Legislature(2003 - 2004)

01/30/2003 03:03 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                                                                         
                       STANDING COMMITTEE                                                                                     
                        January 30, 2003                                                                                        
                           3:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Carl Gatto, Vice Chair                                                                                           
Representative Cheryll Heinze                                                                                                   
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kelly Wolf                                                                                                       
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative John Coghill                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING                                                                                                            
                                                                                                                                
Commissioner, Department of Health And Social Services                                                                        
                                                                                                                                
     Joel Gilbertson - Juneau                                                                                                   
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
OVERVIEW:  DEPARTMENT OF HEALTH & SOCIAL SERVICES, COMMISSIONER                                                                 
DESIGNEE JOEL GILBERTSON                                                                                                        
                                                                                                                                
     - HEARD [See 3:45 p.m. minutes for this date]                                                                              
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOEL GILBERTSON, Commissioner                                                                                                   
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified as appointed  commissioner of the                                                               
Department of Health and Social Services.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-5, SIDE A                                                                                                             
                                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  PEGGY  WILSON  called the  House  Health,  Education,  and                                                             
Social Services Standing Committee meeting  to order at 3:03 p.m.                                                               
Representatives Wilson,  Gatto, Heinze,  and Seaton  were present                                                               
at  the  call to  order.    Representatives Cissna,  and  Kapsner                                                               
arrived as the  meeting was in progress.   Representative Coghill                                                               
also attended.                                                                                                                  
                                                                                                                                
CONFIRMATION HEARING                                                                                                          
                                                                                                                                
Commissioner, Department of Health And Social Services                                                                        
                                                                                                                                
Number 0090                                                                                                                     
                                                                                                                                
CHAIR  WILSON announced  that the  committee  would consider  the                                                               
appointment  of  Joel  Gilbertson  as  the  commissioner  of  the                                                               
Department of  Health and  Social Services.   Chair  Wilson asked                                                               
Commissioner Gilbertson to give a  statement and tell the members                                                               
the direction he plans to lead the department.                                                                                  
                                                                                                                                
Number 0190                                                                                                                     
                                                                                                                                
JOEL GILBERTSON,  Commissioner, Department  of Health  and Social                                                               
Services (DHSS),  told the members  that for the past  four years                                                               
he  had the  privilege  of serving  as  legislative director  and                                                               
staff  representative  for  the   United  States  Senate  Finance                                                               
Committee for  Governor Murkowski during  his term in  the United                                                               
States Senate.   During that time,  he said, he worked  on issues                                                               
such  as  Medicaid,  Medicare, community  access  hospitals,  and                                                               
community health  centers.   He explained that  a huge  number of                                                               
the federal programs  that he worked on are handled  at the state                                                               
level by the  Department of Health and Social Services.   He told                                                               
members  what a  tremendous  task  it will  be  to carry  forward                                                               
Governor Murkowski's agenda  for DHSS because of  the broad scope                                                               
of services.                                                                                                                    
                                                                                                                                
COMMISSIONER GILBERTSON told the  committee that in reviewing the                                                               
needs throughout the state, he finds  that needs are being met in                                                               
some areas,  and not  in others.   He cited  the ongoing  lack of                                                               
primary health care  access in a lot of Alaska,  and the problems                                                               
faced  by many  individuals  who cannot  access  the health  care                                                               
insurance market.   Even those who can access  insurance find the                                                               
cost is very high.  He  mentioned the need for greater assistance                                                               
and more  cooperation from the  Departments of Health  and Social                                                               
Services  and Labor  and Work  Force Development  to provide  job                                                               
training and  child care assistance  to help individuals  who are                                                               
trying to transition from welfare to work.                                                                                      
                                                                                                                                
Number 0317                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  talked about the Division  of Family and                                                               
Youth  Services'  recent  [during prior  administration]  federal                                                               
review,  which  showed  that  it  is  not  meeting  the  national                                                               
standards.   He stated there  are areas within that  review which                                                               
are simply unacceptable  for this state, and it will  be the task                                                               
of the  commissioner and new  director of the Division  of Family                                                               
and Youth Services to lead  the division forward, restore morale,                                                               
and provide good management.   Commissioner Gilbertson summarized                                                               
the primary goal of the  department, which is to provide services                                                               
and to meet the needs of Alaskans.                                                                                              
                                                                                                                                
