Legislature(2005 - 2006)SENATE FINANCE 532

05/02/2006 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 318 LIMITATION ON EMINENT DOMAIN TELECONFERENCED
Moved SCS CSHB 318(FIN) Out of Committee
+ HB 380 ANIMALS & ANIMAL OR AGRICULTURAL PRODUCTS TELECONFERENCED
Moved SCS CSHB 380(RES) Out of Committee
+ HB 105 MEDICAID FOR ADULT DENTAL SERVICES TELECONFERENCED
Heard & Held
+ HB 16 SCHOOL FUNDS RELATED TO BOARDING SCHOOLS TELECONFERENCED
Heard & Held
+= HB 218 PRIVATE HATCHERY COST RECOVERY FISHERIES TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     CS FOR HOUSE BILL NO. 105(FIN)                                                                                             
     "An Act relating to coverage for adult dental services                                                                     
     under Medicaid; and providing for an effective date."                                                                      
                                                                                                                                
                                                                                                                                
9:46:25 AM                                                                                                                    
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
BILL HOGAN, Deputy Commissioner,  Department of Health and Social                                                               
Services, informed  the Committee  this legislation  would change                                                               
Medicaid  coverage to  allow adult  recipients to  receive up  to                                                               
$1,150  annually  in  preventive   and  restorative  dental  care                                                               
services  such as  cleaning, exams,  tooth  restoration and  both                                                               
upper and lower dentures. Adult  dental care is currently limited                                                               
to  emergency care  for the  immediate  relief of  pain or  acute                                                               
infection. The  most common  outcome of the  current care  is the                                                               
extraction of  teeth. This Medicaid expansion  would benefit "the                                                               
most  needy  Alaskans:  those  with  disabilities  and  seniors".                                                               
Approximately  16,000 of  the adults  currently  enrolled in  the                                                               
State's Medicaid program could benefit from this proposal.                                                                      
                                                                                                                                
Mr. Hogan  noted this was one  of the first Medicaid  programs to                                                               
specify a  maximum limit. In  addition, the bill would  include a                                                               
three-year termination date. "This  will allow the Department and                                                               
the Legislature  to evaluate the  effectiveness of  the program,"                                                               
to include participation  levels "and the true cost  and value of                                                               
the   program".  The   Department   is   actively  working   with                                                               
stakeholders,  particularly   the  Alaska  Mental   Health  Trust                                                               
Authority (AMHTA), "who consider  this a significant issue within                                                               
communities  throughout Alaska".  AMHTA would  provide the  State                                                               
match required by Medicaid for this program.                                                                                    
                                                                                                                                
Mr.  Hogan stated  that between  $700,000 and  $800,000 of  AMHTA                                                               
mini-grant program  funds are spent annually  on providing dental                                                               
care to  AMHTA beneficiaries, particularly those  with behavioral                                                               
health issues  and developmental disabilities. Those  funds could                                                               
be better utilized for other  beneficiary needs were this program                                                               
implemented.                                                                                                                    
                                                                                                                                
Mr. Hogan  shared that the Division  of Vocational Rehabilitation                                                               
in  the Department  of Labor  and Workforce  Development annually                                                               
expends  $100,000 to  help individuals  in their  program "obtain                                                               
dental  care  to  increase  the likelihood  that  they  could  be                                                               
employed".                                                                                                                      
                                                                                                                                
9:49:53 AM                                                                                                                    
                                                                                                                                
JANET  CLARK,  Assistant  Commissioner,  Finance  and  Management                                                               
Services, Department  of Health  and Social Services  stated that                                                               
the  Department's assumptions  in the  original fiscal  note were                                                               
extensively reviewed  during the bill's hearing  before the House                                                               
Finance Committee.  As a  result, the  fiscal note  that reported                                                               
from House Finance was considerably  less than the initial fiscal                                                               
note.  Many  of  the  assumptions  were  changed,  including  the                                                               
decision  to  reduce  the  number of  recipients  served  by  the                                                               
program  in its  initial two  years  due to  access and  start-up                                                               
issues. The original  assumption that the program  would serve 35                                                               
percent of  eligible adults is  reflected in the  program's third                                                               
year of operation.                                                                                                              
                                                                                                                                
