03/13/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic | 
|---|---|
| Start | |
| Overview: Division of Childrens Services, Citizen Review Panel | |
| HB100 | |
| HCR1 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HCR 1 | TELECONFERENCED | |
| += | HB 100 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                         March 13, 2007                                                                                         
                           3:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mark Neuman                                                                                                      
Representative Paul Seaton                                                                                                      
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Senator Bettye Davis                                                                                                            
Representative John Coghill                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  CITIZEN REVIEW PANEL OF THE OFFICE OF CHILDREN'S                                                                     
SERVICES                                                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 100                                                                                       
"An Act relating to exempting certain air ambulance services                                                                    
from insurance regulation and requiring certain air ambulance                                                                   
services to provide services."                                                                                                  
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 1                                                                                               
Relating to public health and a health compact.                                                                                 
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 100                                                                                                                  
SHORT TITLE: AIR AMBULANCE SERVICES                                                                                             
SPONSOR(s): REPRESENTATIVE(s) COGHILL                                                                                           
                                                                                                                                
01/16/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/07       (H)       HES, L&C                                                                                               
02/15/07       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
02/15/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/07       (H)       HES, L&C                                                                                               
02/22/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
02/22/07       (H)       <Bill Hearing Canceled>                                                                                
03/01/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/01/07       (H)       Heard & Held                                                                                           
03/01/07       (H)       MINUTE(HES)                                                                                            
03/13/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HCR  1                                                                                                                  
SHORT TITLE: PUBLIC HEALTH AND HEALTH COMPACT                                                                                   
SPONSOR(s): REPRESENTATIVE(s) CISSNA                                                                                            
                                                                                                                                
01/22/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/07       (H)       HES                                                                                                    
03/13/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
FRED VAN WALLINGA, Chair                                                                                                        
Citizen Review Panel                                                                                                            
for the Office of Children's Services                                                                                           
Department of Health & Social Services                                                                                          
Willow, Alaska                                                                                                                  
POSITION STATEMENT:  Provided the presentation by the Citizen                                                                   
Review Panel.                                                                                                                   
                                                                                                                                
SUSAN HEUER, Member                                                                                                             
Citizen Review Panel                                                                                                            
for the Office of Children's Services                                                                                           
Department of Health & Social Services                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the presentation by the                                                                   
Citizen Review Panel.                                                                                                           
                                                                                                                                
SENATOR BETTYE DAVIS, Member                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the presentation by the                                                                   
Citizen Review Panel.                                                                                                           
                                                                                                                                
KARLEEN JACKSON, Commissioner                                                                                                   
Department of Health & Social Services                                                                                          
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Testified  as  the commissioner  of  the                                                               
Department of Health & Social Services.                                                                                         
                                                                                                                                
KAREN LIDSTER, Staff                                                                                                            
to Representative John Coghill                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered  questions regarding the amendments                                                               
to SSHB 100.                                                                                                                    
                                                                                                                                
IRIS MATTHEWS, Staff                                                                                                            
to Representative Berta Gardner                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Answered questions  during the  hearing on                                                               
SSHB 100.                                                                                                                       
                                                                                                                                
ART WARBELOW, President                                                                                                         
Warbelow's Air Ventures, Inc.                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to SSHB 100.                                                                       
                                                                                                                                
PAUL HARRIS, General Manager                                                                                                    
Guardian Flight, Inc.                                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Testified during the hearing on SSHB 100.                                                                 
                                                                                                                                
ERIC STERLING, Owner                                                                                                            
Guardian Flight, Inc.                                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Testified in support of SSHB 100.                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:04:13  PM.                                                             
Representatives  Wilson,  Roses,  Fairclough,  and  Gardner  were                                                               
present at the  call to order.  Representative  Cissna arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
^OVERVIEW:  DIVISION OF CHILDRENS SERVICES, CITIZEN REVIEW PANEL                                                              
                                                                                                                                
3:04:50 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  first order of business would be                                                               
a  presentation by  the Citizen  Review Panel  for the  Office of                                                               
Children's  Services   (OCS),  Department  of  Health   &  Social                                                               
Services (DHSS).                                                                                                                
                                                                                                                                
3:05:27 PM                                                                                                                    
                                                                                                                                
FRED VAN  WALLINGA, Chair, Citizen Review  Panel ("panel"), asked                                                               
each  volunteer  Panel  Review  Member  to  stand  and  introduce                                                               
themselves to the committee.                                                                                                    
                                                                                                                                
3:07:30 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked about the origin of the Citizen Review Panel.                                                                
                                                                                                                                
