Legislature(2025 - 2026)BARNES 124
03/31/2025 03:15 PM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB70 | |
| SB80 | |
| HB149 | |
| HB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 70 | TELECONFERENCED | |
| + | SB 80 | TELECONFERENCED | |
| *+ | HB 149 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 149-PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN
3:57:59 PM
CO-CHAIR HALL announced that the next order of business would be
HOUSE BILL NO. 149, "An Act relating to pharmacy benefits
managers; relating to third-party administrators; and providing
for an effective date."
3:58:32 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, Presented
HB 149, sponsored by the House Labor & Commerce Standing
Committee, on which Representative Fields served as co-chair.
He said that HB 149 was designed to ensure that the Division of
Insurance could implement policies established by House Bill
226, which was legislation passed in 2024 regarding pharmacy
benefits managers (PBMs). He stated that HB 149 would require
third-party administrators (TPAs) and PBMs to be licensed in
Alaska. He noted that the proposed legislation proposes a
licensing fee and gives the Division of Insurance regulatory
authority. He stated that the proposed legislation is necessary
for transparency in PBMs and ensuring affordability and
availability of pharmaceuticals, noting that there are a growing
number of firms calling themselves TPAs in Alaska.
3:59:36 PM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, gave an overview of the sectional analysis
[included in the committee file] for HB 149 on behalf of the
bill sponsor, the House Labor and Commerce Standing Committee,
on which Representative Fields serves as co-chair. The
sectional analysis read as follows [original punctuation
provided]:
Section 1. Amends AS 21.06.120(a): Examination of
insurers.
This section adds pharmacy benefits managers to the
list of licensed and formerly licensed groups the
affairs of which the director may examine.
Section 2. Amends AS 21.06.120(d): Examination of
insurers.
This section adds third-party administrators and
pharmacy benefits managers to the list of groups in
which the director may examine through multi-state
participation with the National Association of
Insurance Commissioners.
Section 3. Adds a new subsection to AS 21.06.120:
Examination of insurers.
This section adds a new subsection allowing the
director to examine third party administrators or
pharmacy benefits managers at any time that the
director deems necessary.
Section 4. Amends AS 21.06.160(a): Examination
expense.
This section removes an exemption for third-party
administrators and makes them responsible for paying
costs associated with a market conduct examination.
Section 5. Amends AS 21.27.010(a): License required.
This section adds Third-Party Administrators and
Pharmacy Benefits Managers to the list of people
required to be licensed under this chapter to do
business in this state.
Section 6. Amends AS 21.27.010(c): License required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 22.
This section also replaces the statute number with the
verbiage "this chapter" since TPA will now be subject
to licensing requirements throughout the chapter
Section 7. Adds a new subsection to AS 21.27.010
License required.
This section adds a new subsection (l) clarifying
third-party administrators and pharmacy benefits
managers are also subject to specific licensing
requirements under the AS 21.27.630 21.27.660 (TPA)
and AS 21.27.901 21.27.955 (PBM).
Section 8. Amends AS 21.27.060(d): Examination of
applicants and licensees.
This section exempts a compliance officer for a third-
party administrator or pharmacy benefits manager from
taking an exam from the division before a license is
issued.
Section 9. Amends AS 21.27.380(b): License renewal,
expiration, and reinstatement.
This section pertains to license expiration and adds
third-party
administrators and pharmacy benefits managers to the
list of entities who may not operate in the state with
an expired license.
Section 10. Amends AS 21.27.630(a): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on lines 24 and 27.
Section 11. Amends AS 21.27.630(b): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 30.
Section 12. Amends AS 21.27.630(c): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 2.
This section also replaces the statute number with the
verbiage "this chapter" since TPA will now be subject
to licensing requirements throughout the chapter.
Section 13. Amends AS 21.27.630(d): Registration
required.
This section makes conforming changes by replacing the
term "registration" with "license" on line 7. This
section is about fraudulent use of a name.
Section 14. Amends AS 21.27.630(e): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 12. This
section is about entities must be licensed not the
individual.
This section also replaces the verbiage "section" with
"chapter" since TPA will now be subject to licensing
requirements throughout the chapter.
Section 15. Amends AS 21.27.630(g): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 18. This
section pertains to credit unions banks or other
financial institutions.
Section 16. Amends AS 21.27.630(h): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 24. This
section pertains to credit card companies.
