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**
        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.                                                                        

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