
     or process appropriate ingredients using various                                                                           
     tools.  This is done for medically necessary reasons,                                                                      
     such as to change the form of the medication from a                                                                        
     solid pill to a liquid, to avoid a non-essential                                                                           
     ingredient that the patient is allergic to, or to                                                                          
     obtain the exact dose(s) needed or deemed best of                                                                          
     particular active pharmaceutical ingredient(s).                                                                            
                                                                                                                                
     Currently, a compound prescription that contains at                                                                        
     least one legend (RX only) drug is generally covered                                                                       
     by most insurance plans.  However, the compounding                                                                         
     pharmacy may only be reimbursed for the legend drug(s)                                                                     
     in the compounded prescription, not the other                                                                              
     ingredients used or for the time it took to make the                                                                       
     compound.  (This may mean that the pharmacy is unable                                                                      
     to make up the medication per the designed formula                                                                         
     and/or unable to dispense the intended product to the                                                                      
     patient.)  This will negatively impact our local                                                                           
     businesses, in-fact it could put many out of business.                                                                     
     Alaskans deserve to have coverage of compounded                                                                            
     medications for potentially life-saving indications as                                                                     
     well as for quality of life.                                                                                               
                                                                                                                                
     Many of these drugs were previously covered, now the                                                                       
     customer must bear the cost anywhere from as little as                                                                     
     $80.00 to as much as $800.00 depending on the                                                                              
     compound.                                                                                                                  
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  T.  WILSON said  that  she  had spoken  with  the                                                               
Department  of  Administration  after the  change  of  "insurance                                                               
groups for retirees."  She  relayed that she had received e-mails                                                               
from  constituents   questioning  why   prescriptions  previously                                                               
covered  were no  longer being  covered.   She  shared her  prior                                                               
understanding that medication  would be covered if  it included a                                                               
legend  drug.   Subsequently,  she  was  informed that  only  the                                                               
legend  drug part  of the  prescription  would be  covered.   She                                                               
asked that testimony from more knowledgeable sources be allowed.                                                                
                                                                                                                                
3:14:17 PM                                                                                                                    
                                                                                                                                
VICE CHAIR KELLER opened public testimony.                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON asked  if there  were other  circumstances                                                               
that required  wholesalers selling  in Alaska  to have  an Alaska                                                               
business license.                                                                                                               
                                                                                                                                
REPRESENTATIVE  T.  WILSON  deferred  to  Dick  Holm,  and  other                                                               
testifiers.                                                                                                                     
                                                                                                                                
MARCIA  HOLT explained  that she  was speaking  for a  friend who                                                               
used  compound medications,  and they  were both  retirees.   She                                                               
said  that  her friend  received  treatment  for spinal  stenosis                                                               
which  included shots  and other  medications, although  the most                                                               
effective  treatment  was  "a   compounded  cream  that  includes                                                               
numerous medications."  She was not  able to identify each of the                                                               
medications in the cream, but pointed  out that this cream was no                                                               
longer covered by her insurance.                                                                                                
                                                                                                                                
MS. HOLT, in response to Vice  Chair Keller, said that her friend                                                               
was  available to  testify,  but  was content  to  have Ms.  Holt                                                               
testifying for her.                                                                                                             
                                                                                                                                
MEMOREE CUSHING stated  that she was a retiree from  the State of                                                               
Alaska,  and that  she  was no  longer able  to  obtain the  bio-                                                               
identical hormones  for her rheumatoid  arthritis.   She reported                                                               
that she  had previously used pharmaceutical  hormones, which had                                                               
been  covered  under her  health  benefits.   [Due  to  technical                                                               
difficulties, testimony was terminated]                                                                                         
                                                                                                                                
JAMES McCLAIN shared that he was  a retired state worker, and, as                                                               
he  had prostate  cancer in  2004, he  needed a  compound mix  of                                                               
medications which  were made  locally.   He requested  that these                                                               
compounds be allowed.                                                                                                           
                                                                                                                                
VICE  CHAIR  KELLER asked  for  clarification  that the  compound                                                               
medication had previously been covered by his insurance.                                                                        
                                                                                                                                
MR.  McCLAIN  replied  that this  compound  medication  had  been                                                               
covered by  his state retirement  insurance since 2004,  but that                                                               
had changed since the state changed  to AETNA at the beginning of                                                               
the current year.                                                                                                               
                                                                                                                                
3:21:54 PM                                                                                                                    
                                                                                                                                
RICHARD HOLM, Pharmacist, said that  his North Pole pharmacy, one                                                               
of three pharmacies  that he owned, was  a compounding specialty.                                                               
He noted  that he was  a former chair  on the Board  of Pharmacy.                                                               
He directed attention  to the issue of  wholesaler licensing, and                                                               
explained  that,  although  the   Alaska  State  Legislature  had                                                               
revised these statutes  in the mid-1990s, the  licensing for out-                                                               
of-state  wholesalers  of  drugs  and  medical  devices  had  not                                                               
changed.   In 2006, the  Board of  Pharmacy had decided  to write                                                               
regulations  addressing this  change,  but  the Attorney  General                                                               
informed  the  board  that  they   did  not  have  the  statutory                                                               
authority  for this.   These  proposed  regulations had  recently                                                               
become  an issue,  as a  new  U.S. Food  and Drug  Administration                                                               
(FDA)  category  of  pharmacy,  compounding  manufacturers,  were                                                               
dealing  interstate  with  sterile   products.    He  stated  the                                                               
necessity for  better regulations to protect  the state's rights,                                                               
instead of  allowing the  federal government  to "take  it over."                                                               
He  explained that  pharmacies should  be listed  along with  the                                                               
other medical providers in the  insurance code, an oversight that                                                               
needed correction.  He said there  was no cost associated, and he                                                               
offered his belief that there was not any opposition.                                                                           
                                                                                                                                