Ms.  Clarke   continued  that,  in  addition,   the  Department's                                                               
emergency  dental care  expenses were  reduced for  year two  and                                                               
three of the  program, based on the assumption  that the Medicaid                                                               
preventive  care service  would  reduce the  demand on  emergency                                                               
dental care service.                                                                                                            
                                                                                                                                
Ms. Clarke stated that the  Department's original fiscal note was                                                               
developed with the understanding  that Federal Medical Assistance                                                               
Percentage  (FMAP)  funding  would  be  reduced  from  57  to  50                                                               
percent; however  that reduction  had not  transpired. Therefore,                                                               
the fiscal note was revised  to reflect the current 57.58 percent                                                               
FMAP level.  Another "key" fiscal element  was AMHTA's commitment                                                               
to provide  their FY 07, FY  08 and FY 09  dental services budget                                                               
to the program.  Thus, as reflected in Fiscal Note  #2, dated May                                                               
4, 2006, AMHTA would contribute  $425,000 in FY07, and $1,425,000                                                               
each  for FY  08  and FY  09.  The  FY 07  fiscal  note was  also                                                               
reduced, as the  program would not be anticipated  to begin until                                                               
late in the fiscal year.                                                                                                        
                                                                                                                                
Ms.  Clarke noted  that  the  State's FY  08  general fund  match                                                               
obligation would be $1,300,000. This,  with the assistance of the                                                               
AMHTA  funding, would  leverage  approximately  $10.3 million  in                                                               
services. The fiscal  note also reflected the  termination of the                                                               
program in FY  09. Efforts to refine the fiscal  note assisted in                                                               
reducing the program's impact on the State's general fund.                                                                      
                                                                                                                                
Senator  Dyson inquired  to the  income and  asset levels  a non-                                                               
AMHTA recipient,  "non-disabled, non-elderly adult" must  have to                                                               
qualify for the program.                                                                                                        
                                                                                                                                
Ms. Clark  responded that  a 21  through 64-year-old  person, who                                                               
was  not in  one the  aforementioned categories  and who  did not                                                               
have children, would not typically qualify for Medicaid.                                                                        
                                                                                                                                
Senator Dyson acknowledged.                                                                                                     
                                                                                                                                
9:54:04 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken asked  regarding  the  Department's efforts  "to                                                               
work  with the  Alaska Dental  Association to  get them  to allow                                                               
temporary  dental  licenses  for   those  dentists  from  outside                                                               
Alaska" who wish to provide  basic dental services in rural areas                                                               
of the State during the summer.                                                                                                 
                                                                                                                                
Mr.  Hogan  deferred  to  the   Department's  Dentist,  Dr.  Brad                                                               
Whistler.                                                                                                                       
                                                                                                                                
9:54:46 AM                                                                                                                    
                                                                                                                                
DR.  BRAD  WHISTLER, Dentist,  Department  of  Health and  Social                                                               
Services,  testified  via  teleconference from  an  offnet  site.                                                               
Community  health   centers  and  tribal  dental   programs  have                                                               
discussed this issue  with the Alaska Dental Board.  The Board is                                                               
considering issuing  courtesy licenses, which are  different than                                                               
temporary licenses. The Department  deferred to the community and                                                               
tribal  dental programs  to further  this issue  with the  Alaska                                                               
Dental Board.                                                                                                                   
                                                                                                                                
Co-Chair Wilken identified  his interest to be  with the issuance                                                               
of temporary licenses rather  than courtesy licenses. Continuing,                                                               
he asked  the status  of Board action  regarding the  issuance of                                                               
temporary  licenses  "to  people  that  want  to  come  and  help                                                               
Alaskans".                                                                                                                      
                                                                                                                                
