1998-01-28                     House Journal                      Page 2158
HB 369                                                                       
HOUSE BILL NO. 369 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to Medicaid coverage for certain eligible children           
and pregnant women; relating to primary care case management                   
and managed care services as optional services and to premiums                 
and cost-sharing contributions under the Medicaid program;                     
establishing the Healthy Families Alaska program; and providing                
for an effective date."                                                        
                                                                               

1998-01-28                     House Journal                      Page 2159
HB 369                                                                        
was read the first time and referred to the Health, Education & Social        
Services and Finance Committees.                                               
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Zero fiscal notes (2), Dept. of Health & Social Services, 1/28/98              
                                                                               
                                                                               
The Governor's transmittal letter dated January 27, 1998, appears              
below:                                                                         
                                                                               
"Dear Speaker Phillips:                                                        
                                                                               
The state of Alaska has a unique opportunity to expand health                  
coverage for the children and pregnant women of Alaskas working                
families, and to help new parents with the skills they need to raise           
healthy, happy kids who are prepared for a bright future.  Today, I am         
transmitting a bill that seizes that opportunity.  This legislation is part    
of my Smart Start for Alaska's Children initiative  -- giving kids the         
chance for a healthy start in life.                                            
                                                                               
This bill takes advantage of a new federal program to increase income          
eligibility for Medicaid to include children and pregnant women whose          
family incomes are below 200 percent of the federal poverty level.             
The Department of Health and Social Services estimates this new                
coverage will reach 11,600 children and 800 pregnant women who                 
need, but currently cannot afford health insurance.  The bill also             
authorizes the department to establish methods for case management             
and premium cost-sharing to make this new program as efficient and             
equitable as possible.                                                         
                                                                               
Especially appealing about this program is that it will cost the state no      
new general fund dollars because of increased federal funding for the          
state's Medicaid program.  This bill proposes to reallocate about $7           
million of general funds no longer required to match federal Medicaid          
dollars as the state's share for expanded children's health coverage.          
That $7 million will in turn leverage nearly $18 million new federal           
Medicaid dollars.  I can think of no better use than children's health for     
a portion of our Medicaid savings.                                             

1998-01-28                     House Journal                      Page 2160
HB 369                                                                       
This bill also formally establishes in law the Healthy Families Alaska         
program, which provides education and support services to pregnant             
women and the families of children under age five.  This proven                
program offers home visits designed to meet the needs of parents for           
information, emotional support, stress management, and assistance with         
other negative factors that undermine parents' health habits and the           
care of their children.  Service providers work with families to ensure        
children receive medical care, such as immunizations, parents receive          
job training and substance abuse programs if needed, and mothers               
receive prenatal care  the "smartest start" we can offer Alaska's              
children.                                                                      
                                                                               
Programs such as expanded health care and home visits for new                  
parents have been proven to help reduce child abuse.  The state of             
Vermont, for instance, experienced significant drops in child abuse and        
neglect after adopting initiatives similar to this proposal.  Because          
child abuse and neglect make it more likely a child will resort to             
violence, health care and home visitation programs that prevent abuse          
and neglect are considered an effective, long-term strategy for                
preventing future crime and the public and private costs associated            
with it.                                                                       
                                                                               
I can think of nothing more valuable for us to offer Alaska's children         
and families than the opportunity for a physical and emotional healthy         
start in life.  This bill offers an excellent avenue for that effort and       
deserves your attention and prompt action.                                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"