Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON HEALTH AND HUMAN SERVICES

Date:03/29/2006
ATTENDANCE
Time:10:24 AM to 12:12 PM
Johnson
X
Mitchell
X
Place:SCR 356
Sandoval
X
Shaffer
X
This Meeting was called to order by
Traylor
E
Senator Hagedorn
Boyd
X
Hagedorn
X
This Report was prepared by
Elizabeth Burger
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB06-001Amended, Referred to Appropriations


10:24 AM -- Senate Bill 06-001

Senator Hagedorn introduced Senate Bill 06-001 and distributed a number of handouts (Attachments A through E), and three amendments, L.002, L.003, L.005 (Attachments F through H), to the committee. He described the handouts distributed to the committee and discussed the provisions of the bill. Senate Bill 06-001 refers to the electors of the state the question of whether the state should implement certain measures designed to reduce the cost of prescription drugs. The measures include: requiring the Department of Health Care Policy and Financing to apply for federal approval to join a multi-state prescription drug purchasing pool, establishing the Colorado Cares Rx Program to provide discounted drugs to Colorado residents, and requiring pharmaceutical manufacturing companies to disclose certain information to the state Medical Services Board. He responded to questions from the committee regarding the pharmaceutical manufacturer disclosure requirements under the bill. He further responded to questions from the committee regarding the fiscal note of the bill.


10:38 AM

Senator Boyd announced that each side would be permitted 45 minutes, including committee questions, for testimony.

10:38 AM -- Rex Wilmouth, Colorado Public Research Interest Group, testified in support of the bill, stating that his organization has advocated that the state join a multi-state prescription drug purchasing pool for many years. He testified in support of the disclosure requirements under the bill, stating that drug manufacturers spend many dollars to advertise drugs and that, in his opinion, drug companies do not need to advertise and that such advertisements may increase the cost of prescription drugs.







10:42 AM -- Sheila Casey, Colorado Commission on the Aging, testified in support of the bill. She stated that there are a lot of gaps in prescription drug coverage for senior citizens, and that many of the drugs taken by seniors and low-income families are very expensive. The bill also offers transparency and accountability to allow seniors to make informed choices.

10:44 AM -- Sue Bozinovski, Denver Regional Council of Governments Area Agency on Aging, testified in support of the bill. She stated that prescription drug affordability is one of the issues that most concerns seniors. She testified regarding the Medicare Part D Prescription Drug Act and the "doughnut hole", or the point at which the Medicare prescription drug benefit provides no coverage for beneficiaries. She responded to questions from Senator Johnson regarding how the bill will assist persons who are in the doughnut hole.

10:47 AM -- Eileen Bond, Colorado Senior Lobby, testified in support of the bill, stating the bill will help seniors.

10:49 AM -- Val Kalnins, Colorado Pharmacists Society, testified in support of the bill.

10:51 AM -- Chris Howes, Colorado Retail Council, testified in support of the bill and in support the portion of the bill that requires that dispensing fees and drug reimbursement rates to pharmacies for prescription drugs under the Colorado Cares Rx Program be no less than the Medicaid reimbursement rate paid to pharmacies.

10:52 AM -- Brad Young, Rx Plus Pharmacies, testified in support of the bill. He testified in support of the multi-state prescription drug purchasing pool and in support of the portion of the bill that specifies that the Colorado Cares Rx Program reimbursement rates shall be no less than Medicaid reimbursement rates. He responded to questions from the committee regarding the types of discounts that may be available under the program.

10:55 AM -- Greg Romberg, Colorado Press Association and Colorado Broadcasters Association, testified regarding the portion of the bill that permits pharmaceutical companies to keep trade secrets confidential and testified in support of amendment L.003 (Attachment G), which permits a court to conduct an in-camera review of information that has been classified as a trade secret.

10:57 AM -- Michael McGuire, AARP, testified in support of the bill. He stated that many private businesses currently use bulk purchasing to lower the cost of prescription drugs and that many people are greatly concerned about the cost of prescription drugs. He testified that other states have realized cost savings by joining a purchasing pool and that consumers need transparency in prescription drug pricing. Mr. McGuire responded to questions from the committee regarding the amount of money spent by pharmaceutical companies on advertisements. Senator Hagedorn responded to questions from Senator Johnson regarding possible savings that individuals may realize by participating in the Colorado Cares Rx Program.

11:08 AM -- Chris Habgood, Mental Health Association of Colorado, testified that his organization is neutral regarding the bill, but testified against any provision of the bill that may require that a preferred drug list be developed. He testified that the bill may be too complex for voters. He urged the committee to allow unrestricted access to mental health drugs and other drugs in any multi-state purchasing plan developed by the state. Senator Hagedorn distributed a handout (Attachment I) and a memorandum concerning the fiscal note of the bill (Attachment J) to the committee. Mr. Habgood responded to questions from the committee regarding the drugs that drive prescription drug expenditures and the cost savings that may be realized by the implementation of a preferred drug list and multi-state purchasing pool, stating that administrative costs of a preferred drug list may negate any savings realized through the use of the list.








