Legislature(2013 - 2014)BARNES 124

03/19/2014 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HCR 15 TASK FORCE ON UNMANNED AIRCRAFT SYSTEMS TELECONFERENCED
Moved CSHCR 15(L&C) Out of Committee
*+ HB 370 AWCB CONTROLLED SUBSTANCE PRESCRIPTIONS TELECONFERENCED
Heard & Held
+= HB 152 PERS TERMINATION COSTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 370-AWCB CONTROLLED SUBSTANCE PRESCRIPTIONS                                                                     
                                                                                                                                
3:34:33 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 370, "An  Act relating to employer  drug testing;                                                               
requiring  the  Alaska  Workers'   Compensation  Board  to  adopt                                                               
regulations   relating   to   the  prescription   of   controlled                                                               
substances  to  employees;  and   limiting  the  prescription  of                                                               
controlled substances to employees."                                                                                            
                                                                                                                                
3:34:40 PM                                                                                                                    
                                                                                                                                
ANNA  LATHAM,  Staff,  Representative Kurt  Olson,  Alaska  State                                                               
Legislature,  stated   that  HB  370  requires   Alaska  Workers'                                                               
Compensation  Board  (AWCB)  to  adopt  regulations  relating  to                                                               
limiting  controlled substances  to employees.   Section  1 would                                                               
authorize employers  to drug test injured  workers for controlled                                                               
substances  prescribed  to the  employee  listed  in schedule  IA                                                               
under  AS  11.70.140  if  the  employee  has  been  prescribed  a                                                               
controlled substance  for more than  90 days  as the result  of a                                                               
workers' compensation claim.                                                                                                    
                                                                                                                                
MS.  LATHAM   related  that  Section  2   requires  the  Workers'                                                               
Compensation  Board   to  adopt   regulations  relating   to  the                                                               
prescription  of controlled  substances to  implement Section  3.                                                               
Section 3 would limit a  physician's prescription of a controlled                                                             
substance  listed  in  schedule  IA  under  AS  11.71.140,  or  a                                                               
controlled opium  substance in schedule IIIA  under 11.71.160, or                                                               
schedule VA  under AS  11.71.180.   She stated  that HB  370 will                                                               
discourage  the  use  of long-term  opioids  by  restricting  the                                                               
prescription to  a 30-day  supply.  In  addition, the  bill would                                                               
allow employers to  drug test employees who  have been prescribed                                                               
schedule  1A  controlled  substances   for  more  than  90  days,                                                               
primarily  to   see  if  the  prescription   is  being  diverted.                                                               
Statistics  show  that one  in  four  prescriptions are  used  by                                                               
someone  who  has not  been  prescribed  the medication.    These                                                               
prescriptions are paid  for by the employer,  directly or through                                                               
insurance premiums.                                                                                                             
                                                                                                                                
MS.  LATHAM stated  that  the drugs  referred to  in  HB 370  are                                                               
synthetic  versions  of  opium  derived  drugs.    Under  AS  11,                                                               
controlled substances  are classified  into six  categories, with                                                               
schedule IA  having the  highest degree of  danger to  the public                                                               
and  Schedule  VI  having  the  lowest degree  of  danger.    For                                                               
example, morphine is classified as  a schedule IA drug, marijuana                                                               
is classified  as a schedule  VI drug,  and schedule IIIA  and VA                                                               
drugs are  considered opioid derivatives  that vary  in strength,                                                               
including drugs  such as codeine.   The use of higher  dosage can                                                               
lead  to addiction,  increased disability,  work  loss, and  even                                                               
death.    She  referred  to statistics  in  members'  packets  on                                                               
workers' compensation claims.                                                                                                   
                                                                                                                                
3:37:51 PM                                                                                                                    
                                                                                                                                
MS. LATHAM  stated that last  year, approximately 200  deaths due                                                               
to opioid  abuse were a  result of workers'  compensation claims.                                                               
Not only  is prescription drug  abuse a public health  and safety                                                               
issue,  prescriptions  are  also  a "cost  driver"  for  workers'                                                               
compensation  premiums.     Alaska   has  the   highest  workers'                                                               
compensation  insurance  premiums  in   the  nation.    In  2011,                                                               
prescription drugs  comprised almost 20 percent  of medical costs                                                               
for workers'  compensation claims in Alaska.   Prescriptions were                                                               
covered by  workers' compensation in  90 percent of the  cases of                                                               
workers who missed a  week or more of work.   Sixty to 80 percent                                                               
of  workers' compensation  injured  workers  received opioids  as                                                               
part  of their  prescribed medicines.   Alaska,  along with  many                                                               
other states, has been working  to address the overuse and misuse                                                               
of opioids, and many states  have also implemented reforms.  Some                                                               
states   have   restricted    physician   dispensing   practices,                                                               
implementing  pain  management  guidelines  and  restricting  the                                                               
dosages  and  length of  time  that  opioids can  be  prescribed.                                                               
Additionally, there  has been  an increase in  the use  of random                                                               
drug  testing in  workers' compensation  claimants who  use long-                                                               
term narcotics.                                                                                                                 
                                                                                                                                
