Legislature(2015 - 2016)BARNES 124

04/06/2016 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:30 p.m. Today --
+ HB 234 INSURANCE COVERAGE FOR TELEMEDICINE TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ SB 148 EMPLOYER REPORT OF WORKPLACE INJURY/DEATH TELECONFERENCED
Moved CSSB 148(L&C) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+ SB 142 INSURANCE FOR ANTI-CANCER MEDICATION TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 372 OMNIBUS INSURANCE TELECONFERENCED
Moved CSHB 372(L&C) Out of Committee
**Streamed live on AKL.tv**
           HB 234-INSURANCE COVERAGE FOR TELEMEDICINE                                                                       
                                                                                                                                
3:53:59 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 234, "An  Act relating to insurance  coverage for                                                               
mental health benefits provided through telemedicine."                                                                          
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LIZ VAZQUEZ,  Alaska State Legislature, introduced                                                               
HB 234, to be presented by Anita Halterman.                                                                                     
                                                                                                                                
3:55:10 PM                                                                                                                    
                                                                                                                                
ANITA  HALTERMAN, staff  to  Representative  Liz Vazquez,  Alaska                                                               
State Legislature, speaking on  behalf of Representative Vazquez,                                                               
advised that  HB 234 is  a mental health  parity bill.   The bill                                                               
requires   that    the   health   insurance    industry   provide                                                               
reimbursement  for mental  health coverage  through the  delivery                                                               
mode  of  telemedicine.   Alaska  Medicaid  has paid  for  mental                                                               
health and substance abuse telemedicine  for many years; however,                                                               
only  one insurer  in Alaska  has  been providing  reimbursement.                                                               
The bill  requires that insurers reimburse  for telemedicine care                                                               
without  requiring  a  face-to-face visit,  which  could  improve                                                               
access  to  mental   health  services  for  15   percent  of  the                                                               
population in Alaska.   This bill does not  provide new coverage,                                                               
but  it provides  a new  means  of reimbursement  for a  coverage                                                               
option   currently  available   through   the  health   insurance                                                               
industry.                                                                                                                       
                                                                                                                                
3:56:21 PM                                                                                                                    
                                                                                                                                
MS.  HALTERMAN  said  one  concern  related  to  HB  234  is  the                                                               
prohibition of face-to-face visits.   She directed attention to a                                                               
document  entitled, "The  American  Telemedicine Association,  50                                                               
State Telemedicine  Gaps Analysis"  from the  National Conference                                                               
of  State  Legislators,  which   described  the  national  status                                                               
regarding telemedicine.   The analysis  indicated that  22 states                                                               
have laws  giving them  the highest  possible "grade"  and Alaska                                                               
received   an  A+   for   telemedicine  Medicaid   reimbursement.                                                               
However, Alaska  received an  F grade as  to the  private sector,                                                               
and this bill  is an effort to correct that  issue.  Most private                                                               
insurers cover reimbursement for  telemedicine without a face-to-                                                               
face visit;  the states of  Texas and  Arkansas appear to  be the                                                               
only states  with a  face-to-face requirement,  and the  state of                                                               
Arizona  is the  only  state requiring  a face-to-face  encounter                                                               
before mental health services can  be delivered.  She pointed out                                                               
that HB  234 does  not prohibit a  health care  professional from                                                               
requiring a  face-to-face visit,  but leaves  the decision  up to                                                               
the  medical  professional,  not   the  insurer.    Further,  she                                                               
stressed that this is an insurance bill, not a medical bill.                                                                    
                                                                                                                                
3:59:02 PM                                                                                                                    
                                                                                                                                
MS. HALTERMAN  advised that the  second concern  raised pertained                                                               
to  licensing within  Alaska,  and she  clarified  that the  bill                                                               
requires a  provider be licensed  in Alaska in order  to practice                                                               
within  the state.    The  third concern  was  a  request to  add                                                               
substance abuse  to the bill;  however, the Alaska  Statutes that                                                               
originally  required  that  substance   abuse  be  provided  were                                                               
repealed  in  1997.    She  said  she  has  received  input  from                                                               
stakeholders within the industry  about what definitions might be                                                               
useable, but  Alaska has no  clear definition of  substance abuse                                                               
in statute,  so the issue  of including substance abuse  has been                                                               
tabled.   Ms.  Halterman reiterated  that this  is a  parity bill                                                               
requiring the health  insurance industry to do  what Medicaid has                                                               
been doing for many years.                                                                                                      
                                                                                                                                
CHAIR  OLSON  cautioned  that the  substance  abuse  issue  would                                                               
complicate the bill.                                                                                                            
                                                                                                                                
