Legislature(2013 - 2014)CAPITOL 106

03/19/2013 03:00 PM House HEALTH & SOCIAL SERVICES


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03:03:36 PM Start
03:04:47 PM HB134
05:03:42 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Presentation: To be Announced
<Above Item Removed from Agenda>
*+ HB 134 MEDICAID PAYMENT FOR MEDISET PRESCRIPTION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         March 19, 2013                                                                                         
                           3:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lora Reinbold                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lance Pruitt                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 134                                                                                                              
"An Act requiring Medicaid payment for scheduled unit dose                                                                      
prescription drug packaging and dispensing services for                                                                         
specified recipients."                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 134                                                                                                                  
SHORT TITLE: MEDICAID PAYMENT FOR MEDISET PRESCRIPTION                                                                          
SPONSOR(s): REPRESENTATIVE(s) COSTELLO                                                                                          
                                                                                                                                
02/20/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/13       (H)       HSS, FIN                                                                                               
03/19/13       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MIA COSTELLO                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 134, as the sponsor of the                                                                 
bill.                                                                                                                           
                                                                                                                                
CHARLES GUINCHARD, Staff                                                                                                        
Representative Mia Costello                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 134 on behalf of the sponsor,                                                               
Representative Costello.                                                                                                        
                                                                                                                                
MATTHEW KEITH, Vice President of Pharmacy                                                                                       
Geneva Woods Pharmacy                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
MARY MUNDELL                                                                                                                    
Susitna Mediset Services                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
RUTH DUKOFF                                                                                                                     
Medical Director                                                                                                                
North Star Hospital                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
PAUL BROTHERTON, Manager                                                                                                        
Anchorage Medset Pharmacy, Inc. (AMP Pharmacy)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
JON SHERWOOD, Medicaid Special Projects                                                                                         
Office of the Commissioner                                                                                                      
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion on HB 134.                                                                   
                                                                                                                                
CHAD HOPE, Pharmacy Program Manager                                                                                             
Medical Assistance Administration                                                                                               
Division of Health Care Services                                                                                                
Department of Health and Social Services                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion on HB 134.                                                                   
                                                                                                                                
CABLE STARLINGS                                                                                                                 
Anchor House                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
JOANNE SULLIVAN, RN                                                                                                             
Hope Community Resources, Inc.                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
PATRICIA SENNER, Family Nurse Practitioner                                                                                      
Alaska Nurses Association                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
AMY ONEY                                                                                                                        
Mama's Assisted Living Home                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
KATIE BALDWIN-JOHNSON, Program Officer                                                                                          
Alaska Mental Health Trust Authority                                                                                            
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
THERESA BRINSKY, RN                                                                                                             
Marlow Manor Assisted Living                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
REESE MCKINNEY                                                                                                                  
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
SHERRY METTLER                                                                                                                  
Assisted Living Industry                                                                                                        
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
MARY JO METTLER                                                                                                                 
Northern Lighthouse                                                                                                             
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
CHRISTINA JOHNSON                                                                                                               
Kenai Eye Care                                                                                                                  
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
MARY NICHOLSON                                                                                                                  
Nicholson's Assisted Living Home                                                                                                
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Testified during discussion of HB 134.                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:03:36 PM                                                                                                                    
                                                                                                                                
CHAIR PETE  HIGGINS called the  House Health and  Social Services                                                             
Standing   Committee    meeting   to    order   at    3:03   p.m.                                                               
Representatives  Higgins, Seaton,  Reinbold, Nageak,  Keller, and                                                               
Tarr were present at the call to order.                                                                                         
                                                                                                                                
        HB 134-MEDICAID PAYMENT FOR MEDISET PRESCRIPTION                                                                    
                                                                                                                                
3:04:47 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS announced that the  only order of business would be                                                               
HOUSE  BILL  NO. 134,  "An  Act  requiring Medicaid  payment  for                                                               
scheduled unit  dose prescription  drug packaging  and dispensing                                                               
services for specified recipients."                                                                                             
                                                                                                                                
3:05:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB   134,  labeled  28-LS0303\P,  Mischel,                                                               
3/18/13, as the working draft.   There being no objection, it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
3:05:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIA  COSTELLO, Alaska State  Legislature, speaking                                                               
as the sponsor of HB 134,  said that the proposed bill would move                                                               
an  existing  program into  state  statute.   She  reported  that                                                               
Alaska's  population  of older  than  65  years was  the  fastest                                                               
growing in  any state and  the group of  seniors 85 years  of age                                                               
and  older was  expected to  triple in  the next  20 years.   She                                                               
declared that the growing cost of  health care was a challenge to                                                               
the state, and  would be a consistent issue moving  forward.  She                                                               
declared that  the mediset program  allowed more  flexibility for                                                               
older Alaskans as they made  living decisions.  She reported that                                                               
some  costs  associated with  nursing  homes  and emergency  room                                                               
visits  were  astronomical.   She  explained  that  this  program                                                               
allowed   for  an   enhanced  pharmacy   service,  by   packaging                                                               
medications  and  delivering  them weekly,  which  decreased  the                                                               
confusion for  adherence to  a medication  regimen.   She pointed                                                               
out that the program was prescribed  by a doctor, so that all the                                                               
medication management would  be through a mediset  pharmacy.  She                                                               
indicated that  it would  remove much of  the guesswork  by home-                                                               
based  caregivers, as  the drugs  would be  packaged by  specific                                                               
regimen.   She  pointed out  that this  program would  dispose of                                                               
unused  medications   and  would  better  allow   monitoring  for                                                               
adherence to  medication schedules.   She  explained that  all of                                                               
this  would  decrease  emergency  room visits  and  help  control                                                               
costs.   She declared that this  should become a policy,  so that                                                               
the  state would  continue this  valued program.   She  explained                                                               
that the  program would  lead to "overall  cost savings  when you                                                               
look at the entire health care  system," as it would support care                                                               
systems that were less expensive  than nursing homes or full-time                                                               
staff to ensure adherence to a medication schedule.                                                                             
                                                                                                                                
3:11:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NAGEAK  asked if  mediset was an  existing program                                                               
in Alaska.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COSTELLO   replied  that   the  state   had  been                                                               
reimbursing the  pharmacies for dispensing this  program for many                                                               
years.                                                                                                                          
                                                                                                                                