MR. VAN WALLINGA  answered that, in 1996,  the federal government                                                               
mandated  the  oversight of  children's  services  by a  citizens                                                               
review panel in each state.   The panels are funded by the states                                                               
and  are  directed to  observe  the  policies and  procedures  of                                                               
children's services  offices, and to  ensure that every  state is                                                               
in compliance with  regulatory procedures.  The  Alaska panel has                                                               
been most active in the last  two and one-half years, and closely                                                               
reviews areas of  concern that are brought to its  attention.  In                                                               
addition, the panel writes an  annual review that is submitted to                                                               
the  deputy commissioner  of OCS,  and to  the legislature.   The                                                               
panel also publishes its findings on a website for the public.                                                                  
                                                                                                                                
3:09:47 PM                                                                                                                    
                                                                                                                                
MR. VAN  WALLINGA explained that the  panel is the only  group in                                                               
Alaska  mandated by  the  federal government  and  funded by  the                                                               
state.   Volunteer  members are  selected from  all areas  of the                                                               
state for unlimited  terms.  He also pointed out  that travel and                                                               
written reviews demand much of the member's time.                                                                               
                                                                                                                                
3:11:01 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked how many  hours members have worked during the                                                               
past year.                                                                                                                      
                                                                                                                                
MR. VAN WALLINGA responded that  thousands of volunteer hours are                                                               
devoted to the duties of the panel.                                                                                             
                                                                                                                                
3:11:50 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  informed  the  committee that  OCS  will  have  an                                                               
opportunity  to   comment  on  the  panel's   report  during  its                                                               
presentation at a later date.                                                                                                   
                                                                                                                                
3:12:03 PM                                                                                                                    
                                                                                                                                
SUSAN  HEUER,  Member, Citizen  Review  Panel,  relayed that  the                                                               
federal mandate to  review the policies and procedures  of OCS is                                                               
a large  job to be  competed by eight  volunteers.  In  2006, the                                                               
panel began its work in  the Matanuska-Susitna (Mat-Su) valley by                                                               
beginning a site  review among service providers.   Contacts were                                                               
made with  the troopers, the  child advocacy  centers, children's                                                               
services   contractors,  the   schools,   the  Anchorage   Police                                                               
Department (APD),  and the Department of  Juvenile Justice (DJJ).                                                               
The  panel  then   issued  its  annual  report   to  the  federal                                                               
government and  to the legislature.   As a result of  the panel's                                                               
site review  report, the  commissioner of  DHSS hired  an outside                                                               
auditor to provide an external  audit.  The additional report was                                                               
issued last  year on  the panel's  findings; however,  the report                                                               
has not  been made available to  the panel.  Ms.  Heuer expressed                                                               
the panel's desire to review the  OCS report.  She explained that                                                               
the review  panel traveled  to Juneau  with the  following goals:                                                               
reviewing  the OCS  external report,  reporting  its findings  to                                                               
this committee,  and voicing  its concerns  to OCS  regarding the                                                               
breakdown of children's services in the Mat-Su valley.                                                                          
                                                                                                                                
3:16:03 PM                                                                                                                    
                                                                                                                                
MS.  HEUER further  explained that  the  panel recently  received                                                               
notification that OCS  employees in the Wasilla  and Mat-Su areas                                                               
have  filed  a  grievance  against OCS.    However,  following  a                                                               
lengthy  meeting  with OCS  department  heads  on 3/12/07,  these                                                               
concerns  were  put  to  rest.   The  panel,  she  said,  is  now                                                               
confident that the  department is responding to issues  and is in                                                               
accord with what  the panel has reported.   The department agreed                                                               
to release  its report for the  panel's review, and the  panel is                                                               
confident  that the  department will  act on  its promises.   The                                                               
panel will continue to closely  monitor the situation in the Mat-                                                               
Su valley.                                                                                                                      
                                                                                                                                
3:19:06 PM                                                                                                                    
                                                                                                                                
MS. HEUER further informed the  committee that the panel also met                                                               
with  the  Tribal/State  Collaboration  Group  (T/SCG)  which  is                                                               
working  with OCS  to  assist Native  children  whose parents  or                                                               
guardians are  on welfare.   The tribes  and OCS will  be working                                                               
together and  the panel will assist  in this effort.   She stated                                                               
that  fifty-nine percent  of the  children in  state custody  are                                                               
Native.   Ms.  Heuer  said that  she is  encouraged  by the  many                                                               
people working on this problem.   The bureaucracies that have not                                                               
spoken  meaningfully   on  this  topic  are   beginning  to  have                                                               
dialogue, and  successful models are  being created in  the state                                                               
for other areas  to follow.  She opined that,  although funds are                                                               
available,  many  children  in  the  state  suffer  in  difficult                                                               
situations.                                                                                                                     
                                                                                                                                
3:22:07 PM                                                                                                                    
                                                                                                                                
MS. HEUER relayed  that the Alaska National  Indian Child Welfare                                                               
Act Association  (ICWA) is presently  working well with  OCS, and                                                               
will serve  as a model  for agencies  throughout the state.   Ms.                                                               
Heuer said  that the panel will  issue a new report  in June, and                                                               
expects to report significant changes.   She expressed her belief                                                               
that OCS  will be  open with  the changes that  are needed.   The                                                               
panel's  two year  goal is  to improve  tribal relationships  and                                                               
foster parent relationships  with OCS.  To  accomplish this panel                                                               
members will travel across the  state to identify the problems in                                                               
rural areas.                                                                                                                    
                                                                                                                                