MS. HALTERMAN agreed.  Returning  attention to the first concern,                                                               
she referred  to a  code of ethics  and other  guidance documents                                                               
with regard  to face-to-face requirements, and  other issues that                                                               
may affect this particular industry.                                                                                            
                                                                                                                                
REPRESENTATIVE  VAZQUEZ pointed  out that  she does  not want  to                                                               
attempt to micromanage  the medical profession and that  it is up                                                               
to them to require face-to-face visits.                                                                                         
                                                                                                                                
REPRESENTATIVE  COLVER  asked  for clarification  that  substance                                                               
abuse telemedicine is not included in the bill.                                                                                 
                                                                                                                                
MS.  HALTERMAN  advised  that  the  sponsor  had  been  asked  to                                                               
consider introducing a definition  for substance abuse, but after                                                               
consulting  with Legislative  Legal  and  Research Services,  and                                                               
individuals within  the insurance  industry, discovered  there is                                                               
no clean definition  available currently in Alaska  that has been                                                               
vetted by stakeholders in this industry.                                                                                        
                                                                                                                                
4:03:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COLVER expressed  concern  that this  legislation                                                               
not "opt out" smoking cessation,  which is generally handled over                                                               
the telephone.   He also expressed concern  regarding someone who                                                               
just needs  counseling as to  where to go for  treatment services                                                               
for  substance abuse.    Representative  Colver restated  smoking                                                               
cessation can be provided over  the telephone, and urged that the                                                               
proposed legislation not opt out smoking cessation services.                                                                    
                                                                                                                                
MS.  HALTERMAN expressed  her understanding  that ICD-10  medical                                                               
codes  are  uniformly  used primarily  for  substance  abuse  and                                                               
mental  health.   She  explained  that  many individuals  require                                                               
services  that  are mental  health  in  nature, may  directly  be                                                               
substance abuse related,  and which may be covered  by this bill.                                                               
Insurers such as AETNA have indicated  that much of what would be                                                               
included  in  a definition  of  substance  abuse may  already  be                                                               
covered  because  of   the  uniform  use  of   ICD-10  codes  for                                                               
behavioral health.   She advised  stakeholder input is  needed to                                                               
determine what  is necessary to  ensure that  whatever additional                                                               
coverage might  not be provided  by this bill is  considered next                                                               
session.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  HUGHES   observed  that  a  mental   health  care                                                               
provider  must  be  licensed  in  Alaska,  and  asked  whether  a                                                               
telemedicine, mental  health care provider could  be located out-                                                               
of-state.  She  asked whether this legislation  would broaden the                                                               
scope of access for Alaskans.                                                                                                   
                                                                                                                                
MS. HALTERMAN deferred the question to an invited witness.                                                                      
                                                                                                                                
REPRESENTATIVE  HUGHES   spoke  in  support  of   consistency  in                                                               
providers and  questioned whether  it is  advisable to  provide a                                                               
person's  mental  health  services totally  by  telemedicine,  or                                                               
whether there  should be  face-to-face contact.   If  so, out-of-                                                               
state providers  could not  provide that  service.   She stressed                                                               
the importance  of knowing  if the  bill allows  for out-of-state                                                               
providers.                                                                                                                      
                                                                                                                                
4:07:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COLVER read  from the end of  the second paragraph                                                               
of  an  email  from  John   DeRuytern,  Hope  Counseling  Center,                                                               
addressed to  Representative Vazquez,  1/16/16, available  in the                                                               
committee  packet, which  read as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     However, I  am very concerned that  the bill's language                                                                    
     specifically prohibits a  requirement that face-to-face                                                                    
     evaluation  occur prior  to  telehealth services  being                                                                    
     reimbursed.  This prohibition is  a SIGNIFICANT end run                                                                    
     around Best  Practices and the safe  delivery of mental                                                                    
     health services using telehealth technologies.                                                                             
                                                                                                                                
REPRESENTATIVE  COLVER   asked  Ms.  Halterman  to   address  the                                                               
foregoing issue.                                                                                                                
                                                                                                                                
MS.  HALTERMAN  reminded  the  committee  that  the  bill  is  an                                                               
insurance  bill and  does  not  influence medical  professionals.                                                               
Therefore,  the  mandate  of  a  face-to-face  requirement  is  a                                                               
mandate  on  the  insurance  industry  and  not  on  the  medical                                                               
professionals.  There  is no intent to change  the best practices                                                               
of  the  medical professionals,  and  they  retain the  right  to                                                               
require a  face-to-face visit.   This bill directs  that insurers                                                               
not impose  a face-to-face requirement  and that the  decision is                                                               
left to medical professionals.                                                                                                  
                                                                                                                                
