Legislature(2023 - 2024)BARNES 124
04/15/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB226 | |
| SB196 | |
| HB394 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 196 | TELECONFERENCED | |
| += | HB 226 | TELECONFERENCED | |
| += | HB 378 | TELECONFERENCED | |
| + | HB 394 | TELECONFERENCED | |
| *+ | HJR 27 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 226-PHARMACIES/PHARMACISTS/BENEFITS MANAGERS
3:18:38 PM
CHAIR SUMNER announced that the first order of business would be
HOUSE BILL NO. 226, "An Act relating to the Board of Pharmacy;
relating to insurance; relating to pharmacies; relating to
pharmacists; relating to pharmacy benefits managers; relating to
patient choice of pharmacy; and providing for an effective
date." [Before the committee was CSHB 226(HSS).]
3:18:48 PM
REPRESENTATIVE RUFFRIDGE moved to adopt the proposed committee
substitute (CS) to HB 226, Version 33-LS0955\R, Wallace,
4/11/24, as a working document.
REPRESENTATIVE FIELDS objected for the purpose of discussion.
3:19:20 PM
SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska
State Legislature, on behalf of Representative Sumner, prime
sponsor, read the explanation of changes from CSHB 226(HSS) to
the proposed CS, Version R [included in committee packet], which
read as follows [original punctuation provided]:
Title Amends title removing reference to pharmacies,
pharmacists, and patient choice of
pharmacy. Adds reference to dispensing fees.
Section 1 No change.
Section 2 New section in this bill version. Amends
08.80.297(d)(2) - Prescription prices
available to consumer.
Moves the new definition of "pharmacy benefit manager"
to a new section added to the statute
later in the bill (AS 21.27.975).
Section 3 Previous section 2, no change.
Section 4 Previous section 3, no change.
Section 5 Previous section 4, no change.
Section 6 Previous section 5, no change.
Section 7 New section in this bill version. Amends
21.27.940 - Pharmacy audits;
restrictions.
Expounds on the requirements of pharmacy audits. This
section states that the requirements
under statutes of an audit do not apply when there is
suspected fraudulent activity.
Section 8 Modifies previous section 6, 21.27.945(b)
Drug pricing list; procedural
requirements.
In paragraph 5, modifies reference from "national drug
database pricing" to "national average
drug acquisition cost."
Prepared by the Office of Representative Sumner
4/5/2024 2
Section 9 Previous section 7, no change.
Section 10 Modifies previous section 8, amends
21.27.945 Drug pricing list; procedural
requirements.
Removes previous paragraph 3, "pharmacy acquisition
cost."
Section 9 under the original bill is removed.
Section 11 Modifies previous section 10 and adds a
fourth new section under AS 21.27.
Sec. 21.27.951. Patient choice of pharmacy.
In paragraph 2, the language defining "affiliate" is
removed. Previous version subsection
(b) removed and following subsection letters updated.
Subsection (d) (previous
subsection c) modified, requiring a specialty pharmacy
to provide documentation that it
holds a federal certification demonstrating its
ability to distribute specialty prescriptions.
Sec. 21.27.952. Patient access to clinician-
administered drugs.
Modifies paragraph 3; shifts previous paragraph 3 to
sub-paragraph "A" and adds subparagraph "B" that a
health insurer or pharmacy benefits manager may not
impose a
penalty for using an independent pharmacy. Removes
paragraph 7, following paragraphs
renumbered.
Sec. 21.27.954. Regulations relating to pharmacy
benefit manager claims,
grievances, activities, and appeals.
Adds a new section to statute regarding the regulation
of PBM claims and grievances.
This section ensures regulations and standards are in
place giving pharmacies the
opportunity for appropriate resolution of grievances,
independent reviews of PBM
activities, and requiring PBMs to hear pricing
appeals.
Sections 11, 12, and 13 under the original bill are
removed.
Section 12 New section in this bill version. Adds
two new sections under AS 21.27.
Sec. 21.27.960. Coverage for dispensing fees.
Allows the director to periodically review dispensing
fees by using surveys conducted by
the Department of Health under AS 47.07 and the
national average drug acquisition cost
(NADAQ) retail price survey conducted by the Centers
for Medicare and Medicaid
(CMS).
The director shall negotiate dispensing fees with
independent pharmacies and tribal
health pharmacy providers to ensure availability of
prescription medications. The director
may establish differential dispensing fees based on
community. The director shall set and
adjust dispensing fees and shall adjust dispensing
fees at least once every five years.
Prepared by the Office of Representative Sumner
4/5/2024 2
Sec. 21.27.975. Definitions.
This section takes all definitions previously listed
under AS 21.27.955 (repealed in
Section 15) and lists them here as well as adds new
definitions.
