Legislature(2005 - 2006)Anch LIO Conf Rm

09/27/2006 08:30 AM House HEALTH, EDUCATION & SOCIAL SERVICES


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08:35:28 AM Start
08:37:30 AM Using Alaska's Health Care Dollars Wisely: Medicaid and Long-term Care
09:28:25 AM Using Alaska's Health Care Dollars Wisely: Chronic Disease
10:21:10 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Working Group: Using Alaska's Healthcare TELECONFERENCED
Dollars Wisely
Chronic Disease - Tammy Green
Medicaid & Long Term Care - Jerry Fuller
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                       Anchorage, Alaska                                                                                        
                       September 27, 2006                                                                                       
                           8:35 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Paul Seaton, Vice Chair                                                                                          
Representative Tom Anderson                                                                                                     
Representative Carl Gatto                                                                                                       
Representative Vic Kohring                                                                                                      
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Senator Bettye Davis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
USING ALASKA'S HEALTH CARE DOLLARS WISELY:  MEDICAID AND LONG-                                                                  
TERM CARE; CHRONIC DISEASE                                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JERRY FULLER, Project Director                                                                                                  
Office of Program Review                                                                                                        
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the topic of Medicaid and long-                                                                  
term care.                                                                                                                      
                                                                                                                                
JON SHERWOOD, Medical Assistant                                                                                                 
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Responded to questions regarding the topic                                                                 
of Medicaid and long-term care.                                                                                                 
                                                                                                                                
CHUCK BURNHAM, Legislative Analyst                                                                                              
Legislative Research                                                                                                            
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency (LAA)                                                                                                
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Responded  to  a   question  during  the                                                               
discussion regarding Medicaid and long-term care.                                                                               
                                                                                                                                
TAMMY GREEN, Chief                                                                                                              
Chronic Disease                                                                                                                 
Division of Public Health                                                                                                       
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented the topic of chronic disease.                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 8:35:28  AM.                                                             
Representatives Wilson  and Gardner were  present at the  call to                                                               
order.   Representative  Cissna  arrived as  the  meeting was  in                                                               
progress.  Senator Davis was also in attendance.                                                                                
                                                                                                                                
^Using Alaska's Health  Care Dollars Wisely:   Medicaid and Long-                                                             
Term Care                                                                                                                     
                                                                                                                                
8:37:30 AM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the first topic  the committee would                                                               
consider  would pertain  to using  Alaska's  health care  dollars                                                               
wisely with regard to Medicaid and long-term care.                                                                              
                                                                                                                                
8:37:43 AM                                                                                                                    
                                                                                                                                
JERRY FULLER, Project Director,  Office of Program Review, Office                                                               
of  the Commissioner,  Department of  Health and  Social Services                                                               
(DHSS),  began by  stating  that the  committee  should have  the                                                               
executive summary of  a report by the Lewin Group  on the cost of                                                               
the  Medicaid  program.    The  committee  should  also  have  an                                                               
executive summary  from the Public Consulting  Group (PCG), which                                                               
was a study  commissioned to review the  actions the [department]                                                               
might take to  improve the long-term care system.   The committee                                                               
should  also have  a one-page  quote from  the Commonwealth  Fund                                                               
Forum  regarding the  challenges facing  Medicaid financing,  new                                                               
flexibilities under the federal laws  and regulations, as well as                                                               
the  challenges   facing  states  in  terms   of  sustainability,                                                               
quality,  and meeting  the  needs  of the  people.    He said  he                                                               
included the  quote because it  seems to encapsulate  the current                                                               
situation, although the quote was penned in 1981.                                                                               
                                                                                                                                
MR. FULLER  then thanked  the committee for  its support  for the                                                               
Medicaid   program  and   the  long-term   care   system.     The                                                               
aforementioned supports  the most vulnerable and  needy citizens.                                                               
The Medicaid  system has evolved  from a program  that originally                                                               
only  provided for  nursing  home services  to  an industry  unto                                                               
itself.   In  the early  1980s, waivers  were developed  allowing                                                               
people  to  choose  long-term  care  services  within  their  own                                                               
community and in their own home.   In the mid 1990s Alaska joined                                                               
the waiver alternative and as a  result has been able to restrain                                                               
the growth of nursing home beds in the state.                                                                                   
                                                                                                                                
MR. FULLER highlighted that the  Lewin report clearly showed that                                                               
the  growth  in  Medicaid  services   for  Alaska's  elderly  and                                                               
disabled population  will quadruple in  the next 20 years  or so,                                                               
which is  a nationwide issue.   Mr. Fuller acknowledged  that the                                                               
state could  assume that the  federal government will  assume the                                                               
long-term care  costs much like  it did  with the drug  costs for                                                               
seniors.   In  fact, former  U.S. Secretary  of Health  and Human                                                               
Services Tommy  Thompson has  put forth  a proposal  stating that                                                               
the  federal  government  should  take over  the  long-term  care                                                               
system.   However,  one can't  assume that  will happen  any time                                                               
soon.  Therefore,  the state needs to adjust its  system in order                                                               
to  make it  as sustainable  as possible  in the  long term.   He                                                               
explained that  by sustainable,  he means that  the costs  can be                                                               
reduced.  The  demographics of the senior  population are pushing                                                               
the  cost of  and the  need for  the long-term  care system.   He                                                               
noted that the first Baby Boomers  are turning 60 and most states                                                               
haven't  prepared  for the  upcoming  onslaught  of services  and                                                               
needs for  the aging Baby  Boomer population.   Additionally, the                                                               
number of  people over age 85  is rapidly increasing.   Adding to                                                               
this situation  is that employers  are dropping insurance  or the                                                               
benefits   are  becoming   reduced  such   that  there   is  less                                                               
availability  of the  employer-sponsored insurance  to cover  the                                                               
other medical needs of these aging populations.                                                                                 
                                                                                                                                