3:39:19 PM                                                                                                                    
                                                                                                                                
MS.  LATHAM  shared  statistics  in  members'  packets  from  the                                                               
Lockton  report [August  2012].   In a  2011 report,  based on  a                                                               
sample   of   939,000   screenings,  71   percent   of   workers'                                                               
compensation claimants  on chronic opioid therapy  are not taking                                                               
their pain  medication as prescribed  due to misuse or  abuse; 38                                                               
percent of  patients were  found to have  no detectible  level of                                                               
prescribed   medication  in   their   system;   29  percent   had                                                               
nonprescribed medication;  27 percent  had drug levels  that were                                                               
higher than expected;  and 11 percent had illicit  drugs in their                                                               
system.  These 2011 statistics were  based on a sample of 939,000                                                               
screenings,  she  said.    She  emphasized  that  the  statistics                                                               
reiterate  the   need  for  opioid  prescriptions   and  allowing                                                               
employer drug testing in workers' compensation claims.                                                                          
                                                                                                                                
3:40:36 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  reported on  other  bills  the committee  has  been                                                               
working on  including one that will  address physician dispensing                                                               
of opioids, including one for  possible introduction next year to                                                               
address best practices for pain  management that will tie in with                                                               
this  issue and  a  fee schedule  bill.   He  reported that  many                                                               
jurisdictions are  working on bills  similar to HB 370,  which is                                                               
having a  significant impact on  workers' compensation.   He said                                                               
if patients  are not taking their  medication they may not  be in                                                               
pain and  may have  found a new  job.  He  said the  intention of                                                               
this bill is not to step  between the doctor and the patient, but                                                               
to support the belief that  doctors should see their patient more                                                               
often  before  providing  automatic  refills  on  drugs  such  as                                                               
Oxycontin.                                                                                                                      
                                                                                                                                
3:42:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether the  goal is to  look for                                                               
criminal misconduct.                                                                                                            
                                                                                                                                
MS. LATHAM answered  no; however, the main intent of  the bill is                                                               
to lower  costs for  workers' compensation  premiums.   Thus, one                                                               
way to cut costs is to  restrict insurance from paying for opioid                                                               
prescriptions that patients have not been taking.                                                                               
                                                                                                                                
3:43:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  understood that  patients may  take too                                                               
many or too  few pills.  He asked whether  she could identify the                                                               
stronger goal.                                                                                                                  
                                                                                                                                
MS. LATHAM  answered that the  sponsor is  particularly concerned                                                               
with prescriptions  that are  not being taken  by patients.   The                                                               
reason  she  mentioned the  widespread  abuse  due to  widespread                                                               
prescription  drug  abuse  and   that  topic  could  render  some                                                               
familiarity for  members.   The intent of  the legislature  is to                                                               
monitor workers' compensation patients  taking opioids and ensure                                                               
that employers do not pay  for prescriptions being paid for under                                                               
workers' compensation if the patients are not taking the drugs.                                                                 
                                                                                                                                
CHAIR OLSON  commented that  urinalysis (UA) has  been used  in a                                                               
number  of  occupations  for  a  variety of  reasons.    In  this                                                               
instance,  if the  urinalysis  test comes  back  "clean" and  the                                                               
patient is  still collecting  prescriptions, it  is automatically                                                               
assumed the  injured worker is ready  to go back to  work or they                                                               
have  a  new profession  and  the  drugs  are being  diverted  to                                                               
someone who is not the patient.                                                                                                 
                                                                                                                                
3:44:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  reported that  four major  U.S. Supreme                                                               
Court  cases and  at least  one major  Alaska Supreme  Court Case                                                               
have been issued [regarding drug  testing].  These are considered                                                               
searches under  the fourth amendment [of  the U.S. Constitution].                                                               
That doesn't mean  that the testing can't sometimes  be done, but                                                               
there  is a  "special needs"  test  required.   He asked  whether                                                               
anyone has  vetted this bill  with the legislative  legal counsel                                                               
on whether the "special needs" test has been met.                                                                               
                                                                                                                                
MS.  LATHAM answered  no;  however, the  statute  that this  bill                                                               
falls  under  is  within  employer policies  so  it  would  allow                                                               
employers  to recognize  that drug  testing will  be part  of the                                                               
condition for employment.                                                                                                       
                                                                                                                                
3:45:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   related  a  scenario  in   which  the                                                               
patient/workers'  compensation  claimant  simply didn't  want  to                                                               
develop  a  habit   and  made  the  decision  not   to  take  the                                                               
prescription.   He  asked whether  it  can be  inferred that  the                                                               
patients must be "dealing the drugs."                                                                                           
                                                                                                                                
MS. LATHAM  answered absolutely not.   She indicated that  if the                                                               
patients  are restricted  to a  30-day supply  and the  employees                                                               
chose not  to take the  drugs, there  wouldn't be any  reason for                                                               
the employees to obtain more than a 30-day.                                                                                     
                                                                                                                                