3:12:07 PM                                                                                                                    
                                                                                                                                
CHARLES  GUINCHARD, Staff,  Representative  Mia Costello,  Alaska                                                               
State Legislature, offered to discuss  the Sectional Analysis for                                                               
the proposed  CS for HB 134  [included in members' packets].   He                                                               
directed attention to Section 1  of the proposed CS which amended                                                               
AS  47.07 to  establish  AS 47.07.031,  entitled "Scheduled  unit                                                               
dose  prescription drug  dispensing  services and  transportation                                                               
services."     He  explained  subsection  (a),   which  gave  the                                                               
Department  of Health  and Social  Services (DHSS)  the power  to                                                               
reimburse  a  pharmacy  for  dispensing  services  and  non-local                                                               
transportation  costs  for   prescriptions  requiring  medication                                                               
compliance packaging.   This subsection also gave  DHSS the power                                                               
to  adopt  regulations  specifying which  persons  qualified  for                                                               
reimbursement under  this program.  He  emphasized that non-local                                                               
transport referred  to the transportation  cost to  any community                                                               
without a mediset pharmacy.   He also highlighted that DHSS could                                                               
adopt regulations  to determine  eligibility for  these services,                                                               
and for  those providers  who were  currently eligible  to remain                                                               
so.                                                                                                                             
                                                                                                                                
3:14:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked to better clarify  the areas defined                                                               
as local delivery.                                                                                                              
                                                                                                                                
MR.  GUINCHARD offered  his  belief  that the  cost  for a  local                                                               
delivery,  within  the  same  town, was  already  included  in  a                                                               
standard dispensing fee.                                                                                                        
                                                                                                                                
3:15:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  where non-local  delivery cost  was                                                               
specified in the proposed bill.                                                                                                 
                                                                                                                                
MR.  GUINCHARD  directed attention  to  page  2, line  18,  which                                                               
explained that local delivery cost  was included with the mediset                                                               
fee.  He pointed  to page 2, line 19, for  the definition of non-                                                               
local delivery.   He  stated the necessity  to separate  these in                                                               
order to  allow determination of  the non-local costs on  a case-                                                               
by-case basis.                                                                                                                  
                                                                                                                                
3:16:37 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  suggested  that,  although the  language  in  the                                                               
sectional  analysis  for  AS  47.07.031(a)  referenced  non-local                                                               
costs, in  the proposed  section [AS  47.07.031(a)] there  was no                                                               
mention of non-local costs.  He asked if this was to be assumed.                                                                
                                                                                                                                
MR. GUINCHARD,  in response, said that  transportation costs were                                                               
addressed  in two  places in  Version P,  page 1,  line 9,  which                                                               
established  a  dispensing  fee  and  a  separate  transportation                                                               
service fee  and also  on page 2,  line 18.   He stated  that the                                                               
proposed  bill would  keep the  non-local transportation  fee, if                                                               
necessary, separate.                                                                                                            
                                                                                                                                
3:18:28 PM                                                                                                                    
                                                                                                                                
MR.  GUINCHARD  moved  on  to subsection  (b)  of  the  Sectional                                                               
Analysis,  which specified  that the  dispensing fee  established                                                               
under subsection  (a) must  include eligible  dispensing services                                                               
including  the  local transportation  costs.    He reported  that                                                               
subsection  (b) listed  the dispensing  services associated  with                                                               
pharmacies   which   were   eligible  for   reimbursement   under                                                               
subsection (a).   He  clarified that it  also specified  that the                                                               
fee established in subsection (a)  should not include any service                                                               
already paid  for in  another pharmacy  dispensing reimbursement,                                                               
emphasizing that  the proposed bill  did not intend  to duplicate                                                               
any costs  within this additional  fee, and would allow  the DHSS                                                               
to  take  into account  any  payments  already issued  under  the                                                               
standard dispensing fee.                                                                                                        
                                                                                                                                
MR.  GUINCHARD  pointed  to  subsection   (c)  of  the  Sectional                                                               
Analysis,  which  specified that  DHSS  would  pay for  the  most                                                               
economical  transportation costs  if  local delivery  was not  an                                                               
option.                                                                                                                         
                                                                                                                                
3:20:16 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  asked  if  there   was  a  fiscal  note  for  the                                                               
economical transportation cost.                                                                                                 
                                                                                                                                
MR.  GUINCHARD replied  that there  was  not yet  a fiscal  note,                                                               
explaining that proposed  HB 134 had been submitted  to DHSS, and                                                               
DHSS had raised  concerns, although those concerns  did not alter                                                               
the intent of  the bill.  He  said that DHSS would  now provide a                                                               
fiscal note based  on Version P, which had addressed  many of the                                                               
department's concerns.                                                                                                          
                                                                                                                                
3:21:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   requested  clarification   that   the                                                               
transportation was only for the product, not for a person.                                                                      
                                                                                                                                
MR. GUINCHARD replied that this  was determined on a case-by-case                                                               
basis,  as local  transport sometimes  included a  representative                                                               
from  the pharmacy  for delivery  of the  medication.   He opined                                                               
that  special shipping  or handling  for non-local  transport may                                                               
include a pharmacy representative.                                                                                              
                                                                                                                                
REPRESENTATIVE REINBOLD  asked if rural delivery  would include a                                                               
pharmacy representative.                                                                                                        
                                                                                                                                
MR.  GUINCHARD  explained  that this  clause  had  been  inserted                                                               
because  some  communities  required  a float  plane  or  a  snow                                                               
machine to deliver the medications.   He said that this gave DHSS                                                               
some discretion  to determine the  most economical  transport, as                                                               
there were too many cases to spell out in statute.                                                                              
                                                                                                                                
3:23:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD   asked  if  a   pharmacy  professional,                                                               
instead of a courier, would be  the delivery person.  She offered                                                               
that the  difference in  hourly wage between  a pharmacist  and a                                                               
courier would be "dramatic."                                                                                                    
                                                                                                                                
MR. GUINCHARD replied that he did  not have a specific answer and                                                               
suggested that DHSS might better respond.                                                                                       
                                                                                                                                
