Legislature(2023 - 2024)DAVIS 106

03/30/2023 03:00 PM House HEALTH & SOCIAL SERVICES

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Audio Topic
03:03:57 PM Start
03:05:02 PM Presentation(s): Opportunities to Grow the Health Workforce, Apprenticeship and Beyond
04:15:30 PM HB96
04:34:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Opportunities to Grow the Health TELECONFERENCED
Workforce, Apprenticeship and Beyond
*+ HB 96 LICENSING:DRUGS/DEVICES FOR HOME DIALYSIS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         March 30, 2023                                                                                         
                           3:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Prax, Chair                                                                                                 
Representative Justin Ruffridge, Vice Chair                                                                                     
Representative CJ McCormick                                                                                                     
Representative Dan Saddler                                                                                                      
Representative Jesse Sumner                                                                                                     
Representative Zack Fields                                                                                                      
Representative Genevieve Mina                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): OPPORTUNITIES TO GROW THE HEALTH WORKFORCE~                                                                    
APPRENTICESHIP AND BEYOND                                                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 96                                                                                                               
"An Act relating to licensing and registration requirements for                                                                 
certain wholesale drug distributors; and providing for an                                                                       
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  96                                                                                                                  
SHORT TITLE: LICENSING:DRUGS/DEVICES FOR HOME DIALYSIS                                                                          
SPONSOR(s): REPRESENTATIVE(s) PRAX                                                                                              
                                                                                                                                
03/06/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/23       (H)       HSS, L&C                                                                                               
03/30/23       (H)       HSS AT 3:00 PM DAVIS 106                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CATHY MUNOZ, Acting Commissioner                                                                                                
Office of the Commissioner                                                                                                      
Department of Labor and Workforce Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Introduced  the  discussion on  apprentice                                                             
programs in Alaska.                                                                                                             
                                                                                                                                
ANNE VELARDI, Apprenticeship Coordinator                                                                                        
Alaska Workforce Investment Board                                                                                               
Alaska Department of Labor and Workforce Development                                                                            
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Presented  the  PowerPoint  presentation,                                                             
titled "Healthcare Apprenticeships."                                                                                            
                                                                                                                                
JOELLE HALL, President                                                                                                          
Alaska American  Federation of Labor  and Congress  of Industrial                                                               
Organizations                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented on apprenticeship models.                                                                      
                                                                                                                                
NANCY MERRIMAN, CEO                                                                                                             
Alaska Primary Care Association                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Provided a PowerPoint  presentation, titled                                                             
"APCA (Alaska Primary Care  Association) and Healthcare Workforce                                                               
Training Programs."                                                                                                             
                                                                                                                                
JENNIFER NIXON, Director                                                                                                        
Workforce Development and Health Equity                                                                                         
Alaska Primary Care Association                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Answered a  question addressing  the Alaska                                                             
Primary Care Association's training programs.                                                                                   
                                                                                                                                
CHADWICK VANCE, Staff                                                                                                           
Representative Mike Prax                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the  sectional analysis for HB 96,                                                             
on behalf of Representative Prax, prime sponsor.                                                                                
                                                                                                                                
ELIZABETH STOLL, Director                                                                                                       
State and Government Affairs                                                                                                    
Baxter International Incorporated                                                                                               
Deerfield, Illinois                                                                                                             
POSITION  STATEMENT:    Gave a  PowerPoint  presentation,  titled                                                             
"Alaska House Bill  96," on behalf of  Representative Prax, prime                                                               
sponsor.                                                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:03:57 PM                                                                                                                    
                                                                                                                                
CHAIR  MIKE PRAX  called  the House  Health  and Social  Services                                                             
Standing   Committee    meeting   to    order   at    3:03   p.m.                                                               
Representatives Sumner,  Saddler, McCormick, Mina, and  Prax were                                                               
present  at the  call to  order.   Representatives Ruffridge  and                                                               
Fields arrived as the meeting was in progress.                                                                                  
                                                                                                                                
^PRESENTATION(S):  Opportunities to  Grow  the Health  Workforce,                                                               
Apprenticeship and Beyond                                                                                                       
  PRESENTATION(S): Opportunities to Grow the Health Workforce,                                                              
                   Apprenticeship and Beyond                                                                                
                                                                                                                              
3:05:02 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX announced that the first  order of business would be a                                                               
presentation on  the opportunities to grow  the health workforce,                                                               
apprenticeships and more.                                                                                                       
                                                                                                                                