MR. HOLM  addressed the compounding  issue in the  proposed bill,                                                               
noting  that the  changes in  insurance had  brought it  to bear.                                                               
Although it had  been stated that there were not  going to be any                                                               
changes  in  coverage, a  purported  55,000  calls complained  of                                                               
changes.   He offered his  belief that the majority  of complaint                                                               
calls regarded compound prescriptions.   He opined that the State                                                               
of Alaska  could request this  coverage, as [AETNA] was  only the                                                               
plan  administrator.    He  reported  that  this  sort  of  thing                                                               
happened when the  state changed [management], and  that a change                                                               
in the statute would ensure  that employees and retirees would be                                                               
able to  get the  necessary therapy  and medications  without any                                                               
break in service.                                                                                                               
                                                                                                                                
3:30:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR referenced  instances where  the compounding                                                               
of drugs had not  been done in a safe manner,  and asked if there                                                               
were any other issues related  to compounding prescriptions which                                                               
should be addressed.                                                                                                            
                                                                                                                                
MR. HOLM  stated that  compounding was safe.   However,  as there                                                               
was  a  financial  interest,   especially  with  hormone  issues,                                                               
companies would declare  that some drugs were  dangerous in order                                                               
to achieve financial gain.  He  stated that there would always be                                                               
unforeseen  issues  with  drugs,  such  as  sensitivity,  and  an                                                               
inherent  danger for  any  drug  therapy.   He  said that  proper                                                               
handling of  patient issues could  mitigate a great deal  of this                                                               
danger.  He  explained that compounding was based  on the doctor,                                                               
pharmacist, and patient relationship, which he called the triad.                                                                
                                                                                                                                
LIS  HOUCHEN,   Director,  State  Government   Affairs,  National                                                               
Association  of Chain  Drug  Stores, said  she  was available  to                                                               
answer any questions.                                                                                                           
                                                                                                                                
DIRK WHITE, Chairman,  Board of Pharmacy, reported  that he owned                                                               
a  compounding pharmacy  center in  Sitka.   He  stated that  the                                                               
ability to  license the out-of-state wholesalers  was critical to                                                               
the Board  of Pharmacy.   He offered  his belief that  Alaska was                                                               
the only state not licensing the out-of-state wholesalers.                                                                      
                                                                                                                                
VICE CHAIR  KELLER asked  if there  would be  an increase  in the                                                               
costs to Alaskans.                                                                                                              
                                                                                                                                
MR. WHITE  said that the  wholesale licenses would  generate more                                                               
revenue for the general fund.                                                                                                   
                                                                                                                                
VICE  CHAIR KELLER  asked  how many  people  buy from  unlicensed                                                               
wholesalers.                                                                                                                    
                                                                                                                                
MR.  WHITE  listed  the  three  largest  unlicensed  wholesalers,                                                               
stating that  every pharmacy in  Alaska purchased from them.   He                                                               
noted that  there was a  plethora of smaller,  generic unlicensed                                                               
wholesalers and there  would not be any increase of  costs due to                                                               
licensures to pharmacies or patients.                                                                                           
                                                                                                                                
SUSAN ALT  stated she had  used compound products  previously and                                                               
had  no problem  with repayment,  but  that, with  the change  to                                                               
AETNA, she  now had to pay  for each prescription.   She declared                                                               
it  was necessary  that the  state dictate  to the  administrator                                                               
what was  covered.  She questioned  the concerns for the  type of                                                               
form  or prescription  application  as long  as  it provided  the                                                               
treatment or necessary medication.                                                                                              
                                                                                                                                
GERALD BROWN,  Pharmacist, echoed the sentiments  of the previous                                                               
testifiers.   He  said some  compound products  worked when  some                                                               
commercial products did not work.   He directed attention to page                                                               
5,  line  25,  [indisc.]  cannot  provide  that  service  if  the                                                               
insurance does not pay  for the benefit.  He moved  on to page 6,                                                               
line 6,  describing the  lifetime benefit of  $1 million,  and he                                                               
offered  his   belief  that  the  Affordable   Care  and  Patient                                                               
Protection Act eliminated  those caps.  Pointing to  page 6, line                                                               
18, and  the maximum annual  benefit of $4,000 for  mental health                                                               
issues,  he shared  a personal  anecdote for  out-of-pocket costs                                                               
that were twice that amount.   He stated that these maximums were                                                               
old, and  needed to be updated  to a more appropriate  value.  He                                                               
declared his support of proposed HB 319.                                                                                        
                                                                                                                                