8:44:22 AM                                                                                                                    
                                                                                                                                
MR. FULLER  commented that  there are a  multitude of  drivers of                                                               
this  issue.   Furthermore,  there isn't  much  control over  the                                                               
aging  population, he  said.    He then  related  that the  Lewin                                                               
report assumed  the same program  without any  significant policy                                                               
changes  throughout  its  projection.    However,  the  issue  of                                                               
Medicare coverage  for retired  folks may  change because  it has                                                               
been  reported  that  fewer physicians  are  accepting  Medicare.                                                               
Medicare  is  a primary  payer,  and  therefore when  a  Medicare                                                               
physician can't  be found,  the secondary payer  won't pay.   The                                                               
aforementioned situation results in people  having to pay cash to                                                               
see a  physician or practitioner.   If that continues,  one might                                                               
suggest  that these  individuals  might move  to locations  where                                                               
they can  obtain Medicare benefits,  which could  change Alaska's                                                               
demographics.                                                                                                                   
                                                                                                                                
8:47:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER relayed  that she has been  hearing from a                                                               
lot  of  constituents  who are  experiencing  difficulty  finding                                                               
physicians  who  are  taking  Medicare  patients.    One  of  the                                                               
problems  in such  situations is  that the  [secondary] insurance                                                               
refuses  to cover  the gap.   Therefore,  she suggested  that one                                                               
solution could  be a program  by which the  [secondary] insurance                                                               
would cover what the physician can't obtain from Medicare.                                                                      
                                                                                                                                
MR.  FULLER said  that  he isn't  the  appropriate individual  to                                                               
address   that,  although   he   concurred  with   Representative                                                               
Gardner's summation.                                                                                                            
                                                                                                                                
8:48:20 AM                                                                                                                    
                                                                                                                                
JON SHERWOOD, Medical Assistant,  Department of Health and Social                                                               
Services  (DHSS),  relayed  that relatively  recent  federal  law                                                               
requires physicians  who accept  Medicare payments to  accept the                                                               
Medicare  rate  for  payment.    He  related  his  understanding,                                                               
"Unless  you  take  just  a very  small  percentage  of  Medicare                                                               
clients, you're required  to accept the Medicare rates.   So, you                                                               
cannot  charge  ...  your  patient or  an  insurance  company  an                                                               
additional rate."   Mr. Sherwood noted that he  had just reviewed                                                               
his  mother's  Medicare  statement,  which seemed  to  imply  the                                                               
aforementioned.  He said that  of the bills he reviewed, Medicare                                                               
paid 30-60 percent of the physician charge.                                                                                     
                                                                                                                                
REPRESENTATIVE GARDNER  commented that  it's not  surprising then                                                               
that physicians aren't willing to take Medicare patients.                                                                       
                                                                                                                                
8:50:11 AM                                                                                                                    
                                                                                                                                
SENATOR BETTYE  DAVIS, Alaska State  Legislature, inquired  as to                                                               
what is different about Alaska's  system [with regard to Medicare                                                               
patients] as  compared to other states.   She inquired as  to how                                                               
seniors in  other states  would be allowed  to use  their primary                                                               
insurance before using Medicare.                                                                                                
                                                                                                                                
MR. FULLER  answered that  generally the  charges for  the health                                                               
care services  in other states  are closer to what  Medicare will                                                               
pay  and  thus  practitioners  are  more  able  to  accept  that.                                                               
"Alaska's high cost  of everything appears to be  driving the gap                                                               
between what Medicare will reimburse  and the usual and customary                                                               
charges," he said.                                                                                                              
                                                                                                                                
SENATOR  DAVIS maintained  that it  seems to  be more  than that.                                                               
She related that [she has been  told] that patients who have been                                                               
on a physician's case load for  some time are being told that the                                                               
physician  can  no  longer  see them  because  if  the  physician                                                               
doesn't accept  the Medicare, then  the physician can't  have the                                                               
patient's   private   insurance   pay.     She   attributed   the                                                               
aforementioned  situation  to  something   that  [the  state  has                                                               
established].                                                                                                                   
                                                                                                                                
MR. FULLER explained that the  change that occurred January 1 was                                                               
a  reduction   in  Medicare  reimbursement.     He   related  his                                                               
understanding  that there  was a  two-year adjustment  upwards in                                                               
Medicare  that expired  in January,  which  dropped the  Medicare                                                               
reimbursement.     He   related  that   [Alaska's  congressional]                                                               
delegation is working on this.                                                                                                  
                                                                                                                                
8:52:37 AM                                                                                                                    
                                                                                                                                
CHAIR WILSON surmised  then that this situation  with Medicare is                                                               
occurring nationwide, but  since Alaska has such  high costs many                                                               
Alaskan physicians aren't accepting [Medicare] patients.                                                                        
                                                                                                                                
MR.  FULLER  said that  appears  to  be  the  case.   In  further                                                               
response to  Chair Wilson, Mr.  Fuller reiterated  that [Alaska's                                                               
congressional] delegation is working on  the issue.  He explained                                                               
that he brought this matter  to the committee's attention because                                                               
without correction,  the demographics of Alaska  will be changed.                                                               
He opined  that Alaskans will  head south to obtain  health care.                                                               
He pointed out that the Lewin  report is based on the status quo,                                                               
and factors such as this may cause [different results].                                                                         
                                                                                                                                