3:05:53 PM                                                                                                                    
                                                                                                                                
CATHY  MUNOZ, Acting  Commissioner, Office  of the  Commissioner,                                                               
Department  of Labor  and Workforce  Development, introduced  the                                                               
discussion on apprentice programs in  Alaska.  She noted that the                                                               
state has access to apprenticeship  programs, and she pointed out                                                               
the  federal Registered  Apprenticeship Program  in Alaska.   She                                                               
said that apprenticeships can be  sponsored by a union, non-union                                                               
organization, and  employers.  She highlighted  that, through the                                                               
Alaska     Workforce     Investment     Board's     coordination,                                                               
apprenticeships   are   being   offered  in   the   construction,                                                               
information technology  (IT), healthcare, teaching,  and aviation                                                               
fields.                                                                                                                         
                                                                                                                                
3:08:51 PM                                                                                                                    
                                                                                                                                
ANNE  VELARDI,   Apprenticeship  Coordinator,   Alaska  Workforce                                                               
Investment  Board,  Alaska  Department  of  Labor  and  Workforce                                                               
Development, gave  a PowerPoint presentation,  titled "Healthcare                                                               
Apprenticeships"  [hardcopy included  in  the committee  packet].                                                               
She   started  on   slide  2,   which   addressed  the   American                                                               
Apprenticeship   Initiative,   which   supplies   a   grant   for                                                               
apprenticeship  expansion.   She stated  that the  grant involves                                                               
683  health care  apprentices in  the state  and 17  occupations.                                                               
The grant has helped doubled  the number of female apprentices in                                                               
Alaska and  built strong partnerships with  healthcare providers,                                                               
including  the  Providence  Alaska Medical  Center,  the  Pioneer                                                               
Home, and the Alaska Primary Care Association (APCA).                                                                           
                                                                                                                                
3:16:52 PM                                                                                                                    
                                                                                                                                
MS.  VELARDI,  concluding the  presentation,  moved  to slide  3,                                                               
which listed  some of the  health care occupations  utilizing the                                                               
Registered Apprenticeship  Program in Alaska.   These include the                                                               
occupations  of clinical  chiropractic assistant,  medical coding                                                               
and billing, veterinary  technician, certified nursing assistant,                                                               
pharmacy  technician,  surgical  technician,  medical  assistant,                                                               
dental assistant, and more.                                                                                                     
                                                                                                                                
3:23:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER   requested  the  number   of  registered                                                               
apprenticeships and the number of  Alaskans who are participating                                                               
in the apprenticeships today.                                                                                                   
                                                                                                                                
MS. VELARDI  answered that  the figure is  about 2,054,  but this                                                               
varies seasonally.  She noted  that most of these apprenticeships                                                               
are  in construction.    In  response to  a  series of  follow-up                                                               
questions, she explained that it  would be hard for a 16-year-old                                                               
to  work  in   a  health  care  apprenticeship   because  of  the                                                               
restrictions, and  most healthcare  apprentices are 18  years old                                                               
or older.   She responded that the length  of the apprenticeships                                                               
are  generally  one to  two  years.    She responded  that  using                                                               
construction  apprenticeships  as   an  example,  apprenticeships                                                               
would start at about 60 percent  of the journey worker's wage and                                                               
work up  to 100 percent.   She said that typically  there will be                                                               
one or  two wage  increases during  the apprenticeship,  and then                                                               
one more on the completion  of the apprenticeship.  She explained                                                               
that any apprenticeship  that did not show a  wage increase would                                                               
not be approved.                                                                                                                
                                                                                                                                
3:26:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    MINA   asked    about   outreach    for   these                                                               
opportunities.   She questioned whether  there is a  waitlist for                                                               
apprenticeship applicants.                                                                                                      
                                                                                                                                
MS. VELARDI shared  that the outreach is more  geared to sponsors                                                               
than job  seekers, and these  sponsors are starting  to advertise                                                               
apprenticeships to entice  new employees.  She  stated that there                                                               
is not a waitlist.                                                                                                              
                                                                                                                                