VICE CHAIR KELLER suggested that he contact the sponsor.                                                                        
                                                                                                                                
3:43:22 PM                                                                                                                    
                                                                                                                                
BARRY CHRISTENSEN,  Pharmacist, Co-Chair,  Legislative Committee,                                                               
Alaska  Pharmacists  Association,  stated   his  support  of  the                                                               
proposed  bill.   He  mentioned that  the  compounding issue  had                                                               
already cost a  lot of time and energy, issues  that the proposed                                                               
bill now addressed.                                                                                                             
                                                                                                                                
MS.  CUSHING  surmised that  presently  there  was only  coverage                                                               
between April  and December, and  that the problems  arose during                                                               
the changes in providers.  She  offered her belief that there was                                                               
an attempt  to chip  away at the  long promised  health insurance                                                               
coverage, and there was a  national problem with health insurance                                                               
companies doing  away with benefits.   She stated that  AETNA had                                                               
claimed  that it  was not  evidence  based practice  to use  bio-                                                               
identical hormones.   She listed  a number of  synthetic hormones                                                               
which  were  harmful  to women,  and  stated  that  bio-identical                                                               
hormones, which exactly matched human  hormones, had been used in                                                               
Europe for  fifty years.   She stated that  the real crux  of the                                                               
issue was  money.  She said  that, as 2 million  women were using                                                               
these hormones today,  it would be known if there  was a problem.                                                               
She said that  compound hormones have been made  for decades, and                                                               
the business was growing.   She offered her belief that insurance                                                               
companies  were  dictating  our  medical  care,  instead  of  the                                                               
doctor, the patient, and the pharmacist making those decisions.                                                                 
                                                                                                                                
SCOTT  WATTS, Pharmacist,  testified in  support of  the proposed                                                               
bill.  He  said that allowing the board to  license the wholesale                                                               
distributors was  a safety issue  for Alaskans as it  allowed for                                                               
some oversight, and  it leveled the playing field  with those who                                                               
were already  licensed and regulated by  the Board.  He  said the                                                               
decisions since January  1, 2014 regarding compounds  made in the                                                               
pharmacy for an  individual patient had made it  difficult to get                                                               
the medications to  customers.  He said  these prescriptions were                                                               
written by  all types of  prescribers, and that many  people were                                                               
either not  able, or  struggling, to get  those medications.   He                                                               
supported any necessary change to statute.                                                                                      
                                                                                                                                
REPRESENTATIVE REINBOLD  expressed her  concern that none  of the                                                               
medical device  distributors had  testified.   She asked  for the                                                               
outcome  of an  operation  that  used a  pacemaker  that was  not                                                               
licensed or registered in Alaska.                                                                                               
                                                                                                                                
MR. WATTS  replied that it  was only necessary for  the provider,                                                               
not the  device, to be  licensed.  In response  to Representative                                                               
Reinbold, he  expressed his inability  to respond for  the impact                                                               
if the wholesale distributor of the pacemaker was not licensed.                                                                 
                                                                                                                                
VICE CHAIR  KELLER suggested that  the sponsor or  the Department                                                               
of Administration  could respond.   He expressed his  concern for                                                               
any unintended consequences.                                                                                                    
                                                                                                                                
3:52:26 PM                                                                                                                    
                                                                                                                                
DON HABEGER,  Director, Division  of Corporations,  Business, and                                                               
Professional  Licensing,  Department  of  Commerce,  Community  &                                                               
Economic  Development,  clarified that  a  fiscal  note had  been                                                               
forwarded with  the proposed bill  requesting $36,000 for  a half                                                               
time position  to process  new licenses  and the  required annual                                                               
reports.   He  said that  it was  "hard to  divine the  number of                                                               
licensees that might  take advantage of a  new license category."                                                               
He offered an estimate of 400 potential licensees.                                                                              
                                                                                                                                
REPRESENTATIVE TARR asked for the fiscal note.                                                                                  
                                                                                                                                
