h_hie_2017a_2017-04-13t14:15:25z1 Hearing Summary

Date: 04/13/2017

Location: HCR 0107

03:20 PM -- HB 17-1318



Representative Ginal presented House Bill 17-1318, along with amendment L.001 (Attachment F). This bill requires health insurers to submit various information to the Division of Insurance (DOI) in the Department of Regulatory Agencies (DORA) on the cost of pharmaceuticals covered under individual and group health insurance plans. Data must be submitted by March 31, 2018, and each March 31 through 2020. In the first year, carriers must provide cost data for 2015 through 2017, and then in future years for the prior calendar year only. The DOI must aggregate data submitted by insurers and submit a report to the Governor and the Health and Human Services committees of the General Assembly by December 1 each year from 2018 through 2020. Information on pharmaceutical costs must also be presented by DORA during its SMART Government Act hearing.



170413 AttachF.pdf



The bill places certain limits on data reporting by the DOI to ensure that prices paid by single carriers are not disclosed and that only aggregated information is presented. The report may not list the names of individual health insurance carriers or pharmaceutical companies, and must identify pharmaceuticals by their drug class rather than individual product names. Information to be reported by carriers and aggregated by the DOI includes:



• the total pharmaceutical costs incurred, including all cost sharing amounts, and the net cost to the carrier after all discounts and rebates;

• the net cost of all pharmaceuticals as a percentage of all medical costs;

• a list of the drug classes of the ten most-dispensed pharmaceuticals, the aggregate cost of each pharmaceutical and the number of unique covered persons receiving the pharmaceutical for brand-named drugs, generic drugs, biological products, and interchangeable biological products; and a list of the drug classes of the ten pharmaceuticals with the highest cost, the number of unique covered persons who received the pharmaceuticals on the list, and the medical condition each pharmaceutical was required to treat.





03:25 PM -- Charlie Sheffield, representing Colorado Association of Health Plans, testified against the bill and presented a packet of handouts (Attachment G).



170413 AttachG.pdf



03:34 PM -- Ana English, representing the Center for Improving Value in Health Care, testified in a neutral capacity and presented a handout (Attachment H).



170413 AttachH.pdf



03:46 PM -- Lieutenant Governor Donna Lynne testified in support of the bill.



03:56 PM -- Peg Brown, representing DOI, testified in support of the bill and presented a handout (Attachment I).



170413 AttachI.pdf



04:00 PM -- Tim Gaudett, representing the Small Business Majority, testified in support of the bill and presented a handout (Attachment J).



170413 AttachJ.pdf



04:03 PM -- Diane Robinson, representing the Senior Lobby, testified in support of the bill.



04:08 PM -- Sandra Payne, representing herself, testified in support of the bill.



04:11 PM -- Caitlin Westerson, representing the Colorado Consumer Health Initiative, testified in support of the bill.



04:14 PM -- Ed Shackelford, representing the Senior Lobby, testified in support of the bill.