3:23:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  expressed her  concern that the  panel, as                                                               
late as yesterday, did not  have adequate communication with OCS.                                                               
It is  also troubling, she said,  to hear how the  panel seems to                                                               
be the leading agency searching  for solutions to problems within                                                               
OCS.   She asked what efforts  were made to communicate  with the                                                               
department.                                                                                                                     
                                                                                                                                
3:25:09 PM                                                                                                                    
                                                                                                                                
MR. VAN  WALLINGA replied  that the panel  traveled to  Juneau to                                                               
present its  findings and he said  that he felt angry  due to the                                                               
lack  of communication  with OCS.   As  an administrator,  he was                                                               
frustrated that progress was minimal  and that excuses were being                                                               
made.   When  the OCS  commissioner and  deputy commissioner  met                                                               
with the panel, a new atmosphere  of accord became apparent.  The                                                               
department presented  a clear  plan of  how improvements  will be                                                               
made.   The panel  will hold the  department accountable  for the                                                               
implementation  of the  plan, and  include in  its annual  report                                                               
progress,  or the  lack of  progress.   The panel  represents the                                                               
people of  Alaska and its  mandate is  to oversee the  service to                                                               
children  that  is  provided  by the  state,  in  a  confidential                                                               
manner.                                                                                                                         
                                                                                                                                
3:28:34 PM                                                                                                                    
                                                                                                                                
MR. VAN WALLINGA stated that  the panel's major concern continues                                                               
to be  facilitating better communication and  partnership between                                                               
OCS and  the tribes  of Alaska.   The panel  recommends improving                                                               
communication  by  having  the   deputy  commissioner  visit  the                                                               
outlying villages,  not just the  hub communities.   In addition,                                                               
caseworkers and families in the  rural areas need support.  Also,                                                               
consistent full reporting from OCS  is vital.  Further, the panel                                                               
recommends continuity  in the interpretation  of laws  across the                                                               
state.   Mr.  Van Wallinga  concluded  by saying  that the  panel                                                               
recognizes that OCS does have successful outcomes.                                                                              
                                                                                                                                
3:30:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  observed  that   there  is  a  disconnect                                                               
between the panel and OCS.                                                                                                      
                                                                                                                                
MR.  VAN WALLINGA  responded  that  the panel  was  invited to  a                                                               
senior  management  meeting and  that  was  helpful in  improving                                                               
communication.    He  also  suggested   that  panel  members  can                                                               
accompany  OCS   officials  to  villages  for   further  support.                                                               
Working closely  on that level,  and shoulder to  shoulder, would                                                               
be an important  tool to improve communication  between the panel                                                               
and OCS.                                                                                                                        
                                                                                                                                
3:32:58 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked why some  villages are working better with OCS                                                               
than others.                                                                                                                    
                                                                                                                                
MR.  VAN WALLINGA  stressed  that it  is  just the  communication                                                               
factor.   The nature  of a  bureaucracy blocks  communication and                                                               
that is  why the  deputy commissioners must  travel to  the Bush.                                                               
In  the  Tribal/State caucus  members  speak  of the  differences                                                               
between villages  that are 20  minutes outside of a  regional hub                                                               
such as Barrow.                                                                                                                 
                                                                                                                                
3:35:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER spoke  of her experience as  a Guardian ad                                                               
Litem (GAL), and  asked members to imagine what it  is like to be                                                               
a  family, in  this type  of system,  that is  not working  well.                                                               
Even  as  frustrating  as  it  is  for  the  caseworker  and  the                                                               
agencies, it is even more difficult for the families.                                                                           
                                                                                                                                
MR. VAN WALLINGA said that,  in the past, the deputy commissioner                                                               
put  out   a  policy  simply   to  return  phone  calls.     But,                                                               
unfortunately, officials do not always return phone calls.                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER  added that  recruitment and  retention of                                                               
foster  families  is difficult  and  that  returning phone  calls                                                               
becomes crucial.                                                                                                                
                                                                                                                                
MR. VAN WALLINGA also noted that  foster families are not paid in                                                               
a timely manner.                                                                                                                
                                                                                                                                
3:37:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH asked  whether the  audit referred  to                                                               
was an internal, or external, audit and the dates thereof.                                                                      
                                                                                                                                
MR.  VAN WALLINGA  answered that  the  external audit  completion                                                               
date was  in November, 2006, and  the panel requested to  see the                                                               
audit in January, 2007.                                                                                                         
                                                                                                                                