VICE  CHAIR   KELLER  said   that  the   fiscal  note   would  be                                                               
distributed.                                                                                                                    
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
MIKE BARNHILL,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department   of  Administration   (DOA),   said   that  the   DOA                                                               
administered one of the state  employee health care plans and the                                                               
health care plan for the  public employee, teacher, judicial, and                                                               
elected public official retirement  systems.  These plans covered                                                               
84,000 people,  with 67,000  in the retirement  system.   He said                                                               
that, as the plan was subject  to the Alaska Procurement Code, an                                                               
RFP   [Request  for   Proposal]  had   been  issued   for  claims                                                               
administrators about every five years,  since 1998 when the state                                                               
self-insured for its health plans.   He listed the various claims                                                               
administrators which  had included  Premera, Wells  Fargo, Health                                                               
Smart, and AETNA.   There were about 30,000  medical and pharmacy                                                               
claims  each week.   During  the claims  administrator transition                                                               
process,  there  were  hundreds of  details  to  be  transitioned                                                               
appropriately, and  in this last process,  a professional project                                                               
manager  had  been  hired  to  help  with  the  transition.    He                                                               
acknowledged  that  the  compounds medications  issued  had  been                                                               
missed in the  transition.  He offered his belief  that the prior                                                               
list of  compounds that were  being processed had been  passed to                                                               
AETNA, the current  claims administrator, but that  there had not                                                               
been any  discussion regarding  it.   He acknowledged  that those                                                               
compound medications  had been denied  since January 2,  and that                                                               
there had been 50,000 calls in  January, with half that number in                                                               
February,  which,  although  in  decline,  was  still  too  high.                                                               
Directing  attention  to  compound medications  specifically,  he                                                               
opined  that   one  percent  of  pharmacy   script  was  compound                                                               
medication.    He  relayed  that DOA  became  concerned  and  had                                                               
internal discussions, as  well as discussions with  AETNA.  These                                                               
discussions revealed  a variety of issues  pertaining to compound                                                               
medications  that  were  worthy   of  additional  discussion  and                                                               
scrutiny.  He stated that  those discussions should have been had                                                               
last fall in the run-up to  the transition.  DOA instructed AETNA                                                               
to cover  the compound  medications, and  AETNA agreed  to recode                                                               
its pharmacy  claims system  to include  the process  of compound                                                               
medications at the  point of service beginning on  April 1, 2014.                                                               
He  suggested   that  pharmacists   should  currently   enter  an                                                               
override, which  AETNA would accept.   He said that DOA  had only                                                               
agreed to make the change  through December, and it was necessary                                                               
for  some serious  scrutiny  to  determine the  next  stage.   He                                                               
shared some of the issues arising  from the internal inquiry.  He                                                               
reported that, as  the FDA did not regulate  compounding by local                                                               
pharmacies, it was administered  by state pharmacy organizations,                                                               
although he  was not clear to  what extent the Board  of Pharmacy                                                               
provided regulation and oversight  of the fabrication of compound                                                               
medications within a pharmacy.   He opined that the proposed bill                                                               
was going in  the opposite direction of  many state legislatures,                                                               
which  were  discussing  the  addition   of  more  oversight  and                                                               
scrutiny  for local  compounding practices  by state  regulators,                                                               
rather  than less.   He  said  there was  no evidence  indicating                                                               
safety  oversight in  the compounding  pharmacies in  Alaska, and                                                               
that this was worthy of investigation.   He raised a question for                                                               
some of  the substances  used in compounding,  and he  pointed to                                                               
earlier  testimony for  bio-identical  replacement  therapy.   He                                                               
shared that  there was  some controversy,  with concern  from the                                                               
Mayo Clinic,  the FDA,  the Endocrine  Society, and  the American                                                               
College of  Obstetricians and  Gynecologists, for  marketing bio-                                                               
identical replacement therapy  as safe.  He pointed  out that the                                                               
FDA required  a cautionary  insert with these,  and that  all the                                                               
aforementioned  groups  had  agreed that  pharmacies  should  not                                                               
declare things are  safe, when there was  evidence that suggested                                                               
there  were risks  and  should only  be  consumed after  informed                                                               
consent.  He declared that  there were instances when compounding                                                               
was necessary, as some people  were allergic to legend substances                                                               
and  dyes,  and  there  may   not  be  a  commercially  available                                                               
medication.  He  stated that, as these patients  needed access to                                                               
an  active ingredient  that was  only available  in a  compounded                                                               
form,  this  piece of  compounding  needed  to be  preserved,  no                                                               
matter  the outcome  for  compounding  as a  whole.   This  would                                                               
ensure  access   to  compound   medications  with   no  available                                                               
alternative  for  an FDA  legend  drug.    He stated  that  these                                                               
concerns would  be reviewed  during the  upcoming year,  and that                                                               
any limit  to compound drugs  would be preceded by  education and                                                               
communication for the alternatives.                                                                                             
                                                                                                                                
4:04:40 PM                                                                                                                    
                                                                                                                                
MR. BARNHILL directed attention to  the proposed bill, and stated                                                               
that, as  drafted, it  did not  apply to  the Alaska  Care health                                                               
insurance program.   He reported  that Section 7 only  applied to                                                               
the  Alaska Comprehensive  Health  Insurance Association  (ACHIA)                                                               
high  risk insurance  program.   He offered  his belief  that the                                                               
intent of the  proposed bill was to target Alaska  Care, and that                                                               
Version O,  not yet proposed  to the committee,  better attempted                                                               
to  target AS  39.30.090 and  required the  coverage of  compound                                                               
medications,  although it  "doesn't  quite get  us there  because                                                               
we're no  longer fully insured,  we do not buy  group insurance."                                                               
He  said that  this version  would also  need additional  work to                                                               
have  it  applicable  to  the  Alaska Care  plan.    He  directed                                                               
attention  to  a list  of  Frequently  Asked Questions  (FAQ)  on                                                               
compound medications.   He said  that the  aforementioned changes                                                               
for compound medications would go into effect on April 1.                                                                       
                                                                                                                                
VICE  CHAIR KELLER  said that  the  proposed bill  would be  held                                                               
over.     He  asked  if   the  compounding  of   medications  was                                                               
increasing,  and  he  asked  if   insuring  this  coverage  would                                                               
increase future expenses.                                                                                                       
                                                                                                                                