CHAIR WILSON  asked if a  letter from the committee  [to Alaska's                                                               
congressional delegation] would be helpful.                                                                                     
                                                                                                                                
MR. FULLER responded that it wouldn't hurt.                                                                                     
                                                                                                                                
8:54:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA,  recalling her visit to  Washington, D.C.,                                                               
about three  years ago, noted  that U.S. Senator  Stevens' office                                                               
had indicated  that they'd  not received  enough support  for the                                                               
increase   in    Medicaid   payments   to    the   practitioners.                                                               
Representative  Cissna   also  related  that  she   has  received                                                               
constituent concerns about access  to physicians.  Therefore, she                                                               
questioned  how this  issue could  be  made a  more high  profile                                                               
issue.   She related her  belief that people didn't  realize that                                                               
[Medicaid  payments] were  being  supplemented  above the  normal                                                               
payments.   The  loss  of  that must  have  really increased  the                                                               
problem and  may not  be realized  at this point  yet.   She then                                                               
questioned how  this problem can be  tracked in order to  be able                                                               
to inform the general public.                                                                                                   
                                                                                                                                
8:56:50 AM                                                                                                                    
                                                                                                                                
MR.  FULLER  continued  his testimony  by  reiterating  that  the                                                               
overall demographic  is driving  the Lewin  projection, including                                                               
inflation, increased  aging, et cetera.   Furthermore, within the                                                               
PCG report  and previous reports, there  are recommendations with                                                               
regard to  changes to Alaska's system  to be able to  sustain the                                                               
system  long term.    Mr.  Fuller pointed  out  that  one of  the                                                               
primary areas is  entry into the long-term care system.   He then                                                               
recalled recent testimony to Congress  from Arizona's governor in                                                               
which   she  related   that  Arizona   has  a   vigorous  medical                                                               
eligibility  pool, which  means  that the  state  has a  rigorous                                                               
objective  screening  of  individuals prior  to  determining  the                                                               
level of care  required.  The aforementioned is  the gateway into                                                               
the  waiver system.   Alaska,  he opined,  needs to  improve such                                                               
that there is  better enforcement when individuals  don't need to                                                               
be in nursing home care.                                                                                                        
                                                                                                                                
MR.  FULLER then  explained that  in  Alaska and  the nation  the                                                               
primary  source  of  long-term  care  is  the  daughter  and  the                                                               
daughter-in-law.    Any  system  changes  shouldn't  disrupt  the                                                               
aforementioned,  but instead  should  support that.   Mr.  Fuller                                                               
opined,  "While   the  Medicaid  costs  for   long-term  care  is                                                               
increasing  rapidly, we  still  have this  huge  unpaid pool  out                                                               
there,  the relatives  - the  unsung heroes,  if you  will.   And                                                               
whatever  changes we  want to  make in  the future  that make  it                                                               
sustainable, we don't  want to disrupt that.  We  want to support                                                               
that as best we can."                                                                                                           
                                                                                                                                
CHAIR  WILSON remarked  on the  issue of  burnout with  regard to                                                               
relatives taking care  of older relatives after  coming home from                                                               
a job.                                                                                                                          
                                                                                                                                
8:59:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  related  her  understanding  that  those                                                               
providing  care to  family  members  are now  being  paid by  the                                                               
state,  which  has  resulted  in   more  people  being  paid  for                                                               
services.   The  aforementioned  could be  attributing to  rising                                                               
costs, she indicated.                                                                                                           
                                                                                                                                
MR.  FULLER acknowledged  that  the system  is  not perfect,  but                                                               
assured  the committee  that [the  department]  will continue  to                                                               
make improvements.                                                                                                              
                                                                                                                                
REPRESENTATIVE  CISSNA  highlighted  that   she  has  observed  a                                                               
demographic shift  in Alaska from  the time when people  left the                                                               
state to take  care of their family.  However,  now it seems that                                                               
more  people are  deciding to  stay  in the  state, bring  family                                                               
members to  the state, and  even retire in  the state.   There is                                                               
also the situation  in which older Alaskans are  filling jobs and                                                               
there is a gap due to the lack  of a younger middle age sector in                                                               
the state.   Therefore, it  would seem  that if the  policies are                                                               
changed  enough, there  will  be a  decrease  in the  middle-aged                                                               
individuals  who bring  family  members into  the  state.   Those                                                               
individuals  will  leave  the  state  with  family  members,  she                                                               
opined.                                                                                                                         
                                                                                                                                
MR. FULLER  acknowledged those points,  but said that  he doesn't                                                               
have any data.   Across the nation in terms  of employment, there                                                               
will be  large retirement  booms across the  country in  the next                                                               
five  years.   Moreover,  there  are  much fewer  younger  people                                                               
moving along with  the expertise or even the desire  to take over                                                               
some of  these rather important  jobs.  This  is all part  of the                                                               
Baby Boom.   When social security began,  40-50 workers supported                                                               
each  retired person  while  now only  2-3  workers support  each                                                               
social security beneficiary.                                                                                                    
                                                                                                                                
9:03:51 AM                                                                                                                    
                                                                                                                                
CHAIR  WILSON remarked  that Alaska  might be  the only  state in                                                               
which those 65 and older  don't pay property taxes.  Furthermore,                                                               
there is  no state income or  state sales tax in  Alaska and thus                                                               
the  state  doesn't  receive any  revenue  from  older  Alaskans.                                                               
Therefore,  the more  people  who  come to  the  state, the  more                                                               
difficult it is  for the state to provide  services because there                                                               
is  no more  money received  by  the increased  population.   She                                                               
opined that the state can't sustain [this situation].                                                                           
                                                                                                                                
