Legislature(2003 - 2004)

04/02/2004 09:10 AM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          SB 319 CLAIMS AGAINST HEALTH CARE PROVIDERS                                                                       
                                                                                                                                
CHAIR  SEEKINS  announced SB  319  to  be up  for  consideration.                                                               
Chair Seekins admitted the bill is not in its final form.                                                                       
                                                                                                                                
KATHY  DALE, a  CPA  from Anchorage,  said  she was  representing                                                               
herself  and  family  as  victims  of  medical  malpractice.  She                                                               
opposes  SB   319,  particularly  Section  3(d).   She  testified                                                               
regarding  her  husband and  his  routine  rotator cuff  surgery.                                                               
During surgery  her husband suffered  permanent brain  damage due                                                               
to lack of oxygen to his brain.   She stated that it was only due                                                               
to being able  to file a lawsuit that they  were able to discover                                                               
what had  caused the brain  damage.   She said the  bill protects                                                               
doctors and  harms the citizens  of Alaska.   She asked  that the                                                               
cap  not  be  lowered  and  referred  to  the  Medical  Indemnity                                                               
Corporation of Alaska (MICA) and  suggested that the $250,000 cap                                                               
adjusted for inflation would exceed  $800,000 in today's economy.                                                               
She  said the  stock market  crash, along  with Enron,  Tyco, and                                                               
World-com  type   fraud  caused  insurance  companies   to  raise                                                               
premiums in order to increase funds.   She compared this with the                                                               
state's  problem  with the  PERS  system  and asked  to  consider                                                               
forming a fund such as MICA.                                                                                                    
                                                                                                                                
SENATOR  OGAN stated  he  is  familiar with  MICA  but asked  for                                                               
clarification.                                                                                                                  
                                                                                                                                
MS. DALE explained  it as a self-insurance pool  that the doctors                                                               
owned and  the state loaned them  funds to get started.  She said                                                               
the pool  was so successful  that the  dividend was too  high and                                                               
would impact  the doctor's taxes so  they asked that the  pool be                                                               
disbanded.                                                                                                                      
                                                                                                                                
SENATOR OGAN asked if any other states have that type of system.                                                                
                                                                                                                                
MS. DALE answered she is not aware of any others.                                                                               
                                                                                                                                
CHAIR  SEEKINS stated  that he  is familiar  with the  history of                                                               
MICA, and  referred to  a conversation  with Senator  Taylor that                                                               
confirmed Ms. Dale's testimony regarding MICA.                                                                                  
                                                                                                                                
SENATOR FRENCH asked Ms. Dale  to talk about the financial impact                                                               
resulting from her husband's injury.                                                                                            
                                                                                                                                
MS. DALE said her husband was a  business owner.  He is no longer                                                               
capable of  doing even  small jobs  around the house.   He  is no                                                               
longer employable, has limited memory,  and needs daily care.  He                                                               
can drive a car.                                                                                                                
                                                                                                                                
CHAIR  SEEKINS asked  for clarification  on Ms.  Dale's testimony                                                               
and  asked, "Was  the  difference in  cap how  you  were able  to                                                               
retain representation to bring the lawsuit?"                                                                                    
                                                                                                                                
MS. DALE answered yes.                                                                                                          
                                                                                                                                
CHAIR  SEEKINS asked,  "What made  the difference,  the fee  that                                                               
would retain the attorney?"                                                                                                     
                                                                                                                                
MS.  DALE  answered  no  and  stated  it  was  the  out-of-pocket                                                               
expenses  to  send  the  records  to  experts  in  the  field  of                                                               
anesthesiology to review what happened.                                                                                         
                                                                                                                                
CHAIR SEEKINS asked who sent the records out.                                                                                   
                                                                                                                                
MS. DALE answered "our attorneys."                                                                                              
                                                                                                                                
CHAIR SEEKINS  asked for any  further comment and  clarified that                                                               
Ms. Dale  was only representing  herself and family  and traveled                                                               
to Juneau at her own expense.                                                                                                   
                                                                                                                                
CHAIR SEEKINS invited anyone else from  out of town to testify at                                                               
this time  so that they  would not  be impacted if  the committee                                                               
holds this over.                                                                                                                
                                                                                                                                