3:39:29 PM                                                                                                                    
                                                                                                                                
SENATOR  BETTYE  DAVIS,  Alaska State  Legislature,  stated  that                                                               
minority  children  are over  represented  in  the statistics  of                                                               
children in OCS custody.   She stressed the importance of keeping                                                               
children out of  the system and pointed out that  the report does                                                               
not address that.                                                                                                               
                                                                                                                                
3:40:40 PM                                                                                                                    
                                                                                                                                
MS.  HEUER  replied  that  OCS   must  collaborate  with  partner                                                               
agencies, such as, tribes, GALs,  therapists, and educators, both                                                               
before and after  children come into custody.   Many children may                                                               
not come  into OCS custody  if the community network  around them                                                               
is more supportive.                                                                                                             
                                                                                                                                
3:42:03 PM                                                                                                                    
                                                                                                                                
SENATOR DAVIS  added that other  minority children are  also over                                                               
represented.   She invited the panel  chair to meet with  her for                                                               
recommendations to address the problem.                                                                                         
                                                                                                                                
MR.  VAN WALLINGA  opined that  there  are too  many children  in                                                               
custody period.                                                                                                                 
                                                                                                                                
3:43:10 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON stated  that  it  is important  to  put money  into                                                               
prevention.   She added that  the appointment of  Karleen Jackson                                                               
as  the commissioner  of  DHSS will  provide  continuity for  the                                                               
department.                                                                                                                     
                                                                                                                                
3:44:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  expressed  her concern  about  the  slow                                                               
process necessary to return a child to his/her home.                                                                            
                                                                                                                                
MR. VAN WALLINGA  opined that there is no answer  to that problem                                                               
at this time; however, the panel  will focus on this issue in the                                                               
near future.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  recalled   that,  as  a  court-appointed                                                               
special advocate (CASA),  she advocated for a boy  who was placed                                                               
out of  state at 7 years  of age.   When he returned, at  age 14,                                                               
his father  was dead, and  he did not know  his land.   She feels                                                               
that he was forgotten when he was sent to Utah.                                                                                 
                                                                                                                                
3:47:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   expressed  his   belief  that   the  DHSS                                                               
commissioner  is willing  to address  problems in  her department                                                               
with openness, candor, and sincerity.   He assured the panel that                                                               
the department will be held  accountable to follow through on its                                                               
promises.                                                                                                                       
                                                                                                                                
3:49:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH recognized the  panel members for their                                                               
service.                                                                                                                        
                                                                                                                                
3:50:19 PM                                                                                                                    
                                                                                                                                
KARLEEN  JACKSON, Commissioner,  Department  of  Health &  Social                                                               
Services (DHSS), stated that "this is  a new day."  She said that                                                               
the  audit report  will be  available  to the  committee and  the                                                               
panel in  two weeks.  She  explained why the external  review was                                                               
commissioned,  and how  that data  is to  be used.   Commissioner                                                               
Jackson said that  the department should be  held accountable and                                                               
pledged to  be honest  on the progress  and attainment  of goals.                                                               
She expects  to see  changes and improvement  over the  next four                                                               
years and described  her meeting with the panel  as beneficial to                                                               
all parties.                                                                                                                    
                                                                                                                                
3:53:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES reiterated the  importance of the timeliness                                                               
of  reports  and  described  how  people  become  disenfranchised                                                               
easily when delays occur.                                                                                                       
                                                                                                                                
3:55:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  expressed her hope that  the volunteers on                                                               
the panel will be appreciated for their efforts.                                                                                
                                                                                                                                
COMMISSIONER JACKSON observed that  the deputy commissioners have                                                               
begun to  meet more often  with the panel.   She stated  that the                                                               
panel members are  a valuable resource to her  department and she                                                               
embraces the offer of the members  to travel to villages with the                                                               
deputy commissioners.   Commissioner Jackson concluded  by saying                                                               
that her  department will work  with the panel  in its role  as a                                                               
review  board, and  also as  a partner  in improving  services to                                                               
children.                                                                                                                       
                                                                                                                                
HB 100-AIR AMBULANCE SERVICES                                                                                                 
                                                                                                                                
3:57:58 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the next order of  business would be                                                               
SPONSOR SUBSTITUTE  FOR HOUSE BILL  NO. 100, "An Act  relating to                                                               
exempting   certain  air   ambulance   services  from   insurance                                                               
regulation  and  requiring  certain  air  ambulance  services  to                                                               
provide services."                                                                                                              
                                                                                                                                
3:58:50 PM                                                                                                                    
                                                                                                                                
KAREN  LIDSTER,  Staff  to Representative  John  Coghill,  Alaska                                                               
State   Legislature,  sponsor,   offered   to  answer   questions                                                               
regarding the amendments to SSHB 100.                                                                                           
                                                                                                                                
4:00:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  moved to adopt Amendment  1, 25-LS0373\E.1,                                                               
Bailey, 3/13/07, which read:                                                                                                    
                                                                                                                                
     Page 1, line 7, following "person.":                                                                                       
          Insert "In this section, "air ambulance service"                                                                      
     means  an  organization  certified  by  the  department                                                                    
     under  AS 18.08.082   to  provide   medically  assisted                                                                    
     transportation,  by  air, to  persons  who  are ill  or                                                                    
     injured."                                                                                                                  
                                                                                                                                
     Page 1, line 9, following "service":                                                                                       
          Insert ", as defined in AS 18.08.095,"                                                                                
                                                                                                                                
CHAIR WILSON objected.                                                                                                          
                                                                                                                                
4:01:41 PM                                                                                                                    
                                                                                                                                
MS. LIDSTER  informed the  committee that  the definition  of air                                                               
ambulance service was suggested by  Shelly Owens of the Emergency                                                               
Medical Service (EMS) unit.                                                                                                     
                                                                                                                                
4:02:13 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON removed  her  objection.   There  being no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
4:02:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER moved  Amendment 2, 25-LS0373\E.2, Bailey,                                                               
3/13/07, which read:                                                                                                            
                                                                                                                                
     Page 1, line 1, following "regulation":                                                                                  
          Insert ", limiting the duration of air ambulance                                                                    
     service subscriptions,"                                                                                                  
                                                                                                                                
     Page 1, line 5, following "services.":                                                                                   
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 1, following line 7:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(b)  An air ambulance service may not issue a                                                                        
     subscription for a period greater than two years."                                                                         
                                                                                                                                
REPRESENTATIVE ROSES objected.                                                                                                  
                                                                                                                                
4:02:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER stated that the  purpose of Amendment 2 is                                                               
to  minimize  the risk  exposure,  for  individuals who  are  not                                                               
sophisticated insurance consumers, by  limiting the length of the                                                               
subscription to two years.   She added that subscriptions for air                                                               
ambulance services are not regulated.                                                                                           
                                                                                                                                
4:03:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  asked how limiting the  subscription to two                                                               
years will help  the consumer.  The risk to  the consumer is that                                                               
the service that they have paid for may not be available.                                                                       
                                                                                                                                
CHAIR WILSON  noted that  the current  subscription limit  is for                                                               
one year.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GARDNER explained that  the limit prohibits a flat                                                               
rate subscription for a life-time membership.                                                                                   
                                                                                                                                
4:05:01 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON corrected her statement  and said that the amendment                                                               
specifies [not] "for a period greater than two years."                                                                          
                                                                                                                                
REPRESENTATIVE ROSES  clarified that  the subscriptions  would be                                                               
limited to a maximum of two  years, and the original bill did not                                                               
have a time limit.                                                                                                              
                                                                                                                                
4:05:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  noted that  a  consumer  living in  rural                                                               
Alaska may be at fish camp  or elsewhere during part of the year.                                                               
Often they may  not have the logistical means to  receive mail or                                                               
to maintain telephone  connections.  She suggested  that a longer                                                               
term  would  benefit  consumers  and  the  business  selling  the                                                               
service.                                                                                                                        
                                                                                                                                
4:08:34 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  pointed out that  an air ambulance service  can not                                                               
sell a membership to a subscriber  unless it has been in business                                                               
in Alaska for two years.                                                                                                        
                                                                                                                                
CHAIR  WILSON   stated  that  Representative   Cissna's  comments                                                               
pertain to  a different  issue that  can be  set aside  for later                                                               
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE CISSNA reiterated that,  from the consumer's point                                                               
of view, it  would be difficult to subscribe for  only two years.                                                               
Consumers need to get the best  kind of service available and may                                                               
have a difficult  time renewing every two  years.  Representative                                                               
Cissna offered an  amendment to Amendment 2  which replaces "two"                                                               
with "five" years.                                                                                                              
                                                                                                                                
REPRESENTATIVE  GARDNER objected  for discussion  purposes.   She                                                               
opined that  most of the  consumers, who  will be served  by SSHB
100, have  seasonal work and  travel patterns and  will, thereby,                                                               
be available for renewal within a two year period.                                                                              
                                                                                                                                
REPRESENTATIVE  ROSES expressed  his  doubt about  the intent  of                                                               
SSHB  100  and  emphasized  that  this  subscription  is  not  an                                                               
insurance  policy.   Consumers  do  not  have the  protection  of                                                               
insurance regulation  and are subscribing, with  good faith, that                                                               
the seller  will continue to be  in business for the  duration of                                                               
the  contract.    It  is  more comfortable  to  consider  that  a                                                               
business  will  still be  available  in  two, rather  than  five,                                                               
years.  He opposed the amendment to Amendment 2.                                                                                
                                                                                                                                
4:12:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA withdrew her amendment to Amendment 2.                                                                    
                                                                                                                                
4:12:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  removed  his  objection  to  Amendment  2.                                                               
There being no further objection, Amendment 2 was adopted.                                                                      
                                                                                                                                