9:05:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  emphasized  that  there's  a  distinction                                                               
between  what is  good for  the state  and what  is good  for the                                                               
local economies.  For the state, it  would be best if no one came                                                               
to Alaska at all because of  the pressure on the state created by                                                               
an increase  in population.   However,  in small  communities the                                                               
retired  and elderly  population  is doing  the unpaid  volunteer                                                               
work.  The seniors are the  ones with real money in the community                                                               
and  create  the ability  for  small  communities to  exist,  she                                                               
related.  If  the aforementioned is true,  the legislature should                                                               
know that because it will have  a large impact.  She reminded the                                                               
committee that  a legislator's  job is to  "keep the  state okay"                                                               
and to build the local economy.                                                                                                 
                                                                                                                                
MR.   FULLER   continued   his  testimony   by   mentioning   the                                                               
recommendations in  the PCG report  regarding the need  to modify                                                               
and improve  the service  array to best  support people  in their                                                               
own  homes  as  long  as reasonably  and  financially  practical.                                                               
Furthermore, the  assisted living array  of services needs  to be                                                               
appropriate  to keep  people out  of nursing  homes.   Mr. Fuller                                                               
said  that  these  reports provide  numerous  recommendations  to                                                               
consider, and  it would be  impossible to simply  institute those                                                               
of  even one  report.    He estimated  that  it  would require  a                                                               
transition of three  to five years in order to  reach the goal of                                                               
a sustainable  system.  He  suggested that now, while  the budget                                                               
is solid, is the time to figure out this situation.                                                                             
                                                                                                                                
9:11:10 AM                                                                                                                    
                                                                                                                                
CHAIR WILSON mentioned  that she has recently spoken  with one of                                                               
the House Finance  Committee co-chairs who has  indicated that as                                                               
early as  next year there  will be cuts  in the budget  if things                                                               
don't   improve.     She  emphasized   the  need   to  know   the                                                               
ramifications of the changes.                                                                                                   
                                                                                                                                
MR.  FULLER noted  that in  the health  care system  one can  cut                                                               
services, but  if someone  is sick  that individual  will receive                                                               
services  and those  services are  likely to  be received  in the                                                               
highest  cost  setting,  the  emergency   room.    Therefore,  he                                                               
suggested   that  the   committee   review  possible   unintended                                                               
consequences because  they can  cost more  in the  short-term and                                                               
the long-term.   Additionally, the quality  assurance system must                                                               
be modified  and improved  in order to  work in  conjunction with                                                               
the  new system.   He  pointed  out that  the over  age 85  group                                                               
probably doesn't have  many relatives to check on  them no matter                                                               
where  they  live and  thus  a  quality assistance  structure  to                                                               
ensure  that  people are  safe  and  not  being abused  or  taken                                                               
advantage of by others is necessary.                                                                                            
                                                                                                                                
MR.  FULLER  then turned  attention  to  the tribal  health  care                                                               
system in Alaska.  He explained  that when the tribal health care                                                               
system provides services to an  American Indian or Alaskan Native                                                               
it's 100  percent federally  funded.  The  tribal system  is only                                                               
beginning  to look  at the  long-term  care system  as a  service                                                               
array that it  might be able to  provide to its members.   If the                                                               
state can  work closely with  the tribal health  corporations and                                                               
support them  in their expansion  of long-term care  services for                                                               
members,  those organizations  and the  state win.   However,  he                                                               
acknowledged that federal funding is  fairly flat and thus tribes                                                               
have their own financial issues to  deal with as they try to meet                                                               
the needs of their members.                                                                                                     
                                                                                                                                
9:15:34 AM                                                                                                                    
                                                                                                                                
MR.  FULLER informed  the committee  that  the Deficit  Reduction                                                               
Act,  which   was  passed  earlier   this  year,   includes  some                                                               
provisions  to assist  states in  helping middle  class Americans                                                               
not spend  down or hide  assets in  order to become  eligible for                                                               
Medicaid.  Furthermore,  [the Act] has opened  up the possibility                                                               
of long-term care partnerships, which  have been utilized in four                                                               
states for  some time, such  that those who can  afford long-term                                                               
care insurance  can use it to  shelter an equal amount  of assets                                                               
compared to  the benefit  of the insurance  they have.   Although                                                               
the savings  are only a few  million, the middle class  folks who                                                               
obtain and use this insurance  generally don't enter the Medicaid                                                               
system.                                                                                                                         
                                                                                                                                
MR. SHERWOOD, in response to  Chair Wilson, explained that if one                                                               
qualifies for Medicaid to pay  for long-term care, the individual                                                               
has  to meet  financial  eligibility criteria.    Any money  [the                                                               
state]  would  spend  on  long-term care  is  subject  to  estate                                                               
recovery, and  therefore the  state can make  a claim  against an                                                               
individual's estate  once he/she  dies.   If someone  purchases a                                                               
long-term  care  insurance  policy under  this  partnership,  the                                                               
individual receives a dollar-for-dollar  credit when applying for                                                               
Medicaid,  and thus  reduces that  individual's  assets that  are                                                               
counted for  Medicaid.  Furthermore,  under this program  when an                                                               
individual dies, the state will  disregard the credit established                                                               
under  the long-term  care partnership  from the  estate recovery                                                               
procedure.   Moreover, if the  long-term care  partnership policy                                                               
proves  to be  inadequate, Medicaid  can still  pay.   In further                                                               
response  to Chair  Wilson, Mr.  Sherwood  said that  individuals                                                               
using the long-term  care partnership can do what  they want with                                                               
those  assets they  have set  aside.   He informed  the committee                                                               
that those states  who implemented this program in  1993 are just                                                               
beginning  to see  savings because  relatively  small numbers  of                                                               
individuals  who purchased  this  insurance  are using  long-term                                                               
care.  Although  it's uncertain how much states will  save in the                                                               
long term, the program is a  way to encourage the middle class to                                                               
take more  responsibility for providing for  their long-term care                                                               
along with a backup system with the Medicaid system.                                                                            
                                                                                                                                
