Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

September 26, 2024

Dear friends and neighbors,

 

The bill, reining in the influence of Pharmacy Benefit Managers (HB 226), was signed on Monday.

 

I thank the Governor for his support of the bill, as well as Rep. Jesse Sumner and his staff, Insurance Division Director Lori Wing-Heier, and the small, but dedicated, army of independent pharmacists across the state who worked on this legislation.

 

We Americans pride ourselves that we live in a free-market, capitalistic economy. But a free market only works when the playing field is level for all players.

 

In the world of pharmaceuticals, it is not free market! The Pharmacy Benefit Managers (PBMs- the middlemen in the drug supply chain) are capturing so much money from the drug manufacturers, insurance companies, employers/governments, and customers that they are in the top 16 largest by revenue companies in the U.S., with profits at $1 trillion a year. The 3 largest PBMs control the medication supply for 80% of Americans; if you add in the next 3 PBMs in size, it increases to 90% of the medication supply.

 

These PBMs are vertically integrated to the extreme. That means that they own their pharmacies, specialty drug pharmacies, insurance companies, and have offshore profit shelters in Ireland and Switzerland.

 

The PBM negotiates rebates from drug manufacturers; these rebates are required by the PBM to ensure placement of the manufacturer’s drug on the "preferred drug list" for the customers. The highest price drugs, with the highest rebates, go on that preferred drug list. The PBMs capture those rebates for themselves, often failing to pass the savings on to their contracted health plans.

 

independent pharmacies operate outside of the PBM-owned pharmacies. The independent pharmacy pays for the prescribed medications to dispense to the consumer, but the PBM often only reimburses them for a fraction of the cost they paid for the drug.

 

In the meantime, the employer/government (like the State of Alaska who contracts with one of the big 3 PBMs) is charged for the medication at a higher price than the PBM paid. The rebate that the PBM negotiated from the manufacturer is not revealed to the employer/government and is often kept secret.

 

Patients are often required to use the PBMs’ own mail-order pharmacies to get the insurance discount price for their medication, rather than their preferred local pharmacy. This way the PBM funnels all the revenue into their own pocket. Invariably, there are delivery and quality issues with these mail-order drugs and the patient looks to their local pharmacy to help them sort out the mess, even though the pharmacy did not dispense the drugs, and nor will they be compensated for their service.

 

If this sounds like a huge mess, it is! Last week the U.S. House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust met to hear from experts on the PBM topic. It was an impressive meeting, with Congress members quite alarmed, and wanting to do something to break up this PBM vertically integrated system.

 

At this point, Congress has not taken any action, leaving it up to the states. However, the Federal Trade Commission issued a scathing report on PBM practices this past summer and just recently has filed a suit against the Big Three PBMs- OptumRx, Express Scripts and CVS Caremark.

 

In 2018, the State of Ohio audited their PBM and found that it was overcharging its state 31% in higher drug spend. Ohio fired that PBM and is now saving $150-200 million/year on medication costs in their Medicaid program.

 

HB 226 requires that all rebates and drug cost reductions are passed on to the state of Alaska; the PBM must register with the state as a PBM and pay a fee set by the direct of the Division of Insurance; the drug costs must be transparently available to Alaska pharmacies; enumerates what constitutes unfair trade practices in Alaska regarding PBMs; and more.

The Governor has now signed the bill, and the Division of Insurance will be putting out the detailed regulations. I am hopeful that Alaskans will see their medication costs decrease and access improve.

 

 

Governor signs Rep. Sumner's bill to regulate Pharmacy Benefit Managers accused of using market power to drive up drug costs. Frontiersman

PBMs act as “middlemen” between drug manufacturers and insurers and are being probed by the FTC for lack of transparency on how drug prices are set and how much of a “rebate” paid by drug manufacturers is retained by the PBM as excess profit and not passed through to insurers and consumers.

 

 

$200M federal grant boosts major project to upgrade Railbelt electric grid, allowing more renewables. ADN

(My comment: This bill is the biggest step forward toward a unified grid, transmitting lowest cost electron with the most efficiency that Alaska has ever done. It’s been 70 years in the making! Yes! We talked about/envisioned this since the mid 1950s and only now have accomplished it. There is more to be done. The legislation is not perfect but we are finally moving forward.)

