Date: 02/04/2008
Final
BILL SUMMARY for HB08-1032
HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES
| Votes: View--> | Action Taken: |
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01:32 PM -- House Bill 08-1032
Representative Massey presented HB 08-1032 which came out of the Health Care Task Force. He stated that the bill directs the Department of Health Care Policy and Financing to implement changes to the reimbursement rate paid to pharmacies within 30 days after the review of the impact of the anticipated reduction in the reimbursement rate as a result of the federal Deficit Reduction Act of 2005. Representative Massey stated that he would like to save technical questions for witnesses.
01:37 PM -- Val Kalnins, Colorado Pharmacist Society, testified in support of the bill. Mr. Kalnins stated that the Federal Deficit Reduction Act of 2005 significantly reduced the reimbursement rate paid to pharmacists. Mr. Kalnins stated that the federal upper limit payment is significantly less than pharmacy acquisition costs. He provided some background information to the committee as to why pharmacists are bringing this bill.
01:46 PM -- Mary Staples, National Association of Chain Drug Stores (NACDS), testified in support of the bill. She distributed a packet of information entitiled "Testimony of the National Association of Chain Drug Stores Before the Colorado House Health and Human Services" (Attachment A). She stated that the federal Deficit Reduction Act of 2005 significantly affected pharmacists and the amount they are reimbursed for dispensing fees. She referred to another packet of information (Attachment B) that provides information on the cost of dispensing fees. Committee members asked how other states handle the calculation of dispensing fees. Ms. Staples responded to committee questions.
01:53 PM -- Marla Firawner, Pharmacist, King Soopers, testified in support of the bill. Ms. Firawner described the multitude of duties that pharmacists do at no charge to the state. Ms. Firawner clarified that if a Medicaid patient cannot pay his or her co-pay at the time of pick-up, the pharmacist cannot force him or her to pay the co-pay. She stated that the pharmacy must wait for reimbursement and, up to 50 percent of the time they are not reimbursed.
01:59 PM -- Ron Weinert, Walgreens, testified in support of the bill. Mr. Weinert referred to prior testimony and stated that the dispensing fee has not been increased for several years. Mr. Weinert provided his testimony to the committee (Attachment C). Committee members asked what language other states use to establish a calculation rate. Mr. Weinert stated he would defer that question to Ms. Staples. Committee members asked questions about private versus public payments, and are they equal under the current calculation rate. Mr. Weinert stated that Walgreens would have to consider not accepting Medicaid patients if the state does not help with the reimbursement of dispensing fees.
02:09 PM -- Brad Young, Rx Plus Pharmacies, testified in support of the bill. Mr. Young referred to his written statement and a handout from the Coalition for Community Pharmacy Action (Attachments D and E respectively). Mr. Young discussed the fiscal note. There were several questions between committee members and the witness. Mr. Young stated there will not be an increase payment to pharmacies and stated that there is already money in the state budget to increase the dispensing fee, increase federal funds, and ease the situation.
02:24 PM -- Dennis Mantas, Wheat Ridge Pharmacy, testified in support of the bill. Mr. Mantas stated that the Medicaid population is a hard population to serve. Mr. Mantas stated that he has to absorb some of the co-payments that Medicaid clients cannot afford to pay and stated that approximately 5,000 pharmacists have gone out of business because of the amount of the reimbursement. He stated he will most likely have to close his business or fire several employees if this situation is not addressed.
02:29 PM -- Linda Drake, speaking on behalf of John Stoffel, Colorado Alliance for Retired Americans, testified in support of the bill.
02:30 PM -- Jim Driscoll, Colorado Retail Council, testified in support of the bill. Mr. Driscoll concurred with prior testimony and wanted to reiterate that the higher dispensing reimbursement rate they are asking for is not a fee increase in payments, but rather will keep them whole.
02:33 PM -- Cathy Traugott, Colorado Department of Health Care Policy and Financing, clarified what the calculation rate of the dispensing fees from the federal Deficit Reduction Act of 2005 might be. She stated that the new calculation has not been released and that the department does not know what the new dispensing average manufacturing price (AMP) rate will be. She defined AMP as the amount wholesalers pay to pharmacists for drugs. She stated that the federal upper limit payment will significantly increase. Ms. Traugott stated that the department does not agree with the language that calculates the rate in the bill. Representative McGihon stated that part of the problem is that language needs to be drafted, and it needs to come from the department. Representative McGihon stated that the department has the expertise to craft language that would help solve some of the concerns that the committee has. Representative McGihon stated that the bill will be laid over and instructed Ms. Traugott to work with the proponents of the bill to craft language that is suitable and acceptable for both parties.
02:48 PM
The bill was laid over and rescheduled to February 7, 2008