Legislature(2013 - 2014)BARNES 124
03/26/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB316 | |
| HB370 | |
| HB281 | |
| HB336 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 370 | TELECONFERENCED | |
| += | HB 281 | TELECONFERENCED | |
| *+ | HB 336 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 316 | TELECONFERENCED | |
HB 316-WORKERS' COMPENSATION MEDICAL FEES
3:39:44 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 316 "An Act relating to workers' compensation
fees for medical treatment and services; relating to workers'
compensation regulations; and providing for an effective date."
[Version O was before the committee, adopted on 3/10/14.]
3:40:12 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State
Legislature, stated that HB 316 proposes to change the medical
schedule for workers' compensation from a usual and customary
and reasonable (URC) schedule with a geographical differential
built at the 90th percentile, which the state has been using for
the past ten years, to a fee schedule based on the Center for
Medicare and Medicaid Services, a resource-based relative value
scale, along with the conversion factor the Workers'
Compensation Board will set under the advisement of the Medical
Services Review Committee (MSRC).
3:41:06 PM
REPRESENTATIVE REINBOLD made a motion to adopt Amendment [2]
labeled 28-LS1362\O.5, Wallace, 3/24/14, which read as follows:
Page 4, line 16:
Delete "January 1, 2015"
Insert "July 1, 2015"
CHAIR OLSON objected for the purpose of discussion.
3:41:22 PM
MS. LATHAM explained that this change would give the MSRC an
additional six months to reconvene and set the original
conversion factors; the committee has not met since 2009.
CHAIR OLSON explained that [Amendment 2] is an attempt to [set
the fee schedule appropriately], and the additional six months
will allow the MSRC adequate time to make sure to get "all the
kinks out of it."
3:42:17 PM
REPRESENTATIVE SADDLER asked which organization will have the
delay.
MS. LATHAM answered that the MSRC will have the additional time
to reconvene. The MSRC will advise the Workers' Compensation
Board (WCB) on setting the conversion factors. She stated that
originally some concern was expressed about the WCB setting the
schedules since the board doesn't have the expertise, the
medical background, or experience to do so. She related that in
the proposed committee substitute, [Version O], the MSRC is
designated as the committee to advise the WCB.
CHAIR OLSON removed his objection. There being no further
objection, Amendment 2 was adopted.
3:43:23 PM
REPRESENTATIVE JOSEPHSON said he was unsure of the goal of the
bill and expressed concern that the legislature is delegating a
considerable amount and delegating some of that to the MSRC,
which has been defunct.
CHAIR OLSON suggested "inactive" might be a better choice.
REPRESENTATIVE JOSEPHSON agreed. He said he did not hear enough
testimony whether needs of injured workers will continue to be
met in workers' compensation law. The committee heard testimony
from concerned doctors who said if the rates are significantly
reduced, doctors will not be able to see these patients.
Additionally, an attorney, Michael J. Jensen, sent a letter to
that effect [in members' packets]. He recapped his fundamental
concerns, including concerns about prescription drugs, although
he acknowledged he may propose some amendments later.
CHAIR OLSON reminded Representative Josephson that the
prescription drugs are not part of this bill.
3:45:01 PM
REPRESENTATIVE JOSEPHSON argued that prescription benefits are
part of HB 316. He noted previous testimony from the Workers'
Compensation Committee of Alaska on March 7, 2014, indicating
that doctors have a "blank check" for two years without any
recourse to question or limit costs. He said that may or may
not be true; however, he expressed concern that too much
regulation might be occurring. Certainly, premium costs need to
be reduced. He questioned, as raised by testimony in an
unrelated bill, whether some of these premiums are related to
the high costs in Alaska since rates are high across the board,
not just for workers' compensation patients. Primarily, he
would like to afford injured workers time to get better access
to medical care.
CHAIR OLSON told him that he shares this goal.
3:46:14 PM
MICHAEL MONAGLE, Director, Central Office, Division of Workers'
Compensation, Department of Labor & Workforce Development
(DLWD), echoed the Chair's comments. It is certainly not the
department's intent to reduce medical fees to the point that
doctors will not treat injured workers and direct them elsewhere
to get the quality of treatment needed. Certainly, as the
department works with the MSRC and the WCB to achieve conversion
factors, it will not be his intent to reduce reimbursement to
doctors to the point that doctors refuse to treat injured
workers.
3:47:15 PM
REPRESENTATIVE JOSEPHSON declared a conflict of interest as he
has an existing workers' compensation claim of his own stemming
from a car accident injury. In response to a question, he
answered that it is incumbent upon him to make the record clear.
He then said, "I would love to vote."
CHAIR OLSON thanked him for declaring the conflict.
3:47:52 PM
CHAIR OLSON reported that Representative Millett is on-line.
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 316, Version O, labeled 28-LS1362\O,
Wallace, 3/10/14, as amended, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, the CSHB 316(L&C) was reported from the House
Labor and Commerce Standing Committee.