4:09:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  assumed that some  face-to-face contact                                                               
improves the efficacy  of counseling.  He asked  whether a Juneau                                                               
citizen  could hire  someone in  Anchorage rather  than hiring  a                                                               
Juneau practitioner.                                                                                                            
                                                                                                                                
MS.  HALTERMAN confirmed  that the  bill allows  some flexibility                                                               
for  the  medical  professional,  and  it  will  be  up  to  that                                                               
professional to  determine whether  or not  it is  appropriate to                                                               
deliver   mental   health   services   without   a   face-to-face                                                               
requirement.  The  risk assumed for not  requiring a face-to-face                                                               
visit would rest  with the medical professional,  who retains the                                                               
right to establish practice rules allowing them to have a face-                                                                 
to-face requirement.   In  fact, it would  be their  liability if                                                               
they didn't require a face-to-face visit.  She said:                                                                            
                                                                                                                                
     ...  this   bill  is  not  to   influence  the  medical                                                                    
     practice,   but   rather   is   trying   to   influence                                                                    
     restrictions on  the insurance  industry that  they not                                                                    
     impose additional  obligations.  This bill  is strictly                                                                    
     restricting   them   from   imposing   a   face-to-face                                                                    
     requirement.    It  in no  way  restricts  the  medical                                                                    
     professional from making a decision  based on risk with                                                                    
     their patients to require a face-to-face ...                                                                               
                                                                                                                                
4:11:37 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked whether using Skype would be considered face-                                                                 
to-face contact.                                                                                                                
                                                                                                                                
MS.  HALTERMAN referred  to the  previous  analysis document  and                                                               
opined Skype may be an option.   She noted that Texas has a face-                                                               
to-face requirement, but does not  clearly define whether it is a                                                               
physical  face-to-face  meeting.     Neither  Texas  nor  Arizona                                                               
describe "what that face-to-face obligation actually is."                                                                       
                                                                                                                                
CHAIR  OLSON   noted  that  a   telemedicine  program   has  been                                                               
operational in  Kotzebue and around  the North Slope  using Skype                                                               
or something similar.                                                                                                           
                                                                                                                                
MS. HALTERMAN  reiterated that Medicaid has  been reimbursing for                                                               
telemedicine in  Alaska since  1999-2005, when  Alaska introduced                                                               
the  first telemedicine  regulations in  the nation.   She  noted                                                               
Medicaid has  not had any  concerns with regard to  mental health                                                               
or  substance  abuse  services   delivered  via  telemedicine  in                                                               
Alaska.   For instance, [Alaska  Native health services]  and the                                                               
[U.S. Department of  Veterans Affairs] have a  lot of exceptions,                                                               
and  Medicaid has  been openly  reimbursing.   Previous testimony                                                               
from Director  Margaret Brodie, Health Care  Services, Department                                                               
of  Health  and  Social  Services, related  that  the  bill  will                                                               
benefit   Alaska   Medicaid   because  currently,   Medicaid   is                                                               
reimbursing for mental health  services through telemedicine, but                                                               
is  unable   to  process  a   third  party  recovery   for  those                                                               
reimbursements since the private sector  may not.  This bill, she                                                               
said, would  allow Medicaid to  possibly recoup some  monies from                                                               
the private sector.                                                                                                             
                                                                                                                                
CHAIR OLSON opined that Medicaid pays air travel expenses.                                                                      
                                                                                                                                
MS. HALTERMAN  agreed that transportation  from a remote  area in                                                               
order  for a  patient  to  receive a  face-to-face  visit can  be                                                               
costly  in Alaska,  and noted  that mental  health services  have                                                               
been  delivered  and  reimbursed  by  Medicaid  in  at  least  36                                                               
Medicaid states, with few problems.                                                                                             
                                                                                                                                
CHAIR OLSON opened public testimony.                                                                                            
                                                                                                                                
4:15:40 PM                                                                                                                    
                                                                                                                                
AROM  EVANS  M.D.,  Medical  Director,  Orion  Behavioral  Health                                                               
Network,   advised   that   Orion  Behavioral   Health   delivers                                                               
telemedicine throughout the  state.  Dr. Evans  explained that in                                                               
the past private  insurance primarily paid for  services, but the                                                               
funding has been  cut in the last three years,  which has reduced                                                               
care  to  many Alaskans  who  subsequently  lost their  insurance                                                               
benefits when  coverage changed  to a  third-party administrator.                                                               
The population  served by Orion  Behavioral Health  Network would                                                               
not receive care without telemedicine;  for example, patients who                                                               
are  homebound  or who  live  in  small communities  that  cannot                                                               
provide  direct  psychiatric  care.   He  said  the  bill  allows                                                               
services to reach individuals, even  those who do not qualify for                                                               
Medicaid,  such   as  adolescents  and   developmentally  delayed                                                               
adults, and  may prevent an emergency  situation from developing.                                                               
Dr. Evans clarified that the  bill affects insurance and does not                                                               
seek  to  change  licensing board  practices  and  current  rules                                                               
regarding  face-to-face contact,  which  are fairly  strict.   At                                                               
this  time  the [State  Medical  Board,  Department of  Commerce,                                                               
Community  & Economic  Development] does  not allow  out-of-state                                                               
providers  to   practice  telemedicine,  except   under  certain,                                                               
limited circumstances.                                                                                                          
                                                                                                                                
