Legislature(2013 - 2014)HOUSE FINANCE 519
04/15/2014 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB316 | |
| SB138 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 138 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 316 | TELECONFERENCED | |
HOUSE BILL NO. 136
"An Act requiring the governor's fiscal plan to
include certain information."
8:36:18 AM
Co-Chair Stoltze referred to two amendments.
Representative Thompson MOVED to ADOPT Amendment 2, 28-
LS1362\P.1, Wallace, 4/8/14 (copy on file):
Page 1, line 11:
Delete "board and adopted by reference"
Insert "medical services review committee [BOARD] and
adopted by the board [REFERENCE]"
Page 2, line 21:
Delete "(1)"
Delete "board"
Insert "medical services review committee"
Page 2, line 22:
Delete "board"
Insert "medical services review committee"
Page 2, line 23, following "adopted":
Insert "by the board"
Page 2, line 23:
Delete ";"
Insert "."
Page 2, lines 24 - 29:
Delete all material.
Page 3, following line 23:
Insert a new subsection to read:
"(p) The medical services review committee shall
formulate a conversion factor and submit the
conversion factor to the commissioner of labor and
workforce development. If the commissioner does not
approve the conversion factor, the medical services
review committee shall revise the conversion factor
and submit the revised conversion factor to the
commissioner for approval."
Page 4, following line 15:
Insert a new bill section to read:
"* Sec. 4. AS 23.30.395 is amended by adding a new
paragraph to read:
(42) "medical services review committee" means the
committee established under AS 23.30.0950)."
Renumber the following bill sections accordingly.
Page 4, line 16:
Delete "AS 23.30.097(j) - (o)"
Insert "AS 23.30.097(j) - (p)"
Page 4, line 18:
Delete "sec. 4"
Insert "sec. 5"
Co-Chair Stoltze OBJECTED for discussion.
Representative Thompson explained that Amendment 2 would
allow the medical services review committee to directly set
the conversion rates for the new fee schedule.
Subsequently, the schedule would be submitted to the
Department of Labor and Workforce Development commissioner
for approval. In the current bill version the conversion
factors were set by the 18 member workers' compensation
board. The medical services review committee was made up of
9 people including members of the state medical
association, chiropractic society, nursing home
association, a healthcare provider, four non-healthcare
providers, and the commissioner's designee. He communicated
that the amendment streamlined the process and had come at
the bill sponsor's request.
Co-Chair Stoltze reiterated that the amendment language had
been brought to the committee by the sponsor.
ANNA LATHAM, STAFF, REPRESENTATIVE KURT OLSON, confirmed
the sponsor's support of Amendment 2.
Co-Chair Stoltze asked for verification that the amendment
language had originated from the sponsor. Ms. Latham
replied in the affirmative.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 2 was ADOPTED.
Representative Gara MOVED to ADOPT replacement Amendment 1:
Page 2, line 19:
Insert "(4) The fee schedules of (A) - (C) of this
subsection shall not be used for any procedure or
service unless they satisfy the service charge of
providers in an area so that patient access to quality
medical care is not compromised."
Co-Chair Stoltze OBJECTED for discussion.
Representative Gara pointed to a concern that the workers'
compensation rate would be the Medicare or Medicaid rate.
He understood that it was not the sponsor's intention;
therefore, replacement Amendment 1 clarified that the
workers' compensation rate would not be the Medicare or
Medicaid rates unless they were adequate to ensure patient
access to quality medical care. He stated that the sponsor
intended that there would be a multiplier at some point in
time.
Ms. Latham believed the amendment had good intention;
however, she believed it was unnecessary for two reasons.
First, it created confusion in the interpretation that
Medicare or Medicaid rates would be used. Second, currently
32 states used the methodology with a conversion factor set
by the state. The bill had been referred to the House
Finance Committee because of its $62,000 fiscal note
associated with the medical services review committee
setting the conversion factors.
Representative Gara asked for verification that the
Medicare and Medicaid language in the bill did not mean
that the state would adopt those rates if they were
inadequate to provide quality medical services and access.
Ms. Latham replied in the affirmative and pointed out that
the conversion factor was a large component of the
legislation for that reason.
Representative Gara was satisfied with the information put
on record by the sponsor's staff. He WITHDREW Amendment 1.
8:42:16 AM
Vice-Chair Neuman referred to the unique nature of
widespread costs in Alaska due to availability of medical
services statewide. He imagined that cost differentials in
rural Alaska could be quite varied. He wondered about
alignment with Medicaid values. He asked if comparisons had
been done statewide to determine how costs would average
out.
Ms. Latham replied that the geographical differential had
been included specifically for rural areas. She added that
the bill included an exemption for rural (critical access)
hospitals.
Representative Wilson asked if there was a place on the
board for physical therapists. Ms. Latham replied that
there was one open seat for a healthcare provider on the
medical services review committee. She relayed that based
on testimony, physical therapists did not account for the
application of a conversion factor. The testifiers had
discussed their experiences using Medicare rates, which was
not the intent of the legislation. She believed some
confusion existed related to the testimony.
Representative Wilson pointed out that there was an
opportunity for physical therapists to apply for a medical
services review committee seat if they were interested.
Representative Costello discussed the fiscal notes
including one fiscal impact note from the Department of
Labor and Workforce Development totaling $62,000 in FY 15
and $54,000 in FY 16 through FY 20; and one indeterminate
note from the Department of Administration.
Vice-Chair Neuman MOVED to REPORT CSHB 316(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
CSHB 316(FIN) was REPORTED out of committee with "no
recommendation" and with one new fiscal impact note from
the Department of Labor and Workforce Development and one
new indeterminate note from the Department of
Administration.
8:45:42 AM
AT EASE
8:47:53 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 316 MSRC 4-15-14.docx |
HFIN 4/15/2014 8:30:00 AM |
HB 316 |
| SB 138 Letter from Legislators.pdf |
HFIN 4/15/2014 8:30:00 AM |
SB 138 |
| SB 138 4.16.14 Presentation HFIN Edgmon Question.pdf |
HFIN 4/15/2014 8:30:00 AM |
SB 138 |
| SB 138 4.16.14 Resource Reports Required by Appendix A to Part 380 of FERC Regulations.pdf |
HFIN 4/15/2014 8:30:00 AM |
SB 138 |
| SB 138 Public Testimony.pdf |
HFIN 4/15/2014 8:30:00 AM |
SB 138 |