4:13:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GARDNER  offered   Amendment   3,  labeled   25-                                                               
LS0373\E.3, Bailey, 3/13/07, which read:                                                                                        
                                                                                                                                
     Page 1, line 1, following "regulation":                                                                                  
          Insert ", prohibiting sale of air ambulance                                                                         
     services to persons already covered,"                                                                                    
                                                                                                                                
     Page 1, line 5, following "services.":                                                                                   
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 1, following line 7:                                                                                                  
     Insert a new subsection to read:                                                                                           
     "(b)    An  air  ambulance   service  may  not  sell  a                                                                    
     subscription to a person who  has full coverage for air                                                                    
     ambulance services  from another source,  including the                                                                    
     Indian   Health    Service,   Medicaid,    or   private                                                                    
     insurance."                                                                                                                
                                                                                                                                
REPRESENTATIVE ROSES objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE GARDNER  explained that  Amendment 3  will protect                                                               
the  consumer who  already has  full coverage  insurance benefits                                                               
for air ambulance services.  She added  that it will be up to the                                                               
company selling the subscription to make that determination.                                                                    
                                                                                                                                
4:14:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES confirmed that  the burden of responsibility                                                               
is on the person selling the subscription.                                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER noted her agreement.                                                                                     
                                                                                                                                
4:14:50 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked whether consumers  always know the  extent of                                                               
their insurance coverage.                                                                                                       
                                                                                                                                
REPRESENTATIVE   GARDNER  responded   that   consumers  and   the                                                               
subscription sellers are responsible for that determination.                                                                    
                                                                                                                                
4:16:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  observed that  SSHB 100  will regulate                                                               
an insurance product that should  be governed under the insurance                                                               
laws  in  the state.    She  referred  to previous  testimony  by                                                               
[director,  Division   of  Insurance,  Department   of  Commerce,                                                               
Community &  Economic Development] Hall and  expressed her belief                                                               
that  this committee  should not  be attempting  to address  this                                                               
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER  responded that  the state  has determined                                                               
that the subscriptions are not  an insurance product.  She quoted                                                               
Ms. Hall, who said "the sales of memberships are not insurance".                                                                
                                                                                                                                
4:17:56 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON stated  that  SSHB  100 will  be  held for  further                                                               
clarification of this question.                                                                                                 
                                                                                                                                
4:18:16 PM                                                                                                                    
                                                                                                                                
MS. LIDSTER stated her agreement  with Ms. Hall's testimony.  She                                                               
said that  SSHB 100 takes  air ambulance services out  from under                                                               
the insurance  code, and  allows them to  sell memberships.   The                                                               
memberships  are   not  subject   to  the  conditions   and  code                                                               
regulations  in that  statute.   She said  that small  businesses                                                               
cannot bear the  burden of the bonding and  audit requirements of                                                               
the insurance  code.   Ms. Lidster added  that other  states have                                                               
taken this action to encourage service in underserved regions.                                                                  
                                                                                                                                
CHAIR WILSON said the state has not acknowledged that.                                                                          
                                                                                                                                
4:19:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES encouraged the  committee to hear additional                                                               
discussion  on  this  bill  and   to  continue  with  the  public                                                               
testimony.                                                                                                                      
                                                                                                                                
4:20:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER continued  to say that if  the bill passes                                                               
and  the  insurance regulations  are  removed,  Amendment 3  will                                                               
protect  consumers   who  do  not  need   air  ambulance  service                                                               
memberships.                                                                                                                    
                                                                                                                                
CHAIR WILSON  opined that there are  many people who do  not have                                                               
insurance and they could subscribe  to this service.  Many people                                                               
in  rural areas  could  utilize this  service in  the  case of  a                                                               
Medivac.  Chair  Wilson shared that she owns a  subscription to a                                                               
service.                                                                                                                        
                                                                                                                                
REPRESENTATIVE GARDNER  clarified that  Amendment 3  applies only                                                               
to consumers with 100 percent coverage.                                                                                         
                                                                                                                                
4:23:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  expressed his  understanding of  the intent                                                               
of  the  bill  and  the  amendment.     He  then  asked  for  the                                                               
consequence  of  selling  a  policy   to  a  consumer  with  full                                                               
coverage.                                                                                                                       
                                                                                                                                
4:23:33 PM                                                                                                                    
                                                                                                                                
MS. LIDSTER explained  that a complaint from a  consumer would be                                                               
referred to the consumer protection agency.                                                                                     
                                                                                                                                
4:24:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ROSES  further   observed   that  the   consumer                                                               
protection   agency  would   intervene   if   someone  bought   a                                                               
subscription  and the  service was  not  provided, but  not if  a                                                               
subscription  was  sold to  someone  in  error.   He  recommended                                                               
tabling the bill.                                                                                                               
                                                                                                                                
4:25:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER deferred the question to her aide.                                                                       
                                                                                                                                