3:29:22 PM                                                                                                                    
                                                                                                                                
JOELLE HALL,  President, Alaska American Federation  of Labor and                                                               
Congress  of  Industrial  Organizations  (AFL-CIO),  address  the                                                               
different apprenticeship  models.   She explained that  there are                                                               
multi-employer  apprenticeship   systems,  with   private  sector                                                               
employers who  may be  in competition or  band together  to train                                                               
the workforce.  She further explained  that the system is done in                                                               
joint with unions  and employers.  She voiced that  as the Alaska                                                               
AFL-CIO president,  there is an  opportunity for the  health care                                                               
industry to adopt this system.   She explained that the system is                                                               
95  percent funded  by member  dues.   She added  that there  are                                                               
currently  no   health  care   apprenticeships  in   the  AFL-CIO                                                               
apprenticeship system.                                                                                                          
                                                                                                                                
3:36:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA  asked whether  there are more  robust models                                                               
in other states.                                                                                                                
                                                                                                                                
MS. HALL  answered that the  topic has not  come up in  her talks                                                               
with other AFL-CIO leaders.                                                                                                     
                                                                                                                                
3:37:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS  offered   his  understanding   that  the                                                               
Dartmouth-Hitchcock  system in  New  Hampshire was  the first  to                                                               
build out system-wide apprenticeships.                                                                                          
                                                                                                                                
3:38:07 PM                                                                                                                    
                                                                                                                                
NANCY  MERRIMAN, CEO,  Alaska  Primary  Care Association  (APCA),                                                               
gave the  PowerPoint presentation,  titled "APCA  (Alaska Primary                                                               
Care  Association) and  Healthcare  Workforce Training  Programs"                                                               
[hardcopy included in the committee  packet].  She moved to slide                                                               
2,  which  listed  the portfolio  of  health  workforce  training                                                               
programs  hosted by  APCA.   The list  includes spring  break and                                                               
summer   scrubs   camps,   high  school   explore   camps,   pre-                                                               
apprenticeship   for   training   in   health,   college   credit                                                               
agreements, and more.                                                                                                           
                                                                                                                                
MS.  MERRIMAN  advanced to  slide  3,  which addressed  the  Area                                                               
Health  Education Centers  (AHEC)  in Southcentral  Alaska.   She                                                               
pointed out  that the mission of  AHEC is to develop  and enhance                                                               
education  and  training  networks within  communities,  academic                                                               
institutions, and  community-based organizations.   She  moved to                                                               
slide 4 and  discussed the APCA's K-12 health  care career camps.                                                               
She  said the  camps  provide students  with  experience in  mock                                                               
surgeries,   vet   clinics,   and  working   with   health   care                                                               
professionals.  She  expressed that the program is  popular.  She                                                               
moved to  slide 5 and  discussed preparing Alaskans for  the Pre-                                                               
Apprenticeship Training in Healthcare (PATH) Academy                                                                            
                                                                                                                                
3:44:31 PM                                                                                                                    
                                                                                                                                
MS.  MERRIMAN  moved to  slide  6,  which addressed  the  federal                                                               
Registered  Apprenticeship Program.   She  pointed out  that APCA                                                               
has  partnered with  the US  Department of  Labor and  the Alaska                                                               
Department of Labor  and Workforce Development.   She pointed out                                                               
that  the  slide  listed  some  of  the  current  apprenticeships                                                               
registered in the program.                                                                                                      
                                                                                                                                
MS. MERRIMAN  transitioned to slide  7 and explained  the federal                                                               
Good  Jobs Challenge  grant, which  APCA  has recently  received.                                                               
She  said the  grant  has  allowed APCA  to  push the  registered                                                               
apprenticeship  programs  out around  the  state.   It  has  also                                                               
allowed APCA to  partner with all of the  organizations listed on                                                               
slide 7.                                                                                                                        
                                                                                                                                
3:48:37 PM                                                                                                                    
                                                                                                                                
MS. MERRIMAN  moved to  slide 9,  which addressed  APCA's college                                                               
credit  and  supports.    At  Alaska  Pacific  University  (APU),                                                               
apprentices  can  receive  college  credit in  the  programs  for                                                               
pharmacy  technician, billing  and  coding specialist,  community                                                               
health worker, medical assistant,  and electronic health records.                                                               
She pointed  out that APCA  works at reducing barriers  that keep                                                               
Alaskans from  pursuing careers in  health care.  She  added that                                                               
it has financial resources to  assist apprentices with items like                                                               
rent, insurance, gas,  childcare, and others.   She concluded the                                                               
presentation  on slide  9 and  informed members  on how  they can                                                               
access more information about apprenticeships.                                                                                  
                                                                                                                                
