SENATE BILL NO. 215 "An Act requiring the Department of Health and Social Services to accept federal prescription drug benefits or to provide comparable benefits for residents of the Alaska Pioneers' Home." 9:13:24 AM Co-Chair Stedman explained that SB 215 involves drug benefit for the pioneers' home. Senator Olson noted that there are various methods of handling. SENATOR BILL WIELECHOWSKI delivered the sponsor statement. The intent of SB 215 is to ensure residents of Alaska's Pioneer Homes continue to receive their Federal prescription drug benefits. This past spring, Veteran residents of Alaska's Pioneer Homes were caught in the middle of a bureaucratic dispute. Officials at the Pioneer Homes would no longer accept prescription medications from the Veterans Administration because of safety concerns with how those medications are packaged and labeled. The VA will not change the packaging or labeling of medications sent to the Pioneer Homes and the Pioneer Homes cannot repackage the medications. Therefore, Veterans who were unable to self-administer medications had no choice but to pay the Pioneer Homes' pharmacy out-of-pocket for necessary medications that they were supposed to receive for free from the VA. Thanks to a joint effort between the Department of Health and Social Services, the Department of Military and Veterans Affairs, local public veterans' advocates and state legislators, a policy level solution was reached with the Department of Health and Social Services. State administrators found a way to safely administer prescription medications received from the VA and Veterans began to receive their free medications again. SB 215 will prevent this type of problem from recurring by ensuring that federal prescription benefits will continue to be honored into the future. If state administrators identify a safety concern associated with providing federal prescription benefits, SB 215 will require the Pioneer Homes to cover the value of the denied benefit, so that residents can continue to receive the benefits that they have earned. This bill would protect not only Veterans, but all Pioneer Home residents receiving Federal prescription benefits, including those from Indian Health Services. The Pioneer Homes have always worked with residents eligible for IHS benefits to ensure they receive their medications. However, if something changes in the future with the distribution of IHS drugs, SB 215 would ensure that Pioneer Homes would continue accepting these Federal benefits or cover the cost for affected residents. With the passage of SB 215, Veterans and other groups who have earned Federal prescription benefits will no longer have to worry about not receiving their prescription medications because bureaucrats are unable reach, what should be, a simple agreement. Please join me in supporting this legislation to ensure eligible Alaskans continue to receive the benefits they have earned. Senator Olson asked if a record existed showing that veterans had suffered ill effects or medical complications as a result of the change in dispensation of the medication. SHELLY MORGAN, STAFF TO SENATOR WIELECHOWSKI responded that medical complications were not reported. The complication was a financial one, where the veterans were required to pay for medications in addition to the Pioneer Home costs. Senator Olson agreed that these complications are important to avoid. Co-Chair Stedman mentioned the fiscal note states that Pioneer Homes allow residents who access the federal prescription benefits. Ms. Morgan explained that the design of the bill is to prevent the complication from occurring again in the future. The concern is that with administrative changes, the problem may occur again. 9:19:12 AM Co-Chair Stedman mentioned the zero fiscal note from the Department of Health and Social Services (DHSS). RICK DAVIDGE, PRESIDENT, VIETNAM VETERANS OF AMERICA (via teleconference), testified in support of SB 215. He pointed out that although concerns continue in respect to a variety of medical issues, the legislation is a positive step forward. DAVE COTE, DIVISION OF ALASKA PIONEER HOMES stated that the department retains a neutral position on the bill because they already accept medications from the veteran's administration. Senator Huggins asked how the bill changes the situation for Mr. Cote. Mr. Cote explained that the bill's purpose was to prevent the problem from happening again. Senator Wielechowski offered a final comment regarding the legislation. He explained that the goal of the legislation is prevention of any further complications concerning federal prescription drug benefits for members of the Pioneer Home. SB 215 was HEARD and HELD in Committee for further consideration. 9:22:49 AM