Legislature(2005 - 2006)HOUSE FINANCE 519

05/09/2005 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+= SB 153 INTERNATIONAL AIRPORTS REVENUE BONDS TELECONFERENCED
Moved Out of Committee
+ SB 22 MEDICAID COVERAGE FOR BIRTHING CENTERS TELECONFERENCED
Moved Out of Committee
+ SB 164 SALMON PRODUCT DEVELOPMENT TAX CREDIT TELECONFERENCED
Moved Out of Committee
+ SB 135 ASSAULT & CUSTODIAL INTERFERENCE TELECONFERENCED
Moved Out of Committee
+= HB 68 APPROP: CAPITAL BUDGET TELECONFERENCED
Heard & Held
+= SB 73 STATE VIROLOGY LABORATORY TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR SENATE BILL NO. 22(FIN)                                                                                                
                                                                                                                                
     "An Act adding birthing centers to the list of health                                                                      
     facilities eligible for payment of medical assistance                                                                      
     for needy persons."                                                                                                        
                                                                                                                                
RICHARD BENAVIDES, STAFF, SENATOR  BETTYE DAVIS, explained SB
22   would    add   birthing   center   fees    to   Medicaid                                                                   
reimbursements.                                                                                                                 
                                                                                                                                
9:03:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault   asked  about  fiscal  note   #2  by  the                                                                   
Department  of Health  and Social  Services.   He noted  that                                                                   
there is a great deal of uncertainty  in calculating the cost                                                                   
differential between  birth center and hospital  births.  Mr.                                                                   
Benavides  explained problems  that  result from  complicated                                                                   
births.                                                                                                                         
                                                                                                                                
Representative Hawker asked if  birthing centers are eligible                                                                   
for  Medicaid.   Mr.  Benavides  replied  that if  they  were                                                                   
approved  they would  be.   Representative  Hawker  suggested                                                                   
that this should be figured out first.                                                                                          
                                                                                                                                
9:05:29 AM                                                                                                                    
                                                                                                                                
JERRY  FULLER, MEDICAID  DIRECTOR, DEPARTMENT  OF HEALTH  AND                                                                   
SOCIAL  SERVICES,   explained   Medicaid  services   and  how                                                                   
approval is obtained.  He explained the intent of the bill.                                                                     
                                                                                                                                
Representative  Hawker referred  to  spies and  the risks  of                                                                   
adding this  authority in statute  if Medicaid says no.   Mr.                                                                   
Fuller  clarified  the  intent  of the  second  part  of  the                                                                   
amendment.        The    language     needs    clarification.                                                                   
Representative    Hawker   suggested   legal    clarification                                                                   
regarding an alternative to existing  Medicaid coverage.  Mr.                                                                   
Benavides pointed out that that  was the intent, so it is not                                                                   
open to a need  to use general funds.   Representative Hawker                                                                   
emphasized that it is unclear and needs work.                                                                                   
                                                                                                                                
9:09:29 AM                                                                                                                    
                                                                                                                                
Representative Croft  noted that in  the statute "if"  is the                                                                   
key  to understanding  the intent.    He implied  that it  is                                                                   
clear that  birthing centers  are a  health facility  only if                                                                   
the plan is approved.  Representative  Hawker asked for legal                                                                   
clarification  on the  state and  federal  regulations.   Mr.                                                                   
Benavides suggested  that there is  no such person  who could                                                                   
speak  to both  regulations, and  the  CS takes  care of  the                                                                   
problem.                                                                                                                        
                                                                                                                                
9:11:11 AM                                                                                                                    
                                                                                                                                
Representative Holm  inquired if the state,  by reference, is                                                                   
giving  birthing  center stays  equal  status  to a  hospital                                                                   
stay,  especially regarding  C-sections.   He wondered  about                                                                   
liability  in that  situation.   Mr.  Benavides replied  that                                                                   
birthing  centers work  out that situation  with the  closest                                                                   
medical facility  and assume that risk.   Representative Holm                                                                   
restated his  question.  Mr.  Benavides said birthing  center                                                                   
births are comparable to births at a hospital.                                                                                  
                                                                                                                                
Mr.  Fuller added  that  he does  not  believe  there is  any                                                                   
difference  between liability  of  home  births and  birthing                                                                   
center births.   Representative  Holm said it  indicates that                                                                   
there is a possible financial burden on the state.                                                                              
                                                                                                                                