Number 0435                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  expressed his  view that the  state does                                                               
not always have  to be the actual provider of  services.  He said                                                               
that sometimes  a facilitator  can deliver  the services  and the                                                               
state can  provide the  seed money  so that  entities can  be the                                                               
service provider.   He explained, however, that  there will still                                                               
be some  cases, particularly in  some areas, for which  the state                                                               
will continue to  be the provider.  He emphasized  that it is the                                                               
responsibility of  the Department  of Health and  Social Services                                                               
to do everything as efficiently as possible.                                                                                    
                                                                                                                                
COMMISSIONER GILBERTSON told the  committee that the governor has                                                               
asked Lieutenant  Governor Leman  and him to  work in  pursuing a                                                               
faith-based agenda  and to ensure  that the Department  of Health                                                               
and  Social Services  is maximizing  and facilitating  the social                                                               
services networks  throughout the state.   He said many  of these                                                               
organizations  have  a tremendous  ability  to  provide care  for                                                               
those who need it.  To  facilitate this, the department will work                                                               
to provide access to information on  questions such as how it can                                                               
deliver the service, where the  populations are located, or where                                                               
there is  a gap in coverage.   He stated that  wherever there are                                                               
needs not being  met, it is going to be  the department's task to                                                               
build  the partnerships  and facilitate  the collaborations  that                                                               
allow  these services  to be  provided.   Commissioner Gilbertson                                                               
emphasized that this  is going to be particularly  important at a                                                               
time when the state is facing considerable financial challenges.                                                                
                                                                                                                                
Number 0684                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  stated to  the committee that  the State                                                               
of Alaska's  Medicaid program  has a mission,  a purpose,  and an                                                               
obligation under federal law to  cover low-income individuals who                                                               
cannot access health  care insurance, and who need  services.  He                                                               
expressed   his  commitment   to   identifying  [those   people],                                                               
delivering [those services], and  ensuring that those individuals                                                               
who need services  and coverage get it.  He  emphasized that as a                                                               
state,  Alaska has  an obligation  to  make sure  it is  managing                                                               
these programs in a fiscally prudent fashion.                                                                                   
                                                                                                                                
Number 0738                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  said the  governor wants  him to  find a                                                               
way  for the  state to  protect  services while  trying to  bring                                                               
fiscal stability back to the programs.   He said he wants to work                                                               
with the legislature  to protect programs, not just  this year or                                                               
next year,  but into  the future.   Commissioner  Gilbertson told                                                               
the  committee  it  will  be  essential  to  work  together  with                                                               
communities, facilities, and providers to find solutions.                                                                       
                                                                                                                                
COMMISSIONER GILBERTSON told the  committee that he accepted this                                                               
job with a  firm commitment to work  as hard as he  can every day                                                               
to ensure the  department is maximizing services  for the dollars                                                               
that are  invested in the programs.   He sees that  as essential,                                                               
he said, since there are needs  that are still not being met, and                                                               
the  state  simply   does  not  have  the   resources  to  invest                                                               
additional funds  into the Medicaid  program.  He said  this year                                                               
the  department will  work aggressively  with  providers to  make                                                               
sure it is maximizing other  revenue streams.  Those sources will                                                               
be federal  funding, and  the DHSS will  be working  closely with                                                               
the  congressional  delegation  to push  for  additional  federal                                                               
medical  assistance percentage  (FMAP) adjustments  to draw  down                                                               
additional  federal  resources.    The department  will  also  be                                                               
working aggressively and cooperatively  with its grantees to find                                                               
ways  to  refinance some  of  its  grants  in order  to  maximize                                                               
federal dollars.                                                                                                                
                                                                                                                                