Mr. Whistler had  not been personally involved in  the actions of                                                               
the Dental  Board. However,  he understood  that "the  only issue                                                               
that is being  addressed by the Dental Board at  this time is the                                                               
courtesy license issue".                                                                                                        
                                                                                                                                
Co-Chair Wilken asked whether Dr.  Whistler planned on asking the                                                               
Dental Board to consider "granting  temporary licenses that could                                                               
take care of some of our  more indigent people by what amounts to                                                               
volunteers".                                                                                                                    
                                                                                                                                
Mr. Whistler,  speaking on  behalf of  the Department,  stated he                                                               
would "be  happy to"  advance that subject.  He explained  that a                                                               
temporary  license  could be  issued  to  a dentist  desiring  to                                                               
practice  in Alaska,  provided  they held  a  license in  another                                                               
state.  This license  would  suffice until  the  time the  Dental                                                               
Board could  meet and "do  licensure by credentials".  A courtesy                                                               
license could  be issued  to a dentist  who planned  on providing                                                               
volunteer services, as a person  holding a courtesy license could                                                               
not charge a fee for their  service. A courtesy license would not                                                               
be  appropriate for  the needs  of a  community health  center or                                                               
tribal program, as their desire is to employ dentists.                                                                          
                                                                                                                                
9:56:34 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  asked Dr.  Whistler  to  provide his  office  a                                                               
letter detailing  the efforts being  taken by the  Department "to                                                               
enable  temporary  licenses"  in  the State.  The  letter  should                                                               
include  such things  as the  feasibility of  the licensure,  the                                                               
steps  that would  be required  to  further the  effort, and  the                                                               
benefits that would  be anticipated. He also requested  a copy of                                                               
any correspondence  between the  Department and the  Dental Board                                                               
relating to this issue.                                                                                                         
                                                                                                                                
Co-Chair Green supported Co-Chair Wilken's request.                                                                             
                                                                                                                                
Co-Chair  Wilken shared  his concern  about  the proposed  dental                                                               
program  by repeating  the  "old saying  that  those that  forget                                                               
history  are doomed  to  repeat it.  And here  we  go again."  He                                                               
recalled  discussions  that occurred  when  the  Denali Kid  Care                                                               
program was  proposed. While that  program "was presented  with a                                                               
firm  number  of  expenditure",  the cost  associated  with  that                                                               
program  "has  far exceeded"  what  had  been anticipated  for  a                                                               
variety  of  reasons.  The Power  Cost  Equalization  program  is                                                               
another  program  whose   expenses  dramatically  increased.  Its                                                               
expenses  increased from  eight  million dollars  a  year to  $80                                                               
million dollars in six years.                                                                                                   
                                                                                                                                
Co-Chair Wilken  questioned the true  fiscal impact of  the bill,                                                               
as, while he  appreciated the inclusion of the  $1,150 per person                                                               
annual dental service limit, the  number of program recipients is                                                               
unknown. Therefore, to  gain his support, he  suggested an annual                                                               
maximum  expenditure  level be  specified  for  the program.  The                                                               
intent  would be  to terminate  the  program once  the limit  was                                                               
reached.  This  would  provide   the  Legislature  with  "a  hard                                                               
indication of just the demand" on the program.                                                                                  
                                                                                                                                
Co-Chair  Wilken asked  that the  bill  be held  in Committee  to                                                               
further discuss how to incorporate such language.                                                                               
                                                                                                                                
Co-Chair Green acknowledged.                                                                                                    
                                                                                                                                
9:58:31 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  the Department's  and  the  Alaska  Dental                                                               
Board's  "views"  on  licensing dental  hygienists  who  received                                                               
training in countries other than the United States.                                                                             
                                                                                                                                
Mr. Hogan deferred to Dr. Whistler.                                                                                             
                                                                                                                                