CHAIR  WILSON suggested  that Legislative  Research  may need  to                                                               
look into the aforementioned.                                                                                                   
                                                                                                                                
9:21:09 AM                                                                                                                    
                                                                                                                                
CHUCK   BURNHAM,  Legislative   Analyst,  Legislative   Research,                                                               
Legislative  Legal  and  Research Services,  Legislative  Affairs                                                               
Agency (LAA), agreed to do so.                                                                                                  
                                                                                                                                
MR. FULLER informed the committee  that a second option for those                                                               
with estates  with assets is  reverse mortgages.   However, those                                                               
are  very high  cost loans.   He  suggested that  perhaps reverse                                                               
mortgages  could be  made  more consistent  and  governed by  the                                                               
Division  of  Insurance in  order  to  cause  people to  be  more                                                               
willing to utilize  that approach.  With regard  to other general                                                               
incentives, he  expressed the  option of  implementing incentives                                                               
that would encourage individuals  to utilize their permanent fund                                                               
dividend with a  state supplement in order  to purchase long-term                                                               
care.    Again,  the  notion  is  that  individuals  have  to  be                                                               
responsible  for him/herself  as best  as possible.   Mr.  Fuller                                                               
acknowledged that  there are individuals  who will never  be able                                                               
to save or acquire assets to  take care of themselves in old age.                                                               
Medicaid should  take care  of such people.   However,  the other                                                               
population  should be  educated  with the  fact  that they  can't                                                               
necessarily count on  the government taking care of  them.  Along                                                               
those lines,  he related the following  quote:  "If I  knew I was                                                               
going  to  live so  long,  I  would  have  taken better  care  of                                                               
myself."    Mr. Fuller  then  highlighted  that there  are  other                                                               
issues, including  that the workforce  consists of  fewer younger                                                               
people  available  to take  care  of  the rapidly  growing  older                                                               
population.   Therefore,  the question  becomes who  will provide                                                               
the services  to this older  population.  He emphasized  that the                                                               
aforementioned  is a  national issue  with no  simple answer  for                                                               
Alaska.                                                                                                                         
                                                                                                                                
9:25:18 AM                                                                                                                    
                                                                                                                                
CHAIR WILSON,  drawing upon her  nursing background,  related the                                                               
higher cost  for traveling medical professionals  such as nurses.                                                               
If this  is the  situation now, she  questioned what  will happen                                                               
when the long-term care situation worsens.                                                                                      
                                                                                                                                
CHAIR  WILSON  asked  if  the department  could  specify  to  the                                                               
committee which recommendations have been put in place.                                                                         
                                                                                                                                
MR. FULLER answered that he could provide that to the committee.                                                                
                                                                                                                                
^Using Alaska's Health Care Dollars Wisely:  Chronic Disease                                                                  
                                                                                                                                
9:28:25 AM                                                                                                                    
                                                                                                                                
CHAIR WILSON  announced that the  last topic the  committee would                                                               
consider  would  pertain  to using  Alaska's  healthcare  dollars                                                               
wisely with regard to chronic disease.                                                                                          
                                                                                                                                
9:28:46 AM                                                                                                                    
                                                                                                                                
TAMMY GREEN,  Chief, Chronic Disease, Division  of Public Health,                                                               
Department of  Health and Social  Services (DHSS), referred  to a                                                               
PowerPoint  presentation entitled,  "Chronic disease  in Alaska."                                                               
She began  by emphasizing that  chronic disease is  impacting the                                                               
health care  system in  multiple ways.   In  order to  review the                                                               
scope  of chronic  disease, one  needs  to review  the number  of                                                               
deaths, the quality  of life, and the economic  burden related to                                                               
chronic disease.  In fact, in  2004 58 percent of all deaths were                                                               
related to chronic disease.  Cancer  is the top cause of death in                                                               
Alaska.   She  then expressed  the need  to review  the long-term                                                               
impacts  of  chronic  diseases because  chronic  diseases  impact                                                               
people's  lives  beyond  just  death  as  related  in  the  slide                                                               
entitled,  "Years of  Productive  Life Lost  to Chronic  Diseases                                                               
Alaska 2004."   For instance,  due to  deaths from the  top seven                                                               
chronic  diseases, 8,630  years of  productive life  was lost  in                                                               
Alaska in 2004.   Furthermore, Alaskans who die  from cancer lose                                                               
an average of  4.5 years of productive life and  Alaskans who die                                                               
from diabetes  lose an average  of 7.1 years of  productive life.                                                               
Moreover,  chronic  diseases limit  activity  as  related in  the                                                               
slide entitled,  "Chronic Disease Limits Activity."   In response                                                               
to  Chair Wilson,  Ms. Green  emphasized  the need  to relate  to                                                               
people  that  once an  individual  is  diagnosed with  a  chronic                                                               
disease, there are  many opportunities for self  care and choices                                                               
that enhance that individual's health and productivity.                                                                         
                                                                                                                                
9:33:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked if there  is a comparison of how much                                                               
more or less Alaskan's are at risk as compared to other states.                                                                 
                                                                                                                                
