Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/08/2024 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB88 | |
| HB203 | |
| HB226 | |
| HB189 | |
| HB233 | |
| HB146 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 88 | TELECONFERENCED | |
| += | HB 203 | TELECONFERENCED | |
| += | HB 226 | TELECONFERENCED | |
| *+ | HB 189 | TELECONFERENCED | |
| * | HB 233 | ||
| + | HB 146 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 226-PHARMACIES/PHARMACISTS/BENEFITS MANAGERS
2:20:15 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of CS FOR HOUSE BILL NO. 226(L&C) "An Act relating
to insurance; relating to pharmacy benefits managers; relating
to dispensing fees; and providing for an effective date."
CHAIR BJORKMAN noted that HB 226 is the companion to SB 121,
which Senate Labor and Commerce Standing Committee heard
numerous times, including invited and public testimony.
2:21:12 PM
SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska
State Legislature, Juneau, Alaska, said HB 226 would protect
Alaskan patients access to the pharmacies and medications they
need. She said Pharmacy Benefits Manager (PBMs) currently lack
regulation and oversight, permitting exploitation of patients
and providers in the state of Alaska. She explained that HB 226
would focus on protecting local pharmacies and would ensure that
patients have access to affordable, convenient pharmaceutical
care by regulating the harmful practices of PBMs. She said these
practices have driven up drug costs and include anti-competitive
tactics, prescription drug price inflation and unfair fees and
restrictions imposed on pharmacy. She said HB 226 would also
require transparency and reimbursement practices and would bar
PBMs from practicing spread pricing. She concluded that HB 226
would support Alaskan patients, pharmacists and pharmacies. The
bill would make critical changes that will lead to more
affordable, accessible, and higher quality, pharmaceutical care.
2:23:00 PM
CHAIR BJORKMAN solicited a motion.
2:23:06 PM
SENATOR GRAY-JACKSON moved to adopt the Senate committee
substitute (SCS) for CSHB 226(L&C), work order 33-LS0955\H, as
the working document.
2:23:18 PM
CHAIR BJORKMAN objected for purposes of explanation.
2:23:33 PM
MS. HACKENMILLER pointed out the changes to HB 226 were removing
"fiduciary duty" and replacing it with "duty of care". She also
said there were multiple places in HB 226 where "health care
plan" was replaced by "health care policy" at the request of the
Division of Insurance. She noted that Ms. Wing-Heier of the
Division of Insurance was available to answer questions.
2:24:51 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, said HB 226 had been hotly debated and amended in both
bodies of the legislature and covers an emotional topic. She
acknowledged uncertainty about the best way to address the issue
and highlighted the lack of regulation for PBMs nationwide. She
said there had been various state and federal attempts to
regulate them without significant progress. She noted the
primary concern raised is the lack of transparency in drug
pricing, with no clear understanding of what consumers,
insurers, or pharmacists pay. She said HB 266 tries to put
safeguards around [consumers and pharmacists] and she said, in
the amendments [to HB 266] all entities have been deleted except
for Title 21 which applies to insured plans. She noted that
approximately 15 percent of Alaskans are in an insured plan
through either the individual market or the small/large group.
Excluded entities include the Department of Administration,
Retirement and Benefits, Employee Retirement Income Security Act
(ERISA) plans, and Medicaid.
MS. WING-HEIER said HB 266 included:
• a duty of care for pharmacists toward plan sponsors,
administrators, and enrollees, ensuring accountability.
• the elimination of spread pricing, a practice which causes
pharmacists to lose money due to fluctuating drug prices.
• the elimination of "white bagging and brown bagging", which
applies to sensitive medications that are usually
administered through IV. She explained that patients often
receive and transport these medicines themselves to reduce
costs.
• consumer protection measures:
• ability to choose mail-order or brick-and-mortar
pharmacies.
• transparency in drug pricing and pharmacist payments.
MS. WING-HEIER said HB 266 was the result of the combined effort
of pharmacists, regulators, insurance companies, and other
payors in the state. She said the desired result of HB 266 was
to stabilize independent pharmacies, avoid excessive burdens on
insurers due to fluctuating pharmaceutical costs and supply, and
primarily to protect consumers by providing transparency around
payment for drugs, how drugs are acquired, and how pharmacists
are paid. She said HB 266 took a long time to develop. She said
the bill was acceptable and acknowledged that none of the
stakeholders would be getting everything they wanted, but all
would benefit in some way.
2:28:49 PM
CHAIR BJORKMAN removed his objection; found no further objection
and SCS CSHB 226 was adopted as the working document.
2:29:07 PM
CHAIR BJORKMAN [held HB 226 in Senate Labor and Commerce
Standing Committee.]