Legislature(2023 - 2024)BARNES 124

04/22/2024 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 226 PHARMACIES/PHARMACISTS/BENEFITS MANAGERS TELECONFERENCED
Moved CSHB 226(L&C) Out of Committee
+= HB 187 PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS TELECONFERENCED
Moved CSHB 187(L&C) Out of Committee
*+ HB 375 ENERGY SOURCES OF MOTOR VEHICLES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HJR 27 SUPPORTING CERTAIN US TRADE POLICIES TELECONFERENCED
Scheduled but Not Heard
+= HB 233 RATES: MOTOR VEHICLE WARRANTY WORK TELECONFERENCED
Moved HB 233 Out of Committee
+= HB 150 RESIDENTIAL BUILDING CODE TELECONFERENCED
Moved CSHB 150(L&C) Out of Committee
+= HB 149 NURSING: LICENSURE; MULTISTATE COMPACT TELECONFERENCED
Moved CSHB 149(L&C) Out of Committee
         HB 187-PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS                                                                      
                                                                                                                                
3:33:45 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  RUFFRIDGE announced that  the next order  of business                                                               
would  be HOUSE  BILL NO.  187, "An  Act relating  to utilization                                                               
review  entities; exempting  certain health  care providers  from                                                               
making  preauthorization  requests   for  certain  services;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:34:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS moved  to  adopt Amendment  1  to HB  187,                                                               
labeled 33-LS0696\A.1, Wallace, 3/15/24, which read:                                                                            
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "exempting certain health care providers                                                                     
     from making preauthorization requests"                                                                                   
          Insert "relating to prior authorization requests"                                                                   
                                                                                                                                
     Page 3, following line 23:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(j)  If a utilization review entity requires a                                                                       
     prior authorization  for a health care  service for the                                                                    
     treatment  of a  chronic or  long-term care  condition,                                                                    
     the prior authorization is valid  for the length of the                                                                    
     treatment  and the  utilization review  entity may  not                                                                    
       require the covered person to obtain another prior                                                                       
     authorization for the health care service."                                                                                
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
REPRESENTATIVE SADDLER objected for purposes of discussion.                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS  explained that  Amendment 1  would clarify                                                               
that if someone  is living with a chronic condition  and a health                                                               
care  service  was  granted prior  authorization,  another  prior                                                               
authorization  would  not  need  to  be  obtained  to  cover  the                                                               
service.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SADDLER   asked  Ms.   Wing-Heier  to   speak  to                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
3:35:28 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce, Community  & Economic Development, pointed  out that if                                                               
the   patient  were   to   change   insurance  companies,   prior                                                               
authorization may need to be requested again.                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS said he had  assumed that the company would                                                               
remain the same.                                                                                                                
                                                                                                                                
3:36:21 PM                                                                                                                    
                                                                                                                                
SARENA HACKENMILLER,  Staff, Representative Jesse  Sumner, Alaska                                                               
State  Legislature, on  behalf  of  Representative Sumner,  prime                                                               
sponsor of HB 187, said the  sponsor has no issues with Amendment                                                               
1.                                                                                                                              
                                                                                                                                
3:36:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked whether  there would be  a requirement                                                               
for  the provider  to  give prior  authorization  to use  another                                                               
treatment as technology changes.                                                                                                
                                                                                                                                
REPRESENTATIVE FIELDS  said if the  treatment changed and  it was                                                               
not  covered in  the underlying  prior authorization  policy, the                                                               
new treatment could be approved through a prior authorization.                                                                  
                                                                                                                                
VICE CHAIR RUFFRIDGE  shared a personal anecdote  about a patient                                                               
who  transitioned to  a different  treatment that  required prior                                                               
authorization and  consequently missed a dose  of the medication,                                                               
which triggering a relapse in the disease.                                                                                      
                                                                                                                                
3:38:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER how long prior authorization lasts.                                                                      
                                                                                                                                
MS.  WING-HEIER   said  prior   authorization  is   for  specific                                                               
treatment that day,  not for chronic conditions  that require the                                                               
same treatment repeatedly.                                                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether  it would be  reasonable to                                                               
provide  prior  authorization  for   a  lifelong  condition  that                                                               
requires treatment over the course of a person's life.                                                                          
                                                                                                                                
MS.  WING  HEIER  shared  her   understanding  that  for  chronic                                                               
conditions such  as MS, the  prior authorization would  live with                                                               
the consumer for the length of their treatment.                                                                                 
                                                                                                                                
REPRESENTATIVE  SADDLER sought  to  confirm that  if Amendment  1                                                               
were adopted, another prior authorization  would only be required                                                               
upon change in  treatment or change in technology.   He expressed                                                               
concern   about   open   ended   coverage   and   asked   whether                                                               
Representative Fields would be comfortable  with adding some kind                                                               
of chronological limitation.                                                                                                    
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  said he would defer  to maintaining timely                                                               
treatment  over  the  alternative.   He  declined  to  suggest  a                                                               
timeframe   without  input   from  someone   with  more   medical                                                               
expertise.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  SADDLER suggested  that  the  timeframe could  be                                                               
three  years  or the  duration  of  the  illness    whichever  is                                                               
shorter.                                                                                                                        
                                                                                                                                
3:42:45 PM                                                                                                                    
                                                                                                                                
MS.  WING-HEIER said  she  would  not oppose  a  timeframe of  36                                                               
months.                                                                                                                         
                                                                                                                                