DR. EVANS  cautioned that, in some  cases, if a person  is unable                                                               
to  receive services  without a  face-to-face  visit, the  result                                                               
will  be that  the patient  doesn't receive  services due  to the                                                               
aging  of  Alaska's population  and  the  limited care  in  rural                                                               
communities.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES understood  that the  bill would  increase                                                               
access to  care and  asked what  the best  practices are  for the                                                               
standard of  care for  treatment without  ever having  a face-to-                                                               
face visit.  She referred to related proposed legislation.                                                                      
                                                                                                                                
DR. EVANS advised that proposed  SB 74 requires the medical board                                                               
to adopt standards regarding  out-of-state providers.  Currently,                                                               
practice  by out-of-state  providers is  allowed only  in certain                                                               
circumstances.   As for the standard  of care, he said  that most                                                               
states  allow  for  care  via  telehealth  without  an  in-person                                                               
examination,  as  do  the ethical  guidelines  for  the  American                                                               
Telemedicine  Association.   In  his  practice,  Dr. Evans  said,                                                               
every effort  is made to  do a face-to-face visit.   Face-to-face                                                               
visits  are  provided  whenever   possible,  although  there  are                                                               
certainly  times when  it is  just  not possible,  and best  care                                                               
practices dictate administering service via telemedicine.                                                                       
                                                                                                                                
4:22:16 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced that public testimony would remain open.                                                                  
                                                                                                                                
[HB 234 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
SB142 ver W am.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Sponsor Statement ver W.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Sectional Analysis ver W.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Fiscal Note-DCCED-DOL-01-29-16.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Summary of Changes ver A to ver W.A.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter LLS.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-National Map JULY 2015.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter NPAF.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-SPEAC Response to Opposition Memo.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-State Fiscal Impact Studies SUMMARY 12-2016.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Benefits of Oral Anti-Cancer Therapies Corp Comm 12-03-13.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Journal of Health Economics Oral Therapy Cost Study Summary.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter AIM.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter ASCO and DOG.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter Denali Oncology.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Supporting Document-Letter IMF.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB142 Draft Proposed Amendment ver W.A.1.pdf HL&C 4/6/2016 3:15:00 PM
SB 142
SB148 ver W.pdf HL&C 4/6/2016 3:15:00 PM
SB 148
SB148 Sectional Analysis.pdf HL&C 4/6/2016 3:15:00 PM
SB 148
SB148 Fiscal Note-DOLWD-OSH-11-17-15.php.pdf HL&C 4/6/2016 3:15:00 PM
SB 148
SB148 Supporting Documents-Letter-US Dept. of Labor.pdf HL&C 4/6/2016 3:15:00 PM
SB 148
HB372 Draft Proposed Amendment H.1.pdf HL&C 4/6/2016 3:15:00 PM
HB 372
HB234 ver A.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Sponsor Statement.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Fiscal Note-DCCED-DOI-03-11-16.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Anne Norton 1-18-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Bobbi 1-19-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Bryan Thomas 2-1-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Diane Ingle 3-15-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Dr. Arom Evans undated-received 3-18-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Dr. John DeReyter 3-21-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Lise Kirsis 3-14-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Lita White 1-23-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Lynn Edwards 1-22-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Maureen Lawlor 1-26-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Maureen Lawlor 3-8-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Pamela Lund 2-1-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Sheila Gallagher 1-27-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter Alaska Mental Health Board-Advisory Board on Alcholism and Drug Abuse 3-15-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter Alaska Mental Health Trust 3-16-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter Alaska Psychological Association 3-6-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter American Osteopathic Association 3-15-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter Anne Henry 1-19-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Letter JAMHI 1-18-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Psycho-Oncology Randomized Cancer Trial from Dr. Freeman 2014.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Telehealth Policy Trends and Considerations-NCSL 2015.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-American Telemedicine Assoc-Telemedicine Gap Aanalysis 3-2015.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Article My Statesman from Austin American 2-29-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Opposing Documents-Email John DeRuyter 1-14-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234
HB234 Opposing Documents-Email Joel Wieman 1-16-2016.pdf HL&C 4/6/2016 3:15:00 PM
HB 234