Legislature(2023 - 2024)BARNES 124
04/17/2023 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB88 | |
| HB21 | |
| HB149 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 21 | TELECONFERENCED | |
| += | HB 149 | TELECONFERENCED | |
| += | HB 88 | TELECONFERENCED | |
HB 21-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
3:38:50 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 21, "An Act relating to group insurance coverage
and self-insurance coverage for school district employees,
employees of the University of Alaska, and employees of other
governmental units in the state; and providing for an effective
date."
3:40:06 PM
The committee took a brief at-ease.
3:40:44 PM
CHAIR SUMNER opened public testimony on HB 21.
3:40:47 PM
CLAYTON HOLLAND, Superintendent, Kenai Peninsula Borough School
District, stated that Alaska has the highest health care costs
and Alaskans have the highest insurance premiums in the U.S. He
explained that Alaskans have high out-of-pocket costs, and these
high health care costs are negatively impacting recruitment and
retention in Kenai schools. He expressed the belief that
joining a larger health care pool would alleviate some of those
costs.
3:42:10 PM
REPRESENTATIVE FIELDS questioned why political subdivisions are
not working.
MR. HOLLAND answered that school districts only have the
opportunity to renegotiate health care costs during collective
bargaining agreement negotiations. He added that Kenai
Peninsula Borough School District is self-insured.
REPRESENTATIVE FIELDS asked about other potential options for
the district.
MR. HOLLAND answered that the district submits all relevant
information in its annual bid for health care plans. He added
that the cost is $25,000 per employee, with the potential to
reduce costs to $20,000 per employee, if a bid were made with an
insurance company.
3:46:05 PM
MR. HOLLAND, in response to a question from Chair Sumner,
reiterated that the Kenai Peninsula Borough School District
self-insures. In response to a follow-up question, he said that
the district is separate from the borough. He added that there
has been interest expressed in combining the two accounts. In
response to a follow-up question, without the numbers in front
of him, he expressed uncertainty of the account balance for the
district.
3:47:36 PM
REPRESENTATIVE PRAX asked whether the school district
administers the policy or uses a network.
MR. HOLLAND answered that the district works with a network. In
response to a follow-up question, he said that the district does
have a stop-loss policy.
3:49:10 PM
REPRESENTATIVE FIELDS asked whether the Kenai Peninsula Borough
School District would have the ability to join Alaska Care if HB
21 were passed.
MR. HOLLAND answered that the school district would join the
plan if the bill were passed. In response to a follow-up
question, he expressed the belief that adding the school
district to the pool would reduce healthcare costs for everyone
involved.
REPRESENTATIVE FIELDS asked whether joining Alaska Care would
require Kenai Peninsula Borough School District to renegotiate
the union contract.
MR. HOLLAND answered that negotiations occur every three years,
with the upcoming year being a negotiation year. He added that
other school districts could amend their contracts or wait for
their next negotiation. In response to a follow-up question, he
said that costs have increased significantly, although he does
not have the numbers available.
3:54:41 PM
CHAIR SUMNER, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 21.
3:55:04 PM
REPRESENTATIVE FIELDS asked whether the Kenai Peninsula Borough
School District would be able to join the Pacific Health
Coalition.
3:56:08 PM
BONNIE PAYSON, Executive Director, Pacific Health Coalition,
providing invited testimony, answered that Kenai Peninsula
Borough School District is already a member of the Pacific
Health Coalition. She added that the coalition works to
negotiate insurance rates as a group in order to reduce prices.
REPRESENTATIVE FIELDS asked for clarification on whether the
school district is a member.
MS. PAYSON answered that the school district is a member.
3:58:25 PM
REPRESENTATIVE FIELDS questioned the requirements for entry and
exit into the pool to prevent undermining price shopping.
MS. PAYSON expressed uncertainty; however, she suggested that a
lack of such controls could lead to Alaska Care being
undermined.
PAT SHIER, Alaska Membership Representative, Pacific Health
Coalition, added that he is unaware of any state allowing any
public entity to join its state employee group.
4:00:10 PM
REPRESENTATIVE SADDLER asked whether the limit in Section 3 of
the bill would be an annual limit.
REPRESENTATIVE SARAH VANCE, Alaska State Legislature, as prime
sponsor, answered that the limit would allow the fund to be used
for claims over a period of multiple years.
4:01:28 PM
REPRESENTATIVE RUFFRIDGE asked why expenditures would come out
of the public education fund.
REPRESENTATIVE VANCE answered that this is an accounting
mechanism and the fund would be reimbursed. In response to a
follow-up question, she answered that the bill would require
funds to be transferred within 30 days.
4:04:50 PM
The committee took an at-ease from 4:04 p.m. to 4:13 p.m.
4:13:21 PM
BETSY WOOD, Chief Health Administrator, Division of Retirement
and Benefits, Department of Administration, in response to a
question from Representative Fields, expressed uncertainty on
the amount of money currently in the public education fund. She
added that the Department of Education and Early Development
would be more likely to have this information.
4:14:36 PM
REPRESENTATIVE RUFFRIDGE questioned using the public education
fund to pay for health insurance and benefits.
MS. WOOD answered that Section 3 would allow the fund to be used
to cover 4 months' worth of health insurance claims.
REPRESENTATIVE VANCE added that participating school employers
will reimburse the fund, and it is a mechanism for a school
district to be able to gain entry into the program and allow
insurance claims to be paid.
REPRESENTATIVE RUFFRIDGE asked whether the 10-year language in
the bill would act as a loan.
REPRESENTATIVE VANCE answered that the intent is to provide
continuous health care coverage and flexibility.
4:19:28 PM
REPRESENTATIVE FIELDS asked whether a school district would be
required to pay back money it used from the public education
fund, if it entered and then left the Alaska Care system.
REPRESENTATIVE VANCE answered yes.
MS. WOOD concurred with the assessment.
4:20:54 PM
REPRESENTATIVE PRAX expressed the hope that the Department of
Administration extensively reviewed the proposed legislation, as
the complex nature of the bill would mean future changes would
be difficult to make.
4:22:28 PM
REPRESENTATIVE FIELDS asked whether after joining Alaska Care a
school district would be able to transfer its reserves.
MS. WOOD answered yes.
REPRESENTATIVE VANCE added that it would be the duty of the
school boards to pay for participation in Alaska Care. She said
that any closing balance a school district has would be provided
to the group health fund. The public education fund would only
be used in cases in which a school district does not have a
remaining balance to cover insurance.
4:25:34 PM
REPRESENTATIVE FIELDS asked whether new members would be added
to the same pool or a new pool.
MS. WOOD responded that the proposed legislation would give the
department the option. She expressed the belief that the intent
of the bill is to pool new members with Alaska Care.
4:26:22 PM
CHAIR SUMNER announced that HB 21 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Fiscal Note HB149.pdf |
HL&C 4/17/2023 3:15:00 PM |
HB 149 |