REPRESENTATIVE SADDLER asked Ms. Hackenmiller                                                                                   
                                                                                                                                
MS.  HACKENMILLER agreed  that  the sponsor  would  not oppose  a                                                               
timeframe.                                                                                                                      
                                                                                                                                
3:43:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER moved Conceptual  Amendment 1 to Amendment                                                               
1 to insert  "or every 36 months, whichever is  shorter," on line                                                               
10 after  the word "treatment".   He said the intent  is to avoid                                                               
an open-ended exemption from a prior authorization requirement.                                                                 
                                                                                                                                
VICE CHAIR RUFFRIDGE  objected.  He acknowledged  why a sideboard                                                               
would  be considered;  however, the  bill applies  to a  group of                                                               
people who are  taking medication or receiving  services for rare                                                               
and  debilitating  conditions.    He  opined  that  the  proposed                                                               
amendment  would make  the purpose  of  the underlying  amendment                                                               
worse, and  that people may  feel "sucker punched" at  the three-                                                               
year mark.                                                                                                                      
                                                                                                                                
3:45:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK echoed  Vice  Chair Ruffridge's  comments                                                               
and said she would want to  hear more from providers on long term                                                               
care conditions before putting a timeframe on it.                                                                               
                                                                                                                                
3:47:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS agreed with  his colleagues that a provider                                                               
should be consulted before implementing a timeframe.                                                                            
                                                                                                                                
3:47:48 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease at 3:47 p.m.                                                                                      
                                                                                                                                
3:48:38 PM                                                                                                                    
                                                                                                                                
PAM   VENTGEN,   Executive   Director,   Alaska   State   Medical                                                               
Association,  agreed that  three years  could catch  patients and                                                               
physicians off  guard and interrupt  treatment, which  could have                                                               
dilatory effects.   She  said she  would heir on  the side  of no                                                               
time limit rather than risking that interruption of care.                                                                       
                                                                                                                                
REPRESENTATIVE  SADDLER  sought  clarity  on  the  meaning  of  a                                                               
chronic long-term condition.                                                                                                    
                                                                                                                                
MS.  VENTGEN  said  something  under  six  months  is  acute  and                                                               
something over 6 months is chronic.                                                                                             
                                                                                                                                
REPRESENTATIVE SADDLER questioned the impact of Amendment 1.                                                                    
                                                                                                                                
MS. VENTGEN opined  that Amendment 1 would be a  good addition to                                                               
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  SADDLER   withdrew  Conceptual  Amendment   1  to                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
3:51:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER removed  his  objection  to Amendment  1.                                                               
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
3:51:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  moved  to  adopt Amendment  2  to  HB  187,                                                               
labeled 33-LS0696\A.2, Klein/Wallace, 4/15/24, which read:                                                                      
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "utilization review entities; exempting                                                                      
    certain    health    care   providers    from    making                                                                   
     preauthorization"                                                                                                        
          Insert   "health    care   insurers    and   prior                                                                
     authorization"                                                                                                           
                                                                                                                                
     Page 1, line 6, following "standards":                                                                                     
          Insert ", requirements,"                                                                                          
                                                                                                                              
     Page 1, lines 8 - 9:                                                                                                       
          Delete ", including processes for utilization                                                                     
     review entities under AS 21.07.100"                                                                                    
          Insert "; the regulations                                                                                         
               (A)  must require health care insurers that                                                                  
    use   prior   authorizaton   offer   a   simple   prior                                                                 
     authorization process for patients and providers; and                                                                  
               (B)  may require that health care insurers                                                                   
        design programs to waive prior authorization for                                                                    
     health care providers who satisfy criteria established                                                                 
     by the director"                                                                                                       
                                                                                                                              
     Page 2, line 1, through page 4, line 19:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
VICE CHAIR RUFFRIDGE objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX  explained that Amendment 2  would direct the                                                               
Division  of  Insurance  to establish  regulations  that  require                                                               
health  insurers to  offer simple  and streamlined  processes for                                                               
patients and providers  through a number of ways.   It would also                                                               
establish  processes   for  health  insurance  to   design  prior                                                               
authorization exemption or waiver  programs based on the criteria                                                               
developed by the division.   The amendment would delete Section 2                                                               
because the details would be outlined in regulation.                                                                            
                                                                                                                                
3:53:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WRIGHT  asked  the   bill  sponsor  to  speak  to                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
MS.  HACKENMILLER  said  the  bill  sponsor  does  not  find  the                                                               
proposed amendment stringent enough, as  HB 187 aims to expediate                                                               
healthcare access to Alaskans.                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX reiterated this support for Amendment 2.                                                                    
                                                                                                                                
VICE CHAIR RUFFRIDGE maintained his objection.                                                                                  
                                                                                                                                
3:55:05 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives Saddler  and Prax                                                               
voted in favor of Amendment  2.  Representatives Wright, Carrick,                                                               
Fields, and Ruffridge  voted against it.   Therefore, Amendment 2                                                               
failed by a vote of 2-4.                                                                                                        
                                                                                                                                
3:55:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  moved  to  adopt Amendment  3  to  HB  187,                                                               
labeled 33-LS0696\A.3, Klein, 4/19/24, which read:                                                                              
                                                                                                                                