3:24:21 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  clarified that it was  not the intent to  pass the                                                               
bill out of committee today.                                                                                                    
                                                                                                                                
3:25:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER asked if  private health insurance included                                                               
these  transportation costs.   Noting  that  not all  pharmacists                                                               
were qualified  for mediset,  he asked if  there was  concern for                                                               
any impact to a small, local pharmacy.                                                                                          
                                                                                                                                
MR. GUINCHARD  replied that the  intent of the proposed  bill was                                                               
to establish  reimbursement for those  pharmacies that  "go above                                                               
and beyond what  a traditional pharmacy would do."   He expressed                                                               
agreement that  not all pharmacies could  provide this additional                                                               
service.                                                                                                                        
                                                                                                                                
MR. GUINCHARD,  in response to  Representative Keller,  said that                                                               
he did not know if  private insurance would cover this additional                                                               
cost.                                                                                                                           
                                                                                                                                
3:27:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked for clarification as  to whether the                                                               
language on page 2, line 5,  of the proposed bill referred to the                                                               
training of the courier or the packager in the pharmacy.                                                                        
                                                                                                                                
MR. GUINCHARD  explained that this  referred to  a representative                                                               
of the pharmacy handling the packaging.                                                                                         
                                                                                                                                
3:28:39 PM                                                                                                                    
                                                                                                                                
MR.  GUINCHARD  elaborated on  subsection  (d),  which allowed  a                                                               
pharmacy to  consolidate all of an  individual's medications into                                                               
medication compliance packaging,  as long as at least  one of the                                                               
medications  was designated  to require  this packaging  service.                                                               
He said  that medications  not specified by  a provider  were not                                                               
eligible  for  reimbursement.    He  declared  that  currently  a                                                               
physician  was required  to write  mediset on  each prescription,                                                               
and if  that was not written,  it was necessary for  the pharmacy                                                               
to follow up with the physician  to check if it could be included                                                               
in the  mediset package.  He  said that the intent  of subsection                                                               
(d)  was   to  allow  pharmacies   to  take  the   initiative  to                                                               
consolidate all of a person's medications.                                                                                      
                                                                                                                                
3:29:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  asked if  non-prescription drugs  would be                                                               
included.   He asked if  drugs bundled  in this manner  were more                                                               
expensive than if purchased over the counter.                                                                                   
                                                                                                                                
MR. GUINCHARD directed  attention to Version P, page  2, line 25.                                                               
He read:   "However, a  dispensing fee established under  (b) and                                                               
(c) of  this section may be  paid only for the  prescription that                                                               
requires  medication compliance  packaging."   He explained  that                                                               
this would allow the medication  to be included in the packaging,                                                               
but would not allow for any oversight fee to be charged.                                                                        
                                                                                                                                
3:31:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  if  a  patient  receiving  mediset                                                               
medications could order from many different pharmacies.                                                                         
                                                                                                                                
MR.  GUINCHARD  replied  that,  as  the  fee  was  tied  to  each                                                               
prescription, the cost should remain the same.                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON asked  to clarify whether the  fee was only                                                               
paid once with  multiple packaging, or would it be  paid for each                                                               
medication listed as mediset.                                                                                                   
                                                                                                                                
MR.  GUINCHARD replied  that  the current  system  allowed for  a                                                               
reimbursement to  the pharmacy for each  prescription included in                                                               
the mediset  packaging; however,  the proposed  bill would  set a                                                               
rate  for each  prescription included  in  the packaging.   If  a                                                               
physician did  not indicate that  a medication was  necessary for                                                               
mediset, it could be included in  the packaging, but would not be                                                               
eligible for the additional fee.                                                                                                
                                                                                                                                
3:34:39 PM                                                                                                                    
                                                                                                                                
MR. GUINCHARD  presented subsection  (e), which specified  that a                                                               
pharmacy would receive  payment if all the  specified services in                                                               
the reimbursement fee criteria were  provided.  He explained that                                                               
DHSS  would  establish  one  fee,  based on  a  survey,  for  the                                                               
provision  of  these   services.    He  declared   that,  as  the                                                               
reimbursement would be uniform, then  the services had to also be                                                               
uniform.                                                                                                                        
                                                                                                                                
MR. GUINCHARD  indicated that  subsection (f)  defined medication                                                               
compliance packaging, and  unit dose.  He  explained that Section                                                               
2 amended uncodified  law to specify that any  change to Medicaid                                                               
was  subject  to  final  federal approval,  and  that  Section  3                                                               
provided an  effective date contingent  on the  necessary federal                                                               
approval under Section 2.                                                                                                       
                                                                                                                                
3:36:25 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  asked to  clarify that,  should the  proposed bill                                                               
become statute,  any loss  of federal  money would  obligate that                                                               
the state pay for the program.                                                                                                  
                                                                                                                                
MR. GUINCHARD explained  that the intent of Sections 2  and 3 was                                                               
that, in  the event that  the federal government did  not approve                                                               
this  as  a  Medicaid  system   eligible  to  receive  a  federal                                                               
reimbursement, the bill would not take effect.                                                                                  
                                                                                                                                
3:37:37 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  requested clarification of the  following langauge                                                               
on  page 2,  line  1:     "the fee  shall  reimburse a  qualified                                                               
pharmacy for  the following dispensing  services if  the services                                                               
are  not otherwise  reimbursed  under this  chapter."   He  asked                                                               
whether  the state  would  have  to pay  if  federal funding  was                                                               
eliminated.                                                                                                                     
                                                                                                                                
MR. GUINCHARD deferred that question to DHSS.                                                                                   
                                                                                                                                
3:38:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD,  referring to page  2, line 9,  asked if                                                               
the  on-call licensed  clinical  pharmacist  billing had  already                                                               
been paid.                                                                                                                      
                                                                                                                                
MR. GUINCHARD replied  that this was one of the  criteria for the                                                               
service above  and beyond that  of a traditional  pharmacy; hence                                                               
it would be considered when establishing the reimbursement fee.                                                                 
                                                                                                                                
CHAIR HIGGINS  asked what brought  about this proposed  bill, and                                                               
whether  this  would  have  any effect  on  adaptation  with  the                                                               
Affordable Care Act.                                                                                                            
                                                                                                                                