MR. BARNHILL replied  that, currently, one percent  of the script                                                               
volume  was  for  compound  medications.    He  stated  that  his                                                               
research indicated  that some pharmacies had  marketed themselves                                                               
as compounding  pharmacies and used compounding  to expand profit                                                               
margins, and he acknowledged that  some individuals needed access                                                               
to  some  active  ingredients that  were  not  available  through                                                               
commercially available medications.                                                                                             
                                                                                                                                
REPRESENTATIVE TARR asked for more  information about his earlier                                                               
reference to  the group plan  in Version  O [not yet  proposed to                                                               
the committee].                                                                                                                 
                                                                                                                                
MR. BARNHILL  replied that the state  stopped buying commercially                                                               
available insurance in 1998, when  the state became self-insured,                                                               
under the authority of AS 39.30.091.                                                                                            
                                                                                                                                
4:09:09 PM                                                                                                                    
                                                                                                                                
VICE CHAIR KELLER held over HB 319.                                                                                             
                                                                                                                                
REPRESENTATIVE  T. WILSON,  as the  bill sponsor,  said that  she                                                               
intended to  introduce a committee substitute  which would remove                                                               
the  issue  of  compounding.   She  requested  a  continuance  of                                                               
coverage for compound medications  until April, 2015, which would                                                               
allow legislation  to be introduced in  the following legislative                                                               
session.    Addressing  the  proposed  bill,  she  declared  that                                                               
Section 1 was  necessary "to make sure that we  level the playing                                                               
field so that  we're not charging our people  who have businesses                                                               
in  Alaska differently  than those  who are  out-of-state."   She                                                               
declared  a  need  to continue  promised  coverage  to  retirees.                                                               
Addressing an  earlier question  by Representative  Reinbold, she                                                               
noted that "device" was already defined in statute.                                                                             
                                                                                                                                
REPRESENTATIVE REINBOLD expressed her  concern that there was not                                                               
any testimony  from those distributors  impacted by  the proposed                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE T.  WILSON, in response, stated  that the proposed                                                               
bill  did not  request to  license  any devices,  but only  those                                                               
selling the  devices.   She declared that  the state  was already                                                               
liable as  it was "letting anything  come into the state  with no                                                               
regulation whatsoever, while we regulate only the in-state."                                                                    
                                                                                                                                
VICE CHAIR KELLER  asked that the committee  submit its questions                                                               
to the sponsor.  He held over HB 319.                                                                                           
                                                                                                                                
             HB 356-ADVISORY COMMITTEE ON WELLNESS                                                                          
                                                                                                                                
4:12:33 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR KELLER  announced that  the final  order of  business                                                               
would be  HOUSE BILL NO.  356, "An Act establishing  the Advisory                                                               
Committee  on Wellness;  and relating  to  the administration  of                                                               
state group health insurance policies."                                                                                         
                                                                                                                                
4:13:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON, as sponsor of proposed HB 356,                                                                           
paraphrased from the sponsor statement:                                                                                         
                                                                                                                                
                                                                                                                                
     HB 356 requires the Commissioner of the Department of                                                                      
     Administration to implement procedures for decreasing                                                                      
     the incidence of disease in Alaska in order to hold                                                                        
     the inflation of healthcare costs of active and                                                                            
     retired Alaska state employees to 2% per year.                                                                             
                                                                                                                                
     According to the Institute of Social and Economic                                                                          
     Research, total health care spending in Alaska topped                                                                      
     $7.5 billion in Alaska in 2010, with state government                                                                      
     employers paying over $400 million.  A major component                                                                     
     of our $12 billion unfunded pension liability is                                                                           
     retiree healthcare costs.  HB 356 requires the                                                                             
     Commissioner of Administration to put in place                                                                             
     programs that will decrease the incidence of disease                                                                       
     in State of Alaska employees, both current and                                                                             
     retired, in order to hold the inflation of costs to 2%                                                                     
     per year.                                                                                                                  
                                                                                                                                
     This bill focuses on preventing the incidence of                                                                           
     disease as opposed to treatment of disease.                                                                                
     Prevention of disease is the policy approach                                                                               
     unanimously requested of the Governor by the                                                                               
     legislature through HCR 5 in 2011.  This is an area of                                                                     
     healthcare where the most economic impact can be                                                                           
     achieved.  For instance, recent studies show that an                                                                       
     action as simple as taking a daily supplement of 5,000                                                                     
     IU of vitamin D can dramatically reduce the risk of                                                                        
     heart disease, diabetes, cancer, autism, gingivitis,                                                                       
     and many other conditions.                                                                                                 
                                                                                                                                
     HB 356 creates an Advisory Committee on Wellness which                                                                     
     is charged with making recommendations to the                                                                              
     Commissioner of Administration on ways to decrease the                                                                     
     incidence of disease in Alaska.  HB 356 will enforce a                                                                     
     paradigm shift for the Department of Administration                                                                        
     and the Department of Health and Social Services.  It                                                                      
     will require the agencies to implement policies to                                                                         
     keep Alaska state employees healthy by preventing                                                                          
     disease, rather than the common, reactive policy of                                                                        
     waiting until people get sick and then treating them.                                                                      
                                                                                                                                