     Page 1, line 2, following "services;":                                                                                   
        Insert "relating to health care data exchange;"                                                                       
                                                                                                                                
     Page 4, line 20:                                                                                                           
          Delete all material and insert:                                                                                       
        "*  Sec. 3.  AS 21.54  is amended  by  adding a  new                                                                
     section to read:                                                                                                           
                Article 2A. Health Care Data Exchange.                                                                        
          Sec. 21.54.200. Health care data exchange. To                                                                       
     facilitate the electronic exchange  of health care data                                                                    
     in  accordance with  federal timelines,  a health  care                                                                    
     insurer offering individual  and group health insurance                                                                    
     policies shall implement and  maintain version 5.0.0 of                                                                    
     Health  Level  Seven Fast  Healthcare  Interoperability                                                                    
     Resources  application program  interfaces,  or a  more                                                                    
     recent version  of Health  Level Seven  Fast Healthcare                                                                    
     Interoperability Resources  adopted by the  director by                                                                    
     regulation.                                                                                                                
          * Sec. 4. Section 1 of this Act takes effect                                                                        
     January 1, 2025.                                                                                                           
      * Sec. 5. Except as provided in sec. 4 of this Act,                                                                     
    this    Act    takes     effect    immediately    under                                                                     
     AS 01.10.070(c)."                                                                                                          
                                                                                                                                
VICE CHAIR RUFFRIDGE objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX  explained that Amendment  3 would add  a new                                                               
requirement for  health care insurers  that offer  individual and                                                               
group  policies in  Alaska to  implement  new federal  technology                                                               
standards related  to inner operability and  prior authorization.                                                               
The  proposed amendment  would synchronize  the state  to federal                                                               
requirements  and ensures  that it  would be  available to  fully                                                               
insured plans  in the  state so that  providers and  patients who                                                               
treat or  are covered  under these  commercial plans  can benefit                                                               
from the  new technologies that  will simplify  the authorization                                                               
process.                                                                                                                        
                                                                                                                                
3:57:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  shared   his  understanding  that  Alaska                                                               
insurers  would  presumably   comply  with  federal  requirements                                                               
regardless of Amendment 3.                                                                                                      
                                                                                                                                
MS.  HACKENMILLER  said she  believed  so.    She said  the  bill                                                               
sponsor  had  not   heard  from  the  industry   on  whether  the                                                               
technology requirements could be met  by the effective date.  For                                                               
that reason, she indicated that  she was not comfortable inviting                                                               
that into the bill.                                                                                                             
                                                                                                                                
3:58:21 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR   RUFFRIDGE  asked  Ms.  Wing-Heier   to  respond  to                                                               
Representative Fields' question.                                                                                                
                                                                                                                                
MS.  WING-HEIER  confirmed  that  state insurers  would  need  to                                                               
comply with federal rules.                                                                                                      
                                                                                                                                
3:59:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether "version  5.0.0 of  Health                                                               
Level   Seven   Fast    Healthcare   Interoperability   Resources                                                               
application program interfaces" is a federal program.                                                                           
                                                                                                                                
MS. WING-HEIER was not familiar  with the technology behind it or                                                               
what it does.                                                                                                                   
                                                                                                                                
3:59:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  asked when  the  federal  law would  become                                                               
effective.                                                                                                                      
                                                                                                                                
MS. WING HEIER offered to follow  up with the effective date.  In                                                               
response to  a follow up  question, she said  insurance companies                                                               
are looking to do more  of an electronic prior authorization that                                                               
would move much faster than faxes.                                                                                              
                                                                                                                                
4:01:13 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  RUFFRIDGE asked  whether  state  law would  need  to                                                               
change for there to be a  move away from faxes into an electronic                                                               
format.                                                                                                                         
                                                                                                                                
MS. WING-HEIER  answered yes,  because Alaska  Statutes reference                                                               
fax machines.                                                                                                                   
                                                                                                                                
VICE CHAIR RUFFRIDGE maintained his objection.                                                                                  
                                                                                                                                
4:02:03 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Prax  voted in favor                                                               
of  Amendment  3.     Representatives  Wright,  Carrick,  Fields,                                                               
Saddler, and Ruffridge voted against  it.  Therefore, Amendment 3                                                               
failed by a vote of 1-5.                                                                                                        
                                                                                                                                
4:02:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  moved  to  adopt Amendment  4  to  HB  187,                                                               
labeled 33-LS0696\A.6, Wallace, 4/19/24, which read:                                                                            
                                                                                                                                
     Page 1, line 2, following "services;":                                                                                   
          Insert "relating to prior authorization requests                                                                    
     for health care services;"                                                                                               
                                                                                                                                
     Page 2, line 1:                                                                                                            
          Delete "a new section"                                                                                                
          Insert "new sections"                                                                                                 
                                                                                                                                