9:14:56 AM                                                                                                                    
                                                                                                                                
Representative Kelly  asked if the  law is necessary  for the                                                                   
program  to continue.   He  asked why  the law  is needed  in                                                                   
advance  of program  approval.   Mr.  Benavides replied  that                                                                   
nothing can be added to Medicaid  programs unless it has been                                                                   
approved by  the legislature.   Birthing centers  are growing                                                                   
in Alaska  and this is an  attempt to make them  eligible for                                                                   
Medicaid services.                                                                                                              
                                                                                                                                
Representative Hawker referred  to the optional services list                                                                   
and opined that the bill does  not address it.  Mr. Benavides                                                                   
agreed.                                                                                                                         
                                                                                                                                
Representative  Croft  agreed   with  Representative  Kelly's                                                                   
interpretation about  which came first.   He opined  that the                                                                   
bill  does  allow  for  an  option  which  is  not  currently                                                                   
offered.                                                                                                                        
                                                                                                                                
9:19:19 AM                                                                                                                    
                                                                                                                                
Representative  Kelly  asked  if this  bill  covers  mid-wife                                                                   
delivery.   Mr. Benavides  explained that  the bill  does not                                                                   
address  home   birth  services,  because  that   is  already                                                                   
covered.    It  addresses the  birthing  facility,  which  is                                                                   
currently not covered.                                                                                                          
                                                                                                                                
Vice-Chair Stoltze noted that  it contains a zero fiscal note                                                                   
with red flags.                                                                                                                 
                                                                                                                                
Co-Chair  Meyer  wondered if  a  letter  of intent  would  be                                                                   
helpful.                                                                                                                        
                                                                                                                                
9:21:46 AM                                                                                                                    
                                                                                                                                
Representative Hawker  noted that Medicaid is  already paying                                                                   
for more than  half of all births  in Alaska.  He  said he is                                                                   
not in favor of expanding this service.                                                                                         
                                                                                                                                
SB 22 was set aside for later consideration.                                                                                    
                                                                                                                                
9:23:17 AM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 22(FIN)                                                                                                
                                                                                                                                
     "An Act adding birthing centers to the list of health                                                                      
     facilities eligible for payment of medical assistance                                                                      
     for needy persons."                                                                                                        
                                                                                                                                
9:59:54 AM                                                                                                                    
                                                                                                                                
Representative  Hawker requested  a legal  opinion about  the                                                                   
fiscal  notes and  an assurance  that this  bill would  do no                                                                   
more  than offer  an  alternative  to the  existing  Medicaid                                                                   
obligations.                                                                                                                    
                                                                                                                                
SENATOR  BETTYE DAVIS,  sponsor,  stated that  the manner  in                                                                   
which  the  bill is  written,  will  give the  department  an                                                                   
opportunity to  ask for an amendment  to the state plan.   It                                                                   
does not obligate the state to do anything.                                                                                     
                                                                                                                                
10:01:24 AM                                                                                                                   
                                                                                                                                
STACY KRALY,  ASSISTANT ATTORNEY GENERAL, DEPARTMENT  OF LAW,                                                                   
(via  teleconference)  explained  that testimony  by  Senator                                                                   
Davis was  correct.   There would not  be a federal  Medicaid                                                                   
match unless  the services  were authorized  under the  state                                                                   
plan.                                                                                                                           
                                                                                                                                
10:02:17 AM                                                                                                                   
                                                                                                                                
Representative Hawker  reiterated his query.   He wondered if                                                                   
this  legislation  would  create  a  new,  expanded  Medicaid                                                                   
service.   Ms. Kraly replied that  the way that  the proposal                                                                   
was being  offered, it would be  in lieu of a  hospital stay.                                                                   
It would  not be an expansion  of a service, there  would not                                                                   
be an additional service, but rather an offset.                                                                                 
                                                                                                                                
10:03:42 AM                                                                                                                   
                                                                                                                                
Senator  Davis  added that  the  bill  is an  opportunity  to                                                                   
provide  a choice  of using  birthing  centers for  delivery.                                                                   
The facility  fee would  cost less  than it  would cost  in a                                                                   
hospital.   The services  would be  paid for regardless,  and                                                                   
would  not obligate  the state  for  any other  monies.   She                                                                   
stressed that nothing  will happen on the bill  at this time,                                                                   
and that she expected members to pass the bill.                                                                                 
                                                                                                                                
10:05:56 AM                                                                                                                   
                                                                                                                                
Representative Foster  MOVED to report  CSSB 22 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSSB  22 (FIN)  was  REPORTED  out of  Committee  with a  "no                                                                   
recommendation" recommendation  and with a zero fiscal impact                                                                   
note by the Department of Health and Social Services.                                                                           
                                                                                                                                
10:06:40 AM                                                                                                                   
                                                                                                                                

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