CHAIR OLSON  added that  the doctor  can renew  the prescription,                                                               
but the  bill requires some  oversight and not allow  the patient                                                               
to have over three months of prescription drugs.                                                                                
                                                                                                                                
MS. LATHAM offered  her belief that approximately  15 states have                                                               
enacted something similar.                                                                                                      
                                                                                                                                
CHAIR OLSON also  added that it has been  "court-tested" in those                                                               
states.                                                                                                                         
                                                                                                                                
3:46:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  referred to a 2001  EPD decision, which                                                               
emphasizes  the privacy  clause.   He  asked  whether this  would                                                               
result   in  more   workers'   compensation  litigation   because                                                               
employers and  their insurance companies said,  "You're not truly                                                               
injured.   You  couldn't  because you're  not  taking your  meds.                                                               
Your pain  must not  be that great.   Therefore,  you're healed."                                                               
He wondered if there is any  concern that this could create other                                                               
sorts of problems.                                                                                                              
                                                                                                                                
MS. LATHAM  did not believe that  HB 370 would lead  to increased                                                               
litigation,  but it  most likely  will  stop extra  prescriptions                                                               
from being written and not being taken by the patients.                                                                         
                                                                                                                                
CHAIR OLSON noted the departments could also testify.                                                                           
                                                                                                                                
3:48:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  related  her recent  experience  with  a                                                               
series of back problems, noting she  was shocked at the amount of                                                               
a  90-day   supply  of  opioids,  including   Valium  and  Xanax.                                                               
Obtaining a 90-day  supply meant that she didn't need  to see her                                                               
doctor during  that period.   Although she acknowledged  that she                                                               
is not  on a  workers' compensation claim  she also  recognized a                                                               
distinct need  to keep workers'  compensation claims  costs down.                                                               
She suggested  limiting the aforementioned prescription  drugs to                                                               
a 30-day supply,  which should be sufficient  for injured workers                                                               
in an ongoing workers' compensation claim.                                                                                      
                                                                                                                                
REPRESENTATIVE  MILLETT  said  she was  astonished  this  [limit]                                                               
hasn't been previously put in  place since one problem the police                                                               
encounters is  the sale  of illegal prescription  drugs.   One of                                                               
her prescriptions got  stolen, noting insurance will  not pay for                                                               
it unless the  theft was reported to police.   She reiterated her                                                               
surprise at  the amount  of opioids  in a  90 day  supply, noting                                                               
that some  of drugs cost upwards  of $2,000.  She  emphasized the                                                               
importance to  have control  over that  process to  have patients                                                               
see their doctors for continuation  of care, with the outcome and                                                               
goal to have the workers'  compensation claimant go back to work.                                                               
She appreciated HB  370, especially due to  the understanding she                                                               
gained from  her own experience  with chronic back  problem since                                                               
it helped illustrate the quantity  of drugs.  She emphasized that                                                               
this bill  attempts to try to  keep illegal drugs off  the street                                                               
and  ensure that  workers' compensation  claimants are  using the                                                               
drugs  in an  efficient  manner  with the  goal  to get  workers'                                                               
compensation claimants back  to work, since medical  costs is one                                                               
of the biggest expenditures for employers and the state.                                                                        
                                                                                                                                
3:52:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked for  the level  of accuracy  of the                                                               
"UA" or drug tests.                                                                                                             
                                                                                                                                
MS. LATHAM offered to report back to the committee.                                                                             
                                                                                                                                
REPRESENTATIVE  SADDLER  anticipated  some court  challenges  and                                                               
thought the accuracy would be important.                                                                                        
                                                                                                                                
3:52:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT said  this  has the  makings  of a  good                                                               
bill.  He offered his belief  that some people will commit murder                                                               
to obtain  a 90-day  supply of  drugs.   He has  observed illicit                                                               
drugs become a  problem in his community.   The legislature needs                                                               
to do what it  can to ensure the drugs are legally  used.  He did                                                               
not  object to  "UA" use  for some  people.   He questioned  what                                                               
happens to  full drug prescriptions if  the workers' compensation                                                               
patients are  not taking them.   He  recalled an instance  in his                                                               
family,  in  which  a  family   member  had  a  prescription  for                                                               
oxycontin that  led to  excess prescription  drugs in  the family                                                               
member's house.  Certainly, there must  be a way to control drugs                                                               
from getting  into the open  market, he said.   Although [penalty                                                               
provisions] are not  in the bill, he concluded that  if the drugs                                                               
are being  sold on the  street that the  sellers need to  be held                                                               
accountable.    In  response  to a  question,  he  affirmed  that                                                               
patients possessing a 90-day supply of drugs could be in danger.                                                                
                                                                                                                                
3:55:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  echoed that  this is a  good measure.   He                                                               
found a  normal range to be  30-day supply of drugs;  however, he                                                               
asked if this limit is rigid and impractical for some.                                                                          
                                                                                                                                
MS. LATHAM  answered that the  contact with the physician  is not                                                               
defined  in the  bill  so  prescriptions could  be  filled by  an                                                               
office visit  or by  phone.  She  related his  understanding that                                                               
mailing prescriptions to small communities is also possible.                                                                    
                                                                                                                                