3:40:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COSTELLO  replied  that  the  state  would  still                                                               
promulgate  regulations; the  proposed  bill would  put a  policy                                                               
directive into statute and the  state would continue  to maintain                                                               
its flexibility.   She shared  that the proposed  bill determined                                                               
that reimbursement to  an enhanced pharmacy should  be in statute                                                               
for its savings  in health care for an individual.   She declared                                                               
that the  State of  Alaska was  not under  any obligation  if the                                                               
federal government did not approve the program.                                                                                 
                                                                                                                                
3:42:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  referenced a report that  there were about                                                               
2 million health  crises annually in the  United States resulting                                                               
from medication mistakes.  He asked  if the state could afford to                                                               
do this.                                                                                                                        
                                                                                                                                
3:43:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  about   the  proposed  changes  to                                                               
regulations, and  whether the physician  or the  pharmacist would                                                               
determine  that the  mediset supply  would be  for 7  days or  30                                                               
days.  He  pointed out that the longer dosage  would decrease the                                                               
dispensing fee.                                                                                                                 
                                                                                                                                
MR. GUINCHARD in response, pointed to  Version P, page 3, line 5,                                                               
and  clarified that  the use  of the  term "mediset"  could be  a                                                               
brand name,  and was, instead,  referred to in the  proposed bill                                                               
as  "medication  compliance  packaging."    He  stated  that  the                                                               
specified  period was  designated  by an  authorized health  care                                                               
provider.                                                                                                                       
                                                                                                                                
3:47:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  requested   that   testimony  from   the                                                               
pharmacies  specify whether  a prescription  for a  30-day supply                                                               
would  be dispensed  as a  30-day supply,  or as  a 7-day  supply                                                               
dispensed 4  times.  He also  requested an explanation as  to how                                                               
the delivery charge would be determined.                                                                                        
                                                                                                                                
3:47:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  whether mediset  was a  copyright                                                               
term, or if any pharmacy could use this.                                                                                        
                                                                                                                                
MR.  GUINCHARD said  that he  had not  encountered any  copyright                                                               
issues,  and that,  as there  were  variations to  the term,  the                                                               
proposed legislation had included a definition.                                                                                 
                                                                                                                                
3:48:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD  expressed   her  agreement   that  the                                                               
packaging was helpful and useful to patients.                                                                                   
                                                                                                                                
3:49:14 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS opened public testimony.                                                                                          
                                                                                                                                
3:50:44 PM                                                                                                                    
                                                                                                                                
MATTHEW  KEITH,   Vice  President   of  Pharmacy,   Geneva  Woods                                                               
Pharmacy, offered  his belief that  mediset services  were easily                                                               
confused to  be "simply a  way to package medication,  and that's                                                               
called  compliance packaging."   He  declared the  importance for                                                               
understanding   that   it   included  clinical   services,   care                                                               
coordination, and  packaging of medication to  optimize adherence                                                               
by patients, which helped reduced  "the 125,000 deaths attributed                                                               
to  poor adherence  in  a year,  or the  $300  billion in  excess                                                               
hospitalizations, ER visits and lost  productivity."  He showed a                                                               
short video about mediset services.                                                                                             
                                                                                                                                
3:56:43 PM                                                                                                                    
                                                                                                                                
MR.  KEITH,  noting  that  other  pharmacies  also  offered  this                                                               
clinical pharmacy  service with compliance packaging,  stated his                                                               
belief that  it allowed patients  to remain  at a lower  level of                                                               
care, which  saved considerable cost  to the overall  health care                                                               
system.    He pointed  out  that  drug  therapy was  the  primary                                                               
intervention for  health care,  and was less  than 10  percent of                                                               
the  total  cost  of health  care,  whereas  hospitalization  and                                                               
physician visits could each be more  than 30 percent of the total                                                               
health  care  cost.   He  declared  drug  therapy  to be  a  cost                                                               
effective  mechanism   for  providing  care,  but   that  it  was                                                               
necessary for  patients to take the  drugs, in order for  this to                                                               
work.   He explained that  short cycle dispensing, as  opposed to                                                               
30-day  prescriptions, was  mandated  for long-term  care by  the                                                               
Centers for Medicare  and Medicaid Services (CMS),  as it allowed                                                               
for   medication  changes,   without   the   waste  from   unused                                                               
prescriptions.    He  shared  that   reports  from  other  states                                                               
indicated that  the use  by Alaska of  assisted living  homes for                                                               
elder care  and compliance  packaging was  "ahead of  the curve."                                                               
He reported  that, in Canada,  26 percent of the  people received                                                               
their  medicine  in  compliance packaging,  versus  less  than  2                                                               
percent in the U.S.                                                                                                             
                                                                                                                                
3:59:08 PM                                                                                                                    
                                                                                                                                
MR. KEITH, in  response to Chair Higgins, said that  the time for                                                               
pharmacy staff to  coordinate with the physicians  and other care                                                               
givers to  ensure that  all the  medications were  identified and                                                               
properly  included,  the process  for  the  clinical review,  the                                                               
packaging,  and the  delivery was  a  significantly greater  cost                                                               
than  the over-the-counter  pharmacy service.   He  reported that                                                               
the  proposed changes  to eliminate  the  reimbursement for  this                                                               
service would have made it impossible to maintain the service.                                                                  
                                                                                                                                
4:00:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked for a  definition of local  and non-                                                               
local delivery, as listed in the proposed bill.                                                                                 
                                                                                                                                
MR. KEITH said that local would  be defined as a reasonable drive                                                               
distance, whereas  non-local would be characterized  as necessary                                                               
to be mailed or shipped.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON  asked what  would  be  included as  local                                                               
delivery by an Anchorage pharmacy.                                                                                              
                                                                                                                                
MR.  KEITH offered  his belief  that  Alaska regulations  defined                                                               
this as a 50-mile radius, which he confirmed was practical.                                                                     
                                                                                                                                
REPRESENTATIVE KELLER asked if this  service posed any risk for a                                                               
pharmacy, and would it increase the insurance cost.                                                                             
                                                                                                                                
MR. KEITH affirmed  that an increase to the level  of service for                                                               
clinical  care  included an  increased  risk  with liability  for                                                               
failure to perform the service well.                                                                                            
                                                                                                                                