3:50:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS, concerning the  Good Jobs Challenge, asked                                                               
whether   hospitals   have   partnered  with   APCA   to   expand                                                               
apprenticeship training opportunities.                                                                                          
                                                                                                                                
MS.  MERRIMAN answered  that the  Alaska Hospital  and Healthcare                                                               
Association (AHHA) is  one of the key partners, and  it will be a                                                               
sub-recipient organization  in the  challenge grant.   She stated                                                               
that   AHHA  will   be  working   with   hospitals  to   identify                                                               
apprenticeship pathways to develop.  She  said APCA has a list of                                                               
8 apprenticeships it  offers, and through grants, the  hope is to                                                               
increase the number of apprenticeships from 8 to 12 or more.                                                                    
                                                                                                                                
3:52:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA asked  for a breakdown of  the PATH Academy's                                                               
pre-apprenticeship program.   She asked  the number  of graduates                                                               
who are connected with the apprenticeship program.                                                                              
                                                                                                                                
MS. MERRIMAN answered  that it is common for a  person to go from                                                               
PATH to  a job, from PATH  to an apprenticeship, or  from PATH to                                                               
an academic program.                                                                                                            
                                                                                                                                
3:53:32 PM                                                                                                                    
                                                                                                                                
JENNIFER  NIXON,  Director,   Workforce  Development  and  Health                                                               
Equity,  Alaska  Primary  Care  Association,  responding  to  the                                                               
question,   stated   that   this    varies   depending   on   the                                                               
apprenticeship program  and the  job the  student has  before the                                                               
pre-apprenticeship.   She expressed  uncertainty on  the specific                                                               
percentages of  graduates connected with  apprenticeship programs                                                               
and offered to report back concerning the data.                                                                                 
                                                                                                                                
MS.  MERRIMAN  commented  that   there  are  PATH  Academies  for                                                               
specific  jobs, like  direct support  professionals.   She  noted                                                               
that 100 percent  of the students involved  in the direct-service                                                               
professionals' program are picked up by employers.                                                                              
                                                                                                                                
3:55:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA  inquired  about  individuals  who  had  not                                                               
connected to  an apprenticeship and what  additional resources it                                                               
would take for them to find employment.                                                                                         
                                                                                                                                
MS. MERRIMAN  responded that health care  apprenticeships are new                                                               
to the  health care  sector, but  they are  growing.   She stated                                                               
that apprenticeships are not currently  advertised, but there are                                                               
opportunities for  incumbent workers to enter  an apprenticeship.                                                               
She said APCA  is building the number  of employment coordinators                                                               
to help people find the next step in employment.                                                                                
                                                                                                                                
3:57:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS   stressed   the  need   to   build   the                                                               
apprenticeship  system  over  time, namely  in  the  construction                                                               
industry.     He  speculated  on   the  difference   between  the                                                               
construction  and the  health  care  sector.   He  asked how  the                                                               
apprenticeship system  could be  expanded by  informing employers                                                               
of the return on investment (ROI).                                                                                              
                                                                                                                                
MS. MERRIMAN  relayed that health care  apprenticeships have been                                                               
growing, and this  raises awareness.  She pointed  out that grant                                                               
funding  is building  up the  system.   She  indicated that  what                                                               
employers   understand   about   apprenticeships  needs   to   be                                                               
addressed.   She added  that there has  been a  growing awareness                                                               
about  ROI when  employers  are investing  in the  apprenticeship                                                               
system.                                                                                                                         
                                                                                                                                
REPRESENTATIVE FIELDS relayed concerns  about the rising costs of                                                               
travel nurses in the state.   He put forth that this reflects the                                                               
state's  inability  to  supply  local   nurses.    He  asked  how                                                               
apprenticeship  pipelines  could  be used  to  address  workforce                                                               
needs.                                                                                                                          
                                                                                                                                
MS. MERRIMAN answered that APCA  is considering "career ladders."                                                               
She explained  that this is  when a  person enters a  health care                                                               
career at  an accessible  level, and then  progresses.   She said                                                               
that  this   system  leverages  the  importance   of  entry-level                                                               
positions.                                                                                                                      
                                                                                                                                
4:04:32 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX asked how APCA markets apprenticeship programs.                                                                      
                                                                                                                                
