Legislature(2017 - 2018)ADAMS ROOM 519
04/05/2018 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings: Alaska Mental Health Trust Authority Board: Verne Boerner | |
| HB240 | |
| HB219 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 212 | TELECONFERENCED | |
| += | HB 219 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 240 | TELECONFERENCED | |
HOUSE BILL NO. 240
"An Act relating to the registration and duties of
pharmacy benefits managers; relating to procedures,
guidelines, and enforcement mechanisms for pharmacy
audits; relating to the cost of multi-source generic
drugs and insurance reimbursement procedures; relating
to the duties of the director of the division of
insurance; and providing for an effective date."
1:48:13 PM
Co-Chair Foster indicated that the bill was last heard on
the previous day. There was one amendment submitted.
REPRESENTATIVE DAVID GUTTENBERG, SPONSOR, relayed that the
fiscal note had changed from the time the committee adopted
the previous version. The fiscal note by the Department of
Administration (DOA) was zeroed out when language was
changed from "shall" to "may."
Co-Chair Seaton asked which version of the amendment would
be under consideration.
1:49:40 PM
AT EASE
1:50:11 PM
RECONVENED
Vice-Chair Gara MOVED to ADOPT Amendment 1 (copy on file):
Page 1, line l, following "Act":
Insert relating to prescription prices available
to consumers; relating to penalties for certain
pharmacy or pharmacist violations;"
Page 1, following line 6:
Insert new bill sections to read:
"* Section 1. AS 08.80.297 is amended by adding a new
subsection to read:
(b) No contract or agreement may prohibit a
pharmacy, pharmacist, or pharmacy benefits
manager from informing a patient of a less costly
alternative for a prescription drug or medical
device or supply, which may include the amount
the patient would pay without the use of a
health care plan.
* Sec. 2. AS 08.80.297 is amended by adding new
subsections to read:
(c) A pharmacist or person acting at the
direction of a pharmacist shall notify the
patient if a known less costly alternative for a
prescription drug or medical device or supply is
available, which may include the amount the
patient would pay without the use of a health
care plan.
(d) In this section,
(1) "health care plan" means a policy,
contract, benefit, or agreement that
provides, delivers, arranges for, pays for,
or reimburses any of the costs of health
care services under
(A) a health care insurance plan
as defined under AS 21.54.500;
(8) a governmental or employee welfare
benefit plan under 29 U.S.C. 1001 - 1191
(Employee Retirement Income Security Act
of 1974);
(C) a plan offered under AS 39.30.090 or
39.30.091;
(D) a federal governmental plan as
defined under AS 21.54.500;
(E) the Medicaid or Medicare program; or
(F) a self-insured employer benefit plan;
(2) "pharmacy benefits manager" has the
meaning given in AS 21.27.955.
* Sec. 3. AS 08.80.460(a) is amended to read:
(a) Except for a violation of AS 08.80.297, a [A]
person who violates a provision of this chapter is
guilty of a class B misdemeanor.
* Sec. 4. AS 08.80.460(b) is amended to read:
(b) A person who violates the provisions of AS
08.80.295 or 08.80.297 may be punished [IS PUNISHABLE]
by a civil fine in an amount established by the board
in a schedule or schedules establishing the amount of
civil fine for a particular violation. The schedule or
schedules shall be adopted by the board by regulation.
Any civil fine imposed under this section may be
appealed in the manner provided for appeals in AS
44.62 (Administrative Procedure Act)."
Page 1, line 7:
Delete "Section l"
Insert "Sec. 5"
Renumber the following bill sections accordingly.
Page 8, lines 21 - 23:
Delete all material and insert:
"APPLICABILITY. (a) AS 21.27.901 - 21.27.955,
enacted by sec. 5 of this Act, apply to audits of
pharmacies conducted by pharmacy benefits
managers and contracts entered into or renewed on
or after the effective date of sec. 5 of this
Act.
(b) AS 08.80.297(b), enacted by sec. 1 of this Act,
applies to contracts entered into or renewed on or
after the effective date of sec. 1 of this Act."
Reletter the following subsection accordingly.
Page 8, line 25:
Delete "added by sec. l
Insert "enacted by sec. 5"
Page 9, line 6:
Delete "Section 3 of this Act takes
Insert "Sections 1, 3, and 6 of this Act take"
Page 9, line 7:
Delete "sec. 5"
Insert "sec. 9"
There being NO OBJECTION, Amendment 1 was ADOPTED.
Co-Chair Foster asked Vice-Chair Gara to review the fiscal
notes. Vice-Chair Gara indicated there were 2 zero fiscal
notes. The first zero fiscal note was from the Department
of Commerce, Community and Economic Development (DCCED).
The appropriation was insurance operations, and the
allocation was insurance operations. The Office of
Management and Budget (OMB) component number was 354. The
second zero fiscal note, OMB component number 2152, was
from DOA. The appropriation was centralized administrative
services and the allocation was health plans
administration.
Representative Wilson referred to the fiscal note with
component number 2152. She referred to page 2 in the second
paragraph where it stated that the actuarial analysis
assumed that, with the mandate, planned costs for generic
drugs filled by independent pharmacies in Alaska would
increase by 20 percent. The assumed impact on chain
pharmacy pricing would be an increase of 10 percent. She
asked where the percentage numbers were derived. She
relayed that the fiscal note had been written by the
Division of Retirement and Benefits.
Co-Chair Foster invited testifiers to come to the table.
MICHELE MICHAUD, DEPUTY DIRECTOR, DIVISION OF RETIREMENT
AND BENEFITS, DEPARTMENT OF ADMINISTRATION, introduced
herself.
EMILY RICCI, HEALTH CARE POLICY ADMINISTRATOR, DIVISION OF
RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION,
introduced herself.
Ms. Michaud reported that the assumptions that were listed
were in relation to the original fiscal note, the one that
had been resolved. The numbers were provided by state
actuaries. They thought that the language that required an
appeal "shall" be granted would not only increase the
number of appeals but would likely increase the Maximum
Allowable Cost (MAC) reimbursement rate for certain drugs.
As a result of that and based on their analysis of
utilization trends, it would increase the independents by
20 percent and the chain pharmacies by 10 percent.
Representative Wilson asked why the language was not
removed. Ms. Ricci relayed that it was an attempt in the
fiscal note to explain why there had been a change from the
previous fiscal note to the current fiscal note. The
language should be corrected to reflect the prior actuarial
analysis assumed. It was her understanding that there was a
letter from the state's actuaries that would be
accompanying the fiscal note. The updated version explained
the rational why the change in language resulted in a zero
fiscal note or an indeterminate fiscal note.
Co-Chair Seaton MOVED to report CSHB 240 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
CSHB 240 (FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note by
the Department of Administration and with one previously
published zero fiscal note: FN1(CED).
1:55:52 PM
AT EASE
1:56:36 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 240 Amendment 1.pdf |
HFIN 4/5/2018 1:30:00 PM |
HB 240 |
| HB 240 Support email - petition.pdf |
HFIN 4/5/2018 1:30:00 PM |
HB 240 |
| HB 219 Amendment #1.pdf |
HFIN 4/5/2018 1:30:00 PM |
HB 219 |