4:02:31 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  asked whether  there was a  level of  training for                                                               
the delivery person.                                                                                                            
                                                                                                                                
MR.  KEITH, in  response,  said that  the  Geneva Woods  delivery                                                               
personnel  were licensed  pharmacy  technicians,  trained for  an                                                               
understanding of mediset containers.                                                                                            
                                                                                                                                
4:03:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  if these  same licensed  pharmacy                                                               
technicians would deliver to a rural address.                                                                                   
                                                                                                                                
MR.  KEITH replied  that  this  would not  be  practical or  cost                                                               
effective.  He stated that there  would be a follow up phone call                                                               
with the patient, for any additional or supplemental education.                                                                 
                                                                                                                                
4:03:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked if  the non-local delivery  would be                                                               
with Fed Ex, UPS, or similar.                                                                                                   
                                                                                                                                
MR. KEITH expressed his agreement.                                                                                              
                                                                                                                                
4:04:21 PM                                                                                                                    
                                                                                                                                
MARY MUNDELL, Susitna Mediset  Services, clarified that, although                                                               
there  were   delivery  services  which  included   Fed  Ex,  her                                                               
organization was  a delivery service  with drivers  who delivered                                                               
from Sutton to Talkeetna.                                                                                                       
                                                                                                                                
4:05:23 PM                                                                                                                    
                                                                                                                                
RUTH DUKOFF,  Medical Director, North Star  Hospital, stated that                                                               
her  facility used  mediset for  its residential  children as  it                                                               
increased  the safety  for medication  distribution  to both  the                                                               
child  and geriatric  populations.   She declared  that it  was a                                                               
responsibility  of  the  state   and  society  to  provide  these                                                               
vulnerable populations with extra protection.                                                                                   
                                                                                                                                
4:07:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked if  the reimbursement fee  should be                                                               
determined  by each  mediset kit,  or by  each prescription.   He                                                               
asked if her prescriptions were for seven days, or longer.                                                                      
                                                                                                                                
DR.  DUKOFF  said  that  her   patients'  medications  were  more                                                               
actively changed, as they had  not stabilized enough to return to                                                               
home, so that mediset was delivered each week.                                                                                  
                                                                                                                                
4:09:10 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  asked  if  her hospital  had  its  own  pharmacy,                                                               
similar to the Pioneer Home.                                                                                                    
                                                                                                                                
DR.  DUKOFF clarified  that her  hospital  did not  have its  own                                                               
pharmacy.                                                                                                                       
                                                                                                                                
4:10:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  asked if the  Pioneer Home used  a similar                                                               
distribution to mediset.                                                                                                        
                                                                                                                                
MS. MUNDELL,  noting that there  was not  specific representation                                                               
from the Pioneer  Home, offered her belief that  the Pioneer Home                                                               
used a  mediset type  distribution, possibly  on a  weekly basis.                                                               
She  pointed out  that some  residents of  the Pioneer  Home were                                                               
allowed to use their pharmacy of choice.                                                                                        
                                                                                                                                
4:11:23 PM                                                                                                                    
                                                                                                                                
PAUL BROTHERTON,  Manager, Anchorage  Medset Pharmacy,  Inc. (AMP                                                               
Pharmacy),  established  that  the proposed  bill  was  necessary                                                               
because  there  had  been  an   emergency  regulation  passed  on                                                               
September 7, 2011, by the  State of Alaska Medicaid office, which                                                               
"severely  limited   providers  and  patient  access   to  medset                                                               
pharmacy,  by defining  a rule"  that  only a  pharmacy doing  at                                                               
least 75 percent  of its business in mediset  could be reimbursed                                                               
for  those services.    He  offered his  belief  that only  three                                                               
pharmacies  in  Alaska  qualified under  this  definition,  which                                                               
limited access to  the service.  He declared that  the changes in                                                               
regulation would have eliminated  reimbursement to a pharmacy for                                                               
mediset services.   He  explained that  the term  "scheduled uni-                                                               
dose preparation  drug dispensing  service" was accurate  for 7-,                                                               
28-, and 30-day  dispensing cycles.  He stated  that the decision                                                               
to use these time frames to  dispense medications was made by the                                                               
physician.    He  declared  that   these  mediset  services  were                                                               
necessary  for assisted  living facilities,  and for  any patient                                                               
who  had difficulty  in complying  with medication  therapy.   He                                                               
observed   that  the   mediset  service   had  improved   patient                                                               
compliance, and  decreased medication  errors, for  these patient                                                               
populations.  He  emphasized that the mediset  program should not                                                               
be  viewed as  an expense;  the use  of the  compliance packaging                                                               
program, when  administered correctly,  saved the state  money in                                                               
several  areas:    fewer  physician  visits  and  fewer  hospital                                                               
visits, a decrease in the  necessity for patient transport, and a                                                               
decrease  for the  need  of skilled  nursing  in assisted  living                                                               
facilities.   He  reported that  the  seven-day dispensing  cycle                                                               
reduced medication  waste as there  could be  frequent medication                                                               
changes  for this  population.   He summarized  that the  mediset                                                               
program  was necessary,  was the  right thing  to do  for patient                                                               
care, and was saving the state money.                                                                                           
                                                                                                                                
4:16:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  Mr.  Brotherton  to  repeat  the                                                               
purpose and  the date for  the regulation change to  require that                                                               
pharmacies had  to have at  least 75  percent of its  business in                                                               
mediset to be reimbursed for those charges.                                                                                     
                                                                                                                                
MR.  BROTHERTON  replied  that,   although  the  new  regulations                                                               
technically  went into  effect on  January 1,  2011, many  of the                                                               
components did not actually take  effect until September 7, 2011.                                                               
He said  that all reimbursement  would have ceased at  that time,                                                               
if emergency regulations  had not been passed  which provided for                                                               
reimbursement  for mediset  services  to  those pharmacies  which                                                               
provided  at  least  75 percent  of  their  overall  prescription                                                               
volume  in  mediset.   He  offered  his  belief that  only  three                                                               
pharmacies in Alaska would be able to meet these requirements.                                                                  
                                                                                                                                