MS. MERRIMAN  expressed the opinion  that APCA is  getting better                                                               
at  this,  but  it  takes  time  to  convey  the  meaning  of  an                                                               
apprenticeship.   She  stressed that  employers are  important to                                                               
the system's success.   She stated that  APCA's outreach includes                                                               
radio, social media, and the internet.   In response to a follow-                                                               
up  question,  she  explained  that APCA  is  an  association  of                                                               
federally qualified health centers,  and it supports 29 federally                                                               
qualified organizations.   She said  APCA partners with  AHHA, as                                                               
well  as with  the  Alaska Tribal  Health  System and  Behavioral                                                               
Health.                                                                                                                         
                                                                                                                                
CHAIR PRAX  offered his understanding  that APCA is  marketing to                                                               
individual businesses and organizations outside of APCA.                                                                        
                                                                                                                                
MS. MERRIMAN  responded that  this is correct,  as APCA  can help                                                               
any Alaskan interested in a health care career.                                                                                 
                                                                                                                                
4:08:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  recalled that  primary care  employees who                                                               
may  already  have  a  job  were the  first  group  of  employees                                                               
marketed to.   It was  emphasized that with an  apprenticeship, a                                                               
job could become a career.                                                                                                      
                                                                                                                                
MS. MERRIMAN  commented that most  of the apprentices  that enter                                                               
the program are  incumbent workers with the  employer offering an                                                               
apprenticeship opportunity.                                                                                                     
                                                                                                                                
4:10:46 PM                                                                                                                    
                                                                                                                                
MS.  NIXON,  in  conclusion, commented  that  the  apprenticeship                                                               
system has been  an opportunity to be involved  in something that                                                               
is  positive.   She stated  that  the Good  Jobs Challenge  grant                                                               
offers the  opportunity to expand  the apprenticeship  program to                                                               
every populated area of Alaska.                                                                                                 
                                                                                                                                
4:12:49 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:12 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
[Chair Prax passed the gavel to Vice Chair Ruffridge.]                                                                          
                                                                                                                                
        HB  96-LICENSING:DRUGS/DEVICES FOR HOME DIALYSIS                                                                    
                                                                                                                                
4:15:30 PM                                                                                                                    
                                                                                                                                
VICE CHAIR RUFFRIDGE  announced that the final  order of business                                                               
would be  HOUSE BILL NO.  96, "An  Act relating to  licensing and                                                               
registration    requirements   for    certain   wholesale    drug                                                               
distributors; and providing for an effective date."                                                                             
                                                                                                                                
4:15:50 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX, as prime sponsor,  presented the sponsor statement on                                                               
HB  96 [copy  included in  the committee  packet], which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     In Alaska, the Pharmacy  Board requires a pharmacy that                                                                    
     only  distributes dialysis  supplies  and solutions  to                                                                    
     the home of dialysis patients,  to comply with the same                                                                    
     arduous  requirements   as  retail   pharmacies  (e.g.,                                                                    
     Walgreens,  CVS)  that  handle  controlled  substances,                                                                    
     compounds,  and   dispense  medications   with  varying                                                                    
     safety  profiles.  Pharmacies   that  deliver  dialysis                                                                    
     supplies  and solutions  only offer  a limited  product                                                                    
     portfolio and follow all  Quality and FDA requirements;                                                                    
     additional retail pharmacy mandates  are onerous to the                                                                    
     operations.                                                                                                                
                                                                                                                                
     Currently  24  states   allow  manufacturers  that  are                                                                    
     registered  as  wholesale  drug  distributors  and  who                                                                    
     distribute dialysis supplies  and solutions, to deliver                                                                    
     directly  to home  dialysis patients.  An additional  8                                                                    
     states provide  for some form of  special licensure for                                                                    
     the distribution  of these products which  ensures that                                                                    
     the  dialysis supplies  are available  for delivery  to                                                                    
     patients.  Both Hawaii  and Nevada  have bills  pending                                                                    
     this session to accomplish the same goal.                                                                                  
                                                                                                                                
     HB 96  would amend the  pharmacy practice act  to allow                                                                    
     manufacturers  of  home  dialysis drugs,  supplies  and                                                                    
     devices to  be exempted from pharmacy  if they maintain                                                                    
     control  of  all  products from  manufacturing  to  the                                                                    
     patient.  This  would  still require  the  pharmacy  to                                                                    
     maintain any  additional licenses such as  a wholesaler                                                                    
     license.                                                                                                                   
                                                                                                                                
