04/28/1997 03:45 PM House HES

SJR 23 - REFLECT AK. COLA IN FED MEDICAID SHARE                                
                                                                               
Number 0095                                                                    
                                                                               
CHAIRMAN BUNDE announced the first item on the agenda as SJR 23,               
Urging the United States Congress to amend the Social Security Act             
so that the higher cost of living in Alaska is reflected when the              
per capita income of the state is used as a factor in determining              
the federal share of Medicaid costs.                                           
                                                                               
Number 0107                                                                    
                                                                               
ELMER LINDSTROM, Special Assistant, Office of the Commissioner,                
Department of Health and Social Services (DHSS), said the                      
resolution petitions the federal government to consider a change in            
the matched rate for the Medicaid program.  Currently the state                
puts in 50 cents of every dollar which the federal government                  
matches.  This is one of the lowest federal participation rates for            
any state in the union.  Based on Alaska's additional costs of                 
health care, the DHSS believes this rate should be increased.  The             
Congressional delegation is aware of this need and this resolution             
will be welcomed by them.  Should the match rate change, it would              
mean an adjustment of approximately $39 million in federal                     
participation in a given year for the Medicaid program.                        
                                                                               
Number 0187                                                                    
                                                                               
CHAIRMAN BUNDE asked if this would reduce Alaska's contribution or             
would it simply mean more things would be covered by the federal               
government.                                                                    
                                                                               
Number 0199                                                                    
                                                                               
MR. LINDSTROM answered that it would open up options.  One of these            
options would be a direct offset to current general fund                       
expenditures.  It would become a budget matter, allowing the                   
legislature to do what they want should the additional federal                 
funds become available.                                                        
                                                                               
Number 0251                                                                    
                                                                               
REPRESENTATIVE FRED DYSON made a motion to move SJR 23 with                    
individual recommendations.  Hearing no objections, SJR 23 moved               
out of the House Health, Education and Social Services Standing                
Committee.