Section 17. Amends AS 21.27.630(i): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 29. This
section pertains to ERISA plans which are exempted
from licensure.
Section 18. Amends AS 21.27.630(j): Registration
required.
This section makes conforming changes by replacing the
term "registration" with "license" on lines 8 and 9.
It also removes duplicative language no longer needed
since TPA will be required to be licensed. This
section is relating to suspensions and revocations of
license.
Section 19. Amends AS 21.27.630(k): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 12. This
section is regarding an exemption for insurers who
hold a certificate of authority from the director.
Section 20. Amends AS 21.27.630(l): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on lines 15.
Adds the requirement that any entity that meets the
qualifications of an exempt TPA file a certification
with the director annually on or before February 1st
of each year.
Section 21. Amends AS 21.27.630(m): Registration
required.
This section pertains to exempting employees of third-
party administrators from licensing requirements and
makes conforming changes by replacing the term
"registered" with "licensed" on line 22.
This section also adds language requiring designated
compliance officers to be licensed.
Section 22. Amends AS 21.27.640(a): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registration" with "license" on lines 27 and 28.
This section relates to untrustworthy and incompetent
licensees.
Section 23. Amends AS 21.27.640(b): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registration" with "license" on line 2 and the
term "registrant" with "licensee" on lines 3, 23, and
26. This section lists criteria relating to licensee
qualifications
Section 24. Amends AS 21.27.640(d): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registrant" with "licensee" on lines 1 and 2,
the term "registration" with "license" on line 3. This
section pertains to license approval by director.
Section 25. Amends AS 21.27.650(a): Operating
requirements for third-party administrators.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 9. Removes
an exemption for a TPA registered in their home state
applying for a non-resident Alaska license. By
eliminated the exemption, we are now requiring all TPA
who are operating in Alaska to be licensed regardless
of their resident state status.
Section 26. Amends AS 21.27.650(q): Operating
requirements for third-party.
This section makes conforming changes by replacing the
term "registration" with "license" on line 17. This
section outlines criteria by which a director may
revoke a license.
Section 27. Amends AS 21.27.901: Registration of
pharmacy benefits managers; scope of business
practice.
This section makes the following conforming changes:
• Replaces the term "registration" with "license" in
the statute title.
• Replaces the term "registered" with "licensed" on
page 12, line 30 and page 13, lines 1 and 14.
• Replaces the term "registration" with "license" on
page 13, lines 8, 11, and 12.
Section 28. Adds new sections AS 21.27.903, 904.
This section adds 21.27.903 Pharmacy benefits manager
qualifications which outlines the following
qualifications:
Disclosures; including information concerning
owners, officers, directors and partners, action taken
against them by a financial industry regulatory
authority (including the government), and criminal
prosecution.
• Identified a designated compliance officer.
• A complete application, which includes:
o Application fee
o Organizational documents, including regulatory
documents.
o Contact information for the people responsible for
the conduct
of affairs for the pharmacy benefit manager.
o Certified financial documents for the last two
years, or for the last year and partial year if the
applicant has been in business for less than two
years.
This section adds 21.27.904 Pharmacy benefit manager
required
notifications.
Outlines that PBMs must notify the director of the
following:
• Change of information i.e. place of business, email,
address,
telephone number.
• Change in compliance officer and contact
information.
• Any administrative action taken against the
licensee.
• Conviction of misdemeanor or felony.
Failure to provide the above information may result in
denial, revocation or suspension or license.
Section 29. Amends AS 21.27.905: Renewal of
registration.
This section makes the following conforming changes:
• Replaces the term "registration" with "license" in
the statute title.
• Replaces the term "registration" with "license" on
lines 24 and 26.
Regarding procedures for biennial renewal of license,
and renewal fees established by the director that are
self-supporting for the division.
Section 30. Adds a new subsection to AS 21.27.905:
Renewal of registration.
This section adds a new subsection requiring the
licensing fees of pharmacy benefit managers to cover
the cost of:
• Salaries and benefits paid to the personnel of the
division tasked with enforcement.
• Reasonable technology costs related to the
enforcement process of pharmacy benefits manager
licensing, including cost of software, hardware and
related training for use of said software and
hardware.
• Reasonable education and training costs to the
division for the enforcing personnel.
Section 31. Amends AS 21.27.975(15): Definitions.
This section adds "regardless of ownership of the
pharmacy benefits manager" to the definition of
pharmacy benefits manager.
