Legislature(2019 - 2020)ADAMS ROOM 519

05/09/2019 01:30 PM House FINANCE

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Audio Topic
01:30:07 PM Start
01:30:42 PM SB44
01:50:49 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 44 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 9, 2019                                                                                             
                         1:30 p.m.                                                                                              
                                                                                                                                
1:30:07 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Wilson  called the House Finance  Committee meeting                                                                    
to order at 1:30 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Tammie Wilson, Co-Chair                                                                                          
Representative Jennifer Johnston, Vice-Chair                                                                                    
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Andy Josephson                                                                                                   
Representative Gary Knopp                                                                                                       
Representative Bart LeBon                                                                                                       
Representative Kelly Merrick                                                                                                    
Representative Colleen Sullivan-Leonard                                                                                         
Representative Cathy Tilton                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Cathy Giessel,  Sponsor; Heather  Carpenter, Deputy                                                                    
Director,  Department of  Health and  Social Services;  Sara                                                                    
Chambers, Director,  Division of Corporations,  Business and                                                                    
Professional  Licensing, Department  of Commerce,  Community                                                                    
and Economic  Development; Emily  Ricci, Health  Care Policy                                                                    
Administrator,   Division   of  Retirement   and   Benefits,                                                                    
Department of Administration.                                                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Wendy  Smith,   President,  Alaska  Academy   of  Physicians                                                                    
Assistants, Juneau.                                                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 44(FIN)                                                                                                                    
          TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS                                                                               
                                                                                                                                
          CSSB 44(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
CS FOR SENATE BILL NO. 44(FIN)                                                                                                
                                                                                                                                
     "An Act relating to the prescription of drugs by a                                                                         
     physician assistant without physical examination; and                                                                      
     providing for an effective date."                                                                                          
                                                                                                                                
1:30:42 PM                                                                                                                    
                                                                                                                                
SENATOR  CATHY GIESSEL,  SPONSOR,  described  the bill.  She                                                                    
explained that SB 44  addressed telehealth authorization for                                                                    
physician assistants  (PAs). She detailed that  the bill was                                                                    
a cleanup  of a  bill that passed  the legislature  in 2016.                                                                    
The Medicaid  reform bill, known  as SB  74-Medicaid Reform;                                                                    
Telemedicine; Drug  Databas [CHAPTER 25 SLA  16, 06/21/2016]                                                                    
authorized   Alaskas    physicians   to  render   care   via                                                                    
telemedicine   that   included   providing   treatment,   or                                                                    
prescribing,  dispensing,  or administering  a  prescription                                                                    
drug without conducting a  physical examination. However, SB
74 only  addressed physicians, and the  Alaska State Medical                                                                    
Board  interpreted that  the  bill's  provisions should  not                                                                    
apply to  (PAs). The state  medical board had  determined on                                                                    
its  own  that  physicians'  assistants  could  not  provide                                                                    
telemedicine  services. She  relayed the  history of  the PA                                                                    
profession.  She  informed  the committee  that  during  the                                                                    
Vietnam  War   medics  performed  critical   lifesaving  and                                                                    
complex  medical services  in the  field. Subsequently,  the                                                                    
medics  gained  significant  medical skills  and  physicians                                                                    
began to  employ them  under their  supervision. Eventually,                                                                    
the PA  profession was  created. She  cited a  document from                                                                    
the American Academy of  Physicians Assistants that outlined                                                                    
the  education  and  duties  of  PAs  that  included  taking                                                                    
medical  histories,   performing  physical  exams   and  lab                                                                    
testing, diagnosis,  prescribing, and assisting  in surgery.                                                                    
Typically, the required education  was 27 months culminating                                                                    
in graduating with a master's  degree. The training included                                                                    
rotations through  the usual clinical  specialties; totaling                                                                    
approximately  2000 hours  of supervised  clinical practice.                                                                    
She  furthered that  the Alaska  State Medical  Board issued                                                                    
guidelines that  were included in  the bill  packet ["Alaska                                                                    
State  Medical  Board-Board  Issued  Guidelines]   (copy  on                                                                    
file) requiring  a PA to maintain  a collaborative agreement                                                                    
with a  physician. The PA  was required to  maintain monthly                                                                    
contact  with the  physician  and  the physician  authorized                                                                    
where the  PA could practice  and the medications  she could                                                                    
prescribe.  She  elaborated  that PAs  often  obtained  Drug                                                                    
Enforcement Administration (DEA)  authorization to prescribe                                                                    
controlled  substances. She  concluded that  the bill  would                                                                    
close the gap  created in SB 74 and  reestablish the ability                                                                    
for PAs  to provide  telehealth services. She  revealed that                                                                    
PAs   previously   had    the   authorization   to   provide                                                                    
telemedicine prior to passage of SB 74.                                                                                         
                                                                                                                                