4:18:26 PM                                                                                                                    
                                                                                                                                
CHADWICK  VANCE, Staff,  Representative Mike  Prax, Alaska  State                                                               
Legislature,  on behalf  of Representative  Prax, prime  sponsor,                                                               
presented the sectional analysis for  HB 96 [copy included in the                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Section  1:  This  section amends  AS  08.80.157(h)  to                                                                    
     provide  wholesale  drug  distributors the  ability  to                                                                    
     legally  deliver dialysate  drugs and  devices directly                                                                    
     to patients.                                                                                                               
                                                                                                                                
4:19:14 PM                                                                                                                    
                                                                                                                                
ELIZABETH STOLL,  Director, State and Government  Affairs, Baxter                                                               
International  Incorporated, on  behalf  of Representative  Prax,                                                               
prime  sponsor, gave  a PowerPoint  presentation, titled  "Alaska                                                               
House  Bill 96"  [hardcopy included  in committee  packet].   She                                                               
began  on slide  2, which  addressed the  treatment of  end state                                                               
renal disease (ESRD)  in Alaska.  She pointed out  that there are                                                               
1,086 ESRD patients in the state,  of which 154 are home dialysis                                                               
patients.                                                                                                                       
                                                                                                                                
MS. STOLL  moved to  slide 3 and  addressed how  patients receive                                                               
dialysis  products  at home.    She  pointed  out that  for  ESRD                                                               
patients who  elect to  receive dialysis in  the home,  they must                                                               
receive monthly home shipments of  supplies.  The slide lists the                                                               
details of the supplies, which  when shipping, weighs between 500                                                               
and 1,000  pounds.  She  pointed out  that because of  this, home                                                               
delivery  is an  essential service  for  the home  patient.   She                                                               
moved to slide  4, which continued how  patients receive dialysis                                                               
products at  home.  She stated  that patients must be  trained on                                                               
using the dialysis kits, while  the physician would determine the                                                               
monthly supply  needed and  send this to  the pharmacy  where the                                                               
monthly shipment order is determined.   This will then be shipped                                                               
to a  nearby distribution center,  where employees  organize each                                                               
patient's  monthly  supplies  into  deliveries.    After  several                                                               
compliance  checks  the  orders  are delivered  directly  to  the                                                               
patient's home.                                                                                                                 
                                                                                                                                
4:25:01 PM                                                                                                                    
                                                                                                                                
MS. STOLL advanced to slide 5  and addressed why the law needs to                                                               
be  changed.   The slide  read as  follows [original  punctuation                                                               
provided].                                                                                                                      
                                                                                                                                
     The  Alaska Pharmacy  Board  requires  a pharmacy  that                                                                    
     only  distributes dialysis  supplies  and solutions  to                                                                    
     the home of dialysis patients,  to comply with the same                                                                    
     arduous requirements  as retail pharmacies  that handle                                                                    
     controlled   substances,    compounds,   and   dispense                                                                    
     medications with varying safety profiles.                                                                                  
                                                                                                                                
     These  Pharmacies that  deliver  dialysis supplies  and                                                                    
     solutions only  offer a  limited product  portfolio and                                                                    
     follow all Quality and FDA requirements.                                                                                   
                                                                                                                                
     The law also requires  a licensed pharmacist (above and                                                                    
     beyond  the  Alaska  licensed   out  of  state  central                                                                    
     pharmacy that  has processed  the order)  to physically                                                                    
     view  the boxes  before they  can leave  the warehouse,                                                                    
     which is onerous and unnecessary.                                                                                          
                                                                                                                                
MS.  STOLL moved  to slide  6,  which read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     What does the Bill DO?                                                                                                     
                                                                                                                                
     This bill will:                                                                                                            
     Amend the pharmacy practice  act to allow manufacturers                                                                    
     of  home dialysis  drugs, supplies  and  devices to  be                                                                    
     exempted  from being  licensed as  a  pharmacy if  they                                                                    
     maintain control of all  products from manufacturing to                                                                    
     the patient.                                                                                                               
                                                                                                                                
     This would  still require the location  to maintain any                                                                    
     additional  licenses,  such  as  an  Alaska  wholesaler                                                                    
     license.                                                                                                                   
                                                                                                                                
     This  means  the Alaska  Board  of  Pharmacy still  has                                                                    
     jurisdiction over the location and its operations.                                                                         
                                                                                                                                
MS.  STOLL moved  to slide  7,  which read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Why Is this Change Ok for Alaskans?                                                                                        
                                                                                                                                