1. affiliate;
2. audit;
3. claim;
4. covered person (moved from AS 21.27.955);
5. drug (moved from AS 21.27.955);
6. extrapolation;
7. health care insurance plan (moved from AS
21.27.955);
8. independent pharmacy;
9. insurer;
10. list;
11. maximum allowable cost (moved from AS 21.27.955);
12. national average drug acquisition cost (moved from
AS 21.27.955);
13. network (moved from AS 21.27.955);
14. network pharmacy;
15. pharmacy;
16. pharmacy acquisition cost;
17. pharmacy benefits manager;
18. plan sponsor (moved from AS 21.27.955);
19. provider (moved from AS 21.27.955);
20. recoupment; and
21. wholesale acquisition cost (moved from AS
21.27.955).
Sections 15, 16, 17 and 18 under the original bill are
removed.
Section 13 Modifies previous section 14, amends
21.36.520 - Unfair trade practices.
Removes previous section 14 paragraphs 6-8 and updates
all following paragraph numbers.
Section 14 Previous section 19, no change.
Section 15 Previous section 20, no change.
Section 16 Modifies previous section 21.
Adds applicability to insurance policies in addition
to contracts. Updates referenced sections.
Section 17 Previous section 22, no change.
Section 18 Modifies previous section 23.
Updates referenced transition regulations number due
to section number changes in this version.
Prepared by the Office of Representative Sumner
4/5/2024 2
Section 19 Modifies previous section 24.
Updates referenced section number due to section
number changes in this version
3:20:35 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community & Economic Development (DCCED), in response
to a question from Representative Fields explained that the new
sections were added to Version R to separate an audit from a
criminal investigation.
3:22:09 PM
MS. HACKENMILLER concluded the explanation of changes [text
provided previously].
3:27:25 PM
REPRESENTATIVE FIELDS removed his objection to the motion to
adopt the proposed committee substitute (CS) to HB 226, Version
33-LS0955\R, Wallace, 4/11/24, as a working document. There
being no further objection, Version R was before the committee.
3:27:39 PM
REPRESENTATIVE FIELDS said he doesn't understand how rebates
work as mentioned in HB 226, Version R. He requested more
information on the topic in future meetings.
3:28:20 PM
REPRESENTATIVE CARRICK asked whether Version R added a
definition for independent pharmacies in the definitions
section.
MS. HACKENMILLER answered that there is a new definition in
Version R.
3:29:11 PM
REPRESENTATIVE FIELDS said that changing the definition is a
more cost-effective way for having a mechanism for pharmacy
coverage and added his belief that the new Section 12 is
essentially a new way of preserving pharmacy access.
REPRESENTATIVE CARRICK asked whether tribal health plans are
covered under an Employee Retirement Income Security Act (ERISA)
plan.
REPRESENTATIVE FIELDS answered no, tribal providers are not
ERISA participants.
REPRESENTATIVE CARRICK asked the bill sponsor how Version R
would affect tribal health plans.
3:30:29 PM
CHAIR SUMNER responded that there are many changes. He added
that they are likely to fall under the independent pharmacy
definition.
CHAIR SUMNER announced that HB 226 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR27 Supporting Document_New Trade Regime Can Counter Chinese Supply Chain.pdf |
HL&C 4/15/2024 3:15:00 PM |
HJR 27 |
| HJR27 Supporting Document_Greenhouse Gas Lifecycle Assessment.pdf |
HL&C 4/15/2024 3:15:00 PM |
HJR 27 |
| HJR27 Sponsor Statement.pdf |
HL&C 4/15/2024 3:15:00 PM |
HJR 27 |
| SB196 Sponsor Statement Version A.pdf |
HL&C 4/15/2024 3:15:00 PM |
SB 196 |
| SB196 Sectional Analysis Version A.pdf |
HL&C 4/15/2024 3:15:00 PM |
SB 196 |
| SB196 Fiscal Note-DOLWD-WH 03.02.24.pdf |
HL&C 4/15/2024 3:15:00 PM |
SB 196 |
| SB 196 Support letters recevied as of 03082024.pdf |
HL&C 4/15/2024 3:15:00 PM |
SB 196 |
| AK House Labor and Commerce Slides 4.15.24.pdf |
HL&C 4/15/2024 3:15:00 PM |
HJR 27 |
| ASMA support HB 226 PBM.pdf |
HL&C 4/15/2024 3:15:00 PM |
HB 226 |
| URAC Comments on AK HB 226.pdf |
HL&C 4/15/2024 3:15:00 PM |
HB 226 |
| HB226 Explanation of Changes Ver. S to Ver. R.pdf |
HL&C 4/15/2024 3:15:00 PM |
HB 226 |
| R.pdf |
HL&C 4/15/2024 3:15:00 PM |
HB 226 |
| ANTHC HB226 LOS 4-17-24.pdf |
HL&C 4/15/2024 3:15:00 PM |
HB 226 |