COMMISSIONER GILBERTSON  explained that the Department  of Health                                                               
and Social Services is currently  spending 100 percent of general                                                               
fund dollars to  fund grants.  The department will  be working to                                                               
find  ways whereby  the state  can  continue that  same level  of                                                               
service, but  with less  general fund  commitment.   He explained                                                               
that  it will  be  essential to  work  cooperatively to  identify                                                               
inefficient systems where  care is being delivered  that does not                                                               
maximize   federal   revenues.     Federal   medical   assistance                                                               
percentages are  determined by who  the beneficiary is  and where                                                               
the service is  provided.  In some areas there  is 60 percent, in                                                               
other areas there  is 71 percent, and in some  areas there is 100                                                               
percent  federal  reimbursement.     The  commissioner  said  the                                                               
department must maximize  those dollars so that  services will be                                                               
protected.                                                                                                                      
                                                                                                                                
COMMISSIONER GILBERTSON stated  that the Murkowski Administration                                                               
is  putting together  a good  team that  is committed  to working                                                               
with the  legislature, cooperatively  and in partnership  as they                                                               
develop the budget  and shape the missions for  the Department of                                                               
Health  and  Social  Services  and  the  State  of  Alaska.    He                                                               
expressed  his commitment  to always  be  available whenever  the                                                               
committee asks for  assistance, or whenever the  committee sees a                                                               
need  for  dialogue  about  issues.   He  said  he  believes  the                                                               
Department of Health and Social  Services and the legislature can                                                               
work together  to find solutions  to maintain services,  and that                                                               
it  is not  all  about  the budget  or  fiscal  problems, but  he                                                               
believes it  is key to  start there to bring  financial stability                                                               
back to the  department.  He said that it  is essential for those                                                               
individuals  who  interact  with  the Department  of  Health  and                                                               
Social  Services  to  have predictability  in  the  services  and                                                               
funding  they  receive,  and that  [the  department]  meet  those                                                               
unserved needs in both health and social services.                                                                              
                                                                                                                                
Number 0777                                                                                                                     
                                                                                                                                
CHAIR WILSON  noted that Representatives  Kapsner and  Cissna had                                                               
joined the  committee meeting.   Chair Wilson opened  the meeting                                                               
to questions of Commissioner Gilbertson.                                                                                        
                                                                                                                                
Number 0784                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO  said that  in reviewing  the organizational                                                               
chart  of the  Department of  Health and  Social Services  he had                                                               
noted that there are six  vacant senior management positions that                                                               
need to  be filled  to complete the  team.   Representative Gatto                                                               
asked whose responsibility is it to make those appointments.                                                                    
                                                                                                                                
Number 0809                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  responded that today  Governor Murkowski                                                               
announced the  appointment of six  individuals to  the Department                                                               
of Health  and Social  Services.   Those individuals  include Bob                                                               
Labbe, Deputy Commissioner,  an individual who has  served as the                                                               
director   of  the   Division  of   Medical   Assistance.     The                                                               
commissioner said he  is a national expert  on Medicaid financing                                                               
and  Medicaid issues,  an invaluable  resource to  the state  and                                                               
legislature, and a wonderful asset to the commissioner's office.                                                                
                                                                                                                                
Number 0844                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON  said  another wonderful  individual  is                                                               
Karleen  Jackson,  Deputy  Commissioner, an  individual  who  has                                                               
served  for the  last  few  years as  the  executive director  of                                                               
Catholic  Social  Services.    He   said  she  brings  tremendous                                                               
experience and is  by far the most  highly recommended individual                                                               
he has ever  seen, and he believes  she will be a  great asset to                                                               
the department and the committee in the coming year.                                                                            
                                                                                                                                
Number 0874                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  told the committee that  Doug Bruce, the                                                               
former  chief  executive  officer   (CEO)  of  Providence  Health                                                               
System,  has  been appointed  the  director  of the  Division  of                                                               
Public Health.   He  said Mr.  Bruce has led  one of  the largest                                                               
health  care systems  in Alaska  through  change and  has led  it                                                               
well.   The commissioner said  he will  be a tremendous  asset as                                                               
the  leader of  the  largest division  in  the department,  which                                                               
provides health care  services throughout the state  and helps in                                                               
many  areas  including  epidemiology,  maternal  child  services,                                                               
nursing,  and other  areas.   He  will be  a tremendous  resource                                                               
within the department, he concluded.                                                                                            
                                                                                                                                
