Legislature(2007 - 2008)CAPITOL 106

04/24/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 192 LAYOFF/NONRETENTION OF TEACHERS TELECONFERENCED
Moved CSHB 192(HES) Out of Committee
+ SJR 3 MEDICARE RATES IN ALASKA TELECONFERENCED
Moved Out of Committee
*+ HB 4 MEDICAL FACILITY CERTIFICATE OF NEED TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SJR  3-MEDICARE RATES IN ALASKA                                                                                               
                                                                                                                                
4:09:12 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the next order of  business would be                                                               
SENATE  JOINT  RESOLUTION  NO.  3,  Relating  to  the  effect  of                                                               
Medicare  rates on  senior citizens'  access  to healthcare;  and                                                               
urging the United States Congress  to increase Medicare rates for                                                               
Alaska.                                                                                                                         
                                                                                                                                
4:09:36 PM                                                                                                                    
                                                                                                                                
SENATOR  BILL WIELECHOWSKI,  Alaska State  Legislature, presented                                                               
SJR  3,   as  prime  sponsor,   paraphrasing  from   the  sponsor                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Approximately  55,000  Alaskans  rely  on  the  federal                                                                    
     Medicare Program to  meet their health care  needs.  As                                                                    
     you know,  Medicare serves senior  citizens age  65 and                                                                    
     older,  certain Alaskans  with disabilities,  and those                                                                    
     with end-stage kidney disease.                                                                                             
                                                                                                                                
     This  is the  largest health  insurance program  in the                                                                    
     country,  and one  that  is of  key  importance to  all                                                                    
     Alaskans.  Once  any of us turns  65, Medicare provides                                                                    
     our primary  insurance coverage, regardless  of whether                                                                    
     we have other health insurance.                                                                                            
                                                                                                                                
     Unfortunately  this  program  is  increasingly  letting                                                                    
     down  some of  Alaska's most  vulnerable citizens,  and                                                                    
     that should be of concern to all of us                                                                                     
                                                                                                                                
     Many  Alaska physicians  say  that  Medicare pays  less                                                                    
     than  50%  of  what  it   costs  them  to  treat  their                                                                    
     patients.    As  a  result,   an  alarming  number  are                                                                    
     refusing to accept new Medicare  patients, and many are                                                                    
     terminating existing patients.                                                                                             
                                                                                                                                
     This  is  leaving  a  growing   number  of  senior  and                                                                    
     disabled  Alaskans  without  access  to  medical  care,                                                                    
     including  those with  life-threatening illnesses.   We                                                                    
     have  all read  reports of  seniors calling  dozens and                                                                    
     dozens  of doctors  before finding  one  that will  see                                                                    
     them.                                                                                                                      
                                                                                                                                
     Projections  show  the  problem will  only  get  worse.                                                                    
     Baby boomers begin turning 65  in 2011, four years from                                                                    
     now.   The number of  Alaskans on Medicare  is expected                                                                    
     to double in the next 25 years.                                                                                            
                                                                                                                                
     The  American Medical  Association  calls the  Medicare                                                                    
     reimbursement  formula  "broken   beyond  repair."    A                                                                    
     national survey  of doctors conducted by  the AMA found                                                                    
     that nearly  half will  be forced  to decrease  or stop                                                                    
     accepting new Medicare  patients if reimbursement rates                                                                    
     get any lower.                                                                                                             
                                                                                                                                
     The United  State Medicare Payment  Advisory Commission                                                                    
     concurs that rate cuts will  only worsen patient access                                                                    
     to medical doctors.                                                                                                        
                                                                                                                                
     Likewise, the Military  Officers Association of America                                                                    
     says Medicare reimbursement  rates are hurting military                                                                    
     beneficiaries'  access to  care  since military  health                                                                    
     insurance is linked to Medicare reimbursement rates.                                                                       
                                                                                                                                
     Unfortunately we  are told by the  Congressional Budget                                                                    
     Office  that in  2008 Alaska  will lose  $8 million  in                                                                    
     federal  payments to  doctors as  a result  of cuts  in                                                                    
     Medicare reimbursement rates.                                                                                              
                                                                                                                                
     The CBO  projects a loss  of $240 million  between 2008                                                                    
     and 2015  as a  result of planned  rate cuts  of nearly                                                                    
     40%.                                                                                                                       
                                                                                                                                
     The  problem in  Alaska  appears to  be  worse than  in                                                                    
     other states  because of the  higher cost  of providing                                                                    
     medical care in Alaska and  a funding formula that does                                                                    
     not take this into account.                                                                                                
                                                                                                                                
