Legislature(2009 - 2010)BARNES 124
04/13/2009 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB144 | |
| HB207 | |
| HB37 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 144 | TELECONFERENCED | |
| + | HB 207 | TELECONFERENCED | |
| = | HB 37 | ||
| + | TELECONFERENCED |
HB 207-MAXIMUM BENEFIT FROM FISHERMEN'S FUND 3:59:42 PM CHAIR OLSON announced that the next order of business would be HOUSE BILL NO. 207, "An Act increasing the allowances for injury, disability, or heart attack payable from the fisherman's fund; and providing for an effective date." 3:59:44 PM JOHN BITNEY, Staff, Representative John Harris, Alaska State Legislature, on behalf of the prime sponsor, Representative John Harris, stated that the Alaska Fisherman's Fund provides services similar to Workers' Compensation for fishermen. He stated that the upper limit in state law was established in 1959 at $2,500. Health care costs have risen since that time and HB 207 would increase the amount of the cap to $10,000. 4:00:49 PM MR. BITNEY referred to Section 1 of AS 23.35.140 (a) of HB 144, which read: "Except for compelling reasons..." and explained that this provision sets out conditions for the use of the Alaska Fisherman's Fund (AKFF). He pointed out the process, such that the Fishermen's Fund Advisory & Appeals Council would discuss a fisherman's claim to determine whether to award a claim beyond the cap. He explained an injured fishermen or family must go through the claim process for consideration of compensation beyond the cap. He opined that raising the cap's limit would help speed up the processing of claims. He noted that the claims are paid from fees commercial fishermen remit for crew licenses and permits. He related his understanding that the AKFF balance is currently $11 million. He advised that some management provisions are also in place in the event that the fund is drawn down by subsequent claims. Thus, additional review can be provided, if necessary, to avoid raising the fishermen's license and permit fees. 4:03:13 PM MR. BITNEY, in response to Representative Neuman, answered that although at today's prices the cap on the total allowance could be set at $18,000, and that the reason $10,000 was selected was to provide for an increase in the cap but not to increase the cap to the extent that claims might force a subsequent increase in fishermen's license and permit fees. The goal is to keep the fees paid into the fund by commercial fishermen at the same level. In further response to Representative Neuman, Mr. Bitney agreed that $10,000 was a reasonable estimate for the cap on the total allowance for an injury or disablement. 4:04:39 PM REPRESENTATIVE COGHILL asked how many claims have been made to compensate fishermen for injury or disablement beyond the current cap of $2,500. MR. BITNEY said he was not certain. He recalled testimony in a prior committee that at the upper end a claim for $100,000 was made by a claimant who suffered congestive heart failure. 4:05:17 PM REPRESENTATIVE COGHILL clarified that he was interested in the number of individuals who asked for consideration beyond the $2,500 cap. MR. BITNEY said he did not know. MR. BUCH interjected that he is also a member of the House Special Committee on Fisheries. He recalled that Trena Heikes, Director, Division of Workers' Compensation previously provided details to the committee 4:05:49 PM TRENA HEIKES, Director, Division of Workers' Compensation, Department of Labor & Workforce Development (DLWD), stated that Mr. Mike Monagle could answer any statistical questions for the committee members on this matter. 4:06:33 PM REPRESENTATIVE COGHILL asked for clarification of how many individual claims exceeded the $2,500 cap. MIKE MONAGLE, Administrator, Fishermen's Fund Advisory & Appeals Council, Department of Labor & Workforce Development (DLWD), related that in FY 09 about 60 claims were made that ranged between $2,500 and $10,000 to the Fishermen's Fund. He reviewed historical statistics for claims that exceeded the $2,500 cap, such that 63 claims were made in FY 08 and 65 claims were made in FY 07. He related his understanding that between 50 to 70 claims per year are requested that fall between $2,500 and $10,000. However, he noted that when the department advises claimants that they have exceeded the limit and must fill out additional paperwork, the fisherman tends not to follow through with the claim. He surmised that what has been happening is the claimant will pay for his/her out-of-pocket expenses for legitimate claims rather than pursue the claim. He explained that claims that exceed $10,000 tend to be pursued. Between 26 and 30 claims range from $20,000 to $200,000, which are considered catastrophic claims, are reviewed by the Fishermen's Fund Advisory & Appeals Council (FFAA) each year. While is rare to have claims of that magnitude approved, the FFAA council must consider each claim. Since the FFAA council meets twice a year, someone seeking medical treatment or medical reimbursement must wait six months for approval. 4:09:15 PM REPRESENTATIVE COGHILL related his understanding that it is a matter of severity. He stated that the $10,000 figure could be considered a baseline rather than a cap. He asked whether Mr. Monagle could speculate on the number of cases that would be paid anyway. MR. MONAGLE answered that he was not certain he understood the question. REPRESENTATIVE COGHILL suggested that currently the cap is set at $2,500, so generally when a fisherman makes an application the claim is approved up to that amount. He understood that under HB 207 the cap would be increased to $10,000. He asked whether $10,000 is sufficient given current medical costs or if typical claims would probably exceed the $10,000 amount and the claimant would still need to petition the council for approval. MR. MONAGLE explained that the division reviewed the basic claim. He related a scenario in which a person strains his/her back. If the doctor advises the patient that he will need a magnetic resonance imaging (MRI), the test could cost from $2,500 to $4,000 in Alaska. If subsequent office visits and physical therapy were required, the claim could easily reach $5,000 to 6,000. He stated that back strain is a common occurrence for fishermen as an occupational injury. He offered his belief that the $10,000 was selected to accommodate the typical cost of the most common claims. 