Legislature(1993 - 1994)

01/20/1993 03:00 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
           HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                         
                       STANDING COMMITTEE                                      
                        January 20, 1993                                       
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Cynthia Toohey, Co-Chair                                                
  Rep. Gary Davis, Vice Chair                                                  
  Rep. Tom Brice                                                               
  Rep. Pete Kott                                                               
  Rep. Irene Nicholia                                                          
  Rep. Harley Olberg                                                           
  Rep. Al Vezey                                                                
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Rep. Con Bunde, Co-Chair                                                     
  Rep. Bettye Davis, excused                                                   
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Overview of the Department of Health and Social Services                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Dr. Ted Mala                                                                 
  Commissioner                                                                 
  Department of Health and Human Services                                      
  P.O. Box 110601                                                              
  Juneau, Alaska 99811-0601                                                    
  465-3030                                                                     
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 3, SIDE A                                                               
  Number 000                                                                   
                                                                               
  CO-CHAIR CYNTHIA TOOHEY called the meeting to order at 3                     
  p.m. and noted members present.                                              
                                                                               
  (Rep. Bunde arrived at 3:01 p.m.)                                            
                                                                               
  CHAIR TOOHEY announced the purpose of the meeting was to                     
  hear a 45-minute overview of the Department of Health,                       
  Education and Social Services.                                               
                                                                               
  DR. TED MALA, Commissioner of the Department of Health and                   
  Social Services, welcomed the committee to Juneau on behalf                  
  of the department's 2,000 employees and expressed his                        
  pleasure at the prospect of working with the committee.                      
                                                                               
  DR. MALA referred committee members to a 22-page overview of                 
  the department and an organizational chart on the last page.                 
  (The publication, "Alaska Department of Health & Social                      
  Services: An Overview," herein incorporated as Attachment 1,                 
  is on file at the House Health, Education and Social                         
  Services committee room, 106 Capitol, and will be filed at                   
  the Legislative Research Library at the end of the second                    
  session of the 18th Legislature.)                                            
                                                                               
  DR. MALA said the department has seven divisions and one                     
  deputy commissioner each for financial programs for direct                   
  services programs.                                                           
                                                                               
  DR. MALA introduced Dr. Brian Saylor, deputy commissioner                    
  for Direct Services; Deborah Wing, director of the Division                  
  of Family and Youth Services; Loren Jones, director of the                   
  Division of Alcohol and Drug Abuse; Margaret Lowe, director                  
  of the Division of Mental Health and Developmental                           
  Disabilities; Dr. Peter Nakamura, director of the Division                   
  of Public Health.                                                            
                                                                               
  DR. MALA also introduced Jay Livey, deputy commissioner for                  
  Financial Programs, and his key division directors Kim                       
  Busch, director of the Division of Medical Assistance and                    
  Jan Hansen, director of the Division of Public Assistance.                   
  Dr. Mala also introduced Janet Clarke, director of the                       
  Division of Administrative Services.  Dr. Mala expressed the                 
  hope that each division could sometime make its own                          
  presentation to the committee.                                               
                                                                               
  Number 096                                                                   
                                                                               
  DR. MALA began his presentation with the Division of Public                  
  Health, referring to page 9 of Attachment 1.  The division                   
  has 373 employees across the state, and administers seven                    
  programs, he said.  The state provides public health nursing                 
  services to all areas of the state, except the Municipality                  
  of Anchorage, the East Aleutians Borough and the North Slope                 
  Borough, which have assumed responsibilities for their own                   
  public health.  He stated the Public Health Laboratories'                    
  main virology lab is based at the University of Alaska,                      
  Fairbanks, with other labs in Anchorage and Juneau.  He said                 
  the department has proposed studying the feasibility of                      
  merging the three to save time and money.  A radiological                    
  lab has addressed the radioactive contamination at Point                     
  Hope.  Information gathered by the Bureau of Vital                           
  Statistics helps the department plan its public health                       
  programs, he explained.                                                      
                                                                               
  DR. MALA said Alaska has the nation's highest per capita                     
  rate of work related deaths, with 87 deaths on the job in                    
  1992, most of them commercial fishermen who drowned without                  
  wearing life vests, and some from aircraft crashes.  In                      
  1991, there were 79 work-related deaths, 38 of them                          
  commercial fishermen, who are involved in the state's                        
  highest-risk job.  The department works with the Alaska                      
  office of the National Institute of Occupational Safety and                  
  Health on the problem, Dr. Mala said.                                        
                                                                               
  DR. MALA mentioned the Budget Request Units, a program                       
  established by the legislature in 1981, which allow the                      
  legislature to make direct financial grants to special rural                 
  regional health corporations.  He said there is currently                    
  debate over the need to continue the program for those                       
  corporations that have since developed mature health care                    
  systems.                                                                     
                                                                               
  DR. MALA referred to an epidemiology bulletin, one of the                    
  department's periodic publications.  The department is                       
  planning to publish a 1992 annual report within three weeks,                 
  which would also serve as a report card on public health in                  
  the state, he said.                                                          
                                                                               
  Number 245                                                                   
                                                                               
  DR. MALA stated the Division of Mental Health and                            
  Developmental Disabilities, with 440 employees, has many                     
  interested advocacy groups.  He outlined the division's                      
  programs and institutions as presented in Attachment 1,                      
  starting on page 13.  He noted the Alaska Youth Initiatives                  
  program serves about 77 children, with 26 names on a waiting                 
  list.  He said the Advocacy and Public Education includes a                  
  suicide prevention program which distributes $860,000 to                     
  rural villages for home-grown programs, which are sometimes                  
  combined with peer counselor training programs, and with                     
  other drug and alcohol prevention programs.  Dr. Mala noted                  
  the department tries to use para-professional workers in                     
  villages to save money and keep services available.                          
                                                                               
  DR. MALA referred to the mental health division's                            
  institutions.  The department hopes to replace the Alaska                    
  Psychiatric Institute in Anchorage, a 30-year old                            
  institution with serious structural problems, despite its                    
  acceptable outward appearance.  The presence of asbestos                     
  requires frequent costly emergency maintenance, which can                    
  reach $1 million some years for maintenance and asbestos                     
  abatement.  Though built with 219 beds, it currently houses                  
  130 patients, and ten years' study has shown a new                           
  institution could have but 114 beds, as long as it was                       
  buttressed by a strong community mental health care program.                 
                                                                               
  Number 330                                                                   
                                                                               
  DR. MALA stated the Harborview Developmental Center mental                   
  hospital in Valdez has reduced its patient load, but still                   
  has some patients of 20 years' residence and more.  The                      
  department had considered either closing the hospital or                     
  expanding it to reduce per-resident costs reaching $100,000                  
  per year.  The department decided to remodel existing wings                  
  to accommodate elderly patients requiring long-term                          
  psychiatric nursing care, who are difficult to accommodate                   
  at other nursing homes.                                                      
                                                                               
  Number 341                                                                   
                                                                               
  DR. MALA outlined the Division of Alcohol and Drug Abuse, as                 
  described on page 19 of Attachment 1.  The division has 29                   
  workers.  Alcohol abuse is the top cause of injury accidents                 
  in the state, and an estimated 35,000 Alaskans suffer from                   
  alcohol abuse.  About 30 babies each year are born with                      
  Fetal Alcohol Syndrome, and another 130 with some Fetal                      
  Alcohol Effect, many of them born to Alaska Natives, he                      
  said.  Dr. Mala said such births are extraordinarily costly,                 
  resulting in "million dollar babies."                                        
                                                                               
  Number 375                                                                   
                                                                               
  DR. MALA noted that department officials traveling around                    
  the state to assess needs and concerns in rural areas have                   
  learned of major problems with alcohol and inhalant abuse.                   
  He added that the department is trying to focus on inhalant                  
  abuse in Western Alaska, after two children in Nome died                     
  after sniffing gasoline.                                                     
                                                                               
  DR. MALA described the Division of Family and Youth                          
  Services, with 594 employees, divided into Family Services                   
  and Juvenile Corrections functions, as described starting on                 
  page 1 of Attachment 1.                                                      
                                                                               
  Number 404                                                                   
                                                                               
  In 1992, the division made a major change in philosophy,                     
  trying to keep families with troubled or abused children                     
  intact, instead of removing such children from their                         
  families.  This change has resulted in the removal of 140                    
  fewer children from their homes in FY 1993 than in previous                  
  years, Dr. Mala said.                                                        
                                                                               
  DR. MALA described the state's main juvenile detention                       
  facilities, including the McLaughlin Youth Center in                         
  Anchorage, with both honor cottage and full security                         
  detention areas.  Other centers operate in Fairbanks,                        
  Juneau, Bethel and Nome, which with probation officer                        
  services allow young offenders to remain close to home.  He                  
  noted the department is trying to train and certify                          
  corrections and probation officers to improve their ability                  
  to detect more serious problems in their charges, such as                    
  sexual abuse or serious mental problems, which might require                 
  them to be in more secure environments.                                      
                                                                               
  Number 457                                                                   
                                                                               
  DR. MALA referred to the Division of Medical Assistance,                     
  with 56 employees, based in Juneau and Anchorage, as                         
  described starting on page 7 of Attachment 1.  The                           
  department predicts the division's budget ought to rise by                   
  12 percent in fiscal 1994.  Dr. Mala said he anticipates the                 
  division will spend about $130 million in state general                      
  funds, and another $160 million in federal funds.  He said                   
  the department may be able to win 50-50 matching federal                     
  funds for Medicaid programs the state now pays for alone,                    
  which could save up to $2 million this year.                                 
                                                                               
  DR. MALA predicted the issue of containing the high state                    
  costs for Medicaid programs would be an issue for the                        
  legislators.  The administration is considering the results                  
  of a task force on cost containment and is planning its                      
  responses.  Some possibilities include more managed care,                    
  expansion of some state employees' medical benefits,                         
  centralized drug purchases and electronic billing.                           
                                                                               
  Number 511                                                                   
                                                                               
  DR. MALA referred to the Division of Public Assistance, as                   
  outlined on page 3 of Attachment 1.  The division has 428                    
  employees, he said.  The demand for welfare services and                     
  attendant costs are rising significantly, by up to 15                        
  percent across the nation.  The division receives about $108                 
  million from state funds, and spends about $223 million                      
  including federal matching funds, an amount that he expects                  
  to rise 8.7 percent in the next year.                                        
                                                                               
  DR. MALA said state residents receive about $52 million in                   
  federal food stamps each year.  In FY 1993 there were 14,920                 
  people receiving food stamps, a number projected to rise to                  
  15,536 next year.                                                            
                                                                               
  DR. MALA stated about 12,380 people receive federal energy                   
  assistance.  Aid to Families with Dependent Children was                     
  paid to about 12,485 in FY 1993, a number he said was                        
  projected to rise to 13,858 next year.  Adult Public                         
  Assistance was paid to 8,908 people in the last fiscal year,                 
  a number projected to go up to 9,664 in the next year.                       
                                                                               
  DR. MALA said the department is working on ways to reduce                    
  these numbers and expects much public and committee                          
  discussion on the issue.  He discussed his goal to link                      
  state welfare and employment services programs in                            
  communities, possibly locating them in the same building.                    
  He described a current program, under which an applicant                     
  cannot receive welfare without accepting federal education                   
  or job training, and which offers free child care during                     
  such training.  The program served 925 people last year, and                 
  the department expects to have 1,340 next year, he said.                     
                                                                               
  Number 549                                                                   
                                                                               
  DR. MALA described the Division of Administrative Services,                  
  as outlined starting on page 21 of Attachment 1.                             
                                                                               
  DR. MALA said a department-wide problem is the lack of                       
  sufficient modern equipment, such as computers to allow                      
  staff to perform more direct services and less clerical                      
  work.  Such equipment could make research data available                     
  on-line to staffers around the state.                                        
                                                                               
  DR. MALA complained that unfunded federal mandates such as                   
  the Americans With Disabilities Act which requires the state                 
  to spend millions, to improve handicapped access to public                   
  facilities, but providing no funding.  Another example is a                  
  measure aimed at limiting transmission of blood-borne                        
  pathogens on the job, administered by the U.S. Department of                 
  Labor's Occupational Safety and Health Administration.  The                  
  state has been fined under the measure, and needs to budget                  
  for compliance, Dr. Mala said.                                               
                                                                               
  TAPE 3, SIDE B                                                               
  Number 000                                                                   
                                                                               
  DR. MALA briefly mentioned several areas of activity in the                  
  department, including international circumpolar cooperation.                 
  He said it is important to work with Canada and Russia to                    
  plan disaster response, and emergency medical treatment of                   
  those in remote areas.  Given increasing international                       
  travel across the Bering Sea, he said, Alaska and Russia                     
  should arrange rapid emergency response by the nearest                       
  emergency response technicians, regardless of the victims'                   
  citizenship.                                                                 
                                                                               