9:58:46 AM                                                                                                                    
                                                                                                                                
Dr. Whistler clarified  that the Department is  not involved with                                                               
the  Alaska  Dental  Board  and the  issuance  of  licenses.  The                                                               
Department, in  this process, has focused  on "Medicaid financing                                                               
and reimbursement  for those providers that  are practicing under                                                               
general  supervision   of  dental  staff".  The   Department  has                                                               
participated  in  "expanding  private   capacity"  and  has  been                                                               
supportive  of  the  program encouraging  "tribal  expansion  and                                                               
provision of  care to Indian  Health Service  (IHS) beneficiaries                                                               
in the State".                                                                                                                  
                                                                                                                                
Senator Olson asked whether he  would be correct in communicating                                                               
to his constituents in the IHS  program that Dr. Whistler and the                                                               
Department were supportive of the program.                                                                                      
                                                                                                                                
Dr.  Whistler  stated that  the  Department  has been  and  would                                                               
continue to  support IHS activities.  As a dental officer  of the                                                               
State, he  is aware that  this model  has been successful  in New                                                               
Zealand,  Australia,  Great  Britain  and  other  countries.  The                                                               
dental access issue is widespread  in the United States, and this                                                               
concept  and  others have  been  discussed.  The American  Dental                                                               
Hygiene  Association has  proposed  "an  expanded dental  hygiene                                                               
model   to  address   some  of   these  same   issues."  Numerous                                                               
discussions between private dentistry  and public health dentists                                                               
have  occurred on  the issue  of how  to meet  the needs  of "the                                                               
underserved". Personally, he believed  this program was worthy of                                                               
consideration   and  could   work.  It   has  been   successfully                                                               
implemented  in other  areas of  the  world. He  agreed that  the                                                               
program  should be  evaluated  to  ensure that  it  would be  "an                                                               
appropriate model for the State".                                                                                               
                                                                                                                                
10:01:49 AM                                                                                                                   
                                                                                                                                
ANDY POPE,  a senior citizen,  testified in Juneau in  support of                                                               
the bill. Senior citizens,  particularly low-income seniors, "are                                                               
probably  the only  class [of  citizens] in  this State  excluded                                                               
from the dental health care".  Native health corporations provide                                                               
dental  care  to  Natives  and employed  people  have  access  to                                                               
employer  insurance   plans.  Seniors  cannot   purchase  private                                                               
insurance,  and  if it  were  available,  the cost  would  exceed                                                               
senior's financial  capacity. "There are programs  for alcoholics                                                               
and narcotics, but  not low-income seniors." This  is "an overdue                                                               
benefit"  for seniors.  The bill  is "well  constructed" and  the                                                               
$1,150  per person  annual limit  would provide  "a safety  cap",                                                               
which, by requiring people to  participate for expenses above the                                                               
limit, would  curtail excessive  expenses. However,  people might                                                               
have  a  problem  finding  a  dentist "that  would  let  you  get                                                               
something done for a down  payment". He doubted the program would                                                               
escalate out  of control. "All  individuals would be  treated the                                                               
same".  The $1,150  per  person limit  "is  reasonable", and  the                                                               
termination date would control the  parameters of the program. He                                                               
urged the Committee to adopt this "long overdue" legislation.                                                                   
                                                                                                                                
10:04:25 AM                                                                                                                   
                                                                                                                                
DR.   KATHINKA  WHITE,   Representative,   Alaska  Primary   Care                                                               
Association, Inc., spoke in support  of the bill. The Association                                                               
"represents  24  health  care organizations  operating  115  non-                                                               
profit community  health centers and other  safety net providers"                                                               
that   offer  health   and  dental   care   to  "the   uninsured,                                                               
underinsured,   underserved  populations   in  the   State".  Her                                                               
testimony was as follows.                                                                                                       
                                                                                                                                
