04/16/2014 01:30 PM Senate HEALTH & SOCIAL SERVICES

        HB 134-MEDICAID PAYMENT FOR MEDISET PRESCRIPTION                                                                    
                                                                                                                                
1:47:15 PM                                                                                                                    
CHAIR  STEDMAN  announced  the consideration  of  HB  134.  [CSHB
(HSS)  was before  the committee.]  He said  it is  the second                                                               
hearing  on  the bill.  The  intent  is  to  move the  bill  from                                                               
committee with the attached Letter of Intent.                                                                                   
                                                                                                                                
1:47:26 PM                                                                                                                    
CHARLES  GUINCHARD, Staff,  Representative  Mia Costello,  Alaska                                                               
State Legislature, Juneau,  Alaska, presented information related                                                               
to HB 134 on behalf of the  sponsor. He said that the sponsor has                                                               
no objection to the Letter of Intent.                                                                                           
                                                                                                                                
CHAIR STEMAN read the Letter of Intent:                                                                                         
                                                                                                                                
     It is the  intent of the Alaska  State Legislature that                                                                    
     the  Commissioner  of  the  Department  of  Health  and                                                                    
     Social Services  make every reasonable effort  to adopt                                                                    
     equitable   regulations   providing    the   same   fee                                                                    
     established in  AS 47.07.031 to  all pharmacies  in the                                                                    
     state that  dispense medisets or similar  unit doses to                                                                    
     qualified medical assistance recipients in the state.                                                                      
                                                                                                                                
He explained  that the  committee wanted a  broader reach  and to                                                               
have it apply to smaller pharmacies also.                                                                                       
                                                                                                                                
1:49:03 PM                                                                                                                    
WILLIAM  STREUR, Commissioner,  Department of  Health and  Social                                                               
Services  (DHSS),  introduced  himself   and  offered  to  answer                                                               
questions related to HB 134.                                                                                                    
                                                                                                                                
CHAIR  STEDMAN asked  Commissioner Struer  if he  was comfortable                                                               
with the Letter of Intent.                                                                                                      
                                                                                                                                
COMMISSIONER STREUR  said he  is comfortable  with the  Letter of                                                               
Intent and  the recommendation  contained therein  but, depending                                                               
on how  the Letter  of Intent  is interpreted,  it could  be very                                                               
expensive.                                                                                                                      
                                                                                                                                
CHAIR  STEDMAN  said that  would  be  up  to the  Senate  Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
SENATOR MICCICHE  requested more  information about  the possible                                                               
expense.                                                                                                                        
                                                                                                                                
COMMISSIONER  STREUR  related that  the  department  worked on  a                                                               
fiscal  note  based  on  what would  happen  if  restrictions  in                                                               
regulations were  removed. He  stated that  the Letter  of Intent                                                               
addresses regulations and not the  bill because the bill does not                                                               
speak to  a percentage  of medisets a  pharmacy must  dispense in                                                               
order  to qualify  for  the reimbursement.  If  the provision  is                                                               
opened statewide,  it would cost  about $500,000 more a  year for                                                               
dispensing fees.                                                                                                                
                                                                                                                                
CHAIR  STEDMAN  asked  if  dispensing   fees  are  controlled  by                                                               
regulation.                                                                                                                     
                                                                                                                                
COMMISSIONER STREUR said yes.                                                                                                   
                                                                                                                                
1:51:16 PM                                                                                                                    
SENATOR MICCICHE moved  to report CS for HB 134,  version E, from                                                               
committee with  individual recommendations, attached  zero fiscal                                                               
note, and the attached Letter of Intent.                                                                                        
                                                                                                                                
CHAIR STEDMAN announced that without  objection, CSHB 134(HSS) is                                                               
reported  from the  Senate Health  and  Social Services  Standing                                                               
Committee.