Number 0907                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  stated that the governor  also appointed                                                               
Bill Hogan  as the  director of  Mental Health  and Developmental                                                               
Disabilities.   Mr.  Hogan is  currently serving  as CEO  of Life                                                               
Quest,  a mental  health  provider in  Wasilla,  and the  current                                                               
chair of the Alaska Mental Health Board.                                                                                        
                                                                                                                                
Number 932                                                                                                                      
                                                                                                                                
COMMISSIONER GILBERTSON said the  governor appointed Ron Adler to                                                               
replace  Randall  Burns, who  is  retiring  as superintendent  of                                                               
Alaska  Psychiatric  Institute (API).    He  said Mr.  Adler  has                                                               
served as the executive director  of the Gateway Center for Human                                                               
Services in Ketchikan.                                                                                                          
                                                                                                                                
Number 0943                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON   stated  that  the   final  appointment                                                               
Governor  Murkowski   made  today  is  Rebecca   Parker,  Special                                                               
Assistant for the  commissioner's office.  Ms.  Parker has served                                                               
as  the president  of  Providence Alaska  Foundation  and as  the                                                               
Director of Public  Affairs of Providence Health  System, and has                                                               
also  worked   in  several  positions   in  the   Public  Affairs                                                               
Department of ARCO [Atlantic Richfield  Company].  He stated that                                                               
she  will be  an invaluable  resource serving  the Department  of                                                               
Health  and   Social  Services  as  the   community  coordinator,                                                               
constituent   services  coordinator,   and  event   organizer  in                                                               
Anchorage.  She will be a  partnership builder as the state works                                                               
to  find  ways  to  involve  the  private  sector,  specifically,                                                               
nonprofit organizations.                                                                                                        
                                                                                                                                
Number 0989                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON specifically  addressed the  question by                                                               
Representative Gatto, saying the  governor makes all appointments                                                               
and those appointees  serve at the pleasure of the  governor.  He                                                               
added that  the Department of  Health and Social Services  has an                                                               
excellent team  coming on board,  and that the  administration is                                                               
moving forward  aggressively on a number  of remaining vacancies.                                                               
He  said the  governor is  pleased to  have these  individuals on                                                               
board.  The commissioner told  the committee he believes they are                                                               
going to be a wonderful asset to the state.                                                                                     
                                                                                                                                
Number 1010                                                                                                                     
                                                                                                                                
CHAIR  WILSON noted  for the  record that  Representative Coghill                                                               
had joined the meeting.                                                                                                         
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA inquired  about the  Department of  Health                                                               
and Social Services' support of  legislation regarding breast and                                                               
cervical cancer.                                                                                                                
                                                                                                                                
Number 1047                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON   responded  that   he  is   aware  that                                                               
legislation has been introduced,  but has not personally reviewed                                                               
the  language.   He  added that  he was  privileged  to work  for                                                               
Governor  Murkowski,  then United  States  Senator,  to pass  the                                                               
Medicaid expansion  option.  The commissioner  said that Governor                                                               
and  Mrs.  Murkowski  are  supportive  of  the  program,  and  he                                                               
believes the governor is examining  the legislation.  He said the                                                               
Department of Health and Social  Services will also be looking at                                                               
it, but that process has not begun yet.                                                                                         
                                                                                                                                
Number 1075                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HEINZE asked  Commissioner  Gilbertson about  the                                                               
statement in his resume that  he worked on Governor Murkowski's -                                                               
then  United States  Senator -  Alaska-specific Medicaid  program                                                               
that increased  federal support  to the  program by  $300 million                                                               
over eight  years.  Representative  Heinze asked how he  was able                                                               
to do that.                                                                                                                     
                                                                                                                                