     I  am speaking  to you  on  behalf of  Alaskans that  remain                                                               
     untreated  victims of  our  nation's  silent epidemic,  oral                                                               
     disease.   Dental  carries   and  periodontal   disease  are                                                               
     infectious diseases  caused by the transmission  of bacteria                                                               
     from the parent to child or  from partner to partner. In the                                                               
     year 2000, in  the publication "Oral Health  in America" the                                                               
     Surgeon General  released a  milestone report  that provided                                                               
     overwhelming evidence  of this epidemic. It  emphasized that                                                               
     the  mouth is  a point  of  entry for  infection, which  can                                                               
     spread to  other parts of  the body and pointed  to emerging                                                               
     associations  between  oral   diseases  and  other  physical                                                               
     ailments such  as diabetes, heart disease,  strokes, adverse                                                               
     pregnancy outcomes  including low  birth weight  babies. The                                                               
     report  makes  it clear  that  oral  health is  integral  to                                                               
     overall  health.  Oral  health   care  represents  the  most                                                               
     frequently  reported  unmet  health  need  among  low-income                                                               
     persons.                                                                                                                   
                                                                                                                                
     The inability  to access proper dental  health resources has                                                               
     had  devastating personal  consequences  for many  Alaskans,                                                               
     including  severe  oral  facial  pain,  infection,  impaired                                                               
     ability  to  eat,  poor  diet,  nutritional  status,  speech                                                               
     difficulties, lost  work days,  and unnecessary  tooth loss.                                                               
     Currently  dental services  for  adults are  limited to  the                                                               
     relief of  pain and  infection only.  These services  do not                                                               
     include  root canals  resulting  in the  extraction of  most                                                               
     teeth.  Many individuals  would  rather  live in  continuous                                                               
     pain  than have  their  teeth extracted  because the  social                                                               
     consequences  of oral  disfigurement diminishes  their self-                                                               
     image  and  sense of  self  worth.  Adults without  adequate                                                               
     dental care resources  express a feeling that  their lack of                                                               
     dental coverage  and resulting inability to  get appropriate                                                               
     dental care  reflects society's lack of  recognition of them                                                               
     as people with intrinsic value.                                                                                            
                                                                                                                                
     The Surgeon  General's report  also noted  this relationship                                                               
     between oral  facial disfigurement  due to oral  disease and                                                               
     the  associated  social  stigma,  low  esteem,  and  anxiety                                                               
     experienced which in turn  limits their educational, career,                                                               
     and marriage opportunities. Among  adults seeking jobs those                                                               
     with visual  carries and missing teeth  were less employable                                                               
     than  those  with  healthy smiles,  resulting  in  increased                                                             
     numbers of  adults on state  funding ATAP  [Alaska Temporary                                                             
     Assistance Program], unemployment,  and food stamp programs.                                                               
     In closing, oral health means  much more than healthy teeth.                                                               
     Oral  health is  integral  to the  general  health and  well                                                               
     being  of all  Alaskans. Not  allowing dental  care benefits                                                               
     that include  prevention and  routine dental  care knowingly                                                               
     puts our most vulnerable citizens  at a greater health risk.                                                               
     Alaska  cannot afford  these long-term  financial and  human                                                               
     welfare  costs.  Alaska  Primary Care  Association  and  the                                                               
     Municipality  of Anchorage  support HB  105 and  believe its                                                               
     time for the  dental Medicaid program to  be restructured to                                                               
     include preventative and restorative services. Thank you.                                                                  
                                                                                                                                
10:08:14 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken asked whether the  Primary Care Association (PCA)                                                               
had  contacted the  Alaska  Dental Board  in  support of  issuing                                                               
temporary dental  licenses. The  issuing of these  licenses would                                                               
assist in serving some of the people she had spoken of.                                                                         
                                                                                                                                
Dr. White  was unsure.  She was aware,  however, that  the Alaska                                                               
Dental Board  had not taken  any action  in that regard.  PCA has                                                               
taken a  position in support  of the dental health  aide program.                                                               
She also supported  that program as she had  personally worked in                                                               
many  remote  Bush  villages  and could  attest  to  the  skills,                                                               
knowledge, and empathy of the people involved in the program.                                                                   
                                                                                                                                
