SB 306-PRESCRIPTION DRUG ASSISTANCE TASK FORCE SENATOR BETTYE DAVIS, bill sponsor, stated that she has spent a lot of time reviewing prescription drug issues. She is currently serving on the Committee on Aging for the Council of State Governments and recently attended a conference on prescription drugs. Representative Joe Hayes is the sponsor of the same bill on the House side and asked that she mirror his bill in the Senate. She hopes that this legislation will help to find ways to aid senior citizens in the purchase of prescription drugs. RICHARD BENAVIDES, aide to Senator Davis, explained that while Congress has been debating proposals to add a prescription drug benefit to Medicare, many states are taking steps to protect their more vulnerable residents from rising out of pocket costs and declining insurance coverage for prescription drugs. According to the National Conference of State Legislatures, over 40 states have considered legislation to help seniors and the disabled address these issues. SB 306 only involves Alaska's growing senior population. American Association of Retired People (AARP) statistics report that the annual growth rate for Medicaid spending on medications in Alaska rose 23.4 percent between 1996 and 1998. They also reported that about 11,000 seniors have no prescription drug coverage whatsoever. Between October 31, 1999 and October 31, 2000, over 5,500 Alaskans aged 65 and above who were eligible for the state's Medicaid program, received 263,000 prescriptions at a cost to the state of over $10 million. SB 306 would create a method to look at ways to provide meaningful relief to seniors without creating large new expenditure programs. STEVE ASHMAN, Director of the Division of Senior Services, testified via teleconference that the Department of Administration would be charged with putting together the task force called for in the legislation. Currently they don't have accurate information on the number of seniors in need of prescription drug relief but there are certainly a number of anecdotal cases. It is a significant problem and one of the goals of the legislation is to investigate the options that are available as well as other states' practices. He looks forward to working with the sponsor and will help in any way possible. GENE DAU, AARP member testified in support of SB 306. He noted AARP Alaska sent a letter in support as well. Washington state doctors are now able to fax prescriptions directly to pharmacists in Canada who will mail the medicine to you in the U.S. He asked why this wouldn't be possible in the state of Alaska. CHAIRMAN THERRIAULT commented he didn't know that you couldn't do that here. SENATOR DAVIS stated that would be an option the task force could look into. SENATOR STEVENS asked if the method of payment was a credit card or similar and not a credit against a U.S. based program. MR. DAU replied payment was cash. 3:50 p.m. JOHN FURUNESS, National Association of Retired Federal Employees (NARFE), testified in support of SB 306. Prescription drugs need to be made more affordable. MARIE DARLIN, AARP member, testified in support of SB 306. She is the coordinator for the Capital City Task Force and although they are following many bills this session, this is of particular concern. The AARP letter of support is in the bill file. CHAIRMAN THERRIAULT asked Ms. Darlin whether she had a comment on the makeup of the task force. MS. DARLIN said she was pleased with the composition of the task force. CHAIRMAN THERRIAULT asked whether the Department of Social Services had any concern about the makeup of the proposed task force. NANCY WILLER, a representative from the Division of Medical Assistance, said they had no concerns with its makeup. They understand that most of the federal proposals that are in the President's budget use Medicaid as a funding source for providing prescription drug coverage to additional senior populations. They would be available to provide assistance to the task force. CHAIRMAN THERRIAULT asked Mr. Benavides about the meaning on page 2, lines 4-6. MR. BENAVIDES said the wording came from the drafters and legal terminology isn't always easy for the layperson to understand. SENATOR DAVIS explained the meaning is that we would have to adopt other state's strategies to fit Alaska. She said she supports the statement but was receptive to more artful wording. CHAIRMAN THERRIAULT moved conceptual amendment number one to replace page 2, lines 4-6 with something similar to the following: "In considering the adoption of a strategy to help senior citizens cope with the cost of prescription drugs, the State of Alaska should review what has been done in other states." SENATOR DAVIS said she could support the change. CHAIRMAN THERRIAULT said he would work with Senator Davis and the drafters rather that holding the bill and presenting a proposed CS at the next meeting. There was no objection to the conceptual amendment. He asked Mr. Benavides to explain the fiscal note. MR. BENAVIDES said the second page of the fiscal note explained this would cover the cost of three meetings if travel, lodging, per diem and telephonic costs were incurred. Mr. Ashman was the author of the note and could answer specific questions. CHAIRMAN THERRIAULT said he didn't have any particular questions and the bill had a referral to the Finance Committee where fiscal questions would be addressed. There were no further amendments. He asked for the will of the committee. SENATOR STEVENS made a motion to move CSSB 306 (STA) and attached fiscal note from committee with individual recommendations. There being no objection, CSSB 306 (STA) moved from committee.