     Page 3, line 24, through page 4, line 19:                                                                                  
          Delete all material and insert:                                                                                       
          "Sec. 21.07.110. Prior authorization standards.                                                                     
    (a)   A    health   care   insurer    requiring   prior                                                                     
     authorization for a health care service shall                                                                              
               (1)   base  prior authorization  requirements                                                                    
     on peer-reviewed clinical review criteria that                                                                             
               (A)  are evidence-based;                                                                                         
               (B)       accommodate   new    and   emerging                                                                    
     information;                                                                                                               
               (C)   are  evaluated  at  least annually  and                                                                    
     updated when necessary;                                                                                                    
               (2)   provide detailed descriptions  of prior                                                                    
     authorization  requirements  to health  care  providers                                                                    
     and  facilities,   written  in   easily  understandable                                                                    
     language;                                                                                                                  
               (3)  provide in  an electronic format current                                                                    
     prior  authorization   requirements  and  restrictions,                                                                    
     including  the  written  clinical review  criteria,  to                                                                    
     health care providers and facilities upon request; and                                                                     
               (4)      establish    an   electronic   prior                                                                    
     authorization process.                                                                                                     
          (b)  When a health care insurer receives an                                                                           
     electronic  prior authorization  request from  a health                                                                    
     care  provider or  facility,  the  health care  insurer                                                                    
     shall                                                                                                                      
               (1)   for a request that  includes sufficient                                                                    
     information  for  the health  care  insurer  to make  a                                                                    
     determination,  make  a  determination and  notify  the                                                                    
     health care provider or facility  of the results of the                                                                    
     determination,                                                                                                             
               (A)   for  a standard  request, within  three                                                                    
     calendar  days, excluding  holidays,  after the  health                                                                    
     care provider or facility submits the request;                                                                             
               (B)   for  an expedited  request, within  one                                                                    
     calendar  day   after  the  health  care   provider  or                                                                    
     facility submits the request;                                                                                              
               (2)   for  a request  that  does not  include                                                                    
     sufficient information  for the health care  insurer to                                                                    
     make  a determination,  within one  calendar day  after                                                                    
     the  health  care  provider  or  facility  submits  the                                                                    
     request,  request   additional  information   from  the                                                                    
     health care provider or facility.                                                                                          
          (c)  If a health care insurer determines that a                                                                       
     health care  provider or facility has  failed to submit                                                                    
     sufficient information  to make a determination  for an                                                                    
     electronic  prior authorization  for a  covered person,                                                                    
     the  health care  insurer  may  establish a  reasonable                                                                    
     time  frame for  submission  of additional  information                                                                    
     and  shall communicate  the time  frame  to the  health                                                                    
     care provider or facility and to the covered person.                                                                       
        *  Sec. 3.  AS 21.07.250  is amended  by adding  new                                                                  
     paragraphs to read:                                                                                                        
                                                                                                                                
               (15)  "health care service" means                                                                                
               (A)      the  provision   of   pharmaceutical                                                                    
     products, services, or durable medical equipment; or                                                                       
               (B)   a health care procedure,  treatment, or                                                                    
     service provided                                                                                                           
               (i)   in a health  care facility  licensed in                                                                    
     this state; or                                                                                                             
               (ii)   by a doctor  of medicine, by  a doctor                                                                    
     of osteopathy,  or within  the scope  of practice  of a                                                                    
     health care provider who is licensed in this state;                                                                        
               (16)   "health maintenance  organization" has                                                                    
     the meaning given in AS 21.86.900;                                                                                         
               (17)     "prior   authorization"  means   the                                                                    
     process  used   by  a  utilization  review   entity  to                                                                    
     determine    the   medical    necessity   or    medical                                                                    
     appropriateness  of  a   covered  health  care  service                                                                    
     before  the  health  care  service  is  provided  or  a                                                                    
     requirement  that  a  covered  person  or  health  care                                                                    
     provider or  facility notify a  health care  insurer or                                                                    
     utilization  review entity  before  providing a  health                                                                    
     care service;                                                                                                              
               (18)   "utilization  review entity"  means an                                                                    
     individual or entity  that performs prior authorization                                                                    
     for                                                                                                                        
               (A)     an  employer   in  this   state  with                                                                    
     employees  covered  under  a  health  benefit  plan  or                                                                    
     health insurance policy;                                                                                                   
               (B)  a health care insurer;                                                                                      
               (C)  a preferred provider organization;                                                                          
               (D)  a health maintenance organization; or                                                                       
               (E)  an individual or entity that provides,                                                                      
     offers   to    provide,   or    administers   hospital,                                                                    
     outpatient,  medical,   prescription  drug,   or  other                                                                    
     health care  benefits to a  person treated by  a health                                                                    
     care  provider licensed  in this  state under  a health                                                                    
     care policy, plan, or contract."                                                                                           
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
VICE CHAIR RUFFRIDGE objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX explained that  Amendment 4 would provide for                                                               
tighter  prior authorization  turnaround  times,  which is  three                                                               
days for  standard and one  day for  urgent requests, so  long as                                                               
the  complete prior  authorization  request is  completed via  an                                                               
electronic portal.                                                                                                              
                                                                                                                                
4:03:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT asked to hear from the bill sponsor.                                                                      
                                                                                                                                
MS. HACKENMILLER shard her belief  that the intent of Amendment 4                                                               
is  already  being accomplished  in  the  underlying bill.    She                                                               
cautioned  against  the  length  of the  proposed  amendment  and                                                               
pointed  out that  it would  essentially rewrite  the bill.   She                                                               
asked Ms.  Wing-Heier to  speak to  the current  turnaround times                                                               
for prior authorization requests.                                                                                               
                                                                                                                                
