Legislature(1995 - 1996)

02/27/1995 01:05 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HJUD - 02/27/95                                                               
 HB 23 - REFERRALS INVOLVING DENTAL SERVICES                                 
                                                                               
 Number 848                                                                    
                                                                               
 REPRESENTATIVE GARY DAVIS, sponsor of the bill, read his sponsor              
 statement:                                                                    
                                                                               
 "House Bill 23 would prohibit the receipt of compensation by a                
 dentist for referring a person to another dentist or dental                   
 practice.  The American Dental Association Code of Ethics prevents            
 dentists from profiting from referrals.  This legislation codifies            
 the ethical concern relating to referrals.                                    
                                                                               
 "In Section 2, the receipt of compensation by a person or                     
 advertisement referring a dental service is prohibited unless the             
 compensation for referral is disclosed at the time of referral.               
 This legislation will help ensure that patients are being referred            
 to a dentist or dental practice as a result of their quality                  
 service.                                                                      
                                                                               
 "The Alaska Dental Society has had several breeches of their ethics           
 code and their board has requested this legislation.  I feel this             
 is an appropriate legislative function of the Board of Dental                 
 Examiners under AS 08.36.315."                                                
                                                                               
 TAPE 95-17, SIDE B                                                            
 Number 000                                                                    
                                                                               
 REPRESENTATIVE DAVIS continued to explain the two main reasons for            
 this bill.  One is the public's protection, the other is to comply            
 with the National Dentistry Code of Ethics.                                   
                                                                               
 REPRESENTATIVE GREEN thought the dental society could handle their            
 ethics problems without involving the government.                             
                                                                               
 REPRESENTATIVE DAVIS answered that is a legal question he cannot              
 answer, because it is not specifically stated in statute, under               
 their duties and functions, whether a board or the state has                  
 jurisdiction.                                                                 
                                                                               
 Number 165                                                                    
                                                                               
 DR. JULIE ROBINSON, past President, American Dental Society,                  
 testified via teleconference from Anchorage.  She described this              
 bill to be a consumer protection measure.  It is in accord with the           
 American Dental Association Code of Ethics which forbids fee                  
 splitting, and other means of compensation for referrals.  The                
 Dental Society believes if an agency advertises a referral service            
 for which a participating dentist is paying a fee, then they should           
 disclose that information to the consumer.  In the past, the                  
 consumer has been led to believe the participating dentists are               
 recommended by the American Dental Association, when in fact, they            
 are paying for this referral service.  The quality of the dental              
 service is not considered or verified.  The American Dental Society           
 hopes this legislation will protect the consumer from misleading              
 advertisement.                                                                
                                                                               
 Number 200                                                                    
                                                                               
 REPRESENTATIVE BUNDE asked if the Code of Ethics does not apply to            
 all dentists; in that you can be a licensed dentist, but not a                
 member of the Dental Society.                                                 
                                                                               
 DR. ROBINSON answered that was correct.                                       
                                                                               
 REPRESENTATIVE VEZEY said if a dentist does not belong to the                 
 Dental Society, are still subject to the Dental Board, which cannot           
 pose its ethical standards at this time.                                      
                                                                               
 DR. ROBINSON said she thought that was correct.  The power of the             
 board is limited.  They have only one dentist on their list of                
 referral.  She believed this needed to be in place in order for the           
 board to do something about it.                                               
                                                                               
 Number 245                                                                    
                                                                               
 REPRESENTATIVE VEZEY said he did not care what the Dental Society             
 does.  That is a private association.  We are talking about the               
 Alaska Dental Board.                                                          
                                                                               
 Number 290                                                                    
                                                                               
 BARBARA GABIER, Program Coordinator, Division of Occupational                 
 Licensing, Department of Commerce and Economic Development,                   
 responded to the questions regarding the Code of Ethics.  Those               
 licensing boards who have adopted a code of ethics have been                  
 required to do so either through statute or regulation.  When they            
 have authority to adopt such regulations, they do have to adopt               
 them by reference of a specific date of code of ethics.  At this              
 point, she was not aware if the Board of Dental Examiners had                 
 adopted a code of ethics.  She added, the Board of Dental Examiners           
 did receive a copy of this bill at their last board meeting and did           
 not make any comments one way or the other.                                   
                                                                               
 REPRESENTATIVE BUNDE thought the problem was more widespread than             
 what he is hearing.  If this only affects one or two dental offices           
 throughout the state, it sounds like the problem might self                   
 correct, and these people will go away.  He could not imagine a               
 referral service could keep going with only one or two clients.               
                                                                               
 REPRESENTATIVE TOOHEY said this is a very widespread problem among            
 the states, and we are just becoming a part of the problem.                   
                                                                               
 CHAIRMAN PORTER thought this would provide an ounce of prevention.            
                                                                               
 REPRESENTATIVE TOOHEY moved to pass HB 23 out of committee with               
 individual recommendations and zero fiscal notes.  Hearing no                 
 objection, it was so ordered.                                                 
                                                                               

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