02/25/2010 01:00 PM House JUDICIARY

                 HB 314 - WORKERS' COMPENSATION                                                                             
                                                                                                                                
1:07:00 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  first order of business would be                                                               
HOUSE BILL  NO. 314,  "An Act  relating to  fees and  charges for                                                               
medical   treatment   or   services,   the   crime   of   unsworn                                                               
falsification, investigations,  and penalties  as they  relate to                                                               
workers'  compensation; and  providing  for  an effective  date."                                                               
[Left  pending from  the hearing  on  2/24/10 was  the motion  to                                                               
adopt the conceptual amendment to  Amendment 1, and the motion to                                                               
adopt Amendment 1.]                                                                                                             
                                                                                                                                
CHAIR  RAMRAS referred  to  Amendment  1, labeled  26-LS1354\A.3,                                                               
Bailey, 2/17/10, which read:                                                                                                    
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "the crime of unsworn falsification"                                                                         
          Insert "civil damages"                                                                                              
                                                                                                                                
     Page 1, lines 5 - 9:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "Sec. 2"                                                                                                     
          Insert "Section 1"                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, lines 15 - 16:                                                                                                     
          Delete "usual, customary, and reasonable"                                                                         
                                                                                                                                
     Page 2, lines 17 - 21:                                                                                                     
          Delete   "include   the    most   recent   Current                                                                
     Procedural Terminology  codes for  both category  I and                                                                
     category  II   medical  treatment  or   other  services                                                                
     published   by   the  American   Medical   Association;                                                                
     notwithstanding  AS 44.62.010  - 44.62.290,  the  board                                                                
     shall update the schedule annually by order"                                                                           
          Insert "be based on statistically credible data,                                                                  
     including charges  for the most recent  category I, II,                                                                
     and  III medical  services maintained  by the  American                                                                
     Medical  Association  and  the  Health  Care  Procedure                                                                
     Coding   System  for   medical  supplies,   injections,                                                                
     emergency transportation,  and other  medically related                                                                
     services,  and  must  result in  a  schedule  that  (i)                                                                
     reflects  the  cost  in  the  geographical  area  where                                                                
     services  are  provided;  and  (ii)   is  at  the  90th                                                                
     percentile"                                                                                                            
                                                                                                                                
     Page 2, line 26, through page 3, line 2:                                                                                   
          Delete all material and insert:                                                                                       
        "* Sec. 2. AS 23.30.250(a) is amended to read:                                                                      
          (a)  A person who (1) knowingly makes a false or                                                                      
     misleading  statement,  representation,  or  submission                                                                    
     related to a benefit  under this chapter; (2) knowingly                                                                    
     assists,  abets, solicits,  or  conspires  in making  a                                                                    
     false or  misleading submission affecting  the payment,                                                                    
     coverage,  or other  benefit  under  this chapter;  (3)                                                                    
     knowingly   misclassifies  employees   or  engages   in                                                                    
     deceptive leasing practices for  the purpose of evading                                                                    
     full   payment  of   workers'  compensation   insurance                                                                    
     premiums; or (4) employs or  contracts with a person or                                                                    
     firm to  coerce or  encourage an  individual to  file a                                                                    
     fraudulent  compensation claim  is  guilty of  workers'                                                                
     compensation  fraud,   which  may  be   punished  under                                                                
     AS 11.46.120  - 11.46.150,  and may  also be  guilty of                                                                
     perjury  and  related  offenses  under  AS 11.56.200  -                                                                
     11.56.230  [CIVILLY   LIABLE  TO  A   PERSON  ADVERSELY                                                                
     AFFECTED  BY  THE  CONDUCT,  IS   GUILTY  OF  THEFT  BY                                                                    
     DECEPTION  AS  DEFINED  IN  AS 11.46.180,  AND  MAY  BE                                                                    
     PUNISHED AS PROVIDED BY AS 11.46.120 - 11.46.150].                                                                         
        * Sec. 3. AS 23.30.250(c)  is repealed and reenacted                                                                  
     to read:                                                                                                                   
          (c)  In addition to criminal penalties under this                                                                     
     section, a  person who violates this  chapter is liable                                                                    
     in a civil  action brought by or on behalf  of a person                                                                    
     who  suffers  economic  damages  as  a  result  of  the                                                                    
     violation for  an award  of three  times the  amount of                                                                    
       compensatory damages resulting from the violation,                                                                       
     subject to adjustment under AS 09.17, and an award of                                                                      
     reasonable attorney fees."                                                                                                 
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, line 19:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR   RAMRAS  then   withdrew  his   conceptual  amendment   to                                                               
Amendment 1   such   that   in   its  proposed   change   to   AS                                                               
23.30.097(a)(1)(D), the words, "is at  the 90th percentile" would                                                               
be replaced  with the  words, "the amount  paid by  the preferred                                                               
provider  network  of   insurers  is  not  to   exceed  the  90th                                                               
percentile".                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:08 p.m. to 1:09 p.m.                                                                       
                                                                                                                                
REPRESENTATIVE  HOLMES  removed  her objection  to  Amendment  1.                                                               
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
1:09:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON moved to report  HB 314, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  314(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                
CHAIR RAMRAS offered his belief  that the conceptual amendment to                                                               
Amendment 1  would not have  been detrimental to  injured workers                                                               
but  would have  enhanced the  climate for  employers subject  to                                                               
what he termed skyrocketing  and escalating workers' compensation                                                               
insurance premiums.                                                                                                             
                                                                                                                                
[CSHB 314(JUD) was reported from committee.]