Number 1094                                                                                                                     
                                                                                                                                
COMMISSIONER   GILBERTSON   clarified   that  it   was   Governor                                                               
Murkowski, then United States Senator,  who accomplished it.  The                                                               
governor  was  able  to  pass through  the  United  State  Senate                                                               
Finance Committee an FMAP adjustment in  1997 and again 2000.  In                                                               
1997 there was  a statutory change of the FMAP  formula.  At that                                                               
time Alaska's  FMAP percentage was  50 percent.  What  that meant                                                               
was that  the state was paying  50 cents on every  dollar and the                                                               
federal government was  paying 50 cents on every  dollar.  During                                                               
the change  for 1997  through 2000,  the state's  FMAP percentage                                                               
was  fixed at  59.8  percent, and  was a  large  increase in  the                                                               
Medicaid  appropriation.   The result  of that  change was  about                                                               
$100 million  additional dollars  over the three-year  period for                                                               
Alaska's  Medicaid program.   In  2000, as  part of  the Benefits                                                               
Improvement  and Protection  Act  of 2000  (BIPA), the  governor,                                                               
then  United  States  Senator,   was  successful  in  getting  an                                                               
adjustment  in  the  formula through  the  United  States  Senate                                                               
Finance Committee.                                                                                                              
                                                                                                                                
COMMISSIONER   GILBERTSON   explained,    without   getting   too                                                               
technical, that  the formula  basically looks  at the  per capita                                                               
income of  a state and compares  that with the per  capita income                                                               
of the  national average.   States that  have a  lower per-capita                                                               
income pay a smaller percent,  and the reverse it true, wealthier                                                               
states pay the  highest percentage.  The most a  state can pay is                                                               
50 percent,  so Alaska was  paying as  much as any  state towards                                                               
its claims.   He said the lowest state was  Mississippi, with the                                                               
federal  government picking  up about  73 percent  of the  costs.                                                               
The logical  predicate for  that adjustment is  that the  cost of                                                               
delivering care in Alaska is a  lot higher.  Per-capita income is                                                               
not a good marker in delivering care in Alaska.                                                                                 
                                                                                                                                
COMMISSIONER GILBERTSON told the  committee that in 2000 Governor                                                               
Murkowski, then  United States Senator, won  an additional change                                                               
in the formula.   He said he  was privileged to work  on this for                                                               
the governor, then United States  Senator, when the United States                                                               
Senate  Finance Committee  adjusted  Alaska's  per capita  income                                                               
down by  5 percent before  it is entered  into the formula.   The                                                               
resulting adjustment was an increase  in Alaska's federal medical                                                               
assistance percentage.   The end  result of that is  scheduled to                                                               
sunset on October 1, 2005.                                                                                                      
                                                                                                                                
COMMISSIONER  GILBERTSON concluded  by saying  that from  2001 to                                                               
2005 there  will be an  increase of  about $40 million  dollars a                                                               
year or  $200 million over  five years  for the State  of Alaska.                                                               
Those  two  adjustments  combined   are  about  $300  million  in                                                               
additional  Medicaid  funding  that  has come  from  the  federal                                                               
government  as  a  result  of  technical  changes  that  Governor                                                               
Murkowski, then  United States Senator, made  in Washington, D.C.                                                               
to help improve  services.  Those federal dollars  have been used                                                               
to  expand  health  care services  and  strengthen  the  delivery                                                               
system  to allow  for a  higher level  of care  and to  provide a                                                               
better  provider  rate  to  ensure  providers  continue  to  keep                                                               
accepting Medicaid patients.                                                                                                    
                                                                                                                                
Number 1277                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  asked what he  thinks of the  draft change                                                               
in  the budget  for the  Independent Living  Centers.   He stated                                                               
that  the  change  will  close   Independent  Living  Centers  in                                                               
Fairbanks, Kenai, and  Ketchikan, and reduce the one  in Homer to                                                               
one half.   Representative  Seaton said  he understands  that the                                                               
Department  of  Labor  [and Workforce  Development's]  10-percent                                                               
adjustment in the draft budget is  all coming from that one area.                                                               
He asked  the commissioner  if he  is aware  of the  draft budget                                                               
cuts and how that would impact Independent Living Centers.                                                                      
                                                                                                                                
Number 1331                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON stated  that both he and  his director of                                                               
the Division  of Administrative Services, Janet  Clarke, have not                                                               
seen the  proposal; however, he  is aware there was  some mention                                                               
of it in  the media.  He  promised to look into  the proposal and                                                               
get back to the committee.                                                                                                      
                                                                                                                                