DONNA MCCREADY testified and identified  herself as a plaintiff's                                                               
attorney who does some medical  malpractice work.  She stated she                                                               
is representing the  Alaska Academy of Trawlers.   She said there                                                               
are 2 different positions 1) those  who want to lower the cap and                                                               
2) those  who think  there is not  a medical  malpractice crisis.                                                               
She  placed herself  in the  second category.  She asked  how the                                                               
committee  figures out  [how to  come  out] its  position on  the                                                               
bill.  She stated  there is no data to support  that Alaska has a                                                               
medical  malpractice crisis,  no  data to  support the  statement                                                               
that doctors  are leaving the state  due to this.   She suggested                                                               
that tons of data support  the fact that malpractice carriers are                                                               
doing very well financially and  that there are two main carriers                                                               
in this state  NORCAL and MIEC (ph).  She  handed out material to                                                               
committee members  showing the financial status  of both carriers                                                               
and  pointed   out  a  report   from  the   Legislative  Research                                                               
Department that  shows data to  support her claim of  an increase                                                               
of doctors actively  practicing in Alaska.   She cited Providence                                                               
Insurance   information,  which   shows  that   70%  of   doctors                                                               
practicing in  Alaska are not  recruiting doctors to work  in the                                                               
state but  the 30%  who are do  not have trouble  doing so.   She                                                               
stated  that   legislative  research   shows  that   doctors  are                                                               
attracted  to working  in Alaska  because we  don't have  managed                                                               
care here.                                                                                                                      
                                                                                                                                
CHAIR SEEKINS  said he has  seen much of this  information before                                                               
but  also  recognizes  they  have   never  received  one  of  the                                                               
documents that  she distributed, although the  documents say they                                                               
were  delivered on  Dec 18.    He said  he cannot  use this  data                                                               
because it  isn't detailed  enough.  "Someone  threw me  a pitch,                                                               
but not where I can hit it."                                                                                                    
                                                                                                                                
MS. MCCREADY  referred to the  tort reform of 1997  and suggested                                                               
the committee  look to the  Division of Insurance to  explain the                                                               
numbers.                                                                                                                        
                                                                                                                                
CHAIR SEEKINS  said he appreciated  her bringing in the  data and                                                               
has  seen much  data  regarding  this issue  but  most  of it  is                                                               
excerpted.   He asked  that all parties  submit to  the committee                                                               
good data  with the complete  report, not  just "page 9  page 13,                                                               
page  15." He  says he  sees  a huge  gap between  the number  of                                                               
licensed doctors and the number of practicing doctors.                                                                          
                                                                                                                                
MS.  MCCREADY responded  that in  terms of  the medical  board, a                                                               
survey with physicians  55 & older were asked if  they felt their                                                               
specialties were underrepresented and 66% answered no.                                                                          
                                                                                                                                
CHAIR SEEKINS said  licensed may not mean practicing  and he does                                                               
not want  to argue  that point.   He said  the committee  has one                                                               
more  witness   who  needs  to   speak  today.  He   assured  his                                                               
willingness to look at all the data.                                                                                            
                                                                                                                                
SENATOR  FRENCH  thanked  Ms.  McCready  for  her  testimony  and                                                               
referred to a March 26  report regarding the old MICA Corporation                                                               
on Page  8, which says  an average of  210 doctors per  year have                                                               
been licensed  to work in the  state.  He said  new doctors don't                                                               
usually get a license and then become inactive.                                                                                 
                                                                                                                                
CHAIR  SEEKINS recognized  that  they can  be  licensed in  other                                                               
states or numerous states even and don't ever practice here.                                                                    
                                                                                                                                
MS.  MCCREADY pointed  out that  some doctors  might practice  in                                                               
more than one state.                                                                                                            
                                                                                                                                
CHAIR SEEKINS said  he knows a couple of doctors  who come up for                                                               
vacation  and are  specialists so  they can  make a  little money                                                               
while they are here.                                                                                                            
                                                                                                                                
MR. RICHARD  LOUIE said he worked  20 years at BP  as a scientist                                                               
and auditor  and stated his doctor  did not inform him  of risks.                                                               
He asked the committee to vote no on SB 319.                                                                                    
                                                                                                                                
SENATOR OGAN  asked Mr. Louie if  he was the gentleman  who had a                                                               
blood clot during an aircraft flight.                                                                                           
                                                                                                                                
MR. LOUIE answered yes.                                                                                                         
                                                                                                                                
CHAIR  SEEKINS asked  for any  further questions  for Mr.  Louie.                                                               
Hearing  none,  he  advised  that the  committee  wants  as  much                                                               
testimony as  possible.  He stated  that the House is  working on                                                               
it as well and he doesn't want to duplicate the effort.                                                                         

Document Name Date/Time Subjects