REPRESENTATIVE   SEATON  directed   attention  to   a  PowerPoint                                                               
presentation entitled,  "HB 356 Prevention of  Disease Decreasing                                                               
the Alaska  Healthcare Liability," and the  unfunded liability in                                                               
the  PERS  and  TRS  accounts.    He  addressed  slide  1,  "$3.8                                                               
Billion," which he declared to  be the current amount of unfunded                                                               
liability for health care costs,  with an annual increase of more                                                               
than 2  percent.   Directing attention  to slide  2, "Why  are we                                                               
here?"  he noted  that  the  state was  spending  more than  $100                                                               
million annually  for active employees,  and almost  $500 million                                                               
for retirees.   He pointed  out that  the state also  paid health                                                               
care  costs  for  inmates, state  employees  under  union  health                                                               
trust,  Medicaid,   and  workers  compensation,  slide   3.    He                                                               
explained  that  the  current   discussion  would  be  about  DOA                                                               
policies  for workers  and retirees  for Alaska,  and noted  that                                                               
almost  60 percent  of the  $7.5 billion  of the  state cost  for                                                               
health care  was spent  on hospital  care, doctors,  and clinical                                                               
services.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON  moved on to slide  5, "This is the  way we                                                               
currently  contain  costs:"  and   pointed  out  that  the  state                                                               
insurance  focused   on  limitations  of  coverage   for  certain                                                               
conditions  or limitations  on compensation  for procedures.   He                                                               
stated  that  the Department  of  Labor  & Workforce  Development                                                               
tried  to prevent  accidents  by  limiting time  on  the job  and                                                               
requiring  safe  job conditions.    He  said that  Department  of                                                               
Health  and   Social  Services  had  some   prevention  programs,                                                               
including  voluntary  childhood vaccinations,  prescription  drug                                                               
safety, and  voluntary lifestyle changes,  which he deemed  to be                                                               
tough  accomplishments.    He  pointed  out  that  Department  of                                                               
Environmental  Conservation and  Department of  Natural Resources                                                               
worked on food safety  requirements, including shellfish testing,                                                               
pasteurized milk requirements, and  restaurant and food processor                                                               
inspections.   He  stated that  the Department  of Public  Safety                                                               
enforced the laws.   He pointed out that  the aforementioned $3.8                                                               
billion expense was  created by the institution  of these current                                                               
programs.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  asked  "How  can we  avoid  diseases  and                                                               
prevent  illness  instead of  just  reacting  to and  paying  for                                                               
Sickcare," slide  6.   Moving on  to slide  7, "Active  Plan," he                                                               
noted  that  these were  the  aggregate  risk profiles  and  risk                                                               
drivers  of the  plan,  with a  contribution  percentage for  the                                                               
direct relation of each to Vitamin  D levels.  He stated that the                                                               
total of  diseases directly  related to Vitamin  D levels  was 66                                                               
percent.   Moving to  slide 8, "Retiree  Plan," the  risk factors                                                               
related to low  vitamin D levels was 61 percent.   He spoke about                                                               
slide  9,  "Meta-analysis of  breast  cancer  risk," a  group  of                                                               
studies that  combined data and  then segregated these  into five                                                               
groups by  blood serum Vitamin  D.   The national average  was 21                                                               
ng/ml, yet the  rate for blood cancer was decreased  by half when                                                               
Vitamin D rates moved up to 52 ng/ml.                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  reported on  slide 10, stating  that, with                                                               
Vitamin D  use, there  was a  50 percent  reduction to  the costs                                                               
resulting from breast cancer.                                                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON projected  slide 11,  "Meta-analysis," and                                                               
noted the 50 percent reduction  in incidence of colon cancer with                                                               
Vitamin D use, an almost $2  million savings for the state, slide                                                               
12.     He  discussed  slide  13,   "Diabetes  Incidence:"  which                                                               
reflected  a  clinical trial  for  Type  2  Diabetes and  the  90                                                               
percent reduction  of incidences with  the increase of  Vitamin D                                                               
to 48 ng/ml, slide 14, "Type  2 Diabetes."  Slide 15, reflected a                                                               
$4  million  per year  savings  with  this  Vitamin  D use.    He                                                               
stressed the importance of raising  Vitamin D levels to the 40-60                                                               
ng/ml.                                                                                                                          
                                                                                                                                