MS.  GREEN  said that  a  comparison  of  risk factors  could  be                                                               
provided.  She  noted that she will review one  of Alaska's major                                                               
risk factors, smoking.                                                                                                          
                                                                                                                                
CHAIR WILSON  opined that what  physicians tell patients  makes a                                                               
difference.   She indicated the  need for physicians to  relay to                                                               
patients [to take proactive steps to manage chronic diseases].                                                                  
                                                                                                                                
MS. GREEN concurred, and noted  that some physicians may not have                                                               
been  trained  in  any   nutrition,  lifestyle,  or  preventative                                                               
medicine.   Physicians have an  opportunity to  educate patients,                                                               
particularly  older patients  who  look to  their physicians  for                                                               
answers, she noted.                                                                                                             
                                                                                                                                
9:36:47 AM                                                                                                                    
                                                                                                                                
MS.  GREEN  then  continued with  the  slide  entitled,  "Chronic                                                               
Disease  Reduces Quality  of Life,"  which relates  that diabetic                                                               
Alaskans  report 11.7  poor health  days per  month and  Alaskans                                                               
with  arthritis report  6.8  poor  health days  per  month.   She                                                               
highlighted   that  often   individuals  have   multiple  chronic                                                               
diseases,  which creates  a synergistic  impact on  health.   The                                                               
next slide "Chronic Disease Increases  Health Care Costs" relates                                                               
that 75  percent of health  care costs  in the U.S.  are directly                                                               
related to chronic disease.   Therefore, chronic diseases have to                                                               
be addressed.   For a large portion of  the population, healthier                                                               
lifestyle choices are key.                                                                                                      
                                                                                                                                
9:39:13 AM                                                                                                                    
                                                                                                                                
MS. GREEN  moved on to  the slide  entitled, "How We  Got There,"                                                               
which relates the  following three major risk  factors:  tobacco,                                                               
inactivity,  overweight  and  obesity.    If  the  aforementioned                                                               
factors  could  be  eliminated  or people  could  be  engaged  in                                                               
healthier behaviors,  Alaska and the  nation would be on  its way                                                               
to a healthier society.                                                                                                         
                                                                                                                                
REPRESENTATIVE CISSNA  recalled that when she  was diagnosed with                                                               
cancer she  was told that  the number  one risk factor  is aging.                                                               
Alaska has an aging population.                                                                                                 
                                                                                                                                
MS. GREEN  agreed that as people  age, they are more  at risk for                                                               
certain  [diseases/conditions].   However, the  earlier mentioned                                                               
major risk  factors speed  up [chronic diseases]  as well  as the                                                               
aging process.  In response  to Representative Gardner, Ms. Green                                                               
explained  that alcoholism,  although it's  a problem  in Alaska,                                                               
isn't directly associated  to chronic disease as  the three major                                                               
risk factors listed.  However,  the section tries to partner with                                                               
those  working on  alcoholism and  keep it  in mind  with chronic                                                               
disease.                                                                                                                        
                                                                                                                                
9:41:33 AM                                                                                                                    
                                                                                                                                
MS.  GREEN turned  attention to  the slides  reviewing adolescent                                                               
and adult smoking  in Alaska and the U.S.   The slides illustrate                                                               
that  adolescent smoking  has decreased  and  is approaching  the                                                               
Healthy Alaskans 2010 goal of  17 percent.  However, the national                                                               
trend  with  adolescent smoking  has  been  to increase.    There                                                               
hasn't been  any adolescent smoking  data for Alaska  since 2003.                                                               
She  explained that  the lacking  data is  related to  the active                                                               
parental consent requirements of  the Youth Risk Behavior Survey,                                                               
which  make it  difficult to  obtain enough  parental consent  to                                                               
survey students.   With regard to adult smoking,  the rates among                                                               
adults have flattened out close  to the national rates.  However,                                                               
the Alaska  Native adult population  has about twice  the smoking                                                               
rate.   Ms. Green moved  on to  the slides related  to overweight                                                               
adolescents and adults  in Alaska and the U.S.   About 27 percent                                                               
of  Alaska's  students  are  overweight  or  at  risk  for  being                                                               
overweight.  Nationally [and in  Alaska] the percentage of adults                                                               
over the last  10 years who are overweight or  obese is climbing.                                                               
In fact,  63 percent of  Alaskan adults are either  overweight or                                                               
obese, which will impact Alaska's  health care system in multiple                                                               
areas.                                                                                                                          
                                                                                                                                
MS.  GREEN  continued  with  the  slide  entitled,  "How  Are  We                                                               
Addressing  It,"  and opined  that  it's  very difficult  to  get                                                               
people to change  behaviors that have developed  over a lifetime.                                                               
She  explained that  one route  is to  identify the  places where                                                               
unhealthy behaviors  occur and can be  impacted while recognizing                                                               
the role  of individual choice.   There seem to be  four settings                                                               
in which the  agency can impact:  the community,  the school, the                                                               
worksite, and  the health care  [environment].  She  then related                                                               
some  of  the  initiatives  currently under  way,  including  the                                                               
formation of the  Section of Chronic Disease  Prevention & Health                                                               
Promotion.    The  formation  of the  section  has  provided  the                                                               
opportunity for integration and "more  bang for our buck."  Other                                                               
initiatives  under   way  are  as   follows:     employee  health                                                               
improvement,   school    wellness   initiative,   community-based                                                               
prevention, disease management,  chronic disease self management.                                                               
She mentioned that  most of the section's  programs are primarily                                                               
funded   by  the   federal  Centers   for  Disease   Control  and                                                               
Prevention.                                                                                                                     
                                                                                                                                
