Legislature(2003 - 2004)
2003-03-06 Senate Journal
Full Journal pdf2003-03-06 Senate Journal Page 0394 SB 109 SENATE BILL NO. 109 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act repealing the statute that sets priorities for the Department of Health and Social Services to apply to administration of the medical assistance program when there are insufficient funds allocated in the state budget for that program; authorizing the department to make cost containment decisions that may include decisions about eligibility of persons and availability of services under the medical assistance program; and providing for an effective date." was read the first time and referred to the Health, Education and Social Services and Finance Committees. 2003-03-06 Senate Journal Page 0395 The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Health and Social Services Governor's transmittal letter dated March 5: Dear President Therriault: Under the authority of article III, section 18, of the Alaska Constitution, I am transmitting a bill to provide greater flexibility to the Department of Health and Social Services to implement cost containment strategies for the Medicaid program. Under current law, if funds appropriated to the Medicaid program are insufficient for a given fiscal year, the department is directed to eliminate optional Medicaid services based on a priority list that is woefully out-of-date. The existing list is not an effective management tool and if used, would needlessly result in the denial of necessary and cost-effective services to Alaskans in need of health care. The proposed bill would replace this obsolescent language with authority for the department to undertake cost containment based on three key principles. First, the department must pursue all other reasonable cost containment measures before eliminating any eligibility groups or services. Second, the department should aggressively pursue strategies to maximize federal financial participation in the Medicaid program. Third, cost containment decisions should be made in a manner that best reflect the needs and interests of eligible Medicaid recipients. The imperative of slowing the growth of state funding for Medicaid while at the same time maintaining health care coverage for needy Alaskans is an issue that can no longer be avoided. Passage of this legislation will give the department additional tools to meet this challenge. I urge your prompt and favorable action on this measure. 2003-03-06 Senate Journal Page 0396 Sincerely, /s/ Frank H. Murkowski Governor