House Committee on Health and Human Services (02/08/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES

Date:	02/08/2006	ATTENDANCE

Time:	11:33 AM to 01:33 PM	Berens	X
		Clapp	*
Place:	HCR 0112	Cloer	X
		Green	X
This Meeting was called to order by		Lundberg	X
	Representative Boyd	McGihon	X
		Riesberg	X
This Report was prepared by		Soper	X
	Whitney Gustin	Stafford	X
		Sullivan	X
		Weissmann	X
		Frangas	X
		Boyd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB06-1194		Postponed Indefinitely

11:34 AM -- House Bill 06-1194

Representative Rose, sponsor, presented the bill regarding requirements on managed care plans and pharmacy benefits managers and beneficiaries' access to maintenance drugs. He distributed amendment L.001 and a copy of a witness' testimony to members (Attachments A and B). He answered questions about similar laws in other states and the bill's exemption of in-house pharmacies.

The following persons testified.

11:46 AM -- Ralph Pollock, Business Council for Health Care Council, stated his opposition to the bill and distributed a copy of his testimony to members (Attachment C). He described difficulties businesses are having affording health insurance costs. He described the bill as protectionist legislation.

11:49 AM -- Chris Howes, Colorado Retail Council, spoke in support of the bill and a sponsor amendment. He stated retail pharmacies should be able to freely dispense maintenance medications. Pharmacy benefits managers' (PBMs) policies artificially restrict such sales by retail pharmacies. He answered questions about rebates to PBMs and the proportion of drugs dispensed through mail order.

11:54 AM -- Peter Harty, Medco Health Solutions, Inc. (a PBM), discussed Maryland laws regarding prescription drugs and PBMs. He stated 83 percent of prescription drugs are purchased at retail pharmacies. He also stated mail order pharmacies offer prescription drugs at lower prices. He answered questions about rebates to PBMs, the bill's impact on drug costs and health insurance coverage, and transparent contracts between PBMs and employers.

12:09 PM -- Allen Horne, Caremark Rx (a PBM), discussed mail order pharmaceuticals. He discussed a recent report addressing costs of drugs from various sources (e.g., mail order, retail pharmacy). He stated the vast majority of retail pharmacies are in Caremark's network.

12:20 PM -- Rebecca Weiss, Anthem Blue Cross and Blue Shield, and John April, Anthem Prescription Management, came to the table together to testify. Mr. April stated his opposition to the bill. He described cost and dispensing efficiencies associated with mail order pharmacies. He answered questions about rebates to his PBM.

12:29 PM -- Michael Huotari, Colorado Association of Health Plans, testified against the bill. He distributed a position statement to members (Attachment D). He stated association members use mail order pharmacies because of cost-savings offered by those pharmacies.

12:33 PM -- Wendy Tenzyk, Colorado PERA (Public Employees Retirement Association), stated the bill exempts some PERA members but not all. The bill may lead to higher prescription drug costs for PERA retirees. She stated PERA's actuary has found a 7 percent cost increase associated with similar bills.

12:37 PM -- John April returned to the table to answer questions about other states' laws that are similar to HB 1194. In particular, Representative McGihon asked about Anthem's experience with those state laws. Mr. April stated those laws vary significantly. Representative McGihon distributed a document from Maryland's Health Care Commission (Attachment E).

12:43 PM -- Mark Kinney, Rx Plus Pharmacies, spoke in support of the bill. He stated the bill would allow retail pharmacies to be more efficient. He answered questions about his members' experiences in states that have laws similar to HB 1194. He discussed PBMs' reimbursements to retail pharmacies.

12:58 PM -- Val Gheller, Colorado Pharmacists Society and Colorado Professional Employees, spoke in favor of the bill. He stated the bill would give consumers greater freedom in choosing where to purchase their medications.

01:00 PM -- Tony Jones, Pharmacy Retail, described his experience as a pharmacy owner. He stated retail pharmacies offer better customer service to their clientele. He answered questions about adverse drug interactions and the bill's impact on consumer costs.

01:08 PM -- Helen Werners, citizen, described her experience as a prescription drug user who uses a mail order pharmacy. She described problems she has had with that pharmacy. She answered questions about restrictions on physician prescriptions.

01:16 PM

Representative Rose read testimony provided in Attachment B. He discussed L.001. He stated that it addresses a number of technical changes and adds new language regarding participating providers.


BILL:	HB06-1194
TIME:	01:20:33 PM
MOVED:	Weissmann
MOTION:	Adopt L.001 (Attachment A). The motion passed without objection.
SECONDED:	Boyd
		VOTE
	Berens
	Clapp
	Cloer
	Green
	Lundberg
	McGihon
	Riesberg
	Soper
	Stafford
	Sullivan
	Weissmann
	Frangas
	Boyd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASSED WITHOUT OBJECTION.

01:20 PM

Representative Rose made concluding remarks. Committee members commented on the bill.


BILL:	HB06-1194
TIME:	01:27:49 PM
MOVED:	Green
MOTION:	Refer the bill, as amended, to the Committee of the Whole. The motion failed 5-8.
SECONDED:	Weissmann
		VOTE
	Berens	No
	Clapp	No
	Cloer	No
	Green	Yes
	Lundberg	No
	McGihon	Yes
	Riesberg	Yes
	Soper	Yes
	Stafford	No
	Sullivan	No
	Weissmann	Yes
	Frangas	No
	Boyd	No
Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB06-1194
TIME:	01:30:59 PM
MOVED:	Stafford
MOTION:	Postpone the bill indefinitely. The motion passed 10-2-1.
SECONDED:	Weissmann
		VOTE
	Berens	No
	Clapp	Yes
	Cloer	Excused
	Green	No
	Lundberg	Yes
	McGihon	Yes
	Riesberg	Yes
	Soper	Yes
	Stafford	Yes
	Sullivan	Yes
	Weissmann	Yes
	Frangas	Yes
	Boyd	Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:33 PM

The committee adjourned.