Legislature(2011 - 2012)CAPITOL 120

04/01/2011 01:00 PM House JUDICIARY


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 1 POLICY FOR SECURING HEALTH CARE SERVICES TELECONFERENCED
Heard & Held
*+ HB 179 ANIMAL CRUELTY TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 88 USE OF FOREIGN LAW TELECONFERENCED
Moved CSHB 88(JUD) Out of Committee
        HB 1 - POLICY FOR SECURING HEALTH CARE SERVICES                                                                     
                                                                                                                                
2:39:24 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO announced  that the final order of  business would be                                                               
HOUSE BILL NO.  1, "An Act stating a public  policy that allows a                                                               
person  to choose  or decline  any mode  of securing  health care                                                               
services."  [Before the committee was CSHB 1(HSS).]                                                                             
                                                                                                                                
REPRESENTATIVE  LYNN mentioned  that he  is one  of HB  1's joint                                                               
prime sponsors.                                                                                                                 
                                                                                                                                
2:40:01 PM                                                                                                                    
                                                                                                                                
KAREN  SAWYER, Staff,  Representative  Carl  Gatto, Alaska  State                                                               
Legislature, on  behalf of  Representative Gatto,  one of  HB 1's                                                               
joint  prime sponsors,  said HB  1 is  about state's  rights, and                                                               
indicated that  the joint  prime sponsors  are alleging  that the                                                               
federal  Patient  Protection  and  Affordable  Care  Act  (PPACA)                                                               
infringes    upon    the    constitutional   rights    of    U.S.                                                               
citizens/residents  by   mandating  that  everyone   either  have                                                               
qualifying healthcare  coverage or pay  a tax penalty,  that this                                                               
mandate   exceeds   the   federal   government's   constitutional                                                               
authority,  and that  Congress doesn't  have the  authority under                                                               
the  Commerce  Clause  to  regulate inactivity.    The  PPACA  is                                                               
challenging Alaska's authority  as a state, and thus it  is up to                                                               
Alaska to defend itself from  such federal "takeover," she added.                                                               
House  Bill 1  - by  establishing  in Alaska's  uncodified law  a                                                               
state policy  that a person  has the  right to choose  or decline                                                               
any  mode of  obtaining  healthcare services  without penalty  or                                                               
threat of penalty  - would ensure that everyone in  Alaska is and                                                               
shall continue  to be  free from  federal mandates  regarding the                                                               
selection of  health insurance, and  would preclude any  State of                                                               
Alaska employee from enforcing any  penalty assessed in violation                                                               
of this policy.                                                                                                                 
                                                                                                                                
MS.  SAWYER,   referring  to  a   handout  in   members'  packets                                                               
containing examples, noted  that language in HB  1 - specifically                                                               
in proposed AS 44.99.130(b) -  stipulates that the proposed state                                                               
policy  shall  not  apply  to  healthcare  services  provided  or                                                               
required by the  state, a political subdivision of  the state, or                                                               
a court  of the state, and  may not impair a  contract right that                                                               
provides healthcare  services.  Members' packets  also include an                                                               
explanation  of the  change incorporated  into CSHB  1(HSS), that                                                               
being  the addition  of language  in proposed  AS 44.99.130(c)(3)                                                               
stipulating  that as  used in  proposed AS  44.99.130, the  term,                                                               
"penalty" is  not referring  to one's liability  for the  cost of                                                               
healthcare  services.   She  offered  her  understanding that  at                                                               
least 40  states thus far  have introduced legislation  to limit,                                                               
alter, or oppose specific federal  actions [related to the PPACA]                                                               
- including  that of mandating  the purchase of insurance  - with                                                               
the  states   of  Virginia,  Idaho,  Utah,   Georgia,  Louisiana,                                                               
Arizona, [Oklahoma,] Missouri, and  North Carolina having already                                                               
passed [such legislation].                                                                                                      
                                                                                                                                
MS.  SAWYER,  in  response  to   questions,  indicated  that  the                                                               
aforementioned  handout  containing  examples  was  derived  from                                                               
material pertaining to similar legislation  in another state; and                                                               
that  the  exemption provided  for  in  proposed AS  44.99.130(b)                                                               
would not apply to private  employers/employees - in other words,                                                               
the  state  policy outlined  in  proposed  AS 44.99.130(a)  would                                                               
apply to private employers/employees.                                                                                           
                                                                                                                                
CHAIR  GATTO, speaking  as one  of HB  1's joint  prime sponsors,                                                               
concurred with the latter point.                                                                                                
                                                                                                                                