Co-Chair  Wilken thought  that  the PCA's  "voice  would be  very                                                               
powerful"  in  bringing  the  temporary   license  issue  to  the                                                               
attention of  the Alaska Dental Board.  Their participation could                                                               
advance the  efforts included in this  legislation. Therefore, he                                                               
urged  her   organization  to   investigate  how   other  states'                                                               
experiences  with  temporary  dental  licenses  could  assist  in                                                               
allowing "dentists  to come and serve  some of the less  abled of                                                               
our society".                                                                                                                   
                                                                                                                                
Dr. White  responded positively to Co-Chair  Wilken's suggestion.                                                               
The  Association would  support  this endeavor,  as  many of  its                                                               
member "community  health centers are under-served.  That's a big                                                               
problem  for us."  She was  currently  involved in  an effort  to                                                               
create an  Alaska oral health  care partnership to  provide "more                                                               
dental care and better retention in the State".                                                                                 
                                                                                                                                
Co-Chair Wilken appreciated Dr. White's comments.                                                                               
                                                                                                                                
Senator Olson asked the number of dentists employed by PCA.                                                                     
                                                                                                                                
Dr. White stated  she was the sole PCA dentist.  PCA is advancing                                                               
the  aforementioned  oral health  network  to  improve access  to                                                               
dental care "by  establishing a more cohesive  structure with the                                                               
community  health center  dental  clinics",  furthering a  shared                                                               
provider  program to  improve dental  care access,  and advancing                                                               
other aspects  to improve dental  care opportunities  through the                                                               
organization.                                                                                                                   
                                                                                                                                
10:11:24 AM                                                                                                                   
                                                                                                                                
JEFF JESSEE, Chief Executive Officer,  Alaska Mental Health Trust                                                               
Authority,  thanked  the  Committee for  considering  this  bill.                                                               
AMHTA is interested "in this  bill and dental services in general                                                               
because" many  of AMHTA's  "beneficiaries have  tremendous dental                                                               
needs". AMHTA annually funds a  mini-grant program that "provides                                                               
grants of up  to $3,000 directly to  individual beneficiaries for                                                               
a  wide range  of  things" such  as laptop  computers,  a car  to                                                               
transport  them to  work, or  other expenses  that would  improve                                                               
their  quality  of  life.  AMHTA   "was  stunned"  to  find  that                                                               
approximately  70 to  80 percent  of the  mini-grant funding  was                                                               
used  for dental  services. Spending  one's  mini-grant funds  on                                                               
dental care would not be expected  to be "way up on people's list                                                               
of  things they  want  to do  in  their spare  time  or with  any                                                               
additional dollars they might have".                                                                                            
                                                                                                                                
Mr.  Jessee noted  AMHTA worked  closely with  the Department  to                                                               
construct a  bill with  cost containment  provisions such  as the                                                               
individual  dental service  limit  and the  termination date.  In                                                               
addition  to working  on  this "very  important  bill", AMHTA  is                                                               
working on a  program through which dentists  could donate dental                                                               
service  and be  compensated for  their out  of pocket  expenses.                                                               
Another  effort being  advanced by  AMHTA is  the development  of                                                               
partnerships with  community health centers  "to get them  up and                                                               
running   on   providing   more   comprehensive   dental   care".                                                               
Nonetheless,  the funding  mechanism  proposed in  this bill  "is                                                               
critical" to these  endeavors and to meeting the  dental needs of                                                               
AMHTA beneficiaries.                                                                                                            
                                                                                                                                
10:13:54 AM                                                                                                                   
                                                                                                                                
There  being no  further  testimony, Co-Chair  Green ordered  the                                                               
bill HELD  in Committee in  order to develop  language addressing                                                               
Co-Chair Wilken's concern.                                                                                                      
                                                                                                                                
10:14:22 AM                                                                                                                   
                                                                                                                                

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