1:34:35 PM                                                                                                                    
                                                                                                                                
Senator  Giessel  addressed  who   would  benefit  from  the                                                                    
legislation.  She emphasized  that patients  especially from                                                                    
underserved and rural areas would  benefit most. She pointed                                                                    
to  a   map  from  the  Health   Professional  and  Services                                                                    
Administration  that depicted  Health Professional  Shortage                                                                    
Areas (HPSA) for primary care  (copy on file) in Alaska. She                                                                    
noted  that  most of  the  state  was included  in  shortage                                                                    
areas. Allowing PAs to  provide telemedicine expanded access                                                                    
to  care. She  pointed to  the letters  of support  (copy on                                                                    
file)  from  PAs who  practice  in  rural areas.  The  state                                                                    
medical board had taken a  neutral position on the bill. She                                                                    
reported that  the Department of Health  and Social Services                                                                    
(DHSS) would offer an amendment to the bill.                                                                                    
                                                                                                                                
Representative Knopp  asked if  she had received  letters of                                                                    
opposition.  Senator   Giessel  replied  in   the  negative.                                                                    
Representative   Knopp  inquired   whether  any   physicians                                                                    
expressed opposition  to the bill. Senator  Giessel answered                                                                    
in the negative.                                                                                                                
                                                                                                                                
1:36:37 PM                                                                                                                    
                                                                                                                                
Representative   Josephson   remarked   on   the   sponsors                                                                     
testimony that  the department had an  amendment. He thought                                                                    
that was unusual.                                                                                                               
                                                                                                                                
Co-Chair  Wilson replied  that the  committee could  draft a                                                                    
committee substitute  , which was  the typical  process. She                                                                    
asked DHSS to speak to the forthcoming amendment.                                                                               
                                                                                                                                
HEATHER  CARPENTER, DEPUTY  DIRECTOR,  DEPARTMENT OF  HEALTH                                                                    
AND  SOCIAL   SERVICES,  answered  that  the   governor  had                                                                    
introduced   a  Medicaid   bill;   SB  112/HB   135-Medicaid                                                                    
Expansion;  Drug Cost  Containment.  She  reported that  the                                                                    
department  asked the  sponsor  if two  provisions from  the                                                                    
bill could  be added  to SB  44 to  expedite passage  in the                                                                    
current  session.  The  provisions related  to  the  state's                                                                    
preferred  drug list.  She explained  that DHSS  updated the                                                                    
drug list once  each year and the amendment  would allow the                                                                    
department  to update   by  reference through  regulations.                                                                     
Currently, it took  6 to 9 months before  the preferred drug                                                                    
list was  fully adopted.  The department published  the list                                                                    
of  proposed  changes  once  each  year  but  discussed  the                                                                    
changes four times each year.                                                                                                   
                                                                                                                                
1:38:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilson remained uncertain what the amendment did.                                                                      
                                                                                                                                
Ms. Carpenter  answered that two sections  of the governors                                                                     
bill - Section 1 and Section  7 would be amended into SB 44.                                                                    
She explained that Medicaid had  a preferred drug list and a                                                                    
prior authorization  medication list.  The first  section of                                                                    
SB  44  would   authorize  the  lists  to   be  updated  via                                                                    
regulations; resulting in reducing the process to 60 days.                                                                      
                                                                                                                                
Representative LeBon  shared that  he had previously  been a                                                                    
board member of the Interior  Community Health Center for 20                                                                    
years that had a health clinic  in Healy managed by a PA and                                                                    
the supervision  was provided from the  Fairbanks clinic. He                                                                    
asked how  the bill would  change the arrangement.  He asked                                                                    
if  it was  necessary  for the  PA to  be  located near  the                                                                    
physician.  Senator   Giessel  answered  that  SB   44  only                                                                    
required  contact   -  via  telephone  or   email  with  the                                                                    
supervising  physician.  Occasionally,  they  might  consult                                                                    
with each other  on a complicated case or  other issues. She                                                                    
furthered that  the amendment was  tangential   to the bill.                                                                    
The preferred drug list was  part of how Medicaid controlled                                                                    
costs  for  prescription  drugs.  The  drug  list  typically                                                                    
advocated for  the use  of generic  drugs first  and allowed                                                                    
bulk buying of  prescription drugs. She noted  that the list                                                                    
was a major cost savings for the Medicaid system.                                                                               
                                                                                                                                
1:41:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson  reported  that   the  amendment  would  be                                                                    
brought to the committee for discussion in a later meeting.                                                                     
                                                                                                                                
Co-Chair Wilson OPENED public testimony.                                                                                        
                                                                                                                                
Representative  LeBon inquired  whether it  was most  likely                                                                    
the case  that the PA would  be in the same  building as the                                                                    
supervisory physician.                                                                                                          
                                                                                                                                
WENDY  SMITH,   PRESIDENT,  ALASKA  ACADEMY   OF  PHYSICIANS                                                                    
ASSISTANTS, JUNEAU (via  teleconference), responded that was                                                                    
not the  case for most  of the PAs  in the state  of Alaska.                                                                    
She added  that most  PAs were  supervised via  telephone or                                                                    
email.                                                                                                                          
                                                                                                                                