REPRESENTATIVE  REINBOLD expressed  her alarm  for the  impact to                                                               
the  state  budget  from  the   transportation  costs  for  7-day                                                               
packaging and the requirement for a 24-hour pharmacist.                                                                         
                                                                                                                                
MR.  BROTHERTON, in  response, explained  that the  packaging was                                                               
for seven days,  with four time slots per day.   He reported that                                                               
his pharmacy only  delivered in the Anchorage area,  but that the                                                               
other  pharmacies which  delivered outside  the area  had postage                                                               
expenses.                                                                                                                       
                                                                                                                                
4:20:41 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS repeated the earlier  question for regulations that                                                               
now  only  allowed  for  three   pharmacies  to  deliver  mediset                                                               
packages.                                                                                                                       
                                                                                                                                
JON   SHERWOOD,  Medicaid   Special  Projects,   Office  of   the                                                               
Commissioner,  Department of  Health  and  Social Services,  said                                                               
that Chad  Hope could better answer  the question, as he  was the                                                               
Pharmacy Manager.                                                                                                               
                                                                                                                                
4:21:04 PM                                                                                                                    
                                                                                                                                
CHAD   HOPE,  Pharmacy   Program   Manager,  Medical   Assistance                                                               
Administration, Division  of Health Care Services,  Department of                                                               
Health and  Social Services,  opined that  between three  to five                                                               
pharmacies would currently qualify as mediset pharmacies.                                                                       
                                                                                                                                
4:21:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  asked for  "some  insight  into what  the                                                               
fiscal note will look like."                                                                                                    
                                                                                                                                
MR. SHERWOOD  replied that,  as DHSS  had only  recently received                                                               
proposed Version P, there had  not been an opportunity to develop                                                               
a fiscal note.                                                                                                                  
                                                                                                                                
4:22:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON expressed  his concern  for the  non-local                                                               
delivery charge,  and asked for  a more specific definition.   He                                                               
questioned   whether   the   definition   would   constrain   the                                                               
pharmacies.                                                                                                                     
                                                                                                                                
MR. SHERWOOD  said that the  phrase "most cost  effective method"                                                               
allowed  DHSS  to  make a  distinction  between  the  appropriate                                                               
economical  methods  and  the  convenient,  but  more  expensive,                                                               
methods.                                                                                                                        
                                                                                                                                
4:24:12 PM                                                                                                                    
                                                                                                                                
MR. HOPE  offered his  belief that the  language of  the proposed                                                               
bill  combined  and separated  different  items.   He  questioned                                                               
whether  there was  a dispensing  fee,  an additional  compliance                                                               
packaging fee,  and an  additional postage  or shipping  fee, all                                                               
being  combined and  confused  in the  language  of the  proposed                                                               
bill.   He declared  that DHSS  encouraged the  use of  flat rate                                                               
shipping over the use  of a float plane to Kodiak.   He said that                                                               
specifying  a   particular  route  of  delivery   could  be  more                                                               
economical, but could  be challenged in the future.   He declared                                                               
it  to  be  a  tightrope  walk  between  the  decision  to  allow                                                               
flexibility  or to  incorporate  system controls  which keep  the                                                               
cost within the budgetary constraints.                                                                                          
                                                                                                                                
4:25:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if  there was  a specification  for                                                               
non-local  delivery that  would satisfy  all the  current methods                                                               
for shipping to local communities.                                                                                              
                                                                                                                                
MR. KEITH  replied that the  majority of the local  medisets were                                                               
delivered by staff; however, it was  typical to use the USPS flat                                                               
rate, the  bus, or other  standard postal services  for non-local                                                               
delivery.                                                                                                                       
                                                                                                                                
4:27:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  asked if the  earlier regulation  change had                                                               
been intentionally imposed as cost containment.                                                                                 
                                                                                                                                
MR.  HOPE  asked  to  clarify  that  she  was  referring  to  the                                                               
September  2011 revision.   He  explained that  those regulations                                                               
were not intended to not  reimburse for mediset services, but for                                                               
the dispensing  fee to cover  the cost of getting  the medication                                                               
to the  recipient.  He read:   "the dispensing fee  includes only                                                               
pharmacy costs  associat[ed] with ensuring the  possession of the                                                               
appropriate covered outpatient drug  is transferred to a Medicaid                                                               
recipient."   He  allowed that,  as delivery  was built  into the                                                               
single dispensing  fee, a separate  fee had not been  included in                                                               
the initial regulation.   He  declared this to be a modernization                                                               
of the  reimbursement system, and  reiterated that it was  not an                                                               
attempt to not reimburse.                                                                                                       
                                                                                                                                
REPRESENTATIVE TARR requested clarification  as to whether it was                                                               
inadvertent  to not  have an  appropriate fee  to cover  enhanced                                                               
services.                                                                                                                       
                                                                                                                                
MR.  HOPE  replied  that  it  was not  inadvertent  as  DHSS  had                                                               
performed  a survey  to  determine the  cost  to dispense,  which                                                               
included the  overhead, the salaries, the  benefits, the building                                                               
cost, packaging,  and everything else  allowable.  He  said there                                                               
was a 100 percent response to  this survey from the pharmacies in                                                               
Alaska.   He  reported the  DHSS had  tested its  hypothesis that                                                               
costs associated  with dispensing a prescription  for unit doses,                                                               
medisets, or compliance packaging were not appreciably higher.                                                                  
                                                                                                                                
4:30:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR   offered  her  belief  that   it  was  more                                                               
expensive than originally thought.                                                                                              
                                                                                                                                
4:30:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD,  stating  her support  of  mediset  and                                                               
noting that this was the fourth  time she had asked this question                                                               
about the  dramatic cost difference  for delivery  systems, asked                                                               
DHSS to identify  the percentage of population  that required the                                                               
more expensive  delivery system  and "are  we already  paying for                                                               
that."  She also asked about  the requirement for a pharmacist to                                                               
be  on call  at all  times, and  if this  was also  already being                                                               
billed to the State of Alaska.                                                                                                  
                                                                                                                                
