Legislature(2001 - 2002)

05/06/2002 02:01 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 299(FIN)                                                                                               
                                                                                                                                
     An Act  relating to the  establishment of  an additional                                                                   
     south-central panel to the  Alaska Workers' Compensation                                                                   
     Board and  to appointments to that panel;  and providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
DEBORAH GRUNDMANN, STAFF, SENATOR BEN STEVENS, stated that                                                                      
CSSB 299 (FIN)  would amend the Workers' Compensation  Act to                                                                   
provide  for an  additional  panel  for the  Alaska  Workers'                                                                   
Compensation   Board  in  the   South-central  venue.     She                                                                   
indicated that  was needed to  help provide more  hearings in                                                                   
the  area and  would  address  the need  to  reduce lag  time                                                                   
between when  a worker files a  claim and obtains  a hearing.                                                                   
The bill would relieve growing caseloads.                                                                                       
                                                                                                                                
                                                                                                                                
Ms.  Grundmann added  that the  Alaska Workers'  Compensation                                                                   
Act  requires  hearings to  be  conducted  by panels  of  the                                                                   
Workers' Compensation  Board.   A panel  consists of  a labor                                                                   
member  and  an  industry  member, with  a  designee  of  the                                                                   
commissioner  of  the  Department   of  Labor  and  Workforce                                                                   
Development.   The commissioner's designee is  an employee of                                                                   
the  State  of   Alaska;  the  other  two  members   are  lay                                                                   
volunteers who receive a $50 per day stipend.                                                                                   
                                                                                                                                
Ms. Grundmann pointed  out that the industry  seat members of                                                                   
the panels  usually work in  some management position,  while                                                                   
the  labor members  are  usually  officers of  labor  unions,                                                                   
which makes for a "good mix" in  deciding the types of cases.                                                                   
Panel  members  also  have  full time  jobs  outside  of  the                                                                   
division,  and  have  limited  time to  devote  to  hearings.                                                                   
Consequently,  there are only  so many  hearings that  can be                                                                   
conducted with the current component  of panel members.  With                                                                   
the  adoption  of  the committee  substitute  in  the  Senate                                                                   
Finance  Committee,  the  effective  date  of  the  bill  was                                                                   
changed  to January  1,  2003.   Enactment  of  SB 299  would                                                                   
provide  much  needed  relief to  the  Worker's  Compensation                                                                   
Board.                                                                                                                          
                                                                                                                                
Representative Foster MOVED to  report CS SB 299 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
attached fiscal  note.  There  being NO OBJECTION, it  was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
CS SB  299 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation  and with  fiscal note #1  by Department                                                                   
of Law.                                                                                                                         
                                                                                                                                
#SB345                                                                                                                        
SENATE BILL NO. 345                                                                                                           
                                                                                                                                
     An    Act   relating   to    medical   assistance    for                                                                   
     rehabilitative   services  for  certain   children  with                                                                   
     disabilities;  relating  to  agreements to  pay  medical                                                                   
     assistance  for covered services  paid for or  furnished                                                                   
     to  eligible  children  with disabilities  by  a  school                                                                   
     district; and providing for an effective date.                                                                             
                                                                                                                                
JERRY  BURNETT, STAFF,  SENATOR  LYDA GREEN,  commented  that                                                                   
under  the  federal Individuals  Disabilities  Education  Act                                                                   
(IDEA),   school   districts    are   required   to   provide                                                                   
rehabilitative services  to qualifying students.   Currently,                                                                   
the federal  government  pays approximately  16% of the  cost                                                                   
for services  required by IDEA.   The balance is paid  out of                                                                   
the  foundation  formula  with  a  mix  of  State  and  local                                                                   
funding.    To  the extent  that  the  students  qualify  for                                                                   
Medicaid, federal  law allows for  schools to bill  the State                                                                   
Medicaid program  for many of the services.   However, Alaska                                                                   
State law does not authorize school  districts to be Medicaid                                                                   
providers.                                                                                                                      
                                                                                                                                
Senate Bill  345 authorizes the  Alaska Department  of Health                                                                   
and Social Services  to promulgate the  necessary regulations                                                                   
and  to  contract  with school  districts  to  reimburse  for                                                                   
rehabilitative  services for students  who qualify  under the                                                                   
Medicaid  program.   Currently, forty-two  other states  fund                                                                   
school-based services through the Medicaid program.                                                                             
                                                                                                                                
Mr. Burnett stated  that under the provisions of  SB 345, the                                                                   
school district  would pay the  State match for  the Medicaid                                                                   
services it  receives.  The only  State cost under  the bill,                                                                   
would be  the cost of promulgating  the regulations  and some                                                                   
small administrative costs.                                                                                                     
                                                                                                                                
Mr.  Burnett added  that school  districts  would benefit  by                                                                   
receiving  federal   matching  dollars  under   the  Medicaid                                                                   
program for  services that they  must provide,  regardless of                                                                   
how  they  are  funded.   For  each  school  district  dollar                                                                   
expended for the services, the  school district would receive                                                                   
approximately  $1.50  in  additional federal  dollars.    Mr.                                                                   
Burnett claimed  that money  could help  defray the  costs of                                                                   
providing special education services.                                                                                           
                                                                                                                                
JON SHERWOOD,  DIVISION OF MEDICAL ASSISTANCE,  DEPARTEMNT OF                                                                   
HEALTH  AND  SOCIAL  SERVICES,   noted  that  the  Department                                                                   
supports  the bill.   He  stated  that it  was a  cooperative                                                                   
effort  between Department  of Health  & Social Services  and                                                                   
Department of  Education & Early  Development.   Mr. Sherwood                                                                   
offered to answer questions of the Committee.                                                                                   
                                                                                                                                
Mr. Sherwood  pointed out  that there  are two fiscal  notes.                                                                   
One of the  notes is for  Medicaid services.  The  bill would                                                                   
enable  the school districts  to bill  Medicaid for  services                                                                   
provided to  Medicaid-eligible children in  special education                                                                   
programs.    Districts  would  reimburse  the  Department  of                                                                   
Health  &  Social  Services for  the  State  match  required.                                                                   
There would  be no net increase  in State general  fund match                                                                   
for Medicaid.                                                                                                                   
                                                                                                                                
The other  fiscal note would  cover the small  administrative                                                                   
fees for expenses associated with  making the claim payments.                                                                   
Claim payments for the new service  and a small amount of on-                                                                   
going staff support would be needed to policy development.                                                                      
                                                                                                                                
Vice-Chair Bunde  asked if  the Medicaid reimbursement  would                                                                   
be "trading dollars".                                                                                                           
                                                                                                                                
Mr.  Sherwood  acknowledged  that was  correct,  noting  that                                                                   
currently, the  federal government pays  60% of the  cost for                                                                   
Medicaid services.                                                                                                              
                                                                                                                                
Vice-Chair  Bunde pointed  out  that schools  claim that  the                                                                   
State would be responsible for  paying for a portion of those                                                                   
costs.                                                                                                                          
                                                                                                                                
Mr.  Sherwood  agreed that  was  correct, noting  that  those                                                                   
State dollars would already have been spent.                                                                                    
                                                                                                                                
Representative  Foster   MOVED  to  report  SB   345  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB 345 was reported out of Committee with a "no                                                                                 
recommendation" and with fiscal note #1 and #2 by the                                                                           
Department of Health & Social Services.                                                                                         

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