4:26:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON pointed  to  slide 16,  "march of  dimes,"                                                               
which reflected  the reduction of  preterm births in  Alaska with                                                               
an increase  of Vitamin  D.   The savings to  the state  was $1.3                                                               
million, slide 17.   He spoke about slide  18, "Upper Respiratory                                                               
Tract  Infections," and  compared levels  of Vitamin  D above  30                                                               
ng/ml  with   the  relative  risk  of   upper  respiratory  tract                                                               
infections.   He reviewed slide  19, "Inflammatory  gum disease,"                                                               
and spoke about  tooth loss and infection,  and that relationship                                                               
to other  illnesses in the  body.  He  pointed to the  80 percent                                                               
reduction in inflammation in 90  days with an increase in Vitamin                                                               
D levels to 50 ng/ml.                                                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON stated  that individual  Alaskans and  the                                                               
State shared a  burden for the increasing health care  costs.  He                                                               
declared that  the state had  not adequately focused on  a policy                                                               
of avoiding  disease and maintaining  health, slide 20.   He read                                                               
from  the  proposed  bill,  slide 21,  "to  the  greatest  extent                                                               
legally   and   reasonably   practicable,   the   Department   of                                                               
Administration shall work  to hold down the  escalation of health                                                               
care  costs to  less  than 2  percent  annually by  administering                                                               
policies  of  the  group health  insurance  obtained  under  this                                                               
subsection in a manner that is  likely to reduce the incidence of                                                               
disease in the state's  population and facilitates implementation                                                               
of  the recommendations  of the  Advisory  Committee on  Wellness                                                               
established  under   this  bill."     He  emphasized   that  this                                                               
represented a  "total change  in the direction  in which  we view                                                               
health care."   He stressed that it was necessary  for a new tack                                                               
if  we were  going  to  address the  unfunded  liability and  the                                                               
impending big budget  deficits.  He said  that the aforementioned                                                               
Advisory  Committee  on  Wellness  was modeled  on  the  Citizens                                                               
Review Panel  for the Office  of Children's  Services [Department                                                               
of Health and  Social Services].  It would comprise  of a minimum                                                               
of  seven  appointed  members,  with at  least  one  health  care                                                               
provider.     Similar   to  the   Citizens   Review  Panel,   the                                                               
administration would  be required  to address the  issues brought                                                               
forward by  the panel.   He declared  that this could  change the                                                               
course of  escalating health  care costs  and the  large unfunded                                                               
liability.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  TARR  asked  whether there  were  expansions  for                                                               
preventative  care  and  additional covered  services  under  the                                                               
Affordable  Care and  Patient Protection  Act, and  were these  a                                                               
complement for long term cost savings to the proposed bill.                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  replied that this proposal  was a paradigm                                                               
shift,  whereas the  Affordable Care  and Patient  Protection Act                                                               
was  directed more  toward affordable  insurance  and paying  for                                                               
sick care.  He relayed that  its only prevention means were early                                                               
detection screenings.                                                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON read  a  list of  the  study titles  which                                                               
included   Senior  Health   Issues,  Vitamin   D  Supplementation                                                               
programs, and  Low Serum Vitamin  D concentration  in Alzheimer's                                                               
disease.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON,   in  response  to  Vice   Chair  Keller,                                                               
explained  that the  proposed bill  requested that  Department of                                                               
Administration (DOA)  focus on disease  prevention in  its health                                                               
coverage policy.  He suggested an  incentive of a lower co-pay if                                                               
people agree to  increase their Vitamin D level  to between 40-60                                                               
ng/ml.   He  suggested  that DOA  construct  an incentive  system                                                               
during  negotiation with  the union  health care  contracts.   He                                                               
pointed to the  potential health care tradeoffs  with health care                                                               
accounts.   He noted that this  could spread to include  not only                                                               
the  health insurance  programs in  the state,  but also  include                                                               
Medicaid.    He declared  that  many  chronic diseases  could  be                                                               
avoided  at a  fraction  of cost,  noting  the huge  cost/benefit                                                               
ratio.    He   reminded  the  committee  that,   in  2011,  House                                                               
Concurrent Resolution 5 was passed,  which called on the governor                                                               
to declare prevention of disease  as the primary model for health                                                               
care, and  that this  resolution had not  been implemented.   The                                                               
current proposed bill, HB 356,  would be another reminder for the                                                               
administration to  implement the policy,  and, as it would  be in                                                               
statute, it  was a priority.   He declared  that the crux  of the                                                               
proposed  bill was  to prioritize  this paradigm  shift to  lower                                                               
health care cost by avoiding disease.   He allowed that there had                                                               
been a voluntary  wellness committee in Department  of Health and                                                               
Social Services,  although it  had never been  set in  statute or                                                               
required the  DOA to  respond.   He offered  his belief  that the                                                               
focus had always been to pay for  the sick care, and not to focus                                                               
on keeping people  well.  Lifestyle changes were hard  and had to                                                               
be voluntary.   He  declared that the  intention of  the proposed                                                               
bill was for  the Alaska State Legislature to set  a policy for a                                                               
healthy Alaskan workforce and retiree  base, and lower the health                                                               
care  cost.    He  opined  that this  would  help  alleviate  the                                                               
upcoming fiscal constraints.                                                                                                    
                                                                                                                                
VICE CHAIR KELLER summarized that  the proposed bill was a change                                                               
in  the DOA  mission  statement, and  that  performance would  be                                                               
measured    on    the    successful   implementation    of    the                                                               
recommendations.                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  replied that the language  of the proposed                                                               
bill allowed a lot of latitude.   He said that the millions saved                                                               
would make a huge difference.                                                                                                   
                                                                                                                                
REPRESENTATIVE  TARR said  that she  supported the  idea and  any                                                               
efforts at prevention.   She suggested a  need for clarifications                                                               
of the criteria for the seven volunteer committee memberships.                                                                  
                                                                                                                                
REPRESENTATIVE SEATON explained that  the proposed bill suggested                                                               
at least seven  committee members, though there could  be more to                                                               
even better create a geographical  representation.  He emphasized                                                               
the necessity for a clear intent from the legislature.                                                                          
                                                                                                                                