4:32:01 PM                                                                                                                    
                                                                                                                                
MR. HOPE, in response to  Representative Reinbold, said that both                                                               
the  in-town delivery  and the  pharmacist salary  were allowable                                                               
costs,  which  could  be  included in  the  calculation  for  the                                                               
dispensing fee.   He opined that should more  pharmacies begin to                                                               
staff  for  all  hours  and   deliver  prescriptions  in  a  non-                                                               
economical  way,  the  dispensing   fee  would  increase  as  the                                                               
allowable cost would increase.                                                                                                  
                                                                                                                                
4:33:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  if  it was  required  for  every                                                               
mediset dispensing pharmacy to have  an on-call pharmacist at all                                                               
times.                                                                                                                          
                                                                                                                                
MR. HOPE offered his belief  that the proposed bill would require                                                               
each pharmacy with  this practice to have  a pharmacist available                                                               
at all hours.                                                                                                                   
                                                                                                                                
MR.  KEITH  expressed  his  agreement   that  the  proposed  bill                                                               
required an on-call pharmacist be  available; however, he pointed                                                               
out that  each of the  participating pharmacies  already included                                                               
this service.   With regard  to the DHSS survey  identifying that                                                               
the cost for  dispensing medisets was no different  than the cost                                                               
of  dispensing  retail  prescriptions,   he  said  that  all  the                                                               
pharmacists had  fundamentally agreed  that "the survey  data was                                                               
flawed and that  the denominators were different."   He expressed                                                               
his disagreement with the findings of the DHSS survey.                                                                          
                                                                                                                                
4:35:14 PM                                                                                                                    
                                                                                                                                
CABLE STARLINGS, Anchor House, said  that he had operated a large                                                               
assisted living home  for 63 adults, Anchor House,  for almost 27                                                               
years.   He  spoke  in support  of  HB  134.   He  said that  the                                                               
medisets were  a very important component  to living successfully                                                               
in  the  community  as  the  organization  of  the  meds  allowed                                                               
residents  to overcome  their  personal  obstacles and  integrate                                                               
into the community  from the assisted living homes.   He reported                                                               
that  since  many assisted  living  homes  did not  have  nursing                                                               
staff, the staff would monitor medication administration.                                                                       
                                                                                                                                
4:37:59 PM                                                                                                                    
                                                                                                                                
JOANNE SULLIVAN, RN, Hope Community  Resources, Inc., stated that                                                               
she  was in  support of  HB  134.   She said  that many  patients                                                               
required  multiple types  of medications  and  that the  pharmacy                                                               
ensured that the  proper dosages were taken in  combination.  She                                                               
pointed out that,  although she was not a pharmacist  or a fiscal                                                               
analyst, it  was going to be  more expensive for a  pharmacist to                                                               
do  medisets,  but  this  was still  cheaper  than  care  givers,                                                               
assisted living, or hospital visits.   She explained that refills                                                               
never allowed  doctors or pharmacists to  monitor for compliance,                                                               
whereas,  medisets  in  weekly packages  revealed  the  level  of                                                               
compliance.   She  expressed that  it was  "penny-wise and  pound                                                               
foolish"  to attempt  to  conserve money  by  not paying  mediset                                                               
distribution costs.                                                                                                             
                                                                                                                                
4:42:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  if   all  the  prescriptions  were                                                               
handled  by  the  same  mediset,   or  did  different  pharmacies                                                               
distribute separate medisets.                                                                                                   
                                                                                                                                
MS.  SULLIVAN   replied  that  she  had   never  experienced  any                                                               
complaints  about  mediset, and  that  there  was a  much  higher                                                               
likelihood  for  a  hospital  to  better  identify  the  pharmacy                                                               
provider through a mediset.                                                                                                     
                                                                                                                                
4:44:23 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS asked  to  clarify whether  a  patient could  have                                                               
multiple medisets from different pharmacies.                                                                                    
                                                                                                                                
4:45:24 PM                                                                                                                    
                                                                                                                                
MR. KEITH replied that patients had  choice, but that it was best                                                               
for one pharmacy to take  care of the patient's entire medication                                                               
regimen.   He  said that  a pharmacy  would communicate  directly                                                               
with  both the  patient and  the  caregiver to  clarify that  the                                                               
pharmacy was the  caregiver for the mediation therapy.   He noted                                                               
that should a patient choose to  go to another pharmacy, then all                                                               
the medications would  also be moved to that  pharmacy, to ensure                                                               
the  oversight and  necessary clinical  pharmaceutical care.   He                                                               
expressed his agreement  that a patient could go  to any pharmacy                                                               
to  fill a  prescription,  but  he emphasized  that  there was  a                                                               
clinical agreement  with the  patient for  all the  medication to                                                               
come  from  the same  pharmacy,  in  order  to allow  for  proper                                                               
medication management.   He pointed  out that should there  be an                                                               
attempt to again  fill the same prescription  through a different                                                               
pharmacy,  Medicaid  and  private   insurance  would  inform  the                                                               
pharmacy to  reject the  claim, so  that it  would not  be filled                                                               
twice.                                                                                                                          
                                                                                                                                
4:46:48 PM                                                                                                                    
                                                                                                                                
PATRICIA  SENNER,   Family  Nurse  Practitioner,   Alaska  Nurses                                                               
Association,  said that  the  organization  was "quite  appalled"                                                               
upon hearing that  the reimbursement for mediset was  going to be                                                               
discontinued.   She  declared that  it was  obvious there  was an                                                               
increased  cost for  this procedure,  and that  the state  should                                                               
bear this  increased cost.   She opined that this  increased cost                                                               
was slight  compared to  the consequence  of not  properly taking                                                               
medication.   She reported that, as  most of her career  work had                                                               
been in  the community setting,  many people were able  to remain                                                               
living  in  the community  because  of  the availability  of  the                                                               
mediset program.   She expressed her support for Version  P as it                                                               
allowed increased  eligibility for  the benefits.   She suggested                                                               
that, as some  patients were more stable than  others, the weekly                                                               
dispensing package was most effective.                                                                                          
                                                                                                                                
