Legislature(1997 - 1998)
02/10/1998 03:04 PM House HES
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 353 - REFER IN HSS REGS TO OTHER DOCUMENTS Number 0124 CHAIRMAN BUNDE announced the first order of business was HB 353, "An Act relating to adoption by reference in regulations; and providing for an effective date." He asked Representative Kelly to present House Bill 353. Number 0157 REPRESENTATIVE PETE KELLY, Alaska State Legislature, Sponsor, explained that currently the Department of Health & Social Services is required to adopt regulation standards changes, or standardized codes. Each time the standardized codes change, the Administrative Procedures Act requires the department to promulgate regulations. This legislation changes that process, so it could be done by reference. The intent of the legislation is to save time for the department by eliminating the cumbersome regulation process each time the standardized codes are changed by the federal government. He introduced Jon Sherwood from the Department of Health & Social Services, who was available to answer questions. Number 0244 JONATHAN SHERWOOD, Program Officer, Division of Medical Assistance, Department of Health & Social Services, said the department tries to use the industry standards in terms of billing codes when people submit claims that are to be paid by Medicaid. The codes are updated at all times of the year and a new book is published every year. The regulations process, however, is not particularly speedy and in order to incorporate the standards into the department's regulations, the department needs to make a regulations change every time the book is updated. He explained that it's very cumbersome and time consuming for the department, and burdensome for the providers. The codes are used because they are industry standards. Number 0351 CHAIRMAN BUNDE referred to the zero fiscal note and said if the proposed process is as efficient as it sounds, there should actually be a savings. MR. SHERWOOD explained that currently most of these regulation changes are bundled with other regulation changes, so he doesn't expect it will reduce the department's regulations process, but it will allow the department to get the changes in the books and on record in a timely fashion so the providers know what information the department is using. Number 0397 REPRESENTATIVE JOE GREEN asked if the department is required to follow the codes and had there ever been changes the department didn't agree with. MR. SHERWOOD responded the department is not absolutely required to follow these standards, but from a practical standpoint it's what is used. If the department used anything different, there would be a risk of losing providers willing to participate in the Medicaid programs. Number 0448 REPRESENTATIVE KELLY noted that Mr. Chenoweth from the Legislation & Regulations Section of the Department of Law had recently advised that the first portion of the bill probably would be more appropriate in Title 44 IN the Administrative Procedures Act. CHAIRMAN BUNDE suggested Representative Kelly draft a committee substitute which would be adopted by the committee. Number 0503 RAY GILLESPIE, Lobbyist, Charter North Hospital, testified that Kathy Cronen, Administrator of Charter North Hospital had reviewed HB 353 and asked Mr. Gillespie to convey her endorsement for this legislation. It will have the effect of simplifying and streamlining the process for Charter North Hospital. Number 0535 CHAIRMAN BUNDE closed public testimony. He noted that HB 353 would be heard again on Thursday at which time the committee would be addressing a committee substitute.
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