2:48:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  indicated that he  didn't want HB  1 to                                                               
be  misinterpreted   as  allowing   someone  to   refuse  medical                                                               
treatment for his/her child, or  as allowing someone to refuse to                                                               
pay for medical treatment.                                                                                                      
                                                                                                                                
CHAIR GATTO offered  his belief that the requirement  of a parent                                                               
to care  for his/her  child wouldn't be  diminished by  the bill,                                                               
and indicated that  he would be amenable to amending  the bill in                                                               
order to ensure that that is actually the case.                                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER  observed  that proposed  AS  44.99.130(a)                                                               
says in  part, "a person has  the right to choose  or decline any                                                               
mode of obtaining health care  services without penalty or threat                                                               
of  penalty", and  that language  in proposed  AS 44.99.130(c)(2)                                                               
defines the phrase,  "mode of obtaining" to  mean either directly                                                               
purchasing  healthcare services  from a  healthcare provider,  or                                                               
purchasing insurance  to cover the  cost of  healthcare services.                                                               
House Bill  1, therefore, addresses the  purchasing of healthcare                                                               
services  [or the  purchasing of  insurance  to cover  healthcare                                                               
services], not the obtaining of medical treatment.                                                                              
                                                                                                                                
CHAIR GATTO and MS. SAWYER concurred.                                                                                           
                                                                                                                                
CHAIR GATTO, in  response to a question, offered  his belief that                                                               
under the  bill, a union member  would have the right  to decline                                                               
any insurance coverage provided by  the union, surmising that the                                                               
other  union  members  would  have   to  absorb  any  extra  cost                                                               
associated with that member's declination.                                                                                      
                                                                                                                                
REPRESENTATIVE   HOLMES  expressed   concern  that   because  the                                                               
proposed state  policy uses the  phrase, "a person has  the right                                                               
to  choose  or   decline  any  mode  of   obtaining  health  care                                                               
services",  the bill  would allow  an employee  to dictate  which                                                               
insurance coverage his/her employer must provide him/her with.                                                                  
                                                                                                                                
CHAIR  GATTO offered  his understanding  that the  employee could                                                               
only accept or decline the mode that was being offered.                                                                         
                                                                                                                                
REPRESENTATIVE HOLMES pointed out,  though, that the bill doesn't                                                               
say,  "accept" -  it instead  says, "choose".   Furthermore,  the                                                               
proposed  state  policy  doesn't   specify  that  the  particular                                                               
healthcare services being obtained must be legal in Alaska.                                                                     
                                                                                                                                
2:59:52 PM                                                                                                                    
                                                                                                                                
STACIE  KRALY,  Chief  Assistant  Attorney  General  -  Statewide                                                               
Section  Supervisor,  Human   Services  Section,  Civil  Division                                                               
(Juneau),  Department  of Law  (DOL),  concurred  that the  word,                                                               
"choose"  has a  different connotation  than the  word, "accept",                                                               
and   indicated  that   that   point  ought   to  be   clarified,                                                               
particularly  if  the intent  of  the  bill  is to  address  only                                                               
offered modes of obtaining healthcare services.                                                                                 
                                                                                                                                
CHAIR GATTO suggested that they  change the word, "choose" to the                                                               
word, "accept", and add the word "offered".                                                                                     
                                                                                                                                
MS. KRALY  surmised that such  changes would address  the concern                                                               
that  under the  bill  as currently  written,  an employee  could                                                               
dictate which  insurance coverage  his/her employer  must provide                                                               
him/her with.   On the  issue of healthcare services  that aren't                                                               
legal in Alaska,  she ventured that this probably  isn't going to                                                               
be a  problem because  of the definitions  of the  terms, "health                                                               
care  services"  and  "penalty"  provided  for  via  proposed  AS                                                               
44.99.130(c)(1) and (3), and because  the term, "penalty" as used                                                               
in the bill pertains to the  preclusion of any penalty that might                                                               
be  assessed a  person  simply because  he/she exercised  his/her                                                               
right  to  choose  or  decline a  mode  of  obtaining  healthcare                                                               
services.   In  conclusion, she  reiterated her  belief that  the                                                               
suggested change would provide clarity.                                                                                         
                                                                                                                                
REPRESENTATIVE HOLMES  ventured that  perhaps they also  ought to                                                               
alter  the definitions  in  proposed subsection  (c).   She  then                                                               
asked whether  the bill would  also apply to other  federal laws,                                                               
not just the PPACA.                                                                                                             
                                                                                                                                
