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.