3:57:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked to have  on the record  that doctors                                                               
need to know if the pain  medication is necessary, but abuses can                                                               
occur  if  patients  are  not taking  their  medication  and  are                                                               
selling the prescriptions.  Again,  just for the record he wanted                                                               
to ensure there are "smart ways"  exist so patients don't have to                                                               
submit to  a physical contact  due to the  size of the  state and                                                               
the remoteness of some communities.                                                                                             
                                                                                                                                
CHAIR OLSON welcomed any suggested language changes.                                                                            
                                                                                                                                
REPRESENTATIVE HERRON  respected having  a "rigid  process," that                                                               
limits the  amount of drugs prescribed,  but at the same  time he                                                               
recognized in a lot of ways it might be impractical.                                                                            
                                                                                                                                
3:58:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether the sponsor  has seen any                                                               
evidence  that  abuse  of  opioids   is  greater  among  workers'                                                               
compensation claimants than all the other segments of society.                                                                  
                                                                                                                                
MS. LATHAM  answered she not  seen specific statistics  that have                                                               
shown abuse on  workers' compensation claims are  higher than the                                                               
widespread abuse.  She said the  trends tend to mirror each other                                                               
in terms of  the national statistics and are  similar to workers'                                                               
compensation in terms of abuse.                                                                                                 
                                                                                                                                
3:59:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  a wise amendment would be                                                               
that this principle should apply to all Alaskans.                                                                               
                                                                                                                                
MS. LATHAM  offered her belief  that would  be a tough  sell, but                                                               
the bill will be brought back up for consideration.                                                                             
                                                                                                                                
4:00:10 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Acting Director,  Division of  Insurance (DOI),                                                               
Department  of   Commerce,  Community  &   Economic  Development,                                                               
related that  workers' compensation  is a  Department of  Labor &                                                               
Workforce  Development statute  but  the employers  tend to  fund                                                               
their obligation under the statute  by purchasing insurance.  The                                                               
DOI sets  those rates.   In  terms of cost,  the DOI's  rates are                                                               
impacted   by  the   cost  of   prescriptions  through   workers'                                                               
compensation claims.   As  members know,  Alaska has  the highest                                                               
workers'  compensation  rates in  the  nation.   She  provided  a                                                               
ranking of the cost and number  of claims, noting Alaska ranks 43                                                               
of  46 on  medical claims  and 39  of 46  for indemnity  claims -                                                               
typically  the   longer  term  claims   with  a   higher  injury.                                                               
Historically,  in  reviewing  claims  for the  past  five  years,                                                               
Alaska  should expect  to  have 4,800  claims  for every  100,000                                                               
workers.  Of those 4,800  claims, 1,400 would represent long-term                                                               
claims  and  these are  the  claimants  who will  have  long-term                                                               
prescriptions.    The  costs have  steadily  increased  with  the                                                               
average amount  of $190 per claim  in 2007 having risen  to $265.                                                               
Most injured employees are receiving  up to six prescriptions for                                                               
an  injury, not  including renewals.    The top  ten drugs  being                                                               
prescribed are  for pain  medications with  25 percent  being for                                                               
oxycontin.  She characterized the  statistics as being staggering                                                               
and  employers   are  paying  for  these   through  the  workers'                                                               
compensation costs.   The division  has been trying to  work with                                                               
the  DLWD to  reduce costs  to an  affordable level.   She  hoped                                                               
members   would  consider   HB  370   to  help   reduce  workers'                                                               
compensation insurance rates and costs.                                                                                         
                                                                                                                                
4:03:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON remarked  that when  he hears  that the                                                               
average injured worker has been  prescribed six medications, that                                                               
the  medical community  is absolutely  complicit in  the problem.                                                               
He asked whether she agreed.                                                                                                    
                                                                                                                                
MS. WING-HEIER  answered that  she would  not disagree  with that                                                               
statement.   The  statistics prove  that  prescription drugs  are                                                               
overprescribed  and  often for  90  days  for convenience.    She                                                               
offered her belief that overprescribing is an issue.                                                                            
                                                                                                                                
4:04:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT  said Aetna insurance members  are limited                                                               
to 90-day  supply at a time  before refills are authorized.   She                                                               
said that Aetna  insurance doesn't allow for  prescriptions for a                                                               
longer timeframe.                                                                                                               
                                                                                                                                
MS. WING-HEIER said  that limit refers to  the personal employer-                                                               
sponsored  health plan.    She  did not  know  of any  limitation                                                               
within  the  statutes  with   respect  to  workers'  compensation                                                               
prescriptions, but deferred to the DLWD to respond.                                                                             
                                                                                                                                
4:05:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT asked whether  doctors can prescribe up to                                                               
a year under the workers' compensation plan.                                                                                    
                                                                                                                                
MS. WING-HEIER said  she was unsure.  She said  she has not heard                                                               
of up  to a year  timeframe, but  has heard of  prescriptions for                                                               
some large amounts.                                                                                                             
                                                                                                                                