 

Items in this Newsletter:

·     Chugach Park Fund Update

·     Employee Recruitment and Retention in MatSu

·     NEAPP Planning Update by DNR

·     Current Topics, Stuff I Found Interesting, Economy, Education, Politics, Healthcare

·     Resource Values, Permanent Fund

Chugach Park Fund had a successful 2024 season thanks to many donors and sponsors.

Employee Recruitment and Retention

 

Take a look at the job openings, just in the MatSu. These are important positions for the functioning of the Borough and the State.

The State Troopers continue to recruit. Take a look at their ad with wages and benefits.

 

Why can’t state and local governments recruit, and more importantly retain, employees? It costs a lot of money to keep replacing departing employees.

 

We could join other states by offering the incentive of a Retirement Pension.

Mat-Su Weekly Job Postings - September 15 - 21, 2024

 https://www.jobs.alaska.gov/jobfairs/  

 

 

Job Order #                 Job Title                         Employer Name

678137 - Firefighter / Driver Operator - Matanuska-Susitna Borough

 

678142 - Administrative Assistant (On-Call) - Matanuska-Susitna Borough

 

678145 - Cyber Security Analyst - Matanuska-Susitna Borough

 

678146 - Administrative Assistant (Information Desk) - Matanuska-Susitna Borough

 

678166 - Lead/Foreman Electrician - Koniag Energy & Water

 

678221 - Shelter Assistant (On-Call) - Matanuska-Susitna Borough

 

678256 - Fire Assistant Chief (On-Call Responder) - Matanuska-Susitna Borough

 

678258 - Long Range Planner (RFT) - Matanuska-Susitna Borough

 

678287 - Part-Time Leasing Consultant - Weidner Property Management LLC

 

678295 - Planning Support Specialist - Matanuska-Susitna Borough

 

678325 - Carman Trainee / Entry Status Mechanical Carman (Alaska Railroad) - State of Alaska

 

678328 - Eligibility Technician 1 (PCN 068238) - State of Alaska

 

678329 - Engineering Assistant 3 / Engineering Associate / Engineer/Architect 1 Flex (PCN 250656) - State of Alaska

 

678331 - Environmental Program Specialist 3 (PCN 187563) - State of Alaska

 

678333 - Environmental Services Lead (PCN 20-5428) - State of Alaska

 

678334 - Graduate Intern 1 (PCN 18IN2501) - State of Alaska

 

678336 - Accounting Assistant (Accounts Payable) - Matanuska-Susitna 

Current Topics

Alaska DMV to issue new, more secure driver's licenses after rise in counterfeiting. Alaska's News Source

The new security measures come after Alaska law enforcement noted it was seeing more counterfeiting with the current cards, which were last upgraded in 2019. The upgraded cards are the first in the country to feature a translucent and semi-translucent credential, according to DMV Division Operations Manager Lauren Whiteside.

 

Will Anchorage again face massive snow disruptions this winter? ADN

“I’m not gonna sugarcoat it, we have some big challenges in front of us,” LaFrance said during a Wednesday media conference laying out new measures to prevent another “snowmageddon.”

 

Police accountability and community trust. Alaska Public Media

Police officers are tasked with keeping order in our communities and ensuring residents and visitors engage in lawful conduct. It can be a difficult job where decisions sometimes need to be made in seconds, especially when people are at risk, in crisis and threatening themselves or others.

(My comment: Yes, our officers are faced with critical decisions daily. Their mission is to protect the public. We want them equipped with the knowledge and experience to respond with everyone’s best interests as top priority. That means time on the job, experience shared by veteran mentors, and backup of fellow officers. Anchorage Police Dept has 61 vacancies right now. These are officers who are not there to work together, to create the safest environment possible for everyone involved in an altercation. Recruitment and retention matter. That’s why I support offering a solid retirement incentive as a recruitment tool for this front line public safety job.)