4:47:37 PM                                                                                                                    
                                                                                                                                
MIKE BARNHILL,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department  of Administration  (DOA), expressed  his appreciation                                                               
to the  sponsor, and  stated that DOA  shared the  enthusiasm for                                                               
wellness initiatives and the idea  to trend medical costs down to                                                               
2 percent.   He questioned whether this  was achievable, however.                                                               
He offered to share past  DOA programs, which included a wellness                                                               
committee for  the 2012 state  employee health plan.   There were                                                               
over  90  applications  for  the 12  positions  on  the  wellness                                                               
committee.   He explained the  "first dollar preventive  care" in                                                               
the  state  employee  health  plan,   which  meant  that  certain                                                               
preventive care services were not  subject to the deductible.  He                                                               
opined that  it was too early  to measure the efficacy  of any of                                                               
these measures;  although some of these  initiatives were popular                                                               
with certain constituencies, there  was also an equally prominent                                                               
constituency that  was skeptical of government  telling them what                                                               
to do and  how to live their  lives.  He offered  his belief that                                                               
this  was the  larger segment,  and he  questioned how  to engage                                                               
with this population for an effective wellness campaign.                                                                        
                                                                                                                                
MR.  BARNHILL said  that a  variety of  issues drive  health care                                                               
costs.  He  stated that end-of-life care was  very expensive, and                                                               
there were many expensive behavioral  issues, as well.  He stated                                                               
that many people  will not change the way they  live their lives.                                                               
He  opined  that, although  the  benefits  of  Vitamin D  was  an                                                               
interesting proposal,  there were  health costs driven  by issues                                                               
not addressed  by Vitamin D,  noting especially the high  cost of                                                               
orthopedic fractures.   He reported that AETNA  was developing "a                                                               
more   robust   network   particularly   for   specialists,"   as                                                               
controlling these costs was very important.                                                                                     
                                                                                                                                
4:54:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked about  the suggested wellness committee                                                               
approach in the proposed bill.                                                                                                  
                                                                                                                                
MR.  BARNHILL replied  that  there were  discounts  for State  of                                                               
Alaska employees at  gyms, recreation clubs, etc.  and that there                                                               
were intermittent  programs, competitions,  and initiatives.   He                                                               
expressed  his understanding  that this  would only  appeal to  a                                                               
certain percentage of the workforce.                                                                                            
                                                                                                                                
MR.  BARNHILL,  in response  to  Representative  Tarr, said  that                                                               
there  was   a  strategic  health  initiatives   coordinator  who                                                               
coordinated these program discounts.                                                                                            
                                                                                                                                
VICE CHAIR  KELLER asked for  details about the  current wellness                                                               
committee.                                                                                                                      
                                                                                                                                
MR. BARNHILL replied that the 12 members met monthly.                                                                           
                                                                                                                                
VICE CHAIR KELLER  asked if the committee had  considered the use                                                               
of Vitamin D.                                                                                                                   
                                                                                                                                
MR. BARNHILL replied that he did not know.                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON  said that  the wellness committee  had not                                                               
met "since AETNA  came on-line."  He referred to  the New Zealand                                                               
report  which advocated  for  Vitamin D,  noting  that usage  had                                                               
jumped  from  15  percent  to  74  percent,  with  a  32  percent                                                               
reduction in  aged residential care  in the  emergency department                                                               
from falls and fractures.  He  expressed the need to reach out to                                                               
residential senior  facilities across  Alaska, and his  desire to                                                               
give the  administration a tool  for use in  contract negotiation                                                               
for  prevention  programs.   He  suggested  that the  legislature                                                               
adopt a policy for healthy Alaskans.                                                                                            
                                                                                                                                
5:00:10 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR KELLER  asked that  the DOA  discuss its  support and                                                               
report back to the committee.  [HB 356 was held over.]                                                                          
                                                                                                                                
5:00:43 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 5:00 p.m.                                                                                                          

Document Name Date/Time Subjects
HB0319A.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Sponsor Statement.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Sectional Analysis.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB319-DCCED-DOI-03-14-14.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Documents Natural Estrogens.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Documents Estriol.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Documents - Harris.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document Insurance nightmare - FAI Daily News Miner.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - Thurman.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - Statues and Regulations - Pharmacies.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - What is compounding.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - Quality Control.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - introduction.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - Compounding Resources.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - Compounding & Pharmacists.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - PCCA - Alternative Medication Forms.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - Jordan.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - IACP Introduction.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - IACP Frequently Asked Questions.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - IACP - What is compounding.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - Gherman.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 319 Supporting Document - Calmes.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB0356A.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 sponsor statement.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB356-DOA-DRB-03-14-14.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB356 Support KPBSD.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Mayo Clinic vitamin D for health a global perspective.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 319 DOA DRB FAQ 3 20 2014.PDF HHSS 3/20/2014 3:00:00 PM
HB 319
HB319-DCCED-CBPL-03-14-2014.pdf HHSS 3/20/2014 3:00:00 PM
HB 319
HB 356 Background Materials.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Wellness Presentation.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356