4:04:44 PM                                                                                                                    
                                                                                                                                
MS. WING-HEIER said Amendment 4  would delete the bill as written                                                               
and make it so that  each treatment for prior authorization would                                                               
be submitted through an electronic  portal and either approved or                                                               
not  approved.   She said  that  those using  this in  Washington                                                               
state report  a more  expedited system.   She requested  that the                                                               
committee  change the  timeframes  to mirror  current statute  if                                                               
Amendment  4 were  adopted because  current turnaround  times are                                                               
shorter than those stipulated in Amendment 4.                                                                                   
                                                                                                                                
4:05:53 PM                                                                                                                    
                                                                                                                                
VICE CHAIR RUFFRIDGE asked whether  Amendment 4 borrowed language                                                               
from Washington  and whether Representative Prax  had worked with                                                               
the director on its drafting.                                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX confirmed that  the language mirrored that of                                                               
Washington's statutes.                                                                                                          
                                                                                                                                
VICE CHAIR RUFFRIDGE maintained his objection.                                                                                  
                                                                                                                                
4:07:09 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Prax  voted in favor                                                               
of  Amendment  4.     Representatives  Fields,  Saddler,  Wright,                                                               
Carrick, and Ruffridge voted against  it.  Therefore, Amendment 4                                                               
failed by a vote of 1-5.                                                                                                        
                                                                                                                                
4:07:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  moved  to  adopt Amendment  5  to  HB  187,                                                               
labeled 33-LS0696\A.5, Klein/Wallace, 4/20/24, which read:                                                                      
                                                                                                                                
     Page 3, following line 23:                                                                                                 
     Insert a new subsection to read:                                                                                           
          "(j)  A utilization review entity shall allow a                                                                       
     health care  provider to complete  a post-authorization                                                                    
     for  a   health  care  service   instead  of   a  prior                                                                    
     authorization  if,  before  providing the  health  care                                                                    
     service,   the  health   care  provider   notifies  the                                                                    
     utilization review  entity and the covered  person that                                                                    
     the  provider will  seek a  post-authorization and  the                                                                    
     health care provider agrees to  hold the covered person                                                                    
     harmless if the post-authorization is denied."                                                                             
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
VICE CHAIR RUFFRIDGE objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE  PRAX  explained  that Amendment  5  would  direct                                                               
utilization review entities to allow  a medical provider to use a                                                               
post  authorization  process  instead of  a  prior  authorization                                                               
provided  that  the  medical provider  notifies  the  utilization                                                               
review entity  and the covered  person of  their intent to  do so                                                               
and agrees to hold the covered person harmless.                                                                                 
                                                                                                                                
4:09:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  questioned  the  incentive  for  a  post                                                               
authorization.                                                                                                                  
                                                                                                                                
MS. WING-HEIER explained that insurers  already have the right to                                                               
do post authorization  reviews of claims for  compliance with the                                                               
prior authorization.   She  said in some  ways Amendment  5 makes                                                               
sense  because if  a post  authorization review  showed that  the                                                               
prior authorization was not adhered  to, there would be a dispute                                                               
in the  payment and  the consumer  would be  held harmless.   She                                                               
conveyed that  insurers had testified  that they would  rely more                                                               
on  post authorizations  if the  bill were  to pass  because they                                                               
were losing the right to do prior authorizations.                                                                               
                                                                                                                                
REPRESENTATIVE   SADDLER  asked   what   happens   when  a   post                                                               
authorization is performed.                                                                                                     
                                                                                                                                
MS.  WING-HEIER   explained  that  if  a   person  needs  another                                                               
procedure after  a surgery,  the insurer will  go back  to review                                                               
that what happened is necessary  and depending on what they find,                                                               
may not reimburse the provider  for the additional procedure that                                                               
was not included in the prior authorization.                                                                                    
                                                                                                                                
VICE  CHAIR RUFFRIDGE  opined  that Amendment  5  would make  the                                                               
situation worse  because health care  providers may  be unwilling                                                               
to take a gamble.                                                                                                               
                                                                                                                                
4:15:11 PM                                                                                                                    
                                                                                                                                
MS. VENTGEN opined  that Amendment 5 would  not create additional                                                               
patient protections or alleviate  delays and therefore, would not                                                               
benefit the bill in any way.                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX stated  that Amendment  5 would  address the                                                               
concern that treatment delayed in  the appeals process could have                                                               
adverse effects.                                                                                                                
                                                                                                                                
MS. VENTGEN  asked how insurance companies  would be incentivized                                                               
to process the claim after the fact.                                                                                            
                                                                                                                                
REPRESENTATIVE PRAX  said it would  be handled in the  courts and                                                               
governed by the rules of the policy.                                                                                            
                                                                                                                                
MS. VENTGEN  shared her belief  that Amendment 5 would  result in                                                               
nothing but  more delays  and burdens on  providers and  staff to                                                               
process continuous repeals.                                                                                                     
                                                                                                                                
VICE CHAIR RUFFRIDGE maintained his objection.                                                                                  
                                                                                                                                
4:19:14 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Prax  voted in favor                                                               
of  Amendment  5.    Representatives  Carrick,  Fields,  Saddler,                                                               
Wright, and Ruffridge voted against it.  Therefore, Amendment 5                                                                 
failed by a vote of 1-5.                                                                                                        
                                                                                                                                