 

 

Stuff I Found Interesting

Anchorage School Board considers policy update to encourage patriotism in schools. Alaska Public Media

The policy mandates that the Pledge of Allegiance be recited daily and encourages other patriotic activities.

(My comment: Last year I was at a conference at which a current state legislator was to lead the Pledge of Allegiance at the opening. He couldn’t remember the words of the Pledge!)

 

 

National Security

In Arctic, Putin is flexing the strength of his alliances, Murkowski says. Alaska Public Media

Putin is strengthening his alliances with China, North Korea and Iran as a power move, to counter the West, Murkowski said, adding that it’s the joint nature of the Arctic exercise that’s unusual.

(My comment: I’ve raised this concern with both our US Senators and with military security discussions. Alaska is front and center as the farthest west, north and east part of the US.)

 

New Report: Busy Summer for Arctic Shipping on Russia's Northern Sea Route. High North News

The first two months of the 2024 summer and fall navigation season on Russia’s main Arctic shipping lane have already seen 30 transit voyages carrying around 1.3 million tons of cargo, a new report by Norway’s Center for High North Logistics (CHNL) details. 

(My comment: these vessels are coming through our Bering Straits. What is the emergency response for accident or spill? Non existence. National security issues as well. Alaska and US depend on the Canadian coast guard and navy to respond to help us out! We need ice breakers, a navy base and coast guard base in the Bering Strait region.)

 

 

Economy

How Washington State Ferry System is tackling issues. WS Blog

(My Comment: Yes, they are short staff and in need of new vessels, just like Alaska Marine Ferry System (AMFS). But since they offer a Defined Benefit retirement to their employee, the young new oilers, wipers, mates, and captains know that they are building skills for a career-long job in the beautiful Pacific Northwest, and building a retirement for the future.)

 

1 big thing: What's changed about layoffs. Axios

The mood among managers: "It took me so long to get this labor force, I'm not letting them go," says Ron Hetrick, a senior economist at Lightcast, a labor market analytics company.

(My comment: As this article points out, everywhere is seeing shortage of skilled professional - healthcare, trades. Being cavalier about employee churn (turnover) means continued economic harm, as Alaska is proving right now. That’s why incentives like a solid retirement package retains employees and is smart economically.)

 

Opinion: Pension debate is about the people who make government work. ADN

 

 

Education

KPBSD Holland responds to DEED appeal of fed claim it failed to provide COVID relief funds. KSRM

Relations between Alaska and federal departments were already strained when news came out that the Alaska Department of Transportation would receive its lowest August redistribution of federal dollars in two decades and the lowest redistribution of any state in the union. Now, Holland says the school district is hearing something similar about the state’s fight with the fed over the proper distribution of American Rescue Plan Act funds for education in Alaska. “We are hearing that we are the only state in the entire union that’s not taking care of this,” he said.

 

 

Fisheries

Marquee Alaska sockeye fun was bigger than expected, but the individual fish were small. Alaska Beacon

The world’s largest sockeye salmon run was larger than average this year, but the percentage of those fish that were harvested commercially was lower than normal, and individual fish weighed in at the smallest size on record, the Alaska Department of Fish and Game reported.

 

Two Kodiak trawlers caught 2,000 king salmon. Now, a whole fishery is closed. Northern Journal

Federal managers shut down a major Alaska fishery Wednesday after two Kodiak-based boats targeting whitefish caught some 2,000 king salmon — an unintentional harvest that drew near-instant condemnation from advocates who want better protections for the struggling species.

 

 

Politics

What would a statewide hand-count election look like in Alaska? Alaska Beacon

 

Opinion: Ranked choice voting and open primaries diminish political party control. That's great for Alaska. ADN

 

Editorial: Why is the state repeatedly dropping the ball on federal funding? ADN

 

Several states are making late changes to election rules, even as voting is set to begin. AP News

Across the country, including in some of the nation’s presidential swing states, new or recently altered state laws are changing how Americans will vote, tally ballots, and administer and certify November’s election.

 

 

Health Care

U.S. health system lags on efficiency: report. Axios

Bureaucratic red tape, industry consolidation and wide variations in insurance coverage are combining to make the U.S. health system one of the most inefficient among developed nations, according to the Commonwealth Fund's latest comparison of global performance.

 

1 big thing: Childhood trauma raises disease risk. Axios

ACEs like abuse, neglect or witnessing domestic abuse have become an increasingly common research topic, especially for the way they're linked to poor mental health. But the effects can also include disrupted metabolic, neurologic, endocrine and immune systems, and are collectively referred to as a "toxic stress response." More than half of Americans have experienced at least one ACE, and more than one-fifth have experienced three or more during their lifetime, per the new research.

 

Alaska's life-expectancy drop was biggest among all state in pandemic year of 2021, CDC says. Alaska Beacon

Alaska’s life expectancy in 2021 was 74.5 years, down from the average of 76.6 years in 2020, according to the report from the U.S. Centers for Disease Control and Prevention.

 

Alaska youth need expanded access to mental health support, advocates tell lawmakers. Alaska Beacon

The Alaska Children’s Caucus, which was revived this year, has bipartisan co-chairs from both chambers, including Tobin, Sen. Cathy Giessel, R-Anchorage, Rep. Mike Cronk, R-Tok, and Rep. Maxine Dibert, D-Fairbanks.

 

Enforcing Mental Health Parity: Safe Options to Improve Access to Care. Commonwealth Fund

The Mental Health Parity and Addiction Equity Act (MHPAEA) is the primary federal law that aims to safeguard access to behavioral health treatment for those with private health insurance. However, enforcing the legislation can be complex, and many health insurers have yet to fully comply with the law’s requirements.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (9/25/24): $74.46

FY24 budget (beginning 7/1) is fully funded at a

forecast of $73/barrel of oil.

Price on 9/30/23: $87.99

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/08/22: $125.44

Price on 12/22/21: $75.55

ANS production (9/24/24): 474,338 bpd

 

Hilcorp owner, Jeff Hildebrand, one of the "richest of the rich" in U.S. Dermot Cole

On its running tally of the richest of the rich, Forbes says Hildebrand is currently worth about $7.6 billion, which is more than what he paid to buy BP’s Alaska assets, a deal sweetened by BP loaning $2 billion to Hildebrand.

Bloomberg puts his wealth at $17.7 billion, as the 119th richest of the world’s billionaires.

 

Alaska natural gas crunch is increasing demand for a tradition fuel - coal. Alaska Beacon

Southcentral Alaska’s natural gas crunch is boosting demand for coal-fired power hundreds of miles inland, a sign that a looming supply crisis will have far-reaching consequences across Alaska.

 

Alaska regulators fine Hilcorp $50,000 for overdue test at Cook Inlet well. Alaska Beacon

Hilcorp is the dominant operator in the Cook Inlet oil and gas basin. Thursday’s fine was the second in two months assessed against Hilcorp by the AOGCC for well-integrity testing violations at the Trading Bay Unit. In July, the commission fined the company $86,000 for missing a deadline for a pressure test on a different well, called M-30, and for continuing to operate the well before completing the required test. Thursday’s order was also the fifth AOGCC-assessed penalty for Hilcorp this year.

 

Hilcorp applies to expand Ivan River pad. Petroleum News

AOGCC production data show Ivan River production declining from a recent high in July 2022 when the field accounted for almost 6% of inlet gas production.



1 big thing: Biden goes big on batteries. Axios

The awards move the U.S. closer to "building an end-to-end supply chain for batteries and critical minerals here in America, from mining to processing to manufacturing and recycling, which is vital to reduce China's dominance of this critical sector."

(My comment: Batteries and “clean energy” cannot happen without mining. But is also can’t happen without refining of the mineral in the US. At this time, we are hostage to China, who refines our minerals and is now starting to ban the export of those refined minerals back to us.)

 

Powering up the nation's second largest island with 100% renewable energy. UAF From the Grid

Kodiak Island is located 250 miles south of Anchorage and is the second-largest island in the United States. It is the first remote community in Alaska to be powered by almost 100% renewable energy year round.