Section 32. Repeals AS 21.27.630(f):
Sec. 21.27.630(f). Registration required.
This provision is no longer needed because they now
must be licensed rather than registered.
Section 33. Sets an effective date for January 1,
2026.
4:02:16 PM
REPRESENTATIVE COULOMBE asked for the difference between a TPA
and a PBM.
REPRESENTATIVE FIELDS replied that, functionally, there was not
much of a difference between a TPA and a PBM which necessitates
the proposed legislation. He deferred to Heather Carpenter.
4:03:05 PM
HEATHER CARPENTER, Deputy Director, Division of Insurance,
Department of Commerce, Community & Economic Development,
replied that a PBM, by Alaska Statute (AS), is "a person that
contracts with a pharmacy on behalf of an insurer to process
claims or pay pharmacies for prescription drugs or medical
devices and supplies, or provide network management for
pharmacies." She stated that PBMs are likely working with an
insurer, and the insurer was responsible for compliance prior to
the passage of House Bill 226 from the prior year. She stated
that the TPA has been paying claims for a "whole suite of
healthcare services." She used Alaska Care health insurance as
an example, stating that Aetna is the TPA overseeing that plan.
4:04:20 PM
REPRESENTATIVE COULOMBE asked if there was a difference between
"registered" and "licensed."
4:04:40 PM
MS. CARPENTER stated that the Division of Insurance, upon the
passage of House Bill 226, realized that it did not have the
full authority with registration to ensure consumer protection
or facilitate market conduct exams in the name of regulating
PBMs. She referred to other states in the nation that were
moving from registration schemes to licensure schemes for full
transparency. She noted that there has been vertical
integration in PBMs and TPAs. She further noted that the change
from "registered" to "licensed" would create clarity and less
confusion for staff members doing the licensing.
4:05:35 PM
REPRESENTATIVE COULOMBE asked if there was concern in repealing
AS.21.27.630, noting that section was significant.
MS. CARPENTER acknowledged that that section referred to
exemptions and was large. She noted that the Division of
Insurance was seeing a concerning pattern of entities asking the
licensing team for exemption. She stated that the intention was
to "clean-up exemptions that were not offering transparency,"
noting that the exemption outlined under AS.21.27.630 was
particularly confusing. She opined that there were many gaps
that did not offer transparency in who was performing what
service.
MS. CARPENTER reported that in the last year, there were
multiple complaints from providers who were not getting paid
when Change Health[care] experienced a data breach. She
explained that the Division of Insurance could not do anything
because Change Healthcare was a TPA that was just registered and
qualified for exemptions. She stated that the intention of the
repeal was to ensure that "good entities were paying for your
healthcare."
REPRESENTATIVE COULOMBE asked for confirmation that the proposed
legislation would remove a lot of exemptions.
MS. CARPENTER confirmed that is correct.
4:07:43 PM
CO-CHAIR HALL announced that HB 149 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 70 - Intervention Performed on MWD in the Preshopsital Combat Setting 2019.pdf |
HHSS 3/20/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Recommendations for Prehospital Veterinary Care 1.3.2016.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Causes of Mortality in MWDs from Traumatic Injuries 8.7.2024.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Retrospective Gunshot Wound Study 1.1.2013.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Bill Text.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Sponsor Statement.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Sectional Analysis.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Summary of Changes V.N to V.I.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Presentation.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Support Testimony - Received as of 3.25 (redacted).pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 - Opposition Testimony Recieved as of 3.25 (redacted).pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version A Fiscal Note DOH Public Health.pdf |
HHSS 2/18/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| SB80 Sponsor Statement ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-BGCSB Audit 06.22.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Board of Massage Therapists Audit 8.14.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Fiscal Note-DCCED-AMCO 01.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Fiscal Note-DCCED-CBPL 01.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Sectional Analysis ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Marijuana Control Board Audit 10.30.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Letter-AK Prof Hunters Assoc. 02.04.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB 80 Letter of Support APHA 2.4.25.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Board of Massage Therapists Audit Ver. A 8.14.23.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Supporting Document - Sunset Review of ACoA Conclusions.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 work draft version N.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Explanation of Changes ver A to ver N 2025.03.04.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Supporting Document -Commission on Aging Audit.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| HB0149A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 149 - Sponsor Statement v.A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 149 - Sectional Analysis v.A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB149-DCCED-DOI-03-21-25.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 70 Version I - Presentation 3.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |