Legislature(2013 - 2014)BELTZ 105 (TSBldg)

04/01/2014 03:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
*+ SB 214 INSURANCE ADJUSTER LICENSING TELECONFERENCED
Heard & Held
+ HB 204 SALMON & HERRING PRODUCT DEV'T TAX CREDIT TELECONFERENCED
Heard & Held
+ HB 141 WORKERS' COMPENSATION MEDICAL FEES TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
           HB 141-WORKERS' COMPENSATION MEDICAL FEES                                                                        
                                                                                                                                
4:22:34 PM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration  of HB  141."An Act  setting the  fee for  medical                                                               
treatment  or  services performed  outside  the  state under  the                                                               
Alaska  Workers'  Compensation  Act,   requiring  a  provider  of                                                               
medical  treatment   or  services   under  the   Alaska  Workers'                                                               
Compensation Act  to submit  bills for  treatment or  services to                                                               
employers  within  180  days  after the  date  the  treatment  or                                                               
services are  rendered, and  limiting the  time for  appealing an                                                               
employer's denial  or reduction of  a bill; and providing  for an                                                               
effective date." He noted that this was the [first] hearing.                                                                    
                                                                                                                                
4:22:52 PM                                                                                                                    
                                                                                                                                
ANNA  LATHAM,  Staff,  Representative Kurt  Olson,  Alaska  State                                                               
Legislature, Juneau, Alaska,  introduced HB 141 on  behalf of the                                                               
sponsor. She  explained that the  bill sets the fee  schedule for                                                               
workers'   compensation  claims   treated   outside  Alaska   and                                                               
establishes  billing timelines  for medical  providers. Providing                                                               
some background, she said the  state has used a usual, customary,                                                               
and  reasonable fee  schedule for  workers' compensation  that is                                                               
reflective of  the costs and  geographic area where  services are                                                               
rendered. Services  have been billed  at the 90th  percentile for                                                               
the past  ten years. In  2011, the legislature passed  House Bill                                                               
13, which  extended the current  fee schedule but what  it failed                                                               
to do was  to set parameters for where the  fee schedule could be                                                               
used.                                                                                                                           
                                                                                                                                
She reported  that Alaska has  the highest  workers' compensation                                                               
premiums in  the nation.  The Oregon  Department of  Business and                                                               
Consumer  Services   conducts  a   biennial  study   of  workers'                                                               
compensation rates that is considered  the industry standard. For                                                               
the past  ten years,  Alaska has  ranked in  either the  first or                                                               
second  place for  the  highest  workers' compensation  insurance                                                               
premium rates in the nation.                                                                                                    
                                                                                                                                
4:24:19 PM                                                                                                                    
                                                                                                                                
MS. LATHAM  provided examples of  some discrepancies  between the                                                               
rates in Alaska and other  western states. She directed attention                                                               
to the  top 25  surgery procedure code  fee comparison  charts in                                                               
the bill packets. It shows  that Alaska's costs are substantially                                                               
higher that  those for  Washington, Oregon,  and Idaho.  She drew                                                               
attention to page 40, chart  30, of the report entitled, "Medical                                                               
Data Report for  the state of Alaska dated  September 2013." This                                                               
chart  ranks  the  top  ten   diagnostic  codes  by  total  claim                                                               
payments.  It  shows  that  the average  payment  in  Alaska  for                                                               
treating a  diagnosis of a  ruptured disc is $31,177  compared to                                                               
$17,049 nationwide. That's 182 percent higher in Alaska.                                                                        
                                                                                                                                
MS.  LATHAM said  there  is nothing  in  statute from  preventing                                                               
workers' compensation claims  treated in the Lower  48 from being                                                               
billed at  Alaska's higher  rates. HB  141 changes  that. Medical                                                               
services treated  in-state would still  be charged using  the UCR                                                               
fee schedule that  was established in 2011,  and medical services                                                               
provided outside Alaska  could not exceed the charges  set by the                                                               
statute in  the state where  the services are rendered.  The bill                                                               
also  establishes billing  timelines. It  requires a  provider to                                                               
submit bills within 180 days  after the services are rendered and                                                               
limits the time  for appealing an employer's  denial or reduction                                                               
of a bill  to 60 days. The effective date  is immediate and there                                                               
is a  retroactivity clause  that includes  transitional language.                                                               
The transition language allows medical  providers to submit bills                                                               
for service within  180 days of the  effective date, irrespective                                                               
of the date of service, and  allows providers to submit an appeal                                                               
for  denied  payment  within  60  days  of  the  effective  date,                                                               
irrespective of the date of  the disputed payment. She summarized                                                               
that HB 141 sets reasonable  time limits to provide certainty for                                                               
the employer and the insurer as they budget for the future.                                                                     
                                                                                                                                