MS. KRALY  surmised that  HB 1 potentially  could apply  to other                                                               
federal  laws  that address  the  issue  of obtaining  healthcare                                                               
services, since  the bill isn't  exclusively tagged to  or tasked                                                               
to the PPACA.  In response  to a question, she offered her belief                                                               
that under  HB 1 as  currently written,  a person would  have the                                                               
right  to accept  or  decline any  mode  of obtaining  healthcare                                                               
services, regardless of who offers the mode.                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES  disagreed, pointing  out that  proposed AS                                                               
44.99.130(b)(1) stipulates  that the proposed state  policy shall                                                               
not  apply to  healthcare services  provided or  required by  the                                                               
state, a  political subdivision of the  state, or a court  of the                                                               
state.                                                                                                                          
                                                                                                                                
MS. KRALY concurred with that clarification.                                                                                    
                                                                                                                                
3:05:44 PM                                                                                                                    
                                                                                                                                
MS.  SAWYER, on  the  issue of  healthcare  services that  aren't                                                               
legal   in   Alaska,   questioned   whether   altering   proposed                                                               
AS 44.99.130(c)(1)'s  definition   of  the  term,   "health  care                                                               
services"  by inserting  the word,  "legal"  on page  2, line  2,                                                               
before the phrase, "service or  treatment", would perhaps address                                                               
members' concerns.                                                                                                              
                                                                                                                                
MS. KRALY, indicating that she  would have to research that issue                                                               
further,  posited that  perhaps  it would  be  more important  to                                                               
clarify in the  bill that it is intended to  allow individuals to                                                               
choose not to purchase/have healthcare insurance.                                                                               
                                                                                                                                
MS. SAWYER, in  response to a question, clarified  that the PPACA                                                               
just mandates that  everyone have insurance or  be penalized, and                                                               
that the  joint prime sponsors'  concern is that they  don't want                                                               
the federal  government telling Alaskans  that they have to  do a                                                               
particular  thing or  be penalized  for inactivity.   In  further                                                               
response,  she  offered her  understanding  of  what the  penalty                                                               
amount would  be under  the PPACA, noting  that the  amount would                                                               
increase after the first year.                                                                                                  
                                                                                                                                
REPRESENTATIVE THOMPSON  - on the  question of whether  under the                                                               
bill, union  members would  have the  right to  decline insurance                                                               
coverage provided  by the union  - pointed out that  [contrary to                                                               
something   mentioned  earlier,]   proposed  AS   44.99.130(b)(2)                                                               
stipulates  that  the proposed  state  policy  may not  impair  a                                                               
contract right that provides healthcare services.                                                                               
                                                                                                                                
3:09:37 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO  made a  motion to adopt  Conceptual Amendment  1, to                                                               
replace the  word, "choose" with  the word, "accept", on  page 1,                                                               
line 9; and to add the word, "offered" to page 1, line 10.                                                                      
                                                                                                                                
MS.  SAWYER  observed  that  the  title of  the  bill  should  be                                                               
similarly altered.                                                                                                              
                                                                                                                                
CHAIR GATTO  - noting that  the drafter would determine  the best                                                               
placement  for  the  added  word,   "offered"  -  clarified  that                                                               
Conceptual Amendment  1 would  also make  a conforming  change to                                                               
the title  on line 1  of page 1.   After ascertaining  that there                                                               
were no objections, he announced  that Conceptual Amendment 1 was                                                               
adopted.                                                                                                                        
                                                                                                                                
CHAIR GATTO  then relayed that  [CSHB 1(HSS), as  amended,] would                                                               
be held over.                                                                                                                   

Document Name Date/Time Subjects
HB1 Sponsor Statement Version M 03-31-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Explanation of Changes Version A to M 03-31-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 CS (HSS) Version M 03-16-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Version A 01-18-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Fiscal Note-DHSS-HCMS 02-24-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Supporting Documents-Explanation of Application.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Supporting Documents-Letter NFIB 02-28-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB1 Opposing Documents-Letter AARP 02-28-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 1
HB179 Sponsor Statement 03-30-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Version A 03-09-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Fiscal Note-DOA-OPA 03-25-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Fiscal Note-DOA-PDA 03-25-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Fiscal Note-DOC-OC 03-28-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Fiscal Note-LAW-CRIM 03-25-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179
HB179 Supporting Documents 03-17-11.pdf HJUD 4/1/2011 1:00:00 PM
HB 179