SB 134-PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN                                                                    
                                                                                                                                
1:35:14 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO.  134  "An  Act  relating  to                                                               
pharmacy    benefits    managers;   relating    to    third-party                                                               
administrators; and providing for an effective date."                                                                           
                                                                                                                                
1:35:33 PM                                                                                                                    
JANE   ROHR,  Staff,   Senator   Cathy   Giessel,  Alaska   State                                                               
Legislature, Juneau, Alaska,  presented a brief recap  of SB 134.                                                               
She  said  the  bill   requires  third-party  administrators  and                                                               
pharmacy  benefit   managers  to   be  licensed  in   Alaska  and                                                               
establishes a licensing fee to  cover the Division of Insurance's                                                               
administrative costs.                                                                                                           
                                                                                                                                
1:36:17 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 134.                                                                               
                                                                                                                                
1:36:39 PM                                                                                                                    
DAN  NELSON,   Director,  Tanana  Chief   Conference,  Fairbanks,                                                               
Alaska, testified in support of SB 134 and read the following:                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     I'm calling in  from the Fairbanks on  behalf of Tanana                                                                    
     Chief  Conference calling  in  support  of Senate  bill                                                                    
     134.  Senate  Bill  134  is a  common  sense  and  non-                                                                    
     controversial bill that is designed  to ensure that the                                                                    
     hard-fought  provisions of  House  Bill  226 from  last                                                                    
     legislative session are secured and enforced.                                                                              
                                                                                                                                
     Currently  the  Alaska  Division  of  Insurance  has  a                                                                    
     somewhat limited  ability to regulate  pharmacy benefit                                                                    
     managers and  third-party administrators  because state                                                                    
     statute  only  allows  the  division  of  insurance  to                                                                    
     require PBM and PPA registration.                                                                                          
                                                                                                                                
     Senate Bill 134  Division of Insurance will  be able to                                                                    
     be required that they've become licensed.                                                                                  
                                                                                                                                
     Unfortunately, this current  lack of regulatory control                                                                    
     by  the Division  of Insurance  will continue  to allow                                                                    
     PBMs   and  PPAs   to  work   in  an   under  regulated                                                                    
     environment.                                                                                                               
                                                                                                                                
     It's most of the committee members are already aware.                                                                      
     There  are  many  concerning  practices  that  PBM  and                                                                    
     third-party   administrators  follow   that  negatively                                                                    
     impact Alaskans, Alaska employers, Alaska prescribers                                                                      
     and pharmacists and pharmacies.                                                                                            
     I urge you to support Senate Bill 134.                                                                                     
                                                                                                                                
1:38:12 PM                                                                                                                    
CHAIR BJORKMAN closed public testimony on SB 134.                                                                               
                                                                                                                                
1:38:44 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:38:46 PM                                                                                                                    
SENATOR MERRICK moved  to report SB 134,  work order 34-LS0461\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
1:39:00 PM                                                                                                                    
CHAIR BJORKMAN  found no objection  and SB 134 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.