  DR. MALA mentioned the reorganization of welfare fraud and                   
  medical assistance prevention programs in the state, and the                 
  assignment of an Alaska State Trooper to welfare fraud                       
  prevention.  He noted that some cases have resulted in                       
  confiscation of some property for sale at auction to recover                 
  state funds.  Such programs can receive generous federal                     
  matching support, up to 90-10 matches, he said.                              
                                                                               
  Number 030                                                                   
                                                                               
  In summarizing his presentation, DR. MALA invited the                        
  committee to hear presentations from his division directors,                 
  and reminded the committee of the scope of his mission and                   
  budget, which reaches $700 million per year, including                       
  federal matching funds.                                                      
                                                                               
  Number 070                                                                   
                                                                               
  CHAIR TOOHEY thanked Dr. Mala for his presentation and                       
  entertained questions from the committee.                                    
                                                                               
  Number 080                                                                   
                                                                               
  REP. IRENE NICHOLIA asked which three villages were                          
  participating in the mental health division's Village                        
  Research and Demonstration Projects, as outlined in                          
  Attachment 1.                                                                
                                                                               
  Number  100                                                                  
                                                                               
  DR. MALA responded he didn't know, but would find out and                    
  tell her.                                                                    
                                                                               
  REP. NICHOLIA asked if that program was part of the                          
  Behavioral Health Aide program                                               
                                                                               
  DR. MALA answered that the aide program overlaps with that                   
  and other programs.                                                          
                                                                               
  REP. NICHOLIA asked if funds for the demonstration projects                  
  program would be increased this year, and whether local                      
  health services programs would be involved in establishing                   
  such projects.                                                               
                                                                               
  DR. MALA said he would have his legislative liaison, Elmer                   
  Lindstrom, work with her on those programs.  Dr. Mala stated                 
  it was up to the legislature to decide whether the state                     
  would fund regional or community health service providers.                   
                                                                               
  REP. NICHOLIA further asked whether the Division of Family                   
  and Youth Services' Purchased Services program was a                         
  statewide program.                                                           
                                                                               
  MS. DEBORAH WING, director of the Division of Family and                     
  Youth Services, answered that Purchased Services covers a                    
  wide range of services, through contracts, grants and bids,                  
  and rural communities are aware of their options to                          
  participate.                                                                 
                                                                               
  In response to Rep. Bunde's question, JANET E. CLARKE,                       
  director of the Division of Administrative Services, said                    
  her division employs about 100 people.                                       
                                                                               
  REP. BUNDE asked if there were efforts to encourage more                     
  communities to follow the example set by Anchorage, the                      
  North Slope Borough and the Aleutians East Borough in                        
  assuming local public health responsibilities from the                       
  state.                                                                       
                                                                               
  DR. MALA answered that the department has been working this                  
  year to produce state health plans that might call for such                  
  action.  He said Fairbanks voters have repeatedly rejected                   
  such an initiative out of fear it would increase their                       
  taxes, and Ketchikan had a similar experience.                               
                                                                               
  REP. BUNDE expressed his concern over the high rate of teen                  
  pregnancy in Alaska and encouraged Dr. Mala to address that                  
  problem.                                                                     
                                                                               
  DR. MALA remarked that the department had recently put a                     
  public health nurse in the Juneau-Douglas High School to                     
  work with students on that problem.                                          
                                                                               
  Number 186                                                                   
                                                                               
  REP. BUNDE asked about the possibility of selling Harborview                 
  mental hospital in Valdez to a private operator.                             
                                                                               
  DR. MALA remarked the department would love to do so, but to                 
  date has had no takers.  He said the state has repeatedly                    
  offered to sell the facility, which incorporates the city                    
  hospital, to the city for $1, also without success.  A                       
  proposal to close Harborview down and place its residents in                 
  communities failed due to lack of money or infrastructure,                   
  Dr. Mala said.                                                               
                                                                               
  REP. BUNDE stated that Lloyd Rupp, commissioner of the                       
  Department of Corrections, had in conversations mentioned                    
  the possibility of having those in short-term alcohol and                    
  drug intervention programs pay the costs for such programs.                  
  Rep. Bunde asked Dr. Mala whether there were plans to                        
  implement such an action.                                                    
                                                                               
  DR. MALA said no, partly because some of those involved are                  
  minors, but he indicated his willingness to consider Rep.                    
  Bunde's suggestion that permanent fund dividends could be                    
  used to compensate treatment costs even for minors.                          
                                                                               