MS. GREEN then reviewed the  initiatives under way with regard to                                                               
employee  health improvement.   She  informed the  committee that                                                               
the section  is doing a  pilot project with  BlueCross BlueShield                                                               
of Alaska  to help it develop  a set of best  practices for small                                                               
businesses  in Alaska  to  ensure that  health  promotion can  be                                                               
accomplished  in an  effective  and  fiscally manageable  manner.                                                               
She suggested that  perhaps in the next six months  there will be                                                               
a how  to handbook  for small  businesses in  Alaska in  terms of                                                               
employee  wellness.   In  response  to  Chair Wilson,  Ms.  Green                                                               
clarified  that this  pilot project  is separate  from the  state                                                               
employees  as it  is working  with very  small businesses  having                                                               
less than 200 employees.                                                                                                        
                                                                                                                                
9:49:02 AM                                                                                                                    
                                                                                                                                
MS. GREEN continued her presentation  with the initiatives in the                                                               
school environment.  As most would  agree, the youth of today are                                                               
the future and  need to be healthy.  However,  children today are                                                               
adopting  a lifestyle  that  is not  conducive  to longevity  and                                                               
health.   Ms.  Green agreed  with  Chair Wilson  that the  coming                                                               
generation will  be the first  generation that isn't  expected to                                                               
live as long  as their parents.  She then  informed the committee                                                               
of the federal  legislation that mandated in  the Women, Infants,                                                               
and Children  (WIC) reauthorization that schools  need to develop                                                               
wellness policies by the summer  of 2006.  Therefore, the section                                                               
staff has been  working diligently with the  [U.S.] Department of                                                               
Education to produce an Alaska wellness  tool kit.  In fact, just                                                               
recently there  was a wellness  institute that was  well attended                                                               
with  over 65  participants.   In response  to Chair  Wilson, Ms.                                                               
Green confirmed  that the aforementioned federal  mandate doesn't                                                               
include funding specifically, which  is why some school districts                                                               
are  just taking  the  sample policy  established  by the  Alaska                                                               
Association of  School Boards.   However, other  school districts                                                               
are fully  embracing this and  utilizing it as an  opportunity to                                                               
push  forward  efforts  already  under  way.    For  example,  in                                                               
Anchorage  huge strides  have  been made  to  switch out  vending                                                               
machines.  She noted that  the Mat-Su and Kodiak school districts                                                               
have done  similar things.  She  noted that there are  some small                                                               
pots of money from the  U.S. Department of Agriculture (USDA) for                                                               
the Team  Nutrition Grant.   Again, getting support for  the YRBS                                                               
is important  in order to  provide strong  foundational arguments                                                               
for  changes  and  determine  if   those  changes  are  making  a                                                               
difference.   Within the community environment  there are several                                                               
initiatives under way, most of  which are community-based tobacco                                                               
prevention  programs since  that's  from where  the most  funding                                                               
comes.    She mentioned  that  currently  there  is review  of  a                                                               
collaborative  effort between  the  school and  the community  in                                                               
order to launch some initiatives  regarding tobacco prevention in                                                               
rural Alaska.   Hopefully, with that initiative  the section will                                                               
be able  to utilize some  of the other broader  and comprehensive                                                               
health education initiatives.                                                                                                   
                                                                                                                                
9:53:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked if the  funds being used  for these                                                               
tobacco initiatives are from the tobacco settlement monies.                                                                     
                                                                                                                                
MS. GREEN replied yes.                                                                                                          
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  if  the  fact  that  the  tobacco                                                               
settlement  monies have  been used  in these  other programs  has                                                               
impacted the ability to move forward with programs.                                                                             
                                                                                                                                
MS. GREEN  opined that there is  a very good base  at this point,                                                               
although there's always  a need for more.  She  noted that in the                                                               
future she  anticipates increased funding.   She acknowledged the                                                               
need to be  judicious when spending money and thus  the things on                                                               
which the money is being spent  should be evaluated as to whether                                                               
they are  having an  impact.   Ms. Green  further opined  that at                                                               
this point  the section  is keeping  up with what  it can  do and                                                               
ensuring  that  it's  good  quality  work.    As  an  aside,  she                                                               
expressed that it would be great  if there was the opportunity to                                                               
use  some of  the  funds in  a broader  sense  for other  chronic                                                               
diseases.                                                                                                                       
                                                                                                                                
REPRESENTATIVE CISSNA echoed comments  regarding the fact that at                                                               
the  seat  of many  of  these  habitual  choices  is the  use  of                                                               
alcohol.  Therefore,  it would be interesting to  know the impact                                                               
of drinking and smoking on prevention dollars.                                                                                  
                                                                                                                                
9:56:13 AM                                                                                                                    
                                                                                                                                
MS. GREEN, in response to  Representative Gardner, clarified that                                                               
there simply aren't  enough funds to do broader  approaches.  She                                                               
opined that  it would be  great to  have enough funds  to perform                                                               
community-based  programs in  other areas  [of chronic  disease],                                                               
such as with obesity prevention.                                                                                                
                                                                                                                                
REPRESENTATIVE  GARDNER  asked whether  the  state's  use of  the                                                               
tobacco  settlement funds  is adversely  impacting the  section's                                                               
ability to do what the funds were designed to do.                                                                               
                                                                                                                                