4:11:50 PM REPRESENTATIVE COGHILL said that he would like to know the reason for an allowance of more than $10,000. He asked if a claim were made for more than the cap, i the claimant would need board approval. MR. MONAGLE explained that the division administratively screens claims for compliance and eligibility. The division conducts a preliminary investigation to ensure that the claim is a valid claim. He agreed a claim exceeding the cap would require FFAA council approval. REPRESENTATIVE COGHILL related his understanding that administratively typical injuries would be covered within the $10,000 allowance, but that in instances in which a fisherman suffered a heart attack, the amount would not cover it. He suggested that as long as the hurdle is not insurmountable, the $10,000 seemed reasonable. He reiterated that he is simply trying to gauge that amount. 4:13:04 PM REPRESENTATIVE BUCH recalled testimony given before the House Fisheries committee such that the Fishermen's Fund paid out several of the largest claims in the history of the fund this past year. He further recalled that about $250,000 collectively was paid. MS. HEIKES answered yes. She offered that the FFAA council recently approved payment of $162,000 of $205,000 in medical expenses and in another case paid approximately $100,000 to a fisherman who lost his arm in a winch accident. REPRESENTATIVE BUCH related his understanding that the Fishermen's Fund has had a cap of $2,500 for two decades. He noted that the Fishermen's Fund currently has a balance of $11 million. He offered his belief that the increase in the allowance for injury or disablement is reasonable, and considering the amount of fees collected that raising the cap will still represent a sustainable limit. He asked if the Department of Labor & Workforce Development (DLWD) agrees with the proposed cap. MS. HEIKES stated that the DLWD supports HB 207. She related that the fund currently consists of $11.4 million. In the past few years, the Fishermen's Fund has had a $100,000 deficit. However, given the current revenue and the fund balance, the department does not anticipate any problem, she said. 4:14:59 PM REPRESENTATIVE CHENAULT referred to the $11.4 million fund balance. He referred to the bill sponsor statement which outlines that crew members each pay $50 for their license. He inquired as to the average payout from the Fishermen's Fund. 4:15:22 PM MR. MONAGLE provided statistics from the Fisherman's Fund such that in FY 08, 766 claims were paid with an average claim of $1,075 and a total of $823,000 in benefits. He advised that about 24 claims were made beyond the $2,500 cap, and the amounts varied from $3,000 up, with several in excess of $100,000. The FFAA council typically approves between $200,000 and $300,000 at its semi-annual meetings for extended benefit requests. Thus, the FFAA council typically approves approximately $300,000 to $400,000 in total claims per year. MR. MONAGLE, in response to Representative Chenault, answered that the FY 08 revenue for the Fisherman's Fund was $1,440,000. 4:17:27 PM PAULA SCAVERA, Special Assistant, Office of the Commissioner, Department of Labor & Workforce Development (DLWD), stated that the administration supports HB 207. 4:18:06 PM GERALD MCCUNE, Lobbyist, United Fishermen of Alaska (UFA), stated that all 37 fishing groups that comprise UFA support this bill. He provided additional information on fishermen's license fees. He stated that $23.40 of the $50 crewmember's license fees is paid into the fund. Currently, fishermen's crewmember license fees are capped at $50. He recalled the administrative fee cost is $3.07. He offered that he also met with the FFAA Council for three days. This bill informs fishermen and hospitals that the allowance for injury or disablement is increasing from $2,500 to $10,000. It helps fishermen to know they have a little more flexibility before they must petition the FFAA Council for payment. This bill represents a good compromise since the UFA does not wish to burden the Fishermen's Fund. He recalled that he suggested to the DLWD and the FFAA that if HB 207 becomes law the Fishermen's Fund should be monitored to ensure that it has sufficient funds. He offered that he spoke to the Commercial Fisheries Entry Commission with respect the possibility of raising license fees. However, at this time monitoring the Fishermen's Fund should suffice since the balance of the fund is $11.4 million, he said. 4:19:49 PM REPRESENTATIVE BUCH emphasized that there is not a cap on payments, but a total allowance of $10,000, except for compelling reasons, at which time the payouts can exceed the $10,000 subject to the FFAA Council determination. MR. MCCUNE clarified that 39 percent of commercial fishermen fees are paid into the fund, but the fees are capped at $50, which is the total amount that each commercial fishermen currently pays into the Fishermen's Fund. He further agreed that this was not a cap on the payout. 4:20:57 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on closed HB 207. REPRESENTATIVE NEUMAN moved to report HB 207, 26-LS0801\A out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 207 was reported from the House Labor and Commerce Standing Committee. 4:21:53 PM The committee took an at-ease from 4:21 p.m. to 4:24 p.m. 4:23:49 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01_HB207_version_A.pdf |
HL&C 4/13/2009 3:15:00 PM |
HB 207 |
| 02_HB207_Sponsor_Statement.pdf |
HL&C 4/13/2009 3:15:00 PM |
HB 207 |
| 03_HB207_Fiscal_Note-1-1-041009-DFG-N.pdf |
HL&C 4/13/2009 3:15:00 PM |
HB 207 |
| 04_HB207_Fiscal_Note-2-1-041009-LWF-Y.pdf |
HL&C 4/13/2009 3:15:00 PM |
HB 207 |