4:05:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  asked  if   the  average  was  for  six                                                               
different prescriptions.                                                                                                        
                                                                                                                                
MS. WING-HEIER answered that the  average prescription is for six                                                               
different kinds of medications.                                                                                                 
                                                                                                                                
4:06:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  remarked  he  has  never  been  in  the                                                               
workers' compensation system.  He asked  whether it is odd that a                                                               
doctor would not  want to see a patient within  90 days to assess                                                               
if  the patient  is healing  or getting  worse.   He offered  his                                                               
belief  that in  his own  community some  doctors write  too many                                                               
prescriptions.  He  asked whether any tracking  occurs to compare                                                               
the   average  number   of  prescriptions   to   the  number   of                                                               
prescriptions doctors write for a specific drug.                                                                                
                                                                                                                                
MS.  WING-HEIER  answered  she  was   not  aware  of  any  study.                                                               
Unfortunately,  prescription drug  abuse  represents an  epidemic                                                               
throughout  the nation  that has  negatively impacted  the state.                                                               
She  said she  hopes this  bill will  start to  address this,  in                                                               
particular, due to the costs.                                                                                                   
                                                                                                                                
REPRESENTATIVE CHENAULT commented that  if the state is concerned                                                               
about  workers'  compensation costs,  but  the  first thing  that                                                               
happens is an injured employee  is given a 90-day prescription it                                                               
could be that "we are the problem."                                                                                             
                                                                                                                                
MS.  WING-HEIER  offered  her  belief   that  it  would  be  best                                                               
practices for the physicians to see their patients more often.                                                                  
                                                                                                                                
REPRESENTATIVE   CHENAULT  said   he  does   not  want   to  make                                                               
disparaging remarks  about doctors,  but it does  seems odd.   He                                                               
suggested that  checking back with  the patient  seems important,                                                               
although  he  wondered  if the  initial  prescriptions  were  for                                                               
prescriptions for a shorter timeframe.                                                                                          
                                                                                                                                
4:09:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON described  his own  experience at  a heart                                                               
institute,  noting he  has been  prescribed  non-opioids for  his                                                               
heart condition,  typically for a  ten-month timeframe.   When it                                                               
comes to  opioids, the  patient sees the  claimant's doctor.   He                                                               
wondered  whether the  solution is  to require  mandatory visits,                                                               
with a  maximum spacing of  three months  and for the  doctors to                                                               
prescribe three 30-day prescriptions for tighter controls.                                                                      
                                                                                                                                
MS. WING-HEIER  did not disagree  that tighter controls  would be                                                               
better to reduce rates.  She  wasn't sure if that is possible but                                                               
she thought it might reduce rates.                                                                                              
                                                                                                                                
4:11:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT,  with respect to  Representative Herron's                                                               
question,  asked whether  the  workers' compensation  regulations                                                               
require patients  to see their  doctors every  30 days.   She did                                                               
not understand  why the  workers' compensation  division couldn't                                                               
require  claimants  to have  more  visits  to track  the  injured                                                               
worker's  progress,  which  could  reduce  workers'  compensation                                                               
costs.   She  further wondered  if  after 30  days rest,  whether                                                               
doctors could release their patients.                                                                                           
                                                                                                                                
MS. WING-HEIER  answered that workers'  compensation has  a third                                                               
party adjuster  who works with the  patient and doctor.   She was                                                               
unsure  of  any  requirements  since  the  adjuster  is  directly                                                               
involved  with the  injured worker.    She suggested  that it  is                                                               
possible  in long-term  injury workers'  compensation cases  that                                                               
the patient  might not see  the doctor every  30 days.   She said                                                               
that this activity would be monitored by the adjuster.                                                                          
                                                                                                                                
4:13:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  the division has any data                                                               
relative  to costs  associated by  requiring  more doctor  office                                                               
visits.   He  offered  his belief  this  requirement would  drive                                                               
costs up.   He  recalled the motivation  for a  telemedicine bill                                                               
before  the legislature  was  to decrease  the  number of  office                                                               
visits  and   for  patients   to  be   able  to   quickly  obtain                                                               
prescriptions  in  order  to  reduce medical  costs.    He  asked                                                               
whether telemedicine  approach will work or  if increasing office                                                               
visits to better monitor injured people is the answer.                                                                          
                                                                                                                                
CHAIR  OLSON answered  that the  goal is  to get  injured workers                                                               
back to work.   He offered his belief that  the cost savings will                                                               
occur once the injured worker is  back to work and off drugs such                                                               
as oxycontin, which is a  drug that was developed for end-of-life                                                               
terminal  cancer patients  that later  became a  painkiller.   He                                                               
said  that  drugs like  OxyContin  are  being overprescribed  and                                                               
reiterated that the  intent is to get the employee  back to work,                                                               
which saves  the state, the worker,  and the employer money.   He                                                               
cautioned that once injured workers  are on opioids for a lengthy                                                               
period of time, workers typically don't go back to work.                                                                        
                                                                                                                                