4:26:08 PM                                                                                                                    
                                                                                                                                
IRIS  MATTHEWS, staff  to  Representative  Berta Gardner,  Alaska                                                               
State  Legislature, informed  the  committee that  the answer  to                                                               
this  question  has  not  been  determined  by  the  Division  of                                                               
Insurance,   Department  of   Commerce,   Community  &   Economic                                                               
Development (DCCED).                                                                                                            
                                                                                                                                
4:27:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER requested moving  forward on the amendment                                                               
and referring further questions to the next committee.                                                                          
                                                                                                                                
4:27:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH  expressed   her   support  for   the                                                               
amendment; however, she reiterated  her concern about whether the                                                               
sale  of this  service should  be regulated  under the  insurance                                                               
statutes.    She  also  requested   further  testimony  from  the                                                               
director of  the Division  of Insurance  regarding the  impact of                                                               
this legislation.                                                                                                               
                                                                                                                                
4:29:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES asked  whether the  intent is  to make  the                                                               
service not  part of  an insurance  policy.   He opined  that the                                                               
amendment directly connects the service to insurance.                                                                           
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH   added   that  there   will   be   a                                                               
confidentiality  issue regarding  the release  of information  on                                                               
the consumer's existing coverage.                                                                                               
                                                                                                                                
4:30:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER stated  her  indecision  about the  final                                                               
passage of the  bill.  However, she opined that  a consumer could                                                               
sign  a release  to  allow the  subscription  provider access  to                                                               
confidential information.                                                                                                       
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH expressed  her  doubt  that a  release                                                               
will satisfy  regulations under the Health  Insurance Portability                                                               
and Accountability Act (HIPPA).                                                                                                 
                                                                                                                                
CHAIR WILSON opined that a signed waiver is sufficient.                                                                         
                                                                                                                                
REPRESENTATIVE  GARDNER expressed  her belief  that an  insurance                                                               
policy is not subject to HIPPA.                                                                                                 
                                                                                                                                
4:32:08 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the committee will  finish with this                                                               
amendment and take public testimony.                                                                                            
                                                                                                                                
4:32:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES moved to table  Amendment 3.  There being no                                                               
further discussion, Amendment 3 was tabled.                                                                                     
                                                                                                                                
4:33:37 PM                                                                                                                    
                                                                                                                                
ART WARBELOW, President, Warbelow's  Air Ventures, Inc., informed                                                               
the  committee that  his  business is  the  oldest certified  air                                                               
support  service in  Fairbanks, and  that he  is opposed  to SSHB
100.   His  concern is  the increase  in costs  of gearing  up to                                                               
compete in  a membership program.   The small operators  will not                                                               
be able  to compete at  the state level.   This bill  will reduce                                                               
competition and determine  success by who has  the best marketing                                                               
and salesmanship versus  the best medical service.   Mr. Warbelow                                                               
said that  the memberships will  increase costs to  consumers and                                                               
decrease the  quality of patient  care.  He referred  to previous                                                               
testimony by  the representative from Guardian  Flight, Inc., and                                                               
noted that  Guardian has forecasted sales  of memberships greatly                                                               
exceeding  the  amount  of  the   deductibles  paid  normally  by                                                               
consumers.  The  result is that air ambulance  providers are well                                                               
compensated and take large  write-offs for uncollectible service.                                                               
His primary concern  is that the memberships are  a insurance and                                                               
have been  illegally sold in  the state  for the past  six years.                                                               
He read from a related article  in the "The Fairbanks Daily News-                                                               
Miner"  dated  2/1/01,  and  concluded   by  saying  that  it  is                                                               
problematic that a law is posed  for passage to support a company                                                               
that has been operating outside of regulation.                                                                                  
                                                                                                                                
4:40:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  requested that  Mr. Warbelow  provide the                                                               
committee with a copy of the news article.                                                                                      
                                                                                                                                
4:40:35 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked whether Mr. Warbelow  reports non-payments to                                                               
a collection agency.                                                                                                            
                                                                                                                                
MR. WARBELOW  answered that  the law  requires that  the services                                                               
attempt to  collect; however,  one-third of  the bills  are never                                                               
paid.                                                                                                                           
                                                                                                                                
4:42:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  referred to  previous testimony and  to the                                                               
100,000 subscriptions  that Guardian expects  to sell.   This, he                                                               
said, appears to cover the  amount of uncollectible fares for one                                                               
year.   Representative Roses asked  Mr. Harris whether  the sales                                                               
would enable Guardian to lower the rates for service.                                                                           
                                                                                                                                
PAUL HARRIS, General Manager, Guardian  Flight, Inc., stated that                                                               
the  funds would  be  used for  community  service; for  example,                                                               
additional first responder and emergency medical training.                                                                      
                                                                                                                                
REPRESENTATIVE  ROSES further  asked for  Mr. Harris'  opinion of                                                               
Amendment 3.                                                                                                                    
                                                                                                                                
