Legislature(2005 - 2006)HOUSE FINANCE 519
02/08/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB79 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| HB 79 | |||
HOUSE BILL NO. 79
"An Act making a supplemental appropriation for
increased operating costs of the division of elections;
and providing for an effective date."
LAURA GLAISER, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF
THE LIEUTENANT GOVERNOR, explained the need for HB 79 by
highlighting examples of unanticipated and/or excessive
costs for the 2004 election. She provided a handout (copy
on file), which lists extra costs to the Division of
Elections. Additional personal services costs of $304
thousand were incurred due to 5 initiative petitions, one
recall petition ballot, and a record number of absentee
ballot requests.
Ms. Glaiser referred to a Superior Court decision, which
mandated that the Division reprint ballots for the 2004
election. She pointed out that this led to an expenditure
of over $243 thousand for reprint costs. She explained the
Municipality of Anchorage (MOA) election costs of adding two
bond questions onto the general election ballot.
Vice-Chair Stoltze asked if the MOA election request was
from the school district or from the city of Anchorage. Ms.
Glaiser replied that it came through the MOA.
Ms. Glaiser explained the costs incurred from conducting two
recounts, which totaled over $39 thousand. She related that
the recount total expenditures exceeded the $750 and $10,000
deposits required by statute. She listed additional costs
to the Division such as independent counsel expenses,
mainframe chargeback costs, expedited printing and freight
costs for forms, increased postage costs, and additional fax
press machine costs.
1:44:24 PM
In response to a question from Co-Chair Meyer, Ms. Glaiser
related that the Division's net request is about $585
thousand.
Representative Hawker inquired about absentee by-mail
ballots and the high number of unreturned ballots. Ms.
Glaiser explained that one obvious cause of the problem is
the special advanced ballot, which is sent out in advance of
the official ballot. Two ballots are sent out, one in
advance, but only one ballot is mailed back in and counted.
Another factor is that the deadline is 7 days prior to the
election, and, due to high numbers this year, the ballots
could not be processed quickly enough to send out the second
ballot. She reported that many people might have chosen to
vote in another manner because of this.
Vice-Chair Stoltze inquired about possible trends in the use
of faxed ballots, such as large numbers from one location,
or use by institutions. Ms. Glaiser replied that many
ballots were sent from military personnel overseas, but many
others also chose to fax their ballots. She noted that
there were problems with the transmission in fax voting, but
also incredible interest. Vice-Chair Stoltze asked if there
were organizations that made heavy use of this process. Ms.
Glaiser replied there were not, only individuals.
Co-Chair Meyer applauded Ms. Glaiser's hard work in spite of
the challenges. He requested an accounting of the numbers
in the U.S Senate race recount. Ms. Glaser replied that
there were approximately 800 more votes: 450 for Knowles,
and 350 for Murkowski. She suggested that the additional
votes were found by human analysis during the second count
when problems were resolved. Co-Chair Meyer termed the
recount accurate and good.
Representative Holm thanked Ms. Glaser for her work. He
wondered what the cost of a recount per district is. Ms.
Glaiser replied that it is set statutorily at $750 per
district. Representative Holm inquired if the amount of
money requested is close to the cost. Ms. Glaser replied
that the statutes have not been changed since the 60's.
There is currently a request in SB 66 for an increase in the
recount cost and deposit required. Representative Holm
asked if the cost of a recount depends on how close the vote
is. Ms. Glaiser explained that it does not apply to the
type of recount the state is required to pay for when the
vote is within 1 percent.
1:55:10 PM
Vice-Chair Stoltze asked if the goal of the Division is to
make the costs match the expenses. Ms. Glaser replied that
there is a proposed change in legislation that would result
in an increase and would determine what the State's burden
in a recount would be.
Representative Hawker pointed out that there is a level
where the race is so close that the State does not charge
the parties. Ms. Glaser responded that the proposal would
not change that situation at all.
Co-Chair Meyer noted that half of the requested money is for
personal services. He asked for information about overtime
pay and exempt status of employees. Ms. Glaser explained
that overtime is both for staff that are on board and for
temporaries. It is not a question of exemption, but rather
staff duties that determine whether overtime can be
received.
Representative Croft reiterated that the proposed
legislation would, in certain types of recounts, determine
that costs are as close to the actual expenses as possible,
and are the responsibility of the requester of the recount,
but not when the election is within 1 percent. Ms. Glaser
agreed.
Co-Chair Meyer closed public testimony.
HB 79 was heard and HELD in Committee for further
consideration.
2:00:52 PM.
^
OVERVIEW - AETNA HEALTH CARE PREMIUM
The following overview was taken in log note format.