Number 1365                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON offered  to provide Commissioner Gilbertson                                                               
with some  materials concerning the  proposal.  He added  that it                                                               
would appear to be a huge impact on state dollars.                                                                              
                                                                                                                                
Number 1385                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO  asked  about breast  and  cervical  cancer                                                               
treatment, saying  these are gender-specific benefits.   He asked                                                               
if females have a higher priority than males.                                                                                   
                                                                                                                                
Number 1415                                                                                                                     
                                                                                                                                
COMMISSIONER GILBERTSON  explained that his  background [master's                                                               
degree  in public  health] has  trained him  in a  core tenet  of                                                               
public health  and, that is,  do not produce a  screening process                                                               
if there is  not a treatment available.  He  stated that in 1990,                                                               
the federal  government decided to establish  a screening program                                                               
for  breast  and cervical  cancer  within  the CDC  [Centers  for                                                               
Disease Control and Prevention] for  low-income women.  What they                                                               
came up  with was  a program  that said,  "Congratulations you've                                                               
got cancer;  we'll try to  work to  find you some  free treatment                                                               
options  in  the  community."    It took  10  years  to  add  the                                                               
requisite  insurance   coverage  to   provide  the  care.     The                                                               
commissioner said that when the  governor was in the U.S. Senate,                                                               
he did  not like  it, so  he co-sponsored and  voted in  favor of                                                               
language that  would provide the  associated treatment  option to                                                               
go  with  that screening  program.    The Governor,  then  United                                                               
States Senator, made  a strong statement that this  should not be                                                               
a disease-by-disease  or body-part by body-part  expansion of the                                                               
Medicaid program, but  there was a commitment made  to women that                                                               
was not  being fulfilled.   He added  that while it  expanded the                                                               
Medicaid  program to  provide the  associated coverage,  it is  a                                                               
very small population  of women.  There  were legitimate concerns                                                               
made by some  United States Senators that this may  not be a wise                                                               
policy or a  prudent way of expanding the Medicaid  program.  The                                                               
commissioner said that at the time,  the facts that were in front                                                               
of  Governor Murkowski,  then United  States  Senator, were  that                                                               
there  was  a  screening  program   that  was  ongoing,  with  no                                                               
treatment  options for  these women.    He said  he believes  the                                                               
decision  to make  that a  Medicaid option  was appropriate.   He                                                               
pointed  out that  there  have  been tremendous  differentiations                                                               
between men  and women  for years,  including differences  in the                                                               
way men and  women are treated in clinical trials  for drugs, and                                                               
access to health care.  There  are a number of differences in the                                                               
way  men and  women access  health care  services.   For example,                                                               
women go to doctors more often than men do.                                                                                     
                                                                                                                                
Number 1595                                                                                                                     
                                                                                                                                
REPRESENTATIVE KAPSNER  stated for the record  that several years                                                               
back, then-Senator Duncan  introduced prostate cancer legislation                                                               
that required insurance companies  to cover prostrate cancer, and                                                               
the bill passed  very quickly.  Representative  Kapsner said last                                                               
year a  number of women  legislators were wondering  why prostate                                                               
cancer gets the  green light, but breast and  cervical cancer get                                                               
the  red light.   She  said she  sees differing  opinions on  the                                                               
anatomy and gender issues.                                                                                                      
                                                                                                                                
REPRESENTATIVE  KAPSNER said  the people  of the  Yukon-Kuskokwim                                                               
Delta, and all  of Alaska, want to  thank Commissioner Gilbertson                                                               
for his help  in getting the Inhalant Abuse  Treatment Center and                                                               
all the work he has done on Medicaid.                                                                                           
                                                                                                                                
Number 1649                                                                                                                     
                                                                                                                                
REPRESENTATIVE KAPSNER  stated that  in the national  media there                                                               
has been  a lot of coverage  about family and youth  services and                                                               
foster care.  She noted that  in Alaska there have been deaths of                                                               
young children in foster care.   Representative Kapsner asked the                                                               
commissioner  how he  is planning  on improving  the Division  of                                                               
Family and Youth Services.                                                                                                      
                                                                                                                                