4:19:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX moved to adopt Amendment 6 to HB 187,                                                                       
labeled 33-LS0696\A.7, Wallace, 4/22/24, which read:                                                                            
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "exempting certain health care providers                                                                     
     from  making  preauthorization   requests  for  certain                                                                  
     services"                                                                                                                
          Insert "relating to prior authorization; relating                                                                   
     to   prior    authorization   application   programming                                                                  
     interfaces"                                                                                                              
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Delete "processes for"                                                                                            
          Insert    "selective    application    of    prior                                                                
     authorization by"                                                                                                      
                                                                                                                                
     Page 2, line 1:                                                                                                            
          Delete "a new section"                                                                                                
          Insert "new sections"                                                                                                 
                                                                                                                                
     Page 2, line 2, through page 4, line 19:                                                                                   
          Delete all material and insert:                                                                                       
          "Sec. 21.07.100. Utilization review entities and                                                                    
     prior  authorizations.  A   utilization  review  entity                                                                  
     authorized to do business in  the state shall implement                                                                    
     and maintain  a program  that allows for  the selective                                                                    
     application of  prior authorization to reduce  a health                                                                    
     care provider's prior  authorization requirements based                                                                    
     on  the stratification  of the  health care  provider's                                                                    
     performance and  adherence to  evidence-based medicine.                                                                    
     The  program must  promote  quality, affordable  health                                                                    
     care and reduce  unnecessary administrative burdens for                                                                    
     both the utilization review entity  and the health care                                                                    
     provider.  The  utilization   review  entity  has  sole                                                                    
     discretion  to determine  the  criteria  a health  care                                                                    
     provider must  meet to participate  in the  program and                                                                    
     which   health   care  services,   excluding   pharmacy                                                                    
     services, are  included in  the program.  A utilization                                                                    
     review entity  shall submit to  the director  a written                                                                    
     description  of  the  program   that  includes  a  full                                                                    
     narrative description, the  criteria for participation,                                                                    
     a  list  of  the  procedures and  services  subject  to                                                                    
     selective application  of prior authorization,  and the                                                                    
     number of  health care  providers participating  in the                                                                    
     program.                                                                                                                   
          Sec. 21.07.110. Standards for prior authorization                                                                   
     requests. (a)  A health care insurer  offering a health                                                                  
     plan  issued or  renewed on  or after  January 1, 2025,                                                                    
     shall   comply    with   the   standards    for   prior                                                                    
     authorizations   for    health   care    services   and                                                                    
     prescription drugs as provided in this section.                                                                            
          (b)  If a participating health care provider                                                                          
     electronically  submits a  prior authorization  request                                                                    
     that  contains  the  necessary information  to  make  a                                                                    
     determination,  a  health  care insurer  shall  make  a                                                                    
     determination and  notify the provider of  the decision                                                                    
     within                                                                                                                     
               (1)  three calendar  days after receiving the                                                                    
     request, excluding holidays; or                                                                                            
               (2)   one  calendar  day  after receiving  an                                                                    
     expedited request.                                                                                                         
          (c)  If a participating health care provider                                                                          
     submits  a  nonelectronic prior  authorization  request                                                                    
     that  contains  the  necessary information  to  make  a                                                                    
     determination,  a  health  care insurer  shall  make  a                                                                    
     determination and  notify the provider of  the decision                                                                    
     within                                                                                                                     
               (1)   five calendar days after  receiving the                                                                    
     request, excluding holidays; or                                                                                            
               (2)   two  calendar days  after receiving  an                                                                    
     expedited request.                                                                                                         
          (d)  If a health care insurer receives                                                                                
     insufficient information to  make a determination under                                                                    
     (b) or  (c) of  this section,  the health  care insurer                                                                    
     shall request additional  information from the provider                                                                    
     or facility within                                                                                                         
               (1)   one  calendar  day  after receiving  an                                                                    
     electronic  prior authorization  request  under (b)  of                                                                    
     this section;                                                                                                              
               (2)   five  calendar days  after receiving  a                                                                    
     nonelectronic prior authorization  request under (c) of                                                                    
     this section; or                                                                                                           
               (3)    one  calendar day  after  receiving  a                                                                    
     nonelectronic  expedited  prior  authorization  request                                                                    
     under (c) of this section.                                                                                                 
          (e)  If a health care insurer determines that a                                                                       
     health  care  provider   has  not  provided  sufficient                                                                    
     information to  make a determination  under (b)  or (c)                                                                    
     of this section, the health  care insurer may establish                                                                    
     a   due  date   for   submission   of  the   additional                                                                    
     information. The  health care  insurer must  notify the                                                                    
     health  care  provider and  enrollee  of  the due  date                                                                    
     along with the request for additional information.                                                                         
          (f)  A health care insurer shall maintain a                                                                           
     written    description   of    the   insurer's    prior                                                                    
     authorization requirements  that uses  detailed, easily                                                                    
     understandable language. The  health care insurer shall                                                                    
     make its most  current prior authorization requirements                                                                    
     and  restrictions,   including  the   written  clinical                                                                    
     review  criteria, available  to  health care  providers                                                                    
     and  health care  facilities  in  an electronic  format                                                                    
     upon  request.  The  prior  authorization  requirements                                                                    
     must   be   based  on   peer-reviewed,   evidence-based                                                                    
     clinical  review  criteria  that  accommodate  new  and                                                                    
     emerging information related  to the appropriateness of                                                                    
     clinical criteria with  respect to ethnicity, including                                                                    
     African  American and  Indigenous peoples,  gender, and                                                                    
     underserved populations. The  health care insurer shall                                                                    
     evaluate and, if necessary,  update the clinical review                                                                    
     criteria at least annually.                                                                                                
          Sec. 21.07.120. Prior authorization application                                                                     
     programming interface. (a) A  health care insurer shall                                                                  
     maintain an electronic  prior authorization application                                                                    
     programming  interface   that  enables   an  in-network                                                                    
     provider to determine whether  a prior authorization is                                                                    
     required for  a certain  health care  service, identify                                                                    
     prior   authorization  information   and  documentation                                                                    
     requirements,  and  facilitate  the exchange  of  prior                                                                    
     authorization  requests  and  determinations  from  its                                                                    
     electronic  health   records  or   practice  management                                                                    
     system.  The  application  programming  interface  must                                                                    
     support  the exchange  of prior  authorization requests                                                                    