4:48:43 PM                                                                                                                    
                                                                                                                                
AMY  ONEY,  Mama's  Assisted Living  Home,  reiterated  that  the                                                               
mediset service  was invaluable.   She pointed out that  the cost                                                               
for  nurse staffing  with  medication  management and  compliance                                                               
training would not  be supportable.  She said that  her staff was                                                               
trained  to   monitor.    She   declared  that  there   would  be                                                               
substantial  risk to  have  the necessary  quantity  of drugs  on                                                               
site.   She  stated that  the mediset  program allowed  people to                                                               
live in assisted  living and not in an  institutional setting for                                                               
care.                                                                                                                           
                                                                                                                                
4:51:23 PM                                                                                                                    
                                                                                                                                
KATIE  BALDWIN-JOHNSON,  Program  Officer, Alaska  Mental  Health                                                               
Trust Authority,  Department of  Revenue, pointed out  the Alaska                                                               
Mental Health Trust  Authority had submitted a  letter of support                                                               
for  HB  134,  as  the  Trust  "vehemently  advocates  for  trust                                                               
beneficiaries to be  able to reside and live  as independently as                                                               
possible  in  the community."    She  declared that  the  mediset                                                               
program  was  important to  many  beneficiaries  who needed  that                                                               
level of support.  She declared  that the Trust was in support of                                                               
the proposed bill.                                                                                                              
                                                                                                                                
4:52:46 PM                                                                                                                    
                                                                                                                                
THERESA BRINSKY, RN, Marlow Manor  Assisted Living, expressed her                                                               
agreement with  the earlier comments  of support, and  noted that                                                               
she had  submitted a letter  to the bill  sponsor, Representative                                                               
Costello.   She stated  the need  for this to  be in  statute, as                                                               
this was  the third year  of discussion regarding the  cutting of                                                               
the mediset  program.   She emphasized  that the  mediset program                                                               
service should be in statute,  and she explained how difficult it                                                               
would be for her assisted living program without mediset.                                                                       
                                                                                                                                
4:54:43 PM                                                                                                                    
                                                                                                                                
REESE  MCKINNEY offered  a  response to  an  earlier question  by                                                               
Representative Seaton.   He  noted that, as  a veteran,  he could                                                               
utilize the  Veterans Administration  medical services.   He said                                                               
that  his   local  pharmacy  would  occasionally   not  have  his                                                               
necessary   medication.      He  questioned   whether   receiving                                                               
medication from  different pharmacies  would prove  difficult for                                                               
payment reimbursement.                                                                                                          
                                                                                                                                
4:56:41 PM                                                                                                                    
                                                                                                                                
SHERRY METTLER, Assisted Living  Industry, offered her thanks for                                                               
the  proposed  bill.    Pointing  to page  1,  lines  11-12,  she                                                               
declared  that  this   should  not  be  limited   to  any  living                                                               
situation.   She declared that  the assisted living  industry was                                                               
in support  of HB  134 for many  reasons, which  include resident                                                               
safety, frequent  medication changes, cost shifting,  and storage                                                               
of  medications.   She  elaborated  on  the proposal  for  weekly                                                               
versus  monthly  dispensing  of   mediset,  saying  that  it  was                                                               
dangerous for  an assisted  living home,  its residents,  and the                                                               
community to store a high  volume of medications in a non-secured                                                               
facility.   She expressed her  gratitude for the  mediset program                                                               
and to the pharmacies which  supplied the service, declaring that                                                               
this service  should be reasonably compensated.   She summarized:                                                               
"in this world of craziness,  and budget trimming, there are just                                                               
some items  that cannot  be justifiably  removed from  the fiscal                                                               
plan.  [Medisets] for vulnerable  adults are one of those items."                                                               
She emphasized  that this  service was  crucial and  necessary in                                                               
the  assisted  living  environment  as the  increasing  level  of                                                               
residential care mandated its use.                                                                                              
                                                                                                                                
5:00:08 PM                                                                                                                    
                                                                                                                                
MARY JO  METTLER, Northern Lighthouse,  pointed out  that studies                                                               
had shown  that the lack  of medication adherence was  the fourth                                                               
leading cause of death in the  United States, with an annual cost                                                               
to the health care system of  more than $150 billion.  She stated                                                               
that this proposed bill was  about safety, fiscal responsibility,                                                               
and common sense.                                                                                                               
                                                                                                                                
5:01:28 PM                                                                                                                    
                                                                                                                                
CHRISTINA JOHNSON, Kenai Eye Care,  stated her agreement with the                                                               
previous testimonies.   She expressed her concern  for the safety                                                               
of residents in assisted living.                                                                                                
                                                                                                                                
5:02:01 PM                                                                                                                    
                                                                                                                                
MARY  NICHOLSON, Nicholson's  Assisted Living  Home, stated  that                                                               
this proposed  bill was about  keeping the residents  safe, well,                                                               
and out  of the hospital  due to any  misuse of medication.   She                                                               
expressed her agreement with limiting the amount of medication                                                                  
stored at the assisted living facilities.                                                                                       
                                                                                                                                
5:03:00 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS left public testimony open.  He stated that HB 134                                                                
would be held over.                                                                                                             
                                                                                                                                
5:03:42 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health and Social Services Standing Committee meeting was                                                                       
adjourned at 5:03 p.m.                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB134 Sponsor Statement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Blank CS.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Explanation of Changes - Blank CS .pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Sectional Analysis - Blank CS .pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Ver N.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Sectional Analysis.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - AK Mental Health Board.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Chugiak Eagle River Senior Center.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Congressional Budget Office - Prescription Drug Use.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Healthcare Compliance Packaging Council - Improving Patiant Adherence and Outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Journal of American Pharmacists Association - Impact of medication packaging on adherence and treatment outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - New England Healthcare Institute - Thinking outside the pillbox.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - New York Times - When the Patient is Noncompliant.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Patient Compliance & Medicaton Adherence.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB0134 Supporting Document - Proposed Reg Changes to Pharmacy Reimbursement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - The American Journal of Geriatric Pharmacotherapy.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - The American Journal of Pharmacy Benefits - Adherence & Outcomes.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Supporting Document - Summary of Proposed Reg Changes to Pharmacy Reimbursement.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Other - Geneva Woods Health Care Services - Response to Questions 20130307.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134
HB134 Research Report - LRS Report 13-129 Costs of Mediset Medication Management Service.pdf HHSS 3/19/2013 3:00:00 PM
HHSS 3/28/2013 3:00:00 PM
HB 134