Number 1665                                                                                                                     
                                                                                                                                
COMMISSIONER   GILBERTSON   responded   that   there   are   good                                                               
professionals  in  the Division  of  Family  and Youth  Services.                                                               
However, there are serious problems,  which were addressed in the                                                               
federal review,  and the division's  failure to meet a  number of                                                               
those  standards is  reason  for  concern.   He  stated that  the                                                               
federal standards  are good, and  the debate should not  be about                                                               
whether  or not  the standards  are appropriate  for Alaska,  but                                                               
that when  standards deal  with harm to  a child,  the department                                                               
will  accept the  highest standard.   He  told the  committee the                                                               
first thing  the governor  did is  initiate an  aggressive search                                                               
for  the best-qualified  person to  take over  leadership of  the                                                               
Division of Family and Youth  Services.  He said final interviews                                                               
will be  conducted next  week and an  announcement of  the person                                                               
who  will lead  children's  services into  the  future should  be                                                               
announced soon.                                                                                                                 
                                                                                                                                
Number 1743                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON  went on  to  say  that person  will  be                                                               
tasked with  developing and  negotiating the  program improvement                                                               
plan for the  Division of Family and Youth Services.   As part of                                                               
the federal review, the state  is required to provide its program                                                               
improvement plan to document how it  is going to meet the federal                                                               
standards.    There  will  be   a  variety  of  issues  addressed                                                               
including the  review of caseloads for  frontline social workers,                                                               
ensuring that  the requisite clerical  and managerial  support is                                                               
available  for frontline  workers, ensuring  they have  the tools                                                               
they need, and that there  are adequate resources in the division                                                               
to  ensure  that  reports  of   harm  can  be  investigated,  and                                                               
implementing  a new  information  system to  better track  cases.                                                               
The division will be working  aggressively to make sure treatment                                                               
options are  available to help families  stay together, including                                                               
treatment options that ensure children  are protected from abuse,                                                               
and vigilance that  the Department of Health  and Social Services                                                               
does not  see patterns develop  that one  might see in  the child                                                               
protection  system.   The commissioner  asked that  the committee                                                               
understand that  he is not  being specific, as the  department is                                                               
still  in negotiations  on how  to  move forward  in the  program                                                               
improvement plan.   He also  does not want  to be so  specific it                                                               
would inhibit  program development  for the  new director  of the                                                               
Division  of Family  and Youth  Services.   He said  the director                                                               
will  be the  individual who  will  be held  accountable for  the                                                               
results.                                                                                                                        
                                                                                                                                
COMMISSIONER   GILBERTSON  explained   that   when  the   program                                                               
improvement  plan  is approved  by  the  federal government,  the                                                               
State of Alaska  will have two years to implement  that plan.  He                                                               
told  the committee  this administration,  this department,  this                                                               
commissioner's office,  and the new  director of the  Division of                                                               
Family  and  Youth   Services  are  going  to   be  committed  to                                                               
accomplishing those goals.   He emphasized his desire  to see the                                                               
professionals  in children's  services have  the flexibility  and                                                               
tools to succeed.                                                                                                               
                                                                                                                                
Number 1840                                                                                                                     
                                                                                                                                
CHAIR  WILSON  explained  that Commissioner  Gilbertson  will  be                                                               
giving  an  overview  of  the Department  of  Health  and  Social                                                               
Services later  in the  meeting and  asked that,  if appropriate,                                                               
questions be held until then.                                                                                                   
                                                                                                                                
Number 1854                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO  expressed concerns  he has heard  from many                                                               
providers of  Denali KidCare that  the program is  not adequately                                                               
covering costs and  that the program has discrepancies.   He went                                                               
on to  say that Lieutenant  Governor Leman has also  expressed an                                                               
interest in  revising some  of the  specifics in  Denali KidCare.                                                               
He  asked Commissioner  Gilbertson  what his  plans  are for  the                                                               
Denali KidCare program?                                                                                                         
                                                                                                                                