     and determinations  for health care  services beginning                                                                    
     January 1, 2026, and must                                                                                                  
               (1)  use version 5.0.0 Health Level Seven                                                                        
     Fast Healthcare  Interoperability Resources application                                                                    
     program interfaces, or a more  recent version of Health                                                                    
     Level Seven Fast  Healthcare Interoperability Resources                                                                    
     adopted by  the director  by regulation,  in accordance                                                                    
     with  standards and  provisions  defined  in 45  C.F.R.                                                                    
     170.215 and 45 C.F.R. 156.122(3)(b);                                                                                       
               (2)  automate the process to determine                                                                           
     whether a  prior authorization is required  for durable                                                                    
     medical equipment or a health care service;                                                                                
               (3)  allow a health care provider to query                                                                       
     the   health   care   insurer's   prior   authorization                                                                    
     documentation requirements;                                                                                                
               (4)  support an automated approach using                                                                         
     nonproprietary open  workflows to compile  and exchange                                                                    
     the  necessary  data  elements to  populate  the  prior                                                                    
     authorization requirements that  are compliant with the                                                                    
     Health Insurance Portability  and Accountability Act of                                                                    
     1996 (P.L. 104-191) or for  which an exception has been                                                                    
     made by  the federal Centers for  Medicare and Medicaid                                                                    
     Services; and                                                                                                              
               (5)  indicate that a prior authorization                                                                         
     denial,  or   an  authorization   of  a   service  less                                                                    
     intensive  than the  service included  in the  original                                                                    
     request,  is an  adverse benefit  determination and  is                                                                    
     subject  to the  health  care  insurer's grievance  and                                                                    
     appeal process.                                                                                                            
          (b)  A health care insurer shall establish and                                                                        
     maintain   an   electronic   process   or   application                                                                    
     programming  interface   that  enables   an  in-network                                                                    
     provider to determine whether  a prior authorization is                                                                    
     required   for  a   covered   prescription  drug.   The                                                                    
     electronic    process   or    application   programming                                                                    
     interface   must   support   the  exchange   of   prior                                                                    
     authorization    requests   and    determinations   for                                                                    
     prescription  drugs, including  information on  covered                                                                    
     alternative  prescription  drugs, beginning  January 1,                                                                    
     2027, and must                                                                                                             
               (1)  allow a health care provider to                                                                             
     identify    prior    authorization   information    and                                                                    
     documentation requirements;                                                                                                
               (2)  facilitate the exchange of prior                                                                            
     authorization  requests  and  determinations  from  its                                                                    
     electronic  health   records  or   practice  management                                                                    
     system and  may include the necessary  data elements to                                                                    
     populate the prior  authorization requirements that are                                                                    
     compliant with 42 U.S.C. 201  et seq. (Health Insurance                                                                    
     Portability and  Accountability Act of 1996  (P.L. 104-                                                                    
     191)) or  for which an  exception has been made  by the                                                                    
     federal  Centers for  Medicare  and Medicaid  Services;                                                                    
     and                                                                                                                        
               (3)  indicate that a prior authorization                                                                         
     denial,  or the  authorization of  a prescription  drug                                                                    
     other than  the drug included in  the original request,                                                                    
     is an  adverse benefit determination and  is subject to                                                                    
     the   health  care   insurer's  grievance   and  appeal                                                                    
     process.                                                                                                                   
        * Sec. 3. The uncodified  law of the State of Alaska                                                                  
     is amended by adding a new section to read:                                                                                
          TRANSITION: COMPLIANCE. (a) If a health care                                                                          
     insurer determines  that the  insurer will not  be able                                                                    
     to   satisfy  the   requirements  of   AS 21.07.120(a),                                                                    
     enacted by sec. 1 of  this Act, by January 1, 2026, the                                                                    
     health   care   insurer    shall   submit   a   written                                                                    
     justification   to   the    director   on   or   before                                                                    
     September 1, 2025, describing                                                                                              
               (1)  the reasons the health care insurer                                                                         
     cannot reasonably satisfy the requirements;                                                                                
               (2)  the effects of noncompliance on health                                                                      
     care providers and enrollees;                                                                                              
               (3)  the current or proposed means of                                                                            
     providing health information  to health care providers;                                                                    
     and                                                                                                                        
               (4)  a timeline and implementation plan to                                                                       
     achieve  compliance with  the  requirements  of (a)  of                                                                    
     this section.                                                                                                              
          (b)  The director may grant a health care insurer                                                                     
     a  one-year extension  of the  time  allowed to  comply                                                                    
     with  the requirements  of AS 21.07.120(a),  enacted by                                                                    
     sec. 1  of this  Act, if  the director  determines that                                                                    
     the health  care insurer has  made a good  faith effort                                                                    
     to comply.                                                                                                                 
          (c)  By September 13, 2024, and at least every                                                                        
     six  months thereafter  until  September 13, 2027,  the                                                                    
     director  shall provide  an update  to  the health  and                                                                    
     social   services   committees   of   the   legislature                                                                    
     regarding the  development of rules  and implementation                                                                    
     guidance  from the  federal  Centers  for Medicare  and                                                                    
     Medicaid Services, including  standards for development                                                                    
     of     application    programming     interfaces    and                                                                    
     interoperable  electronic  processes related  to  prior                                                                    
     authorization  functions.  The   updates  must  include                                                                    
     recommendations, as appropriate,  on whether the status                                                                    
     of  the  federal  rule   development  aligns  with  the                                                                    
     provisions of this Act. The  director shall also report                                                                    
     on any actions by the  federal Centers for Medicare and                                                                    
     Medicaid  Services to  exercise enforcement  discretion                                                                    
     related  to the  implementation and  maintenance of  an                                                                    
     application    programming    interface    for    prior                                                                    
     authorization  functions.  The director  shall  consult                                                                    
     with health  care insurers, health care  providers, and                                                                    
     health  care  consumers  on the  development  of  these                                                                    
     updates and any recommendations."                                                                                          
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
VICE CHAIR RUFFRIDGE objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX explained that  Amendment 6 would combine the                                                               
approaches of two  states to make improvements  to Alaska's prior                                                               
authorization system  to see  that the  cost and  safety features                                                               
are not lost,  but the performance of the system  is improved for                                                               
providers, patients  and health  insurance carriers alike.   From                                                               
Washington  state, the  proposed amendment  provides for  tighter                                                               
prior   turnaround   times,  so   long   as   a  complete   prior                                                               
authorization request  is submitted  via online  portal.   From a                                                               
Louisiana statute, Amendment 6 provides  that all health carriers                                                               
must  establish  a  gold  card  program  that  promotes  quality,                                                               
affordable  health care,  and reduces  unnecessary administrative                                                               
burden.                                                                                                                         
                                                                                                                                
