Legislature(2011 - 2012)CAPITOL 106
03/15/2012 03:00 PM House HEALTH & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB127 | |
| HB218 | |
| HB343 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 127 | TELECONFERENCED | |
| *+ | HB 343 | TELECONFERENCED | |
| += | HB 218 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 218-PRESCRIPTION DRUG SPECIALTY TIERS
3:28:58 PM
CHAIR KELLER announced that the next order of business would be
HOUSE BILL NO. 218 "An Act prohibiting an insurer from using a
drug formulary system of specialty tiers under certain
circumstances."
3:29:57 PM
REPRESENTATIVE HERRON moved to report HB 218 out of committee
with individual recommendations and the accompanying fiscal
notes.
3:30:06 PM
REPRESENTATIVE SEATON objected for discussion. He directed
attention to a letter from Jack C. McRae, Senior Vice President,
Premera Blue Cross Blue Shield of Alaska, dated February 14,
2012, [Included in members' packets] which stated concerns for
duplicate regulations with proposed HB 218. He declared that
although he supported proposed HB 218, he wanted this testimony
from the insurance industry on the record.
3:31:23 PM
CHAIR KELLER reported that proposed HB 218 would change the
notification for terms applicable to specialty pharmacy tiers
from 30 days to 90 days, while the Patient Protection and
Affordable Care Act would change this notification time frame to
60 days. He agreed with Representative Seaton that proposed HB
218 could conflict with the federal law.
3:32:09 PM
SHEELA TALLMAN, Manager, Legislative Affairs, Premera Blue Cross
Blue Shield of Alaska, stated that Premera was in opposition to
proposed HB 218 in its present form. She declared that Premera
desired to maintain transparency to the consumers by providing
detailed, accurate information about the benefits, application
and renewals, co-payments, cost sharing, and other out of pocket
costs at least 30 days prior to any new terms. She added that
this was also applicable to the specialty pharmacy tiers and any
changes to the formularies when generic drugs were introduced,
causing a shift for the brand drug to a different tier. She
declared that Premera was concerned with the 90 day notification
time frame, as it would impact application and renewal cycles,
as well as increase the overall specialty drug spending and
premiums. She pointed out that the proposed bill was
duplicative with the federal health care reform requirement.
She clarified that Premera was required, as of September 23,
2012, to provide specific information to its members about
coverage and benefits, including pharmacy benefits with a
breakdown of the cost sharing for each tier. She noted that any
change to any of the plans required a notification at least 60
days prior to the modification. She declared opposition to any
additional notices.
3:36:07 PM
REPRESENTATIVE HERRON asked for a monetary value to the expected
increase to the premiums due to any change in notification
requirements.
MS. TALLMAN replied that she did not have that specific
information.
3:36:32 PM
REPRESENTATIVE SEATON, directing attention to page 2, line 23 of
the proposed bill, paraphrased from the section:
... specialty drug tiers may impose cost sharing,
deductibles for a unique category or specialty tier
prescription drug that exceed the dollar amount of the
cost sharing, but only if the insurer notifies within
the 90 days.
He asked to clarify that this did not say that there could not
be a charge for specialty drug tiers, but that it specifically
stated that there can be differing charges for specialty drug
tiers. He stated that there just had to be notification 90 days
in advance.
3:38:10 PM
CHAIR KELLER agreed with the clarification.
3:38:49 PM
REPRESENTATIVE SEATON removed his objection.
3:38:59 PM
There being no further objection, HB 218 was reported from the
House Health and Social Services Standing Committee.