Number 1898                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON  stated  that   the  governor  wants  to                                                               
preserve  Denali  KidCare  and  wishes  it  to  remain  a  viable                                                               
insurance  product   for  the  children  of   Alaska.    Governor                                                               
Murkowski, then United States Senator,  voted to create the state                                                               
option  for  the  children's  health  insurance  program  at  the                                                               
federal  level.   The  commissioner said  that  states do  retain                                                               
tremendous flexibility  in the design, structure,  and management                                                               
of their  children's health  insurance plan.   In Alaska  that is                                                               
Denali KidCare,  and it has been  a tremendous success.   He said                                                               
the  Department  of Health  and  Social  Services will  be  doing                                                               
everything in its  power to protect services,  but the department                                                               
stands ready to engage in  any conversations that the legislature                                                               
wants to  have on  structure.   He told  the committee  that they                                                               
will be meeting  with the House Finance  Committee tomorrow where                                                               
Denali  KidCare will  be discussed.    He explained  that at  the                                                               
moment, the  governor has not made  any decision on how  he wants                                                               
to proceed  on eligibility,  benefits, or  payment rates.   While                                                               
this  is a  program the  governor supports,  the program  will be                                                               
completely reviewed by  the department to ensure that  it has the                                                               
resources to  maintain it  as a  viable health  insurance product                                                               
for Alaska's children.                                                                                                          
                                                                                                                                
Number 1942                                                                                                                     
                                                                                                                                
REPRESENTATIVE HEINZE  asked Commissioner Gilbertson  his opinion                                                               
on certificate of need.                                                                                                         
                                                                                                                                
Number 1948                                                                                                                     
                                                                                                                                
COMMISSIONER  GILBERTSON  replied  that certificate  of  need  is                                                               
state law  in Alaska  and that the  executive branch  carries out                                                               
the law.   He said  he is aware that  some states have  done away                                                               
with  the  certificate-of-need  clause,   and  some  states  have                                                               
retained  it.   He explained  that the  certificate-of-need law's                                                               
justification is  that the state  has an interest  and investment                                                               
in the health care system because  the state is the primary payer                                                               
for health care services in Alaska.   The state's interest in how                                                               
the health care systems are  structured, designed, and positioned                                                               
is to identify  and ensure that sufficient  health care resources                                                               
and  delivery  needs   of  Alaskans  are  being  met.     If  the                                                               
legislature wants  to look at the  certificate-of-need program to                                                               
see if  this program  is still  important for  Alaska, that  is a                                                               
conversation  the Department  of  Health and  Social Services  is                                                               
willing to have.   He stated that it is the law  now and that the                                                               
department  will continue  to administer  the certificate-of-need                                                               
program as responsibly and efficiently  as possible.  He said the                                                               
department will work to clarify  regulations; however, it has not                                                               
yet begun  the review  of them, so  he cannot  provide specifics.                                                               
He  added  that  proposed  regulations  will  be  drafted,  where                                                               
needed, to clarify the certificate-of-need law.                                                                                 
                                                                                                                                
Number 2010                                                                                                                     
                                                                                                                                
REPRESENTATIVE HEINZE  made a motion to  advance the confirmation                                                               
of Joel  Gilbertson as commissioner  of the Department  of Health                                                               
and Social Services to the full body for confirmation.                                                                          
                                                                                                                                
Number 2076                                                                                                                     
                                                                                                                                
CHAIR   WILSON   asked   if  there   were   any   objections   to                                                               
Representative Heinze's  motion.   There being no  objection, the                                                               
confirmation of Joel Gilbertson was advanced.                                                                                   
                                                                                                                                
CHAIR WILSON announced  that at 3:45 p.m. there would  be a brief                                                               
at-ease, after which the committee  would hear an overview of the                                                               
Department of  Health and  Social Services.   [For  the overview,                                                               
see the 3:45 p.m. minutes for this date.]                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The  House   Health,  Education  and  Social   Services  Standing                                                               
Committee took  an at-ease at 3:45  p.m. in order to  prepare for                                                               
the overview.  [For the overview  by the Department of Health and                                                               
Social Services, see the 3:45 p.m. minutes for this date.]                                                                      
                                                                                                                                

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