11:15 AM -- Rob Hernandez, Colorado Chapter of the National Alliance on Mental Illness, testified in opposition of the bill, stating that the state will have to develop a preferred drug list to participate in a multi-state prescription drug purchasing pool. He expressed his concern that the bill does not exempt mental health drugs from any preferred drug list that may be developed. Mr. Hernandez testified regarding Medicare Part D, stating that many eligible persons have not signed up for the program.

11:18 AM -- Julie Reiskin, Colorado Cross Disability Association, testified in opposition to the bill, stating that, if the bill passes, the federal government is unlikely to approve the plan. She testified regarding federal law regulating multi-state purchasing pools and preferred drug lists. She testified that she did not think that the federal government will permit the savings in a Medicaid program to benefit non-Medicaid clients as is specified in the bill. She responded to questions from Senator Mitchell regarding whether or not the Colorado Cares Rx program could qualify as a state prescription drug assistance program (SPAP) under the Medicare Part D program.

11:28 AM -- Catherine Benavidez, Epilepsy Division of the University of Colorado, Department of Neurology, testified in opposition of the bill and distributed a copy of her testimony to the committee (Attachment K). She testified that reducing epileptic patients' access to effective drugs may increase health care costs.

11:33 AM -- Sheila Hicks, representing herself, testified in opposition of the bill. She stated that many drugs are not tested on persons of different racial and ethnic backgrounds, and that some drugs that work well for Caucasian individuals may not work for persons of different races. She stated that a doctor should be permitted to prescribe the drugs that work best for the patient. She responded to questions from Senator Mitchell regarding drug interactions in persons of different racial backgrounds.


11:37 AM

Public testimony was closed. Senator Hagedorn discussed the fiscal note of the bill and Medicaid prescription drug expenditures for persons who do not qualify for the Medicare Part D program. He discussed preferred drug lists, stating that no patients are denied necessary medication under a preferred drug list. He stated that Medicaid patients in other states have not been in danger due to preferred drug lists and responded to comments made by witnesses regarding clinical trials and drug effectiveness in persons of different racial backgrounds. He discussed Medicare and Medicaid reimbursement to physicians. Senator Hagedorn responded to questions from Senator Mitchell regarding whether the Colorado Cares Rx Program would qualify as a SPAP and whether the state already effectively has a preferred drug list in its Medicaid program.
BILL:SB06-001
TIME: 11:52:47 AM
MOVED:Hagedorn
MOTION:Adopt prepared amendment L.002 (Attachment F). The motion passed without objection.
SECONDED:
VOTE
Johnson
Mitchell
Sandoval
Shaffer
Traylor
Excused
Boyd
Hagedorn
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB06-001
TIME: 11:54:24 AM
MOVED:Hagedorn
MOTION:Adopt prepared amendment L.003 (Attachment G). The motion passed without objection.
SECONDED:
VOTE
Johnson
Mitchell
Sandoval
Shaffer
Traylor
Excused
Boyd
Hagedorn
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB06-001
TIME: 11:54:54 AM
MOVED:Hagedorn
MOTION:Adopt prepared amendment L.005 (Attachment H). The motion passed without objection.
SECONDED:
VOTE
Johnson
Mitchell
Sandoval
Shaffer
Traylor
Excused
Boyd
Hagedorn
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


11:55 AM

Senator Johnson moved an amendment striking the portion of the bill that would require pharmaceutical manufacturers to disclose certain information to the state Medical Services Board. The committee discussed the amendment and prescription drug manufacturer advertising.












BILL:SB06-001
TIME: 12:09:25 PM
MOVED:Johnson
MOTION:Page 8, strike lines 20 through 27. Strike Pages 9 and 10. Page 11, strike lines one through 11. The motion failed 2-4-1.
SECONDED:
VOTE
Johnson
Yes
Mitchell
Yes
Sandoval
No
Shaffer
No
Traylor
Excused
Boyd
No
Hagedorn
No
Not Final YES: 2 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:SB06-001
TIME: 12:10:14 PM
MOVED:Hagedorn
MOTION:Refer Senate Bill 06-001, as amended, to the Committee on Appropriations. The motion passed 5-1-1.
SECONDED:
VOTE
Johnson
Yes
Mitchell
No
Sandoval
Yes
Shaffer
Yes
Traylor
Excused
Boyd
Yes
Hagedorn
Yes
Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:12 PM

The committee recessed.