     In  Alaska, we  believe  the requirement  to require  a                                                                    
     pharmacist to review and place  a second label onto the                                                                    
     boxes  prior to  leaving the  warehouse is  onerous and                                                                    
     unnecessary.                                                                                                               
                                                                                                                                
     This  bill  will  mirror what  the  National  Board  of                                                                    
     Pharmacy's Model Act outlines  for these pharmacies and                                                                    
     distribution centers.                                                                                                      
                                                                                                                                
     There are  24 states  that currently operate  under the                                                                    
     model and an additional 8  states provide for some form                                                                    
     of  special licensure  for  the  distribution of  these                                                                    
     products with zero instances of harm to any patient.                                                                       
                                                                                                                                
4:26:36 PM                                                                                                                    
                                                                                                                                
MS.  STOLL moved  to slide  8 and  pointed out  that this  is the                                                               
standard of practice  in 32 other states.  She  advanced to slide                                                               
9 to  present a map of  states that exempt ESRD  distribution and                                                               
those which  require minimal pharmacy  audits.   She transitioned                                                               
to slide 10,  which addressed things to  consider, including that                                                               
the proposed  legislation would not include  diabetes supplies or                                                               
any  other type  of  device, no  compounding  or manipulation  of                                                               
products  would   occur,  and   solutions  would  be   under  the                                                               
manufacturers control  from the  licensed manufacturing  plant to                                                               
the patient's home.                                                                                                             
                                                                                                                                
4:28:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER asked why the change is good for Alaskans.                                                                
                                                                                                                                
MS. STOLL  answered that the  change simplifies  the distribution                                                               
model and removes  unnecessary regulations.  She  added that this                                                               
therapy would save money for Medicaid recipients.                                                                               
                                                                                                                                
4:29:19 PM                                                                                                                    
                                                                                                                                
VICE CHAIR RUFFRIDGE  inquired as to what  the distribution model                                                               
looks like for rural Alaska.                                                                                                    
                                                                                                                                
MS. STOLL responded that nothing  of what currently happens would                                                               
change.   She explained that  there is an  Anchorage distribution                                                               
facility with a system of boat  and air transport that would move                                                               
orders to rural Alaska.                                                                                                         
                                                                                                                                
VICE   CHAIR   RUFFRIDGE   questioned   whether   the   Anchorage                                                               
distribution  center  or  the  facility   in  North  Carolina  is                                                               
licensed.                                                                                                                       
                                                                                                                                
MS.   STOLL   explained   that   Baxter   International   has   a                                                               
manufacturing  license  in  North  Carolina,  and  the  Anchorage                                                               
distribution center is  licensed as a wholesaler  and a pharmacy.                                                               
She   added   that   with  the   proposed   legislation,   Baxter                                                               
International  would  be removing  the  pharmacy  license at  the                                                               
Anchorage distribution center.                                                                                                  
                                                                                                                                
4:30:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX questioned the dialysis kits.                                                                               
                                                                                                                                
MS. STOLL explained the contents of  a dialysis kit.  In response                                                               
to  a follow-up  question,  she elaborated  that  the process  is                                                               
overseen by a physician or a dialysis center.                                                                                   
                                                                                                                                
4:34:21 PM                                                                                                                    
                                                                                                                                
VICE CHAIR RUFFRIDGE announced that HB 96 was held over.                                                                        
                                                                                                                                
4:34:27 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 4:34 p.m.                                                                                                          

Document Name Date/Time Subjects
HB 96 Fiscal Note DCCED.pdf HHSS 3/30/2023 3:00:00 PM
HB 96
HB 96 Presentation Slides v.2.pptx HHSS 3/30/2023 3:00:00 PM
HB 96
HB 96 Sectional Analysis.pdf HHSS 3/30/2023 3:00:00 PM
HB 96
HB 96 Sponsor statement.pdf HHSS 3/30/2023 3:00:00 PM
HB 96
HB0096A.PDF HHSS 3/30/2023 3:00:00 PM
HB 96
APCA Workforce Panel AkLeg 20230328.pdf HHSS 3/30/2023 3:00:00 PM
APCA Presentation
HB96- Licensing-Drugs.Devices for Home Dialysis- Letter of Opposition from AK Board of Pharmacy.pdf HHSS 3/30/2023 3:00:00 PM
HB 96
2023_0330_Health Care Apprenticeships in Alaska.pptx HHSS 3/30/2023 3:00:00 PM
Cathy Munoz