Alaska 30th Legislature (2017-2018) Status: In Committee

SB 38 — An Act relating to the registration and duties of pharmacy benefits managers; relating to procedures, guidelines, and enforcement mechanisms for pharmacy audits; relating to the cost of multi-source generic drugs and insurance reimbursement procedures; relating to the duties of the director of the division of insurance; and providing for an effective date.

Last action — Cosponsors added: MICCICHE, BISHOP

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 30th Legislature (2017-2018). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

7 added · 7 removed

Plain-language change summary

The updated version of SB 38 now includes specific requirements for pharmacy benefits managers, such as the need for registration and setting processes for network pharmacies to appeal reimbursement decisions for multi-source generic drugs. These changes aim to enhance transparency and fairness in pricing and reimbursement, helping pharmacies obtain fairer compensation. This matters because it empowers pharmacies to contest low reimbursement rates and ensures they have access to updated pricing information, ultimately benefiting patients who rely on affordable medications.

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Alaska State Legislature The Alaska State Legislature menu Home Senate Current Members Past Members By Session Alphabetical House Current Members Past Members By Session Alphabetical Bills & Laws Bills All Introduced Actions by Date Awaiting Actions Bills sent to Conf Committee Bills in Committee Governor's Vetoes Passed Legislation Prefile Bill Summary Requestor Summary Statistics Sponsor Summary Subject Summary Laws Constitution Constitutional Convention Files Statutes Executive Orders - Current Executive Orders - Historical Administrative Code Journals Session Laws & Resolves Session Laws & Resolves 2017 Session Laws & Resolves 2018 - Previous Year Session Law - Previous Year Legislative Resolves Tools Statute Information Retrieval System Bill Tracking Management Facility Past Legislatures (Archives) Committees Hearing Schedule Standing Committees Finance Committees Special Committees Joint Committees Conference Committees Other Committees Minutes Publications Get Started Information Offices Legislative Affairs Legislative Agencies Links Legislative Branch Executive Branch Judicial Branch Alaska Delegation Home Bill & Laws Bills CSSB 38(L&C) Detail FullText txt CSSB 38(L&C):
and providing for an effective date." SENATE BILL NO.
and providing for an effective date." CS FOR SENATE BILL NO.
38 01 "An Act relating to the registration and duties of pharmacy benefits managers;
38(L&C) 01 "An Act relating to the registration and duties of pharmacy benefits managers;
22 (c) A pharmacy benefits manager shall grant a network pharmacy's appeal if 23 an equivalent multi-source generic drug is not available at a price at or below the 24 pharmacy benefits manager's list price from at least one of the network pharmacy's 25 contracted wholesalers who operate in the state.
22 (c) A pharmacy benefits manager may grant a network pharmacy's appeal if 23 an equivalent multi-source generic drug is not available at a price at or below the 24 pharmacy benefits manager's list price for purchase from national or regional 25 wholesalers who operate in the state.
If an appeal is granted, the pharmacy 26 benefits manager shall adjust the reimbursement of the network pharmacy to equal the 27 network pharmacy acquisition cost for each paid claim included in the appeal.
If an appeal is granted, the pharmacy benefits 26 manager shall adjust the reimbursement of the network pharmacy to equal the network 27 pharmacy acquisition cost for each paid claim included in the appeal.
18 (2) "board" means the Board of Pharmacy;
18 (2) "claim" means a request from a pharmacy or pharmacist to be 19 reimbursed for the cost of filling or refilling a prescription for a drug or for providing 20 a medical supply or device;
19 (3) "claim" means a request from a pharmacy or pharmacist to be 20 reimbursed for the cost of filling or refilling a prescription for a drug or for providing 21 a medical supply or device;
21 (3) "extrapolation" means the practice of inferring a frequency or 22 dollar amount of overpayments, underpayments, invalid claims, or other errors on any 23 portion of claims submitted, based on the frequency or dollar amount of 24 overpayments, underpayments, invalid claims, or other errors actually measured in a 25 sample of claims;
22 (4) "extrapolation" means the practice of inferring a frequency or 23 dollar amount of overpayments, underpayments, invalid claims, or other errors on any 24 portion of claims submitted, based on the frequency or dollar amount of 25 overpayments, underpayments, invalid claims, or other errors actually measured in a 26 sample of claims;
26 (4) "list" means the list of multi-source generic drugs for which a 27 predetermined reimbursement amount has been established such as a maximum 28 allowable cost or maximum allowable cost list or any other list of prices used by a 29 pharmacy benefits manager;
27 (5) "list" means the list of multi-source generic drugs for which a 28 predetermined reimbursement amount has been established such as a maximum 29 allowable cost or maximum allowable cost list or any other list of prices used by a 30 pharmacy benefits manager;
30 (5) "multi-source generic drug" means any covered outpatient 31 prescription drug that the United States Food and Drug Administration has determined is pharmaceutically equivalent or bioequivalent to the originator or name brand drug 02 and for which there are at least two drug products that are rated as therapeutically 03 equivalent under the United States Food and Drug Administration's most recent 04 publication of "Approved Drug Products with Therapeutic Equivalence Evaluations";
31 (6) "multi-source generic drug" means any covered outpatient prescription drug that the United States Food and Drug Administration has determined 02 is pharmaceutically equivalent or bioequivalent to the originator or name brand drug 03 and for which there are at least two drug products that are rated as therapeutically 04 equivalent under the United States Food and Drug Administration's most recent 05 publication of "Approved Drug Products with Therapeutic Equivalence Evaluations";
05 (6) "network pharmacy" means a pharmacy that provides covered 06 health care services or supplies to an insured or a member under a contract with a 07 network plan to act as a participating provider;
06 (7) "network pharmacy" means a pharmacy that provides covered 07 health care services or supplies to an insured or a member under a contract with a 08 network plan to act as a participating provider;
08 (7) "pharmacy" has the meaning given in AS 08.80.480;
09 (8) "pharmacy" has the meaning given in AS 08.80.480;
09 (8) "pharmacy acquisition cost" means the amount that a 10 pharmaceutical wholesaler or distributor charges for a pharmaceutical product as listed 11 on the pharmacy's invoice;
10 (9) "pharmacy acquisition cost" means the amount that a 11 pharmaceutical wholesaler or distributor charges for a pharmaceutical product as listed 12 on the pharmacy's invoice;
12 (9) "pharmacy benefits manager" means a person that contracts with a 13 pharmacy on behalf of an insurer to process claims or pay pharmacies for prescription 14 drugs or medical devices and supplies or provide network management for 15 pharmacies;
13 (10) "pharmacy benefits manager" means a person that contracts with a 14 pharmacy on behalf of an insurer to process claims or pay pharmacies for prescription 15 drugs or medical devices and supplies or provide network management for 16 pharmacies;
16 (10) "recoupment" means the amount that a pharmacy must remit to a 17 pharmacy benefits manager when the pharmacy benefits manager has determined that 18 an overpayment to the pharmacy has occurred.
17 (11) "recoupment" means the amount that a pharmacy must remit to a 18 pharmacy benefits manager when the pharmacy benefits manager has determined that 19 an overpayment to the pharmacy has occurred.
19 * Sec.
20 * Sec.
The uncodified law of the State of Alaska is amended by adding a new section to 21 read:
The uncodified law of the State of Alaska is amended by adding a new section to 20 read:
22 APPLICABILITY.
21 APPLICABILITY.
(a) This Act applies to audits of pharmacies conducted by 23 pharmacy benefits managers and contracts with pharmacy benefits managers entered into on 24 or after the effective date of sec.
(a) This Act applies to audits of pharmacies conducted by 22 pharmacy benefits managers and contracts with pharmacy benefits managers entered into on 23 or after the effective date of sec.
25 (b) In this section, "pharmacy" and "pharmacy benefits manager" have the meanings 26 given in AS 21.27.955, added by sec.
24 (b) In this section, "pharmacy" and "pharmacy benefits manager" have the meanings 25 given in AS 21.27.955, added by sec.
27 * Sec.
26 * Sec.
The uncodified law of the State of Alaska is amended by adding a new section to 28 read:
The uncodified law of the State of Alaska is amended by adding a new section to 27 read:
29 TRANSITIONAL PROVISIONS:
28 TRANSITIONAL PROVISIONS:
The division of insurance may 30 adopt regulations necessary to implement the changes made by this Act.
The division of insurance may 29 adopt regulations necessary to implement the changes made by this Act.
The regulations take 31 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law implemented by the regulation.
The regulations take 30 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 31 law implemented by the regulation.
02 * Sec.
* Sec.
The uncodified law of the State of Alaska is amended by adding a new section to 03 read:
The uncodified law of the State of Alaska is amended by adding a new section to 02 read:
04 REVISOR'S INSTRUCTIONS.
03 REVISOR'S INSTRUCTIONS.
The revisor of statutes is requested to renumber 05 AS 21.27.900 as AS 21.27.990.
The revisor of statutes is requested to renumber 04 AS 21.27.900 as AS 21.27.990.
The revisor of statutes is requested to change "AS 21.27.900" 06 to "AS 21.27.990" in AS 21.36.475(c)(2) and (4) and AS 21.97.900(26).
The revisor of statutes is requested to change "AS 21.27.900" 05 to "AS 21.27.990" in AS 21.36.475(c)(2) and (4) and AS 21.97.900(27).
07 * Sec.
06 * Sec.
08 * Sec.
07 * Sec.
5 of this Act, this Act takes effect July 1, 2018.
5 of this Act, this Act takes effect July 1, 2019.
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Action History