     Alaska   is   the   only  state   in   which   Medicare                                                                    
     reimbursement  rates  are  even lower  than  those  for                                                                    
     Medicaid.                                                                                                                  
                                                                                                                                
     SJR  3 calls  on Congress  and the  U.S. Department  of                                                                    
     Health  and Human  Services to  address this  crisis by                                                                    
     rewriting  the   formulas  used  to   develop  Medicare                                                                    
     reimbursement rates for Alaska.                                                                                            
                                                                                                                                
     It  also  urges  Congress   to  address  inequities  in                                                                    
     physician  reimbursement   that  are  leading   to  the                                                                    
     collapse  of  the  primary  care  system  and  limiting                                                                    
     seniors' access  to those physicians best  qualified to                                                                    
     coordinate their care.                                                                                                     
                                                                                                                                
     I urge you  to join me in supporting SJR  3 and helping                                                                    
     to  ensure that  senior and  disabled Alaskans  get the                                                                    
     medical care they need and have been promised.                                                                             
                                                                                                                                
4:12:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER asked why the  problem is worse in  Alaska                                                               
than in other states.                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI  answered that it  is worse here due  to the                                                               
higher costs of medical procedures,  the shortage of doctors, and                                                               
the  cost of  pharmaceuticals.   He  noted  that the  Legislative                                                               
Health  Caucus  reported that  rates  for  medical procedures  in                                                               
Alaska are 30 percent to 40  percent higher than in Washington or                                                               
Oregon.   Furthermore, the shortage  of doctors means  that there                                                               
is no competition to keep costs  lower or to encourage doctors to                                                               
see Medicare patients.                                                                                                          
                                                                                                                                
4:13:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON offered to  make an amendment that provides                                                               
for the electronic transmittal of the resolution.                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI said he had no objection.                                                                                  
                                                                                                                                
4:15:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  offered Amendment  1 to  insert on  page 2                                                               
line 29  after the word  "sent", "by electronic  transmission and                                                               
by mail."                                                                                                                       
                                                                                                                                
4:15:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  objected and said that  as the resolution                                                               
is   written  it   is  not   precluded  from   being  transmitted                                                               
electronically.   She advised that  amending the  resolution will                                                               
result  in  a  delay  as  it   is  returned  to  the  senate  for                                                               
concurrence.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained that documents are  sent by mail                                                               
unless specified for electronic transmission.                                                                                   
                                                                                                                                
4:16:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  suggested supporting the resolution  as it                                                               
is and offering this amendment on the floor.                                                                                    
                                                                                                                                
4:17:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON offered to withdraw the amendment.                                                                        
                                                                                                                                
4:17:37 PM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  stated he  would have  his office  send the                                                               
resolution by electronic mail.                                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON withdrew Amendment 1.                                                                                     
                                                                                                                                
4:17:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  opined that  amendments should  be offered                                                               
in committee.                                                                                                                   
                                                                                                                                
CHAIR   WILSON    expressed   her   understanding    of   Senator                                                               
Wielechowski's  concern   about  delaying  the  passage   of  the                                                               
resolution.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROSES pointed  out that  if the  Medicare payment                                                               
level is raised  it may help with a portion  of Alaska's unfunded                                                               
liability that is in the  medical obligation of the Alaska Public                                                               
Employees  Retirement  System   and  Teachers  Retirement  System                                                               
(PERS/TRS).                                                                                                                     
                                                                                                                                
4:19:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked whether stronger legislation  than a                                                               
resolution can be written                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI informed the  committee that this problem is                                                               
with the federal system, which  limits the state's influence.  He                                                               
expressed  his hope  that the  Washington,  Alaska, Montana,  and                                                               
Idaho Family  Practice Residency  Program (WAMI) bill  will bring                                                               
more doctors  into the state in  the long run.   Furthermore, the                                                               
legislature  has  state  universal  health  care  legislation  to                                                               
consider during  this session.   Nevertheless, SJR  3 asks  for a                                                               
remedy on the federal level.                                                                                                    
                                                                                                                                
4:20:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  advised  that  a  representative  of  the                                                               
congressional delegation has stated that  it is important to hear                                                               
from  the  state  about  these  issues.   She  opined  that  this                                                               
resolution is appropriate.                                                                                                      
                                                                                                                                
4:22:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON moved  to report  SJR 3  out of  committee                                                               
with individual  recommendations.  There being  no objection, SJR
3  was  reported from  the  House  Health, Education  and  Social                                                               
Services Standing Committee.                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects