Senate

Bill 1387
2016 Freedom Index Score (-2)
Analyst: Lindsay Russell Dexter
Date: March 8, 2016

ANALYSTS NOTE: Senate Bill 1387 would require suppliers of Durable Medical Equipment devices to
have an Idaho accredited facility within 150 miles and have sufficient inventory and staff to service or
repair products. Senate Bill 1387 defines Durable Medical Equipment suppliers as:

Currently bill or plan to bill the medicare program services or products listed in centers for
medicare and medicaid durable medical equipment, prosthetics, orthotics and supplies
competitive bid product categories in this state in the current calendar year; or intends to bid for
services or products listed in the centers for medicare and medicaid durable medical equipment,
prosthetics, orthotics and supplies competitive bid product categories in this state in the current
calendar year.

Point No. 3: Does it give government any new, additional, or expanded power to prohibit, restrict, or
regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in
the market?

ANALYSIS: Senate Bill 1387 will give the Idaho Board of Pharmacy expanded power to keep
entities that wish to be durable medical equipment providers from gaining access to the market if
they are not within 150 miles of an accredited facility. (-1)

Point No. 12: Does it violate the principles of federalism by increasing federal authority, yielding to
federal blandishments, or incorporating changeable federal laws into Idaho statutes or rules? Examples
include citing federal code without noting the specific enactment date, using state resources to enforce
federal law, and refusing to support and uphold the Tenth Amendment. Conversely, does it restore or
uphold the principles of federalism?

ANALYSIS: Senate Bill 1387 references "products listed in the centers for Medicare and Medicaid
durable medical equipment, prosthetics, orthotics and supplies competitive bid product
categories in this state in the current calendar year; or ... Intends to bid for services or products
listed in the centers for Medicare and Medicaid durable medical equipment, prosthetics, orthotics
and supplies competitive bid product categories in this state in the current calendar year." In
other words, the listing of products by a federal agency would make an Idaho supplier subject to
the authority of the Board of Pharmacy. Similarly, the legislation excludes suppliers under a U.S.
Code provision, meaning whenever Congress changes the law, Idaho law would change, too. Both
represent an improper delegation of legislative authority both to a federal agency and to
Congress. (-1)

**This Bill is an improvement from Senate Bill 1264 because it does not include that at least one (1)
accredited physical facility that is staffed during reasonable business hours and is located in Idaho or is
within one hundred fifty (150) miles of any Idaho resident being served by the applicant**