4:22:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT asked to hear from the bill sponsor.                                                                      
                                                                                                                                
MS.  HACKENMILLER said  Amendment  6 would  effectively kill  the                                                               
bill and rewrite  the entire legislation.  She  invited Ms. Wing-                                                               
Heier to speak to the proposed amendment.                                                                                       
                                                                                                                                
4:22:50 PM                                                                                                                    
                                                                                                                                
MS.  WING HEIER  confirmed  that Amendment  6  would rewrite  the                                                               
entire bill and align it with  Washington state.  She said it's a                                                               
different approach  to prior authorization  in that  each request                                                               
would be submitted  through a portal and approved,  as opposed to                                                               
a blanket approval for a procedure for a given length of time.                                                                  
                                                                                                                                
VICE CHAIR RUFFRIDGE maintained his objection.                                                                                  
                                                                                                                                
4:23:32 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Prax  voted in favor                                                               
of  Amendment  6.     Representatives  Wright,  Fields,  Carrick,                                                               
Saddler, and Ruffridge voted against  it.  Therefore, Amendment 6                                                               
failed by a vote of 1-5.                                                                                                        
                                                                                                                                
4:24:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to report  HB 187, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
REPRESENTATIVE PRAX  objected.   He expressed concern  that there                                                               
were many nuances to prior  authorization and that the bill would                                                               
run the risk of driving up the cost of health care.                                                                             
                                                                                                                                
4:25:22 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Saddler, Wright,                                                               
Carrick, Fields, and  Ruffridge voted in favor of  moving HB 187,                                                               
as amended,  from committee.   Representative Prax  voted against                                                               
it.   Therefore,  CSHB 187(L&C)  was  reported out  of the  House                                                               
Labor and Commerce Standing Committee by a vote of 5-1.                                                                         

Document Name Date/Time Subjects
HB226 Letter of Support - ANHB.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB 187 AK Medical Association Testimony.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 187 ANTHC Support.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 187 AHIP Comments AK.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 187 Fiscal Note DCCED.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 187 Letter from AETNA.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 187 Premera Letter.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 Survey Data.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 Letter of Support - AHHA.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 Sectional Analysis Version A.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 Sponsor Statement.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 State Law Chart.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 226 Letter of Support - Albertsons.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Explanation - Alaska Pharmacy Assn.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Explanation of Changes Ver. S to Ver. R.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Letter of Support - Fred Meyer.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Letter of Support. Dan Nelson. 2.14.24.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Sponsor Statement.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Sectional Analysis Ver. S.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
PHY Letter of Support - HB187 - Prior Auth Exempt for Health Providers - 04-19-2024.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB187 Amendments.pdf HL&C 4/22/2024 3:15:00 PM
HB 187
HB 375 SEMA Support - House.pdf HL&C 4/22/2024 3:15:00 PM
STRA 5/7/2024 1:30:00 PM
STRA 5/9/2024 9:00:00 AM
HB 375
HB226 Explanation of Changes Ver. R to Ver. D.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
HB226 Ver. D.pdf HL&C 4/22/2024 3:15:00 PM
HB 226
LOS for HB 226.pdf HL&C 4/22/2024 3:15:00 PM
HB 226