03/15/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 215                                                                                                           
                                                                                                                                
     "An Act  requiring the Department of  Health and Social                                                                    
     Services to  accept federal prescription  drug benefits                                                                    
     or to provide comparable  benefits for residents of the                                                                    
     Alaska Pioneers' Home."                                                                                                    
                                                                                                                                
9:13:24 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  explained  that   SB  215  involves  drug                                                                    
benefit for the pioneers' home.                                                                                                 
                                                                                                                                
Senator  Olson  noted  that there  are  various  methods  of                                                                    
handling.                                                                                                                       
                                                                                                                                
SENATOR BILL WIELECHOWSKI delivered the sponsor statement.                                                                      
                                                                                                                                
     The  intent  of  SB  215  is  to  ensure  residents  of                                                                    
     Alaska's  Pioneer  Homes   continue  to  receive  their                                                                    
     Federal prescription drug benefits.                                                                                        
                                                                                                                                
     This  past   spring,  Veteran  residents   of  Alaska's                                                                    
     Pioneer  Homes   were  caught  in   the  middle   of  a                                                                    
     bureaucratic  dispute. Officials  at the  Pioneer Homes                                                                    
     would  no longer  accept prescription  medications from                                                                    
     the Veterans Administration  because of safety concerns                                                                    
     with how  those medications  are packaged  and labeled.                                                                    
     The VA  will not  change the  packaging or  labeling of                                                                    
     medications sent  to the Pioneer Homes  and the Pioneer                                                                    
     Homes  cannot repackage  the  medications.   Therefore,                                                                    
     Veterans   who    were   unable    to   self-administer                                                                    
     medications  had  no  choice  but to  pay  the  Pioneer                                                                    
     Homes'    pharmacy    out-of-pocket    for    necessary                                                                    
     medications  that they  were  supposed  to receive  for                                                                    
     free from the VA.                                                                                                          
                                                                                                                                
     Thanks  to a  joint  effort between  the Department  of                                                                    
     Health and Social Services,  the Department of Military                                                                    
     and Veterans Affairs,  local public veterans' advocates                                                                    
     and  state legislators,  a  policy  level solution  was                                                                    
     reached  with  the  Department  of  Health  and  Social                                                                    
     Services.   State administrators found a  way to safely                                                                    
     administer prescription  medications received  from the                                                                    
     VA   and  Veterans   began   to   receive  their   free                                                                    
     medications again.                                                                                                         
                                                                                                                                
     SB  215   will  prevent  this  type   of  problem  from                                                                    
     recurring   by  ensuring   that  federal   prescription                                                                    
     benefits will  continue to be honored  into the future.                                                                    
     If  state  administrators  identify  a  safety  concern                                                                    
     associated   with    providing   federal   prescription                                                                    
     benefits,  SB 215  will require  the  Pioneer Homes  to                                                                    
     cover  the  value  of  the   denied  benefit,  so  that                                                                    
     residents  can continue  to receive  the benefits  that                                                                    
     they have earned.                                                                                                          
                                                                                                                                
     This  bill would  protect not  only  Veterans, but  all                                                                    
     Pioneer Home  residents receiving  Federal prescription                                                                    
     benefits, including those  from Indian Health Services.                                                                    
     The  Pioneer Homes  have always  worked with  residents                                                                    
     eligible for IHS benefits to  ensure they receive their                                                                    
     medications.   However,  if  something  changes in  the                                                                    
     future  with  the distribution  of  IHS  drugs, SB  215                                                                    
     would   ensure  that   Pioneer  Homes   would  continue                                                                    
     accepting these Federal benefits  or cover the cost for                                                                    
     affected residents.                                                                                                        
                                                                                                                                
     With the passage  of SB 215, Veterans  and other groups                                                                    
     who have  earned Federal prescription benefits  will no                                                                    
     longer  have   to  worry  about  not   receiving  their                                                                    
     prescription   medications   because  bureaucrats   are                                                                    
     unable reach, what should be, a simple agreement.                                                                          
                                                                                                                                
     Please  join  me  in  supporting  this  legislation  to                                                                    
     ensure  eligible  Alaskans   continue  to  receive  the                                                                    
     benefits they have earned.                                                                                                 
                                                                                                                                
Senator  Olson  asked  if  a  record  existed  showing  that                                                                    
veterans had  suffered ill effects or  medical complications                                                                    
as  a   result  of  the   change  in  dispensation   of  the                                                                    
medication.                                                                                                                     
                                                                                                                                
SHELLY MORGAN, STAFF TO  SENATOR WIELECHOWSKI responded that                                                                    
medical  complications were  not reported.  The complication                                                                    
was a  financial one,  where the  veterans were  required to                                                                    
pay for medications  in addition to the  Pioneer Home costs.                                                                    
Senator Olson agreed that  these complications are important                                                                    
to avoid.                                                                                                                       
                                                                                                                                
Co-Chair  Stedman  mentioned  the fiscal  note  states  that                                                                    
Pioneer  Homes  allow  residents   who  access  the  federal                                                                    
prescription benefits.                                                                                                          
                                                                                                                                
Ms.  Morgan explained  that the  design  of the  bill is  to                                                                    
prevent  the  complication  from   occurring  again  in  the                                                                    
future.  The concern  is that  with administrative  changes,                                                                    
the problem may occur again.                                                                                                    
                                                                                                                                
9:19:12 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman mentioned  the zero  fiscal note  from the                                                                    
Department of Health and Social Services (DHSS).                                                                                
                                                                                                                                
RICK DAVIDGE,  PRESIDENT, VIETNAM  VETERANS OF  AMERICA (via                                                                    
teleconference), testified in support  of SB 215. He pointed                                                                    
out that although concerns continue  in respect to a variety                                                                    
of  medical  issues,  the legislation  is  a  positive  step                                                                    
forward.                                                                                                                        
                                                                                                                                
DAVE COTE, DIVISION OF ALASKA  PIONEER HOMES stated that the                                                                    
department retains  a neutral position  on the  bill because                                                                    
they   already  accept   medications   from  the   veteran's                                                                    
administration.                                                                                                                 
                                                                                                                                
Senator  Huggins asked  how the  bill changes  the situation                                                                    
for Mr.  Cote. Mr.  Cote explained  that the  bill's purpose                                                                    
was to prevent the problem from happening again.                                                                                
                                                                                                                                
Senator Wielechowski  offered a final comment  regarding the                                                                    
legislation. He  explained that the goal  of the legislation                                                                    
is  prevention  of   any  further  complications  concerning                                                                    
federal  prescription  drug  benefits  for  members  of  the                                                                    
Pioneer Home.                                                                                                                   
                                                                                                                                
SB  215  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:22:49 AM