00                            HOUSE BILL NO. 391                                                                          
01 "An Act establishing state employee health care provider networks; and providing for                                    
02 an effective date."                                                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 39.30 is amended by adding a new section to read:                                                  
05            Sec. 39.30.093.  State employee health care provider networks.  (a) The                                    
06       commissioner of administration shall, for each state employee health care service                                 
07       region under (c) of this section,                                                                                 
08                 (1)  establish a network of health care providers who are generally                                     
09       available to provide a health care service to state employees in that region and require,                         
10       as a condition of membership, that each member                                                                    
11                      (A)  is able to provide the service;                                                               
12                      (B)  is properly licensed by the state to provide the service;                                     
13                      (C)  annually demonstrate to the commissioner of                                                   
14            administration that not less than 20 percent of the patients served by the                                   

01            provider are eligible to receive benefits from Medicaid or Medicare;                                         
02                      (D)  for a service subject to a rate established under (b) of this                                 
03            section, agree not to charge more than that rate;                                                            
04                 (2)  identify health care services provided at a market rate that is, on                                
05       average, higher than the market rate in a more competitive market where the state                                 
06       employee can reasonably obtain similar services.                                                                  
07 (b)  The commissioner of administration shall establish a competitive bid                                               
08 procedure and solicit bids from qualified members of the network to provide a service                                   
09 identified under (a)(2) of this section at a lower rate. The commissioner shall                                         
10 determine the lowest bid under this subsection. The lowest bidder may charge 100                                        
11 percent of the lowest bid for the corresponding service, and other members of the                                       
12       network may charge not more than 95 percent of the lowest bid for that service.                                   
13 (c)  For purposes of this section, there are three state employee health care                                           
14       service regions, as follows:                                                                                      
15 (1)  the Municipality of Anchorage and the Matanuska-Susitna                                                            
16       Borough;                                                                                                          
17                 (2)  the Fairbanks North Star Borough;                                                                  
18                 (3)  the City and Borough of Juneau.                                                                    
19            (d)  In this section,                                                                                        
20 (1)  "dependent child" means an unmarried child of a state employee,                                                    
21 including one adopted, who is dependent on the state employee for support and who is                                    
22                      (A)  under 19 years of age;                                                                        
23 (B)  under 23 years of age and registered at and attending on a                                                         
24 full-time basis an accredited educational or technical institution recognized by                                        
25            the Department of Education and Early Development; or                                                        
26                      (C)  of any age, and totally and permanently disabled;                                             
27                 (2)  "health care provider" has the meaning given in AS 21.42.347;                                      
28 (3)  "state employee" means a person, or the spouse or a dependent                                                      
29 child of the person, employed on a full-time or part-time basis with a branch,                                          
30 department, office, institution, board, commission, bureau, division, or other                                          
31       administrative unit that forms state government.                                                                  

01    * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).