"An Act relating to medical assistance coverage for prescription drugs; and providing for an effective date."

The Department of Health and Social Services is currently in the process of implementing a preferred drug list (PDL). This limitation on medical assistance coverage is being done as a cost containment measure. While we believe that cost containment measures are a necessary step in achieving cost savings we believe that we must proceed carefully and judiciously. To that end, the state will need to adopt formal regulations in order to ensure that our efforts to achieve cost saving is not at the expense of Alaskan patients health and well being. HB543 ensures that those protective measures are in place prior to the actual implementation of a PDL.

Under HB 543 the regulations must include: standards, opportunity for public comment, an appeal process, and a provision for approved coverage of a drug that is not on preferred drug list when it is deemed medically necessary.

HB 543 provides that the commissioner must appoint a Prescription Drug Review Advisory Committee prior to the department establishing a PDL or placing any limitation on coverage of a medication. HB543 also establishes the membership of the committee as well as the duties.

HB 543 places a temporary moratorium on the implementation of a PDL, or restricted access to medication coverage, for drugs used to treat mental illness. This temporary moratorium expires January 1, 2005. Mental health patients are especially vulnerable to adverse effects from changes to their medications. HB 543 gives the department ample time to ensure that the necessary protective measures are in place prior to discussion of this drug class.

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