HB 319-DRUG/DEVICE DISTRIBUTORS; COMPOUNDED RX
4:24:10 PM
CHAIR HIGGINS announced that the next order of business would be
HOUSE BILL NO. 319, "An Act relating to wholesale drug or device
distributors; relating to prescription benefits under the state
health insurance plan; and providing for an effective date."
4:24:12 PM
REPRESENTATIVE KELLER moved to adopt the proposed committee
substitute (CS) for HB 319, labeled 28-LS0199\P, Martin,
3/21/14, as the working draft. There being no objection, it was
so ordered.
4:24:48 PM
REPRESENTATIVE TAMMIE WILSON, Alaska State Legislature,
explained the changes to the proposed CS. She said that the
proposed bill required that all wholesalers be similarly
licensed. She stated that more than 400 out of state companies
did business in Alaska without the same license or regulation as
those in-state businesses. She relayed that a second part of
the proposed bill addressed compound prescriptions and access to
them by retirees. She stated that these compound prescriptions
had been available for many years, and that retirees had been
assured that access to these would not change with the new
[health care] administrator. She reported that the Department
of Administration (DOA) had requested more time "to study this
issue." She relayed that DOA had stated that compounding
prescriptions could have negative effects, although there had
not been any reported cases in Alaska. She reminded the
committee that it was the physicians prescribing the compound
prescriptions, and not the pharmacists. She opined that this
was "about big business running our local pharmacies out of
business." She asked what message was being sent to Alaska
retirees if they were no longer able to obtain the necessary
medication. She explained that compound medication was a pill
made from a specific recipe for an individual. She offered her
belief that DOA did not need to study the issue, and that it had
been an oversight to not notice the lack of authority for paying
for compound prescriptions when the health care administrator
changed. She read a memorandum from DOA which stated that
payment for compound prescriptions would be allowed throughout
the remainder of the year. She declared that there had not been
any problems with compound prescriptions in Alaska.
CHAIR HIGGINS offered his belief that this was an oversight.
REPRESENTATIVE WILSON stated that pharmacists were not doing
anything wrong.
4:31:10 PM
REPRESENTATIVE WILSON, in response to Representative Reinbold,
said that medical devices were brought into Alaska by more than
400 wholesalers without any licensing or oversight.
REPRESENTATIVE KELLER asked for clarification that the proposed
bill requested similar treatment for licensing to both in-state
and out-of-state distributors of medical devices.
REPRESENTATIVE WILSON said that was correct.
REPRESENTATIVE KELLER stated that he needed to review the
language for licensure in the proposed bill.
4:33:21 PM
CHAIR HIGGINS said that the proposed bill would be held over.
4:33:45 PM
REPRESENTATIVE REINBOLD stated that she had concerns for the
medical device issue, as she was unsure of the unintended
consequences. She requested further discussion.
REPRESENTATIVE WILSON explained that the request for licensing
was directed toward the companies, and not the devices. She
declared that she wanted the same process for in-state and out-
of-state companies.
REPRESENTATIVE REINBOLD asked again about the unintended
consequences, and whether other states also required a
wholesaler to register.
REPRESENTATIVE WILSON, in response, said, "honestly, I don't
care what other states are doing." She reiterated her belief
that she wanted the same process for in-state and out-of-state
companies.
REPRESENTATIVE REINBOLD asked for testimony from the providers.
CHAIR HIGGINS re-opened public testimony.
4:37:14 PM
RICHARD HOLM, Pharmacist, relayed that he was the immediate past
Chair of the Board of Pharmacy. He stated that the board was
interested in regulating the out-of-state wholesalers, as they
also sold drugs, chemicals, and devices. He declared that the
board should have the ability to regulate these wholesalers, not
the devices. He declared that this was a protection for Alaska
business owners, and allowed business owners to register any
complaints for investigation.
4:40:37 PM
CHAIR HIGGINS said that HB 319 would be held over.