4:15:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  remarked  that   the  committee  is  not                                                               
advocating telemedicine for workers' compensation claims.                                                                       
                                                                                                                                
REPRESENTATIVE JOSEPHSON said he was unsure.                                                                                    
                                                                                                                                
CHAIR OLSON agreed telemedicine is not being advocated.                                                                         
                                                                                                                                
4:15:27 PM                                                                                                                    
                                                                                                                                
MICHAEL MONAGLE,  Director, Central Office, Division  of Workers'                                                               
Compensation,  Department   of  Labor  &   Workforce  Development                                                               
(DLWD), with  respect to  an injured workers  needing to  see the                                                               
doctor on a regular basis, answered  that there is a provision in                                                               
law that  an employer can  require an  injured worker to  see the                                                               
doctor at least once every two  weeks.  He acknowledged that most                                                               
of  the  time  claims  are managed  by  a  claims  administrator;                                                               
however,  a claims  adjuster typically  handles  over 100  cases.                                                               
These adjusters tend  to pay more attention  to serious indemnity                                                               
claims  than  a  medical  only  claim.   He  reiterated  that  an                                                               
employer can  direct an  injured worker to  see the  doctor semi-                                                               
monthly.   In the  event an  injured worker  has surgery  and the                                                               
normal  recovery time  is six  to eight  weeks, it  may not  make                                                               
sense  to  see the  doctor  any  earlier.    In response  to  the                                                               
question  regarding  whether  problems   are  more  prevalent  in                                                               
workers'  compensation   than  in  the  general   population,  he                                                               
reported  that  a study  by  the  Workers' Compensation  Research                                                               
Institute  indicates  the  average number  of  workers  receiving                                                               
opioids for a time-loss claim is over 75 percent.                                                                               
                                                                                                                                
4:17:19 PM                                                                                                                    
                                                                                                                                
MR.  MONAGLE  did not  find  it  unreasonable for  patients  with                                                               
strains or  breaks to  have a  need for  pain prescriptions.   He                                                               
pointed out that  in workers' compensation cases,  the problem is                                                               
that the longer the injured  workers are on pain medications, the                                                               
longer they miss work and for  those on pain medications for more                                                               
than  90 days,  the  duration  of the  disability  is 30  percent                                                               
higher   than  in   non-opioid  prescription   cases.     He  has                                                               
encountered some  injured workers  with serious  disabilities who                                                               
have been on  opioids for two to three years.   Doctors recognize                                                               
these patients become addicted,  that their doses are increasing,                                                               
and that the  person may be suffering mental  disabilities due to                                                               
prolonged use of the drugs.   In addition, patients may encounter                                                               
physical  disabilities, yet  the  drugs are  the  only remedy  so                                                               
doctors  keep prescribing  the drugs.   He  said the  Centers for                                                               
Disease Control  uses the  term "epidemic" which  is not  at term                                                               
that is used  lightly.  He said that  workers' compensation cases                                                               
are  a reflection  of  the  general health  care  system, but  he                                                               
suggested  that  there may  be  more  pronounced problems  within                                                               
workers' compensation than in the general population.                                                                           
                                                                                                                                
CHAIR OLSON  commented that this  bill is  a result of  a meeting                                                               
put  on  by Workers'  Compensation  Research  Institute in  fact,                                                               
about 90 percent  of the meeting was used to  address this issue.                                                               
He remarked  that fatalities involving  drivers using  opioids is                                                               
close  to  surpassing  "drunk  driving" fatalities  so  it  is  a                                                               
serious problem.                                                                                                                
                                                                                                                                
4:19:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON referred  to U.S  Supreme Court  cases,                                                               
including [Vernonia  School District 47J  v. Acton, 515  U.S. 646                                                               
(1995)],  a   U.S.  Supreme  Court  decision   which  upheld  the                                                               
constitutionality of  a random  drug testing  regimen implemented                                                               
by  the local  public schools  in Vernonia,  Oregon, and  others,                                                               
including one  related to customs  officers and  railroad workers                                                               
based on  a New York State  rail disaster.  He  asked what public                                                               
interest is being  served with this bill -  perhaps reduced rates                                                               
and premiums; however,  the injured worker at home  does not pose                                                               
any threat  to anyone except  himself/herself.  He  asked whether                                                               
Mr. Monagle has discussed the legality of the bill.                                                                             
                                                                                                                                
MR. MONAGLE  answered that  he has not  discussed this  bill with                                                               
the  agency's  attorney  general.   He  offered  his  belief  the                                                               
purpose  for the  drug testing  is that  states who  have adopted                                                               
drug  testing discovered  that up  to 30  percent of  the injured                                                               
workers  are  not  taking  the   prescribed  drugs.    Thus,  the                                                               
assumption  is that  these drugs  are making  it on  the streets.                                                               
Although nothing in  the bill requires the  employer to prosecute                                                               
or  take any  criminal  action, some  states  have adopted  "good                                                               
Samaritan  or safe  harbor laws."   In  those instances  a person                                                               
reported to  have a substance  abuse problem could be  subject to                                                               
intervention  or  programs  without any  criminal  charges  being                                                               
involved.   He  reiterated that  he did  not think  that criminal                                                               
charges were involved in HB 370.                                                                                                
                                                                                                                                