1:44:03 PM                                                                                                                    
                                                                                                                                
SARA CHAMBERS, DIRECTOR,  DIVISION OF CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY AND  ECONOMIC DEVELOPMENT, relayed that  the state                                                                    
medical board  updated its disposition  of SB 44 and  was in                                                                    
support of the bill.                                                                                                            
                                                                                                                                
Co-Chair Wilson CLOSED public testimony.                                                                                        
                                                                                                                                
Co-Chair  Wilson asked  Ms. Chambers  to  review the  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Ms. Chambers  complied. She reviewed the  fiscal impact note                                                                    
(FN1  CED) from  the Department  of Commerce,  Community and                                                                    
Economic  Development in  the amount  of $5.3  thousand. She                                                                    
delineated that  the appropriation  request was the  cost to                                                                    
update  regulations.  The appropriation  would  specifically                                                                    
cover  legal  costs  to  amend  regulations,  printing,  and                                                                    
postage  in the  first year.  Co-Chair Wilson  asked whether                                                                    
the costs would  be paid by the medical  board. Ms. Chambers                                                                    
replied  in the  affirmative  and added  that  the cost  was                                                                    
covered by receipt supported services  paid for by licensing                                                                    
fees.                                                                                                                           
                                                                                                                                
Representative LeBon  asked whether telehealth  was expanded                                                                    
to include  nurse practitioners.  Ms. Chambers  informed the                                                                    
committee that nurses, and  advanced nurse practitioners had                                                                    
been able  to perform  telehealth services for  decades. She                                                                    
added  that  the Board  of  Nursing  was currently  adopting                                                                    
regulations to clarify the practice.                                                                                            
                                                                                                                                
1:46:20 PM                                                                                                                    
                                                                                                                                
EMILY RICCI,  HEALTH CARE POLICY ADMINISTRATOR,  DIVISION OF                                                                    
RETIREMENT  AND  BENEFITS,   DEPARTMENT  OF  ADMINISTRATION,                                                                    
reviewed the  Department of Administration zero  fiscal note                                                                    
(FN 2  ADM). She  indicated that the  bill would  not impact                                                                    
the current telehealth benefit  structure provided under the                                                                    
AlaskaCare plans.                                                                                                               
                                                                                                                                
Co-Chair  Wilson asked  whether  the department  anticipated                                                                    
any  savings   from  the  bill.   Ms.  Ricci   replied  that                                                                    
 conceptually, in  time it could  save money.   However, not                                                                    
within the timeframe  of the fiscal note.  She reported that                                                                    
currently,  telehealth was  very infrequently  utilized. Out                                                                    
of  two million  claims  process each  year,  fewer than  40                                                                    
claims were  being processed annually for  telemedicine. She                                                                    
did not anticipate  the bill having a  financial impact, but                                                                    
she did believe  it had the potential to  increase access in                                                                    
the future.                                                                                                                     
                                                                                                                                
Representative  Josephson expressed  surprise  that only  40                                                                    
out of  2 million  claims from the  pool of  state employees                                                                    
were  for telehealth  services. He  asked for  confirmation.                                                                    
Ms. Ricci answered  that when the division  checked the data                                                                    
it discovered that  fewer than 40 were being  billed under a                                                                    
specific Current  Procedural Terminology (CPT) code  and the                                                                    
associated  modifier   for  the   types  of   services.  She                                                                    
elaborated  that  the  division   found  that  some  of  the                                                                    
services  might had  been billed  without  the correct  code                                                                    
modifier  for  telehealth. She  deduced  that  there may  be                                                                    
 slightly higher   utilization of  telemedicine but  she was                                                                    
unable  to pull  the  data at  present.  She qualified  that                                                                    
regardless, out  of 2 million annually  processed claims the                                                                    
department did not anticipate an immediate fiscal impact.                                                                       
                                                                                                                                
1:49:08 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  asked if there was  a telemedicine                                                                    
issue  for rural  Alaska related  to  bandwidth issues.  Ms.                                                                    
Ricci replied  that she  was not the  best person  to answer                                                                    
the question, but  she guessed that there  were some related                                                                    
issues.                                                                                                                         
                                                                                                                                
Co-Chair Wilson  noted that  she would  attempt to  find the                                                                    
answer.                                                                                                                         
                                                                                                                                
SB  44  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
1:50:49 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:50 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
CS for SB44 (FIN) Sectional Summary vsn E.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Letter of Support AK Policy Forum 3-2019.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Letter of Support ACoA 3-21-19.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Sponsor Statement revised 4-2-19.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Supporting Document AK State Medical Bd PA scope of practice.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Supporting Document HRSA -HPSA Underserved Primary Care Areas (1).pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Supporting Document DEA Drug Schedules.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Letter of Support ANHB 3-26-19.pdf HFIN 5/9/2019 1:30:00 PM
HB 3
SB 44
SB44 Letter of Support Aikey 3-13-19.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Supporting Document PA guidelines AK State Medical Bd.pdf HFIN 5/9/2019 1:30:00 PM
SB 44
SB44 Supporting Document Prescribing Authority PA.pdf HFIN 5/9/2019 1:30:00 PM
SB 44