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S_HHS_2020A 03/04/2020 11:05:13 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
SENATE COMMITTEE ON HEALTH & HUMAN SERVICES
Date 03/04/2020
Attendance
Crowder X
Ginal X
Smallwood X
Rodriguez X
Winter X
Time 11:05:13 AM to 12:03:08 PM
Place Old Supreme Court Chamber
This Meeting was called to order by Senator Winter
This Report was prepared by Elizabeth Haskell
Hearing Items Action Taken
HB20-1050 Referred to the Committee of the Whole - Consent Calendar
HB20-1078 Referred to the Committee of the Whole

X = Present, E = Excused, A = Absent, * = Present after roll call

HB20-1050 - Referred to the Committee of the Whole - Consent Calendar


11:05:43 AM  
Senators Ginal and Tate, bill sponsors, presented House Bill 20-1050. Current law permits a registered prescription drug outlet or licensed hospital other outlet to make a casual sale or loan of a drug to another registered outlet or wholesaler, to sell or give a drug to a practitioner, and to supply an emergency kit or starter dose to certain facilities. The bill extends this authority to ambulatory surgical center other outlets, hospice other outlets, and convalescent center other outlets.
11:06:56 AM  

Tom Simpleman, Colorado Ambulatory Surgery Center Association, testified in support of the bill.



11:13:35 AM
Motion Refer House Bill 20-1050 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.
Moved Crowder
Seconded
Crowder Yes
Ginal Yes
Smallwood Yes
Rodriguez Yes
Winter Yes
Final YES: 5   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS



HB20-1078 - Referred to the Committee of the Whole


11:14:04 AM  

Senator Winter, bill sponsor, presented House Bill 20-1078. The bill establishes certain requirements concerning the rates paid by pharmacy benefit management (PBM) firms to pharmacies. It applies to contracts between pharmacies and PBM firms in effect beginning January 1, 2021. Specifically, the bill states that a PBM firm:

  • cannot reimburse a clean claim from a pharmacy any less than the firm reimburses any affiliate for the same services;
  • cannot reimburse a pharmacy less than four dollars for a reasonable dispensing fee;
  • must reimburse a clean claim using a methodology described in the bill; and
  • may not retroactively reduce payment on a clean claim submitted by a pharmacy. Insurance carriers must annually audit contracted PBM firms for compliance.

Failure to do so is designated as an unfair method of competition and an unfair or deceptive act in the business of insurance.

11:15:51 AM  

Senator Winter responded to questions.

11:18:54 AM  

Gina Moore, Colorado Pharmacists Society and Skaggs School of Pharmacy and Pharmaceutical Sciences, testified in support of the bill.

11:22:50 AM  

Dr. Derek Burns, Rocky Mountain Cancer Centers, testified in support of the bill.

11:25:38 AM  

Jen Palazzolo, Rx Plus Pharmacies, testified in support of the bill and distributed a handout (Attachment A).

11:33:43 AM  

The witness panel responded to questions.

11:38:30 AM  

Senator Winter responded to questions.

11:44:55 AM  

Committee discussion and questions continued.  Dr. Burns responded to questions.

11:49:14 AM  

Rachel Lee, CVS Health, testified in a neutral position on the bill.

11:54:22 AM  

Virginia Morrison Love, American's Health Insurance Plans, responded to committee questions.

11:57:11 AM  

Ms. Lee responded to questions.

12:00:12 PM  

Senator Winter made closing comments.



12:02:55 PM
Motion Refer House Bill 20-1078 to the Committee of the Whole.
Moved Winter
Seconded
Crowder Yes
Ginal Yes
Smallwood Yes
Rodriguez Yes
Winter Yes
Final YES: 5   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


12:03:08 PM   The committee adjourned.






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