  1. Cosponsors added: MICCICHE, BISHOP

  2. Referred to Finance

  3. Fiscal Note 2: (Administration)

  4. Fiscal Note 1: No fiscal impact (Commerce, Community & Economic Development)

  5. L&C Do Pass: GARDNER

  6. L&C No Recommendation: COSTELLO, MICCICHE, MEYER

  7. L&C RPT CS 1DP 3NR SAME TITLE

  8. Cosponsors added: GARDNER

  9. Cosponsors added: EGAN

  10. L&C, FIN

  11. Read the first time - REFERRALS

Sponsors

  • GIESSEL BY REQUEST · Primary
  • Bishop · Cosponsor
  • Egan · Cosponsor
  • Gardner · Cosponsor
  • Micciche · Cosponsor

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 60 not signed on

Sponsors (1)

  • GIESSEL BY REQUEST

Co-sponsors (4)

  • Bishop
  • Egan
  • Gardner
  • Micciche

Not signed on (60)

60 members have not signed on to this bill.

Show all 60 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

healthcare health-insurance
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Frequently asked questions

Who sponsors SB 38?
SB 38 is sponsored by GIESSEL BY REQUEST, Bishop, Egan, Gardner, and Micciche.
What is the current status of SB 38?
This bill died with 30th Legislature (2017-2018). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 38?
Track SB 38 free on One Click Politics — get push/email alerts when it moves.

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