 

Microsoft power deal would restart Pennsylvania nuke plant. Axios

Microsoft and Constellation Energy announced a power deal that would enable the restart of a reactor at Pennsylvania's dormant Three Mile Island nuclear plant in 2028. The plan blends two big energy trends. One is the voracious energy needs to power data centers, especially as AI grows. The other being proposals to restart, or delay closures of, mothballed reactors to meet rising electricity demand with zero-carbon sources.

 

Constellation Energy to restart Three Mile Island nuclear plant, sell to power to Microsoft for AI. CNBC

Constellation Energy plans to restart the Three Mile Island nuclear plant and will sell the power to Microsoft, demonstrating the immense energy needs of the tech sector as they build out data centers to support artificial intelligence.

 

Equipment shortages add pressure to LNG plant costs, Kiewit says. Reuters

Equipment shortages and rising costs for equipment, wages and cement have driven up the cost of constructing new LNG plants by between 25% and 30% over the last five years, Shelby said, noting that wages have increased by 20% in keeping with inflationary costs.

(My comment: These facts increase the likelihood that the $40 Billion cost estimate for Alaska LNG pipeline and export facility is way under the real cost.)

 

Can an Alaska nickel mine capture CO2? Mining News North

Alaska Energy Metals Sept. 18 announced that it has partnered with the Colorado School of Mines and Virginia Polytechnic Institute to determine how much carbon dioxide a mine at its Nikolai project in Alaska could capture and store while also providing a domestic supply of nickel, copper, cobalt, and platinum group metals (PGMs) for the energy transition.

 

Tectonic tests Flat heap leach potential. Mining News North

Tectonic Metals Inc. Sept. 19 reported that recent metallurgical testing demonstrates the potential for high gold recoveries from a low-cost run-of-mine heap leach operation at its Flat project in Southwest Alaska. Located about 25 miles (40 kilometers) north of the world-class Donlin Gold project, Flat includes a large land package leased from Doyon Ltd. and a smaller package of optioned and staked claims that cover three potential intrusions that are on-trend and show similarities to gold-enriched Chicken Mountain intrusion on Doyon land. Approximately 1.4 million ounces of placer gold have been dug from streams draining the area around Flat.

 

The changing tides of deep-sea mining. Mining News North

Deep-sea mining has captured the world's attention as a uniquely promising source of the metals needed for lithium-ion batteries powering the green energy future and a bitterly controversial topic of debate.

 

The United States is the world's largest gasoline exporter. EIA

The United States is the world’s largest exporter of motor gasoline (finished gasoline plus gasoline blending components), supplying over 16% of total global exports.

 

4 GAIN Vouchers Awarded to Advance Data Center, Microreactor Deployment. Office of Nuclear Energy

The Gateway for Accelerated Innovation in Nuclear (GAIN) announced today that four companies will be provided vouchers to advance microreactor technologies, identify potential sites capable of hosting a nuclear-powered data center, and prevent corrosion in molten salt reactors. The vouchers provide companies access to the extensive nuclear research capabilities and expertise available across the U.S. Department of Energy (DOE) national laboratory complex. 

 

Department of Defense Breaks Ground on Project Pele Microreactor. Office of Nuclear Energy

The Department of Defense (DoD) broke ground on the Project Pele transportable microreactor project at Idaho National Laboratory (INL). 

The demonstration project is being led by DOD’s Strategic Capabilities Office and could be one of the first advanced reactors to operate in the United States as early as 2026.

 

 

Precious Metal Prices

September 25, 2024

Gold - $2673.90

Silver - $32.13

Platinum - $1015.49

Palladium - $1088.33

Rhodium - $4750.00

 

Alaska Permanent Fund

website

 

Fund value September 24, 2024 - $81,960,500,000

PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion

 

Click here to see list of accomplishments from the 33rd Alaska State Legislature Senate Majority.

 

Click here to view my webpage. It has links to all previous newsletters.

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Office Manager: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Julia O'Connor (from Juneau)

·     Legislative Analyst: Angela Rodell (from Juneau)

 

 

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Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd | Anchorage, AK 99516 US