CHAIR OLSON referred  to page 1, lines  7 or 8, of the  bill.  He                                                               
pointed out that the language  is discretionary, that an employer                                                               
"may require an employee to  undergo drug testing" after 90 days.                                                               
He  summarized   work  taken  on  the   bill,  including  holding                                                               
discussions  with   legal  staff  and  other   legislators.    He                                                               
characterized the  approach being  taken in the  bill as  using a                                                               
"scalpel" rather than a "chain saw"  in an attempt to address the                                                               
workers' compensation injured worker prescription issues.                                                                       
                                                                                                                                
4:23:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  noticed an absence of  ramifications in                                                               
the  bill for  employment, HIPPA  issues,  and due  process.   He                                                               
asked for the  penalty if an injured worker shows  a lower use of                                                               
opioids.                                                                                                                        
                                                                                                                                
MR.  MONAGLE  answered  that  typically  everything  in  workers'                                                               
compensation  surrounds the  payment of  benefits.   Thus, if  an                                                               
injured worker  has been prescribed  narcotics, but the  drugs do                                                               
not show  up during testing, some  states do not continue  to pay                                                               
for the  prescription drug  unless convincing  evidence indicates                                                               
the drugs were stolen or  substantial evidence indicates the drug                                                               
should  be refilled.   Therefore  the benefit  would be  cut off,                                                               
although it wouldn't impact other  aspects of the claimant's care                                                               
or  disability  benefits.   In  terms  of employment  provisions,                                                               
which he wasn't  very familiar with, he  understood one provision                                                               
provides  safeguards  from  lawsuits   being  filed  against  the                                                               
employer.   He further understood  that many employers  have zero                                                               
tolerance  drug use  policies; however,  he was  unsure if  other                                                               
drugs  showed up  during urinalysis  (UA),  whether the  employer                                                               
could take any disciplinary action.                                                                                             
                                                                                                                                
4:25:51 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked  for the percentage of the  Alaska workforce is                                                               
subject to UAs.                                                                                                                 
                                                                                                                                
MR. MONAGLE said he was unsure.                                                                                                 
                                                                                                                                
CHAIR  OLSON  understood that  anyone  in  the transportation  or                                                               
licensed maritime fields would be subject to UAs.                                                                               
                                                                                                                                
4:26:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  said  the   bill  seems  to  make  sense                                                               
especially due  to the  compelling narrative  that has  been laid                                                               
out.   He indicated the  benefits seem  clear.  He  recalled that                                                               
workers' compensation workers  absent from work tend  to be those                                                               
on  pain  medications.    He asked  whether  causality  is  being                                                               
confused  or is  it just  that those  with serious  injuries have                                                               
longer claims and are absent from work for a longer period.                                                                     
                                                                                                                                
MR.  MONAGLE explained  that  part  of the  issue  is related  to                                                               
patients taking prescribed  opioids for a long time;  and most of                                                               
the medical community concerned about  long-term use.  The longer                                                               
injured workers  are on  drugs the tolerance  to dosage  for pain                                                               
and  discomfort goes  up so  the patient  needs more  medication.                                                               
The threshold  most states  use is a  120 milligrams  of morphine                                                               
equivalent.  He agreed that  it seems reasonable to have progress                                                               
reports.  If  no functional benefit is derived from  that sort of                                                               
dosage, something  needs to be done  to wean the patient  off the                                                               
drugs.   He didn't  think the  medical and  workers' compensation                                                               
community was  as concerned  about 30-day use,  which is  why the                                                               
bill  recommends it.    He  said this  bill  doesn't address  the                                                               
overarching problem  of drug addiction  or other  patient issues;                                                               
however, the  bill does allow  the division to put  in regulation                                                               
some tools to address long-term use of opioids.                                                                                 
                                                                                                                                
4:28:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER said  he certainly  could see  the common                                                               
sense for  30-day prescription use.   He reviewed the  large list                                                               
of drugs prescribed.   He wondered if the bill  should be limited                                                               
to schedule  I drugs  since schedule II  drugs include  some pain                                                               
relievers.                                                                                                                      
                                                                                                                                
MR. MONAGLE  answered that page  2, lists schedule IA,  IIIA, and                                                               
VA drugs that would be affected under the bill.                                                                                 
                                                                                                                                
4:29:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether  schedule IA, IIA, and IIIA,                                                               
are a  matter of drug  intensity or if they  represent categories                                                               
of drugs.                                                                                                                       
                                                                                                                                
MR. MONAGLE  answered that the  drugs are  various concentrations                                                               
of  the opioids.   He  pointed out  that class  I represents  the                                                               
greatest  threat to  life  and health,  particularly  if used  in                                                               
combination with other drugs.                                                                                                   
                                                                                                                                
REPRESENTATIVE  SADDLER understood  that schedule  I is  the most                                                               
powerful.                                                                                                                       
                                                                                                                                