MS. GREEN  answered that currently  the tobacco  settlement funds                                                               
are  being used  in  a  functional, judicial  way.   She  further                                                               
clarified  that it  would be  nice  to have  the flexibility  the                                                               
tobacco  settlement funds  offer  with other  funding streams  in                                                               
order to do  what is done with  tobacco for other issues.     Ms.                                                               
Green then  moved on to  the health care environment  and related                                                               
that the section  is just starting to review what  can be done in                                                               
the  area  of  disease  management.     She  explained,  "Disease                                                               
management is  a system of coordinated  health care interventions                                                               
and  communications  for  populations with  conditions  in  which                                                               
patient  self-care efforts  are  significant."   She  highlighted                                                               
that   disease    management   supports    the   provider/patient                                                               
relationship and  plan of  care; emphasizes  prevention utilizing                                                               
evidence-based  practice   guidelines  and   patient  empowerment                                                               
strategies;  and  evaluates  clinical, humanistic,  and  economic                                                               
outcomes.     The  aforementioned   merely  means   that  disease                                                               
management is a system that's  designed to intervene at a patient                                                               
level in  order to help  patients manage their disease.   Disease                                                               
management is  being used not only  to improve costs but  also to                                                               
improve the quality of the health  care outcomes.  She noted that                                                               
within Health Care Services, there  is an individual dedicated to                                                               
reviewing  how  disease  management  will look  in  Alaska.    In                                                               
response to Chair Wilson, Ms.  Green related that there are about                                                               
45  staff  in  the  Section  of  Chronic  Disease.    In  further                                                               
response,  Ms.   Green  confirmed  that  all   the  programs  are                                                               
scientifically based.                                                                                                           
                                                                                                                                
10:00:45 AM                                                                                                                   
                                                                                                                                
MS.  GREEN, in  response to  Representative Cissna,  related that                                                               
the  cause  of  most  health  care  expenditures  is  related  to                                                               
lifestyle  choices and  issues.   However,  the  amount of  money                                                               
spent on prevention on the medical  system is less than 1 percent                                                               
while 90-some percent of money spent  on the medical system is on                                                               
after-treatment.    She  explained  that the  goal  with  disease                                                               
management  is  to focus  on  the  individual's quality  of  life                                                               
because those  at the  disease management  stage have  moved past                                                               
prevention.   Ms.  Green emphasized  that she  would like  to see                                                               
more  effort  made  with  regard   to  prevention,  although  she                                                               
acknowledged that it  is difficult to quantify what  is not going                                                               
to happen with regard to prevention.                                                                                            
                                                                                                                                
10:04:02 AM                                                                                                                   
                                                                                                                                
CHAIR  WILSON  recalled  that   earlier  testimony  related  that                                                               
chronic disease  health care costs  account for about  75 percent                                                               
of health care in the U.S.                                                                                                      
                                                                                                                                
MS. GREEN  said that she  doesn't have  an exact cost  of chronic                                                               
disease health  care in Alaska,  but estimated that it  is fairly                                                               
close to or a bit higher than the national cost.                                                                                
                                                                                                                                
CHAIR WILSON opined that the  state has to look toward prevention                                                               
because chronic disease health care  costs are expensive and it's                                                               
growing.                                                                                                                        
                                                                                                                                
MS. GREEN concurred, offering her  preference to put funds toward                                                               
[prevention].   Ms.  Green continued  with  her presentation  and                                                               
turned to  the self-management  component of  disease management.                                                               
She informed the committee that  a nationally known professor who                                                               
developed a model of chronic  disease self-management was brought                                                               
to the  state to  train the  federally qualified  health centers,                                                               
other  community health  care centers,  providers, and  community                                                               
members.  The six-week self-management  course teaches people how                                                               
to   eat  correctly,   manage   stress,   exercise,  and   ensure                                                               
medications  are taken.   Ms.  Green highlighted  that much  work                                                               
remains,  including  working  more  with  communities,  providing                                                               
communities with  prevention information  and tools to  help them                                                               
manage  their  own  health care,  and  continue  partnering  with                                                               
schools  to   promote  healthy  lifestyles   among  youth.     In                                                               
conclusion, Ms.  Green said  that if nothing  is done  and health                                                               
care costs continue to rise "The  youth of today may, on average,                                                               
live  less healthy  and possibly  even shorter  lives than  their                                                               
parents."  She  questioned whether that's the  legacy desired for                                                               
the next generation.                                                                                                            
                                                                                                                                
10:07:04 AM                                                                                                                   
                                                                                                                                
SENATOR DAVIS inquired  as to the percentage of  state funds that                                                               
the section receives.                                                                                                           
                                                                                                                                
MS.  GREEN answered  that  5-10 percent  of  the section's  total                                                               
budget comes from general funds.                                                                                                
                                                                                                                                
SENATOR  DAVIS indicated  that the  legislature should  look into                                                               
[what funds it could provide] to this section.                                                                                  
                                                                                                                                
REPRESENTATIVE CISSNA  commented that  often the people  who give                                                               
money are  those who have  already invested  in the program.   If                                                               
the  state doesn't  invest  more  funds into  the  health of  the                                                               
state, it won't  follow through and do what  is really necessary.                                                               
Until health is viewed as more  important in the state, the state                                                               
won't  invest in  it.   Representative Cissna  then provided  the                                                               
committee with  a copy of  the last Health Caucus  meeting, which                                                               
reviewed how to decrease costs through prevention.                                                                              
                                                                                                                                
CHAIR WILSON mentioned  that she had provided  the committee with                                                               
a  copy of  a  Newsweek  article entitled,  "The  Monster at  Our                                                             
Door."                                                                                                                          
                                                                                                                                
[Following was a brief discussion  regarding the committee's next                                                               
meeting.]                                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
10:21:10 AM                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health, Education and Social  Services Standing Committee meeting                                                               
was adjourned at 10:21 a.m.                                                                                                     

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