MR. HARRIS  responded that Amendment  3 will require  his company                                                               
to  rely on  the consumer  to ascertain  whether he/she  has full                                                               
coverage or not.   It could be unenforceable,  and will eliminate                                                               
some people who  need this service.  Mr. Harris  gave the example                                                               
of  a pregnant  patient  who  is covered  by  Medicaid until  the                                                               
delivery of her  child.  He added that the  Indian Health Service                                                               
also has gaps in coverage.                                                                                                      
                                                                                                                                
4:46:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  further asked  whether Amendment  3 reduces                                                               
Guardian's ability to sell 100,000 subscriptions.                                                                               
                                                                                                                                
MR.  HARRIS said  yes,  and  he will  provide  estimates for  the                                                               
committee.                                                                                                                      
                                                                                                                                
4:47:35 PM                                                                                                                    
                                                                                                                                
ERIC  STERLING,  owner,  Guardian   Flight,  Inc.,  informed  the                                                               
committee  that  everyone has  the  possibility  of being  denied                                                               
coverage  for a  Medivac,  especially when  covered by  Medicare,                                                               
Medicaid, and  Blue Cross.   Dr. Sterling  continued to  say that                                                               
regulations require a  flight service to attempt  to collect from                                                               
insurance and  the patient.   That was  the basis  for supporting                                                               
legislation to  enable the sale  of subscriptions.   Guardian has                                                               
not  sold memberships;  however, it  honors certificates  sold by                                                               
Critical Care Inc.   He noted that this legislation  is the third                                                               
attempt to legalize the sale  of memberships and stressed that is                                                               
a benefit to the consumer.                                                                                                      
                                                                                                                                
4:51:54 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked whether Guardian would  refund a subscription                                                               
fee  if   it  was  unable   to  provide  transportation   due  to                                                               
unavailability, location, or mechanical problems.                                                                               
                                                                                                                                
DR.  STERLING answered  yes.   He  stressed that  the  cost of  a                                                               
Medivac  is always  reviewed by  the insurance  company and  many                                                               
times coverage is denied, adjusted or negotiated.                                                                               
                                                                                                                                
4:53:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked  whether  Dr. Sterling  is  a  board                                                               
member of the non-profit that sells the memberships.                                                                            
                                                                                                                                
DR. STERLING  answered yes.   However, Guardian has  not received                                                               
money for uncompensated care.                                                                                                   
                                                                                                                                
4:54:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER asked  for clarification  of the  reasons                                                               
for supporting this legislation.                                                                                                
                                                                                                                                
4:54:41 PM                                                                                                                    
                                                                                                                                
DR. STERLING  explained that, in  2001, Linda  Hall, representing                                                               
the  Division  of Insurance,  DCCED,  advised  him that  to  sell                                                               
memberships, Guardian would  need to test the law,  or change the                                                               
law through the legislature.                                                                                                    
                                                                                                                                
4:55:27 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  acknowledged  that  she  had  misunderstood  Linda                                                               
Hall's testimony.                                                                                                               
                                                                                                                                
4:55:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  confirmed that  Guardian is  a for-profit                                                               
business and  is prohibited from selling  memberships; however, a                                                               
non profit may sell memberships.                                                                                                
                                                                                                                                
DR. STERLING  replied that the  non profit is an  educational and                                                               
research organization.   Guardian  donates to  the non  profit in                                                               
the form of Medivac services.                                                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER stated  that Guardian wants to  be able to                                                               
sell the memberships directly.                                                                                                  
                                                                                                                                
DR. STERLING said  yes.  He said that Guardian's  donation to the                                                               
non  profit  this  year  is  estimated  to  be  $4.5  million  in                                                               
uncompensated care.                                                                                                             
                                                                                                                                
4:57:40 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that SSHB 100 would be held over.                                                                        
                                                                                                                                
HCR 1-PUBLIC HEALTH AND HEALTH COMPACT                                                                                        
                                                                                                                                
CHAIR WILSON announced that the  final order of business would be                                                               
HOUSE CONCURRENT RESOLUTION NO. 1,  Relating to public health and                                                               
a health compact.                                                                                                               
                                                                                                                                
4:59:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SHARON CISSNA,  Alaska State Legislature, sponsor,                                                               
presented  HCR 1.    She informed  the committee  that  HCR 1  is                                                               
unique,  and points  to the  fact that  Alaska has  many negative                                                               
health  indicators.     In  addition,  $1,996,000,000   is  spent                                                               
annually addressing  health issues.   Representative  Cissna said                                                               
that  this  resolution  seeks  to   ask  the  governor,  and  the                                                               
legislature, to  invite the people  of Alaska to  celebrate their                                                               
own personal health, and to  begin a statewide conversation about                                                               
personal health.                                                                                                                
                                                                                                                                
5:02:04 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that HCR 1 would be held over.                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health, Education and Social  Services Standing Committee meeting                                                               
was adjourned at 5:02:04 PM.                                                                                                  
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