HB 218-PRESCRIPTION DRUG SPECIALTY TIERS  2:17:25 PM CHAIR DAVIS announced the consideration of HB 218. SENATOR EGAN noted that CSHB 218(L&C), version D, was before the committee. JANET OGAN, staff to Representative Wes Keller, introduced HB 218 on behalf of the House Health and Social Services Committee, sponsor. She described the history of specialty tier drugs and the differences in cost depending on the tier of the drug. Tier 4 drugs are especially expensive and are used to treat those with chronic illnesses. She related that the bill extends the notification time the insurance companies have to give to their clients regarding changes in their reimbursement policies. Insurance companies must allow 90 days rather than 30 days for notification of changes which would allow clients to look for alternative therapies or finances to pay for the expensive drugs. She noted the effective date was extended to January 2013. She referred to a letter of support from the ACHIA Board. CHAIR DAVIS noted the presence of Representative Wes Keller. 2:22:36 PM BRENDA ROBERTSON, Eagle River, Alaska, testified in support of HB 218. She shared a personal story of her husband's co-pay being increased greatly and providing a hardship. She noted that tiers were originally set up by insurance companies to give patients a choice. She requested that patients be given a 90-day notice. CECIL BYKERK, Executive Director, Alaska Comprehensive Health Insurance Association (ACHIA), testified in support of HB 218. He suggested having a re-insurance program for children. He pointed out that there are no child-only health insurance policies currently available for purchase in Alaska. He pointed out ACHIA's plan for coverage and limitations. He concluded that ACHIA has a goal of developing a children's coverage program. Currently, statute does not allow this proposal. He spoke in favor of adding an amendment that would allow that to happen. 2:31:54 PM CHAIR DAVIS said she has not received any amendments and she questioned how Mr. Bykerk's proposal would fit into the bill. REPRESENTATIVE WES KELLER, speaking on behalf of the House Health and Social Services Committee, offered information on HB 218. He suggested that the bill would be a carrier to solve the problem of the lack of a child-only insurance policy. MS. OGAN reported that she spoke to legal services about this issue and discovered the need for a title change. CHAIR DAVIS stated that she has not received the information and is not prepared to move forward on the bill. REPRESENTATIVE KELLER apologized. He said he wished to complete public testimony. 2:34:49 PM SENATOR DYSON asked if Representative Keller would accept an amendment. REPRESENTATIVE KELLER said he would. CHAIR DAVIS called an at-ease. At-ease from 2:35 p.m. to 2:38 p.m. 2:38:15 PM MARILYN KASMAR, Volunteer Board Member, Alaska Comprehensive Health Insurance Association (ACHIA), testified in support of HB 218. She said she supports the statements of the previous testifier. She agreed with providing insurance for children under 19 and allowing ACHIA to administer the program. 2:41:15 PM JIM FREEBURG, Advocacy Director, National Multiple Sclerosis Society, testified in support of HB 218. He spoke in favor of providing additional transparency around the use of specialty drug tiers is a tool those with MS should have. He hoped that eventually insurers would provide additional coverage for pharmaceutical benefits. He noted that some states have outlawed the use of specialty tiers. 2:43:49 PM CHAIR DAVIS closed public testimony. She stated that she would like to accommodate the addition of children' insurance, but she preferred not to have an amendment. She said she did not think she could get a 2/3 vote for the title change. REPRESENTATIVE KELLER asked her to proceed with the bill as it is. CHAIR DAVIS requested a motion to move the bill. 2:45:42 PM SENATOR EGAN moved to report CSHB 218, version D, from committee with individual recommendations and the accompanying fiscal note. CHAIR DAVIS announced that without objection, CSHB 218(L&C) was reported from the Senate Health and Social Services Standing Committee.