CHAIR DUNLEAVY opened public testimony.                                                                                         
                                                                                                                                
VINCE   O'SHEA,  Vice   President,  Pacific   Seafood  Processors                                                               
Association (PSPA),  Juneau, Alaska,  testified in support  of HB
141. He  reported that  PSPA has over  27,000 workers  in seafood                                                               
processing  plants  across  the   state  and  the  high  workers'                                                               
compensation rates need to be  addressed. This will eliminate the                                                               
abuse and unnecessary expenses related to treatment, he said.                                                                   
                                                                                                                                
4:29:35 PM                                                                                                                    
SALLIE  STUVEK, Human  Resources Director,  Fairbanks North  Star                                                               
Borough  (FNSB),  Fairbanks,  Alaska,   said  she  oversees  risk                                                               
management, which handles workers'  compensation for the FNSB and                                                               
the FNSB  School District  (FNSBSD). She  reported that  the FNSB                                                               
spends about $1.1 million on  workers' compensation benefits each                                                               
year. FNSB  continues to  see medical  costs rising  and believes                                                               
that the  resolution adopted by  the workers'  compensation board                                                               
1301  dated September  27, 2013  is  a positive  step to  address                                                               
these costs.  The FNSB assembly  passed a resolution  on February                                                               
13, 2014 in support of continuing to pursue this legislation.                                                                   
                                                                                                                                
SENATOR  MICCICHE   stated  support   for  the   legislation  and                                                               
commented that it might cut back on medical tourism.                                                                            
                                                                                                                                
4:31:18 PM                                                                                                                    
CHAIR   DUNLEAVY   held  HB   141   in   committee  for   further                                                               
consideration. Public testimony was open.                                                                                       

Document Name Date/Time Subjects
HB0204A.PDF SL&C 4/1/2014 3:30:00 PM
HB 204
HB0204_Version P.PDF SL&C 4/1/2014 3:30:00 PM
HB 204
HB 204 Sponsor Statement.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204SS-DOR-TAX-02-05-2014 Fiscal Note.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB 204 Presentation_DCCED.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_Alaskan-Seafood-Processing-Effluent-Guidelines-Notice-of-Data-Availability-Factsheet.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_DOR 2013 Annual Report Page 19.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_DOR Qualified Equipment.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_DOR_ Data on Fishery Business Tax Credits 2004-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_AFDF.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_AK General SF.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_Bristol Bay Borough.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_PSPA.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_SE AK Fishermans Alliance.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_SupportLetter_Westward Seafoods.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
HB204_WrittenTestimony_Ocean Beauty SF.pdf SL&C 4/1/2014 3:30:00 PM
HB 204
SB0214A.PDF SL&C 4/1/2014 3:30:00 PM
SB 214
SB214_SponsorStatement.pdf SL&C 4/1/2014 3:30:00 PM
SB 214
SB214_Sectional Analysis.pdf SL&C 4/1/2014 3:30:00 PM
SB 214
SB214-DCCED-DOI-03-28-14.pdf SL&C 4/1/2014 3:30:00 PM
SB 214
HB141 ver N.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Sponsor Statement.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Sectional Analysis.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141-DOL 2-05-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter Alaska Timber Exchange 1-28-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter AMLJIA 1-29-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter ANIC 2-05-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter ASHNHA 2-06-2014.PDF SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter City of Kenai 2-07-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter CPH 2-06-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter KPBSD 2-03-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter Liberty Mutual 2-04-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-Letter NFIB 2-04-2014.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-NCCI Medical Data Report 09-2013.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141 Supporting Document-WC Fee Comparison.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141_Support_Letter_Timber_EX.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB141_SupportLetter_AK Chamber.pdf SL&C 4/1/2014 3:30:00 PM
HB 141
HB204_SupportLetter_UFA.pdf SL&C 4/1/2014 3:30:00 PM
HB 204