4:30:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT related  a scenario in which  a person has                                                               
a serious back  injury but doesn't want surgery  and continues to                                                               
take  medications.   She  understood that  it  isn't possible  to                                                               
force   someone  to   have  surgery,   but  ultimately   workers'                                                               
compensation  claim   could  be  never  ending   if  the  medical                                                               
recommendation is surgery.                                                                                                      
                                                                                                                                
MR. MONAGLE  said the consensus  in the medical community  is for                                                               
patients to choose to undergo  conservative care such as physical                                                               
therapy and other types of  treatment before deciding on surgery.                                                               
He offered  his belief  that it  is not  in anyone's  interest to                                                               
stay  on  opioids   indefinitely.    In  some   states,  after  a                                                               
prescribed period of time, in  consultation with the physician, a                                                               
plan is put in  place to step the patient down  to a lower level,                                                               
and probably  to recommend the  patient attend a  pain management                                                               
clinic to  learn other  ways to  deal with the  pain.   He agreed                                                               
that these  drugs were never  intended to be long-term  drugs and                                                               
are intended for short-term use.                                                                                                
                                                                                                                                
4:32:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT  asked whether drugs other  than OxyContin                                                               
have the same effect.   She said she is aware  of people who move                                                               
to disability benefits when the  solution might be to have spinal                                                               
fusion.   She asked how to  avoid the path of  patients moving to                                                               
disability.                                                                                                                     
                                                                                                                                
MR.  MONAGLE answered  that those  patients  represent about  one                                                               
percent of  the cases.   Certainly,  it is  not in  anyone's best                                                               
interest to  stay on  these types  of drugs  for the  duration of                                                               
their  lives.   He said  that the  general consensus  for chronic                                                               
pain management  is for  doctors to work  with their  patients to                                                               
minimize  the  need  for  these  opioid  equivalent  drugs.    In                                                               
response to  a question, he  offered to work  with Representative                                                               
Millett  on  the workers'  compensation  issue  to help  get  the                                                               
workers back to work.                                                                                                           
                                                                                                                                
4:36:17 PM                                                                                                                    
                                                                                                                                
SIDNEY SEE stated that she  previously worked for procurement for                                                               
the University  of Alaska,  but fell  on the  ice, had  two wrist                                                               
surgeries,  a  shoulder surgery,  and  ten  months later  doctors                                                               
discovered  she had  severed her  rotator cuff  and suffered  bad                                                               
disc damage.  She then had  neck surgery.  She offered her belief                                                               
that the  money in  workers' compensation  goes to  adjusters who                                                               
have  top  paid lawyers  and  require  independent medical  exams                                                               
(IME).  She estimated  the cost for an IME at  $10,000.  She said                                                               
she was  moving boxes and hurt  her lower back.   She related she                                                               
has an  excellent doctor  who has never  prescribed more  than 30                                                               
days of prescriptions.  She signs  an annual form and the doctors                                                               
perform   random  drug   tests  to   avoid  drug   abuse.     She                                                               
characterized spinal  pain as horrific.   Fortunately  her lumbar                                                               
issue  on October  31  seemed fine,  but  Northern Adjusters  has                                                               
scheduled another  IME to fly  in a doctor  from San Diego.   She                                                               
said this  problem should  probably be resolved  over time.   She                                                               
has good  treatment, her  doctor gives  her some  injections, and                                                               
her  goal  is to  work.    She did  not  think  the big  cost  is                                                               
prescriptions.  She  said she feels knowledgeable  and would like                                                               
to see the system changed.   She offered her belief that patients                                                               
get  the  bottom lawyers  whereas  the  insurance adjusters  have                                                               
better  lawyers.   She offered  to  provide more  details on  her                                                               
five-year recovery from  her fall, noting she  subsequently had a                                                               
disc  replacement  and two  spinal  fusions.   She  concluded  by                                                               
saying she  had a wonderful job  in procurement and her  boss and                                                               
co-workers  were  very  supportive,  but she  did  not  find  her                                                               
insurance adjuster helpful.                                                                                                     
                                                                                                                                
[HB 370 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB370 ver A.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB370 Sponsor Statement.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB370 Sectional Analysis.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB370 Fiscal Note-DOLWD-WC-03-14-14.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB370 Supporting Documents-Report Workers Compensation 2012 Issues by Joseph Paduda.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB370 Supporting Documents-Report Lockton & Associates 08-2012.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB152 CS(L&C) Fiscal Note-DOA-DRB-03-14-14.pdf HL&C 3/19/2014 3:15:00 PM
HB 152
HCR15 Supporting Documents-Resolution Fairbanks EDC 2014-01.pdf HL&C 3/19/2014 3:15:00 PM
HCR 15
HB370 Supporting Documents-AK Drug Overdose Deaths2008-12.pdf HL&C 3/19/2014 3:15:00 PM
HB 370
HB152 Letter-Buck Consulting 3-18-2014.pdf HL&C 3/19/2014 3:15:00 PM
HB 152