Handouts will be on file with the House Finance Committee
through the 24th Legislative Session. After the 24th
Legislative Session they will be available through the
Legislative Library at 465-3808.
TIME SPEAKER DISCUSSION
2:01:36 PM NICOLE Related the history of AETNA's
SALINAS, relationship with the State of Alaska
ACCOUNTING since the first contract in 1982. She
EXECUTIVE, explained that there must be a
AETNA LIFE competitive bid every 5 years, and
INSURANCE AETNA has been able to come back each
COMPANY time. She noted that there are 52,000
retired members and 14,000 active
members.
2:03:48 PM Ms. Salinas Explained aspects of the program and
the types of claims paid. She reported
that $225 million in medical and
pharmaceutical claims was paid for
retirees and $43 million was paid for
active members. She pointed out that
1.2 million claims are processed
annually. The plan is complex and
benefits are often coordinated under
multiple plans. AETNA partners with
the Department of Administration to
keep communication open, seek
improvement, and review performance
guarantees. She explained the bi-
weekly benefit calls, and participation
on various boards and committees.
2:05:43 PM MIKE WIGGINS, Clarified a common misconception
AETNA LIFE regarding AETNA. He explained that when
INSURANCE AETNA insured the State of Alaska from
COMPANY 1982 until 1996, it actually set
premiums and bore the financial risk
for the coverage. In 1996 the State
went out to bid on a self-funded basis
and it has been self-funded on medical
coverage since 1997. He explained
several of the roles that the State
bears, such as providing monthly lists
of who is eligible for benefits.
Unlike in 1982 to 1996, the benefits
are determined by the State, and the
Department of Administration writes the
benefit booklets.
2:07:35 PM Mr. Wiggins Explained that the final level of
appeals is borne by the State. AETNA
deals with claims management, case
management, provider-relations issues,
and data reporting when requested by
the State.
2:09:02 PM Mr. Wiggins Related that AETNA negotiates provider
discounts. He provided information
about the number of AETNA employees who
work in Alaska.
2:09:49 PM Co-Chair Asked if Alaska is saving money by
Chenault being self-insured.
2:10:23 PM Mr. Wiggins Replied that most plans this size are
self-funded. He said he has seen no
financial analysis about this issue.
2:10:58 PM Co-Chair Inquired about the availability of
Chenault information regarding membership
satisfaction, polls, and tracking. Mr.
Wiggins replied that a membership
satisfaction mail-out has been done,
but not recently. He explained a new
survey called "First Call First Claim",
which asks about customer satisfaction,
and is readily available to committee
members.
2:12:11 PM Vice-Chair Inquired who analyzes mandated coverage
Stoltze costs. Mr. Wiggins replied that AETNA
has been asked for advice from time to
time about newly mandated benefits, but
it is ultimately the State's role.
Vice-Chair Stoltze asked if AETNA would
take suggestions for new benefits from
the committee. Mr. Wiggins replied
that he is not sure because AETNA has
never worked with the committees
directly.
2:13:56 PM Co-Chair Noted that since 1999, healthcare
Chenault premiums for retirees have increased
nearly 100 percent. He asked if AETNA
has observed any trends relating to
that increase. Mr. Wiggins related
that pharmacy costs have gone up. He
explained the difference in
pharmaceutical costs for retirees under
65 and over 65. Pharmacy costs for
retirees are about 30 percent of
overall medical costs. He also noted
that the population of retirees has
increased by 25 percent, and most are
under the age of 65 and not covered by
Medicare.
2:16:28 PM Co-Chair Asked who is responsible for coverage
Chenault verification for retiree dependents,
AETNA or the State. He suggested that
there has been some abuse of this
situation.
2:17:47 PM Mr. Wiggins Explained that it is a State issue and
was caused by a difference between the
benefit booklet and the statute.
2:18:14 PM Co-Chair Referred to an earlier statement by Mr.
Chenault Wiggins and clarified that genetic
drugs are cheaper. Mr. Wiggins agreed.
2:18:36 PM Representative Requested a prediction about
Joule pharmaceutical prices in the future.
Mr. Wiggins explained that a Medicare
Reform Bill was passed in 2004 at the
federal level, which may provide some
relief. He mentioned pending,
expensive drugs, which will be a factor
in the long term. Representative Joule
suggested that there might be an
increase in the cost of prescription
drugs now that the elections are over.
2:20:27 PM Representative Requested numbers about self-insurance
Croft costs and whether there has been a cost
savings since 1996.
ADJOURNMENT
The meeting was adjourned at 2:22 PM
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