  REP. BUNDE asked whether parents of children born with fetal                 
  alcohol syndrome were asked to pay any of the cost.                          
                                                                               
  DR. MALA said such costs are so high that even taking                        
  parents' permanent fund dividends would represent but a                      
  small fraction of the total costs.  He added that there have                 
  been several cases in which such children or their estates                   
  have later tried to sue their parents for negligence, though                 
  apparently without success.                                                  
                                                                               
  Number 242                                                                   
                                                                               
  REP. BUNDE informed Dr. Mala that a bill may be introduced                   
  to allow minors charged with major crimes to be tried as                     
  adults in state courts.  He also asked how often residents                   
  in McLaughlin Youth Center return to the prison system.                      
                                                                               
  DR. MALA answered that the rate of recidivism into crime is                  
  about 50 percent, a rate lower than he would have thought.                   
  He said he did not know how often inmates at McLaughlin                      
  returned to that same institution, but he would find out and                 
  relay the information.                                                       
                                                                               
  REP. BUNDE applauded the idea of linking employment services                 
  and welfare, and asked Dr. Mala for more suggestions on how                  
  to slow and reverse the rate of increase in welfare rolls.                   
                                                                               
  DR. MALA said he intended, during a more detailed                            
  presentation on the Division of Public Assistance, to                        
  discuss ideas on how to reduce the financial incentives for                  
  people to enroll in, or remain in, welfare programs.  The                    
  department is examining the possibility of receiving federal                 
  waivers to allow state welfare recipients to retain savings                  
  or otherwise get ahead financially, and he would like to                     
  make a more detailed presentation on such plans.  Dr. Mala                   
  announced the department would attend a special two-day                      
  meeting of the National Governors' Association on welfare                    
  reform, to be held in Oregon in early February.                              
                                                                               
  Number 297                                                                   
                                                                               
  CHAIR TOOHEY asked whether the state compensates those                       
  cities and boroughs that accept public health                                
  responsibilities for such programs.                                          
                                                                               
  DR. MALA replied that the state pays such cities an amount                   
  equal to what such services would cost the state.                            
                                                                               
  REP. G. DAVIS inquired as to the truth of the idea that                      
  Alaska's welfare system is so generous as to attract                         
  indigents from outside the state.                                            
                                                                               
  DR. MALA answered that his staffers said no.                                 
                                                                               
  REP. G. DAVIS also asked whether the department could find                   
  itself paying increasing amounts of money to provide health                  
  care to citizens of Russia.                                                  
                                                                               
  DR. MALA responded that the department's international                       
  cooperation with Russia is limited to emergency services to                  
  those in the Bering Sea.                                                     
                                                                               
  REP. NICHOLIA asked how the announced $460,000 cut in                        
  federal funding for alcohol and drug abuse prevention                        
  programs in Alaska in FY 1994 would impact the state's                       
  efforts in that area.                                                        
                                                                               
  DR. MALA said the cut was a significant source of worry, and                 
  the department was seeking replacements for that money.                      
                                                                               
  REP. NICHOLIA also asked where the counseling, emergency                     
  shelters, family mediation, patenting classes, home                          
  detention services and other elements of the family                          
  preservation program would be offered, and expressed her                     
  hope that they could be offered in Bush Alaska.                              
  DR. MALA remarked such programs would be offered in the                      
  state's major communities.                                                   
                                                                               
  Number 349                                                                   
                                                                               
  BRIAN SAYLOR, Deputy Commissioner for Direct Services, noted                 
  the department was reviewing the responses to a request for                  
  proposals on intensive home-based services and would soon                    
  issue its short list.                                                        
                                                                               
  At Rep. Nicholia's query, MR. SAYLOR said the department was                 
  working that the department does work with regional health                   
  organizations on such programs.                                              
                                                                               
  REP. NICHOLIA asked how the department's circumpolar health                  
  initiatives related to regional health concerns.                             
                                                                               
  MR. SAYLOR said the initiatives help bring Natives together                  
  across international lines to address such problems as                       
  alcoholism and other community health problems through                       
  traditional methods and to try to improve current programs.                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIR TOOHEY thanked Dr. Mala and his staff for their                        
  presentation.  There being no further business before the                    
  committee, Chair Toohey adjourned the meeting at 4:10 p.m.                   

Document Name Date/Time Subjects