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B6A4D745AEC3C81C872586BF0001C181 Hearing Summary


Date Apr 21, 2021      
Location HCR 0112

HB21-1237 - Amended, referred to the Committee of the Whole

06:19:20 PM  
The committee took
a brief recess.
06:30:40 PM  
Representative Lontine,
bill co-sponsor, presented HB21-1237.  The bill directs the Department
of Personnel and Administration (DPA) to enter into a contract with a pharmacy
benefit manager (PBM) for the administration of state employee health insurance
through a reverse-auction process prescribed by the bill, and then use
that platform to audit claims.  State employee insurance offered through
Kaiser Permanente is exempt from this requirement.  It creates avenues
for other public and private health insurance plans to participate jointly
with the state.

Technology platform.
 By November 1, 2021, DPA must obtain a technology
platform, and associated services from the platform operator, capable of
conducting a reverse-auction for a PBM.  The platform must be equipped
with certain automation and price comparison capabilities specified in
the bill.  In addition, the platform must be able to perform automated
line-by-line review of all invoiced PBM drug claims to identify any deviations
from the terms of the PBM contract.  DPA may perform a market check
during the term of the PBM contract to evaluate the incumbent PBM’s drug
pricing for continuing competitiveness.

 The platform, operator services, claim review, and market
checks will be paid for by a per-prescription fee paid by the winning PBM
directly to the platform operator.

Joint participation.
 Any other self-funded public sector health
plan may use the processes and procedures established in the bill individually,
collectively, or as a joint purchasing group with a state employee health
insurance plan.  After completion of the first PBM reverse auction,
self-funded private sector health plans with substantial participation
by Colorado employees may also participate in a joint purchasing pool with
state employees for subsequent PBM reverse auctions.  Any health plans
participating in a purchasing pool retain autonomy over their drug formularies
and benefit designs.

She distributed a handout to the committee (Attachment H).
06:33:23 PM  
Representative Rich, bill co-sponsor, continued introducing the bill.
06:35:57 PM  
The sponsors responded to questions from the committee.
06:38:57 PM  
The testimony of
Mr. Drew Cline, Josiah Bartlett Center for Public Policy, was read into
the record.  The testimony was in a neutral position on the bill.
06:42:34 PM  
Mr. Ky Davis, RxPlus
Pharmacies, testified to amend the bill.
06:46:15 PM  
Mrs. Hilary Glasgow,
Colorado WINS, testified in support of the bill.
06:50:37 PM  
The sponsors responded
to questions from the committee.
06:54:31 PM  
Mr. Dudley Burdge,
Communications Workers of America/New Jersey State Health Benefits Commission,
testified in support of the bill.
07:00:24 PM  
Mr. Mark Blum, America's
Agenda, answered committee questions.
07:10:46 PM  
The sponsors responded to questions from the committee.
07:11:42 PM  
Mr. Blum and Mr.
Burdge continued to respond to committee questions.

Submitted written
testimony can be found in Attachment I.
07:15:23 PM  
Representative Rich
introduced amendment L.006 (Attachment J).
07:16:45 PM  
Committee members
made comments on amendment L.006.

07:18:51 PM
Motion Adopt amendment L.006 (Attachment J)
Moved Lontine
Seconded Kennedy
Van Beber
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection
07:19:13 PM  
The bill sponsors made closing comments on the bill.
07:22:21 PM  
Committee members made closing comments on the bill.

07:24:47 PM
Motion Refer House Bill 21-1237, as amended, to the Committee of the Whole.
Moved Lontine
Seconded Ortiz
Baisley Yes
Hanks No
Jackson Yes
Kennedy Yes
McCormick Yes
Mullica Yes
Ortiz Yes
Pelton Yes
Soper No
Titone Yes
Van Beber Yes
Lontine Yes
Caraveo Yes
Final YES: 11   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details