Legislature(2009 - 2010)CAPITOL 106

02/10/2009 03:00 PM House HEALTH & SOCIAL SERVICES


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03:08:12 PM Start
03:08:50 PM Presentation: Governor's Council on Disabilities and Special Education -autism
03:53:16 PM Presentation: Rates-on-going Process on Efforts to Develop Fair and Consistent Rate Methodologies for Service Providers Such as Assisted Living Homes, Foster Care, Etc.
04:46:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Rates - on-going process on efforts to
develop fair and consistent rate
methodologies for service providers such
as assisted living homes, foster care,
etc. - Deputy Commissioner Pat Hefley,
Senior & Disabilities Services Director
Rebecca Hilgendorf
Governor's Council on Disabilities and
Special Education - Autism
                    ALASKA STATE LEGISLATURE                                                                                  
       HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                    
                        February 10, 2009                                                                                       
                            3:08 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Herron, Co-Chair                                                                                             
Representative Wes Keller, Co-Chair                                                                                             
Representative John Coghill                                                                                                     
Representative Bob Lynn                                                                                                         
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: GOVERNOR'S COUNCIL ON DISABILITIES AND SPECIAL                                                                    
EDUCATION -AUTISM                                                                                                               
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION: RATES-ON-GOING PROCESS ON EFFORTS TO DEVELOP FAIR                                                                 
AND CONSISTENT RATE METHODOLOGIES FOR SERVICE PROVIDERS SUCH AS                                                                 
ASSISTED LIVING HOMES, FOSTER CARE, ETC.                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No Previous Action to Record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MILLIE RYAN, Executive Director                                                                                                 
Governor's Council on Disabilities & Special Education                                                                          
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented a Power Point and answered                                                                     
questions during the presentation.                                                                                              
                                                                                                                                
PATRICK HEFLEY, Deputy Commissioner                                                                                             
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  and answered questions  regarding                                                            
the  on-going  process   to  develop  fair  and   consistent  rate                                                              
increases for service providers.                                                                                                
                                                                                                                                
JON SHERWOOD, Medical Assistance Administrator                                                                                  
Division of Health Care Services                                                                                                
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Answered questions  on  the rate  increases                                                            
for service providers.                                                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:08:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WES  KELLER called the  House Health and  Social Services                                                            
Standing    Committee   meeting    to   order    at   3:08    p.m.                                                              
Representatives  Keller,   Herron,  Coghill,  Lynn,   Seaton,  and                                                              
Cissna were present at the call to order.                                                                                       
                                                                                                                                
^Presentation:  Governor's  Council  On Disabilities  And  Special                                                            
Education -Autism                                                                                                             
                                                                                                                                
CO-CHAIR KELLER announced  that the first order  of business would                                                              
be  a Power  Point  presentation from  the  Governor's Council  on                                                              
Disabilities and Special Education -Autism.                                                                                     
                                                                                                                                
3:08:50 PM                                                                                                                    
                                                                                                                                
MILLIE   RYAN,   Executive   Director,   Governor's   Council   on                                                              
Disabilities  & Special  Education,  Office  of the  Commissioner,                                                              
Department  of Health  and  Social  Services (DHSS),  presented  a                                                              
Power Point  titled "Autism Issues  and Needs."  [Included  in the                                                              
members'  packets.]   She offered  an  overview of  the 28  member                                                              
Council  on Disabilities  & Special  Education.   She stated  that                                                              
the   council  had   five   functions:   the  state   council   on                                                              
developmental   disabilities,  the   special  education   advisory                                                              
panel,  the governing  board  for  the special  education  service                                                              
agency,   the  representative   for   people  with   developmental                                                              
disabilities   to  the  Alaska   Mental  Health  Trust   Authority                                                              
(AMHTA),  and the  interagency  coordinating  council for  infants                                                              
and toddlers  with disabilities.   She noted  that Alaska  was the                                                              
only state to combine  these into one council.   She described its                                                              
Autism Initiative process.                                                                                                      
                                                                                                                                
3:11:39 PM                                                                                                                    
                                                                                                                                
MS. RYAN  pointed to slide  2, "Autism,"  and defined autism  as a                                                              
spectrum  disorder  that affected  social  skills,  communication,                                                              
play, and behavior.   She allowed  that there was a wide  range of                                                              
autism.                                                                                                                         
                                                                                                                                
3:12:11 PM                                                                                                                    
                                                                                                                                
MS.  RYAN referred  to slide  3, "Prevalence,"  and observed  that                                                              
there  appeared to  be an  "epidemic"  of autism  disorders.   She                                                              
offered  that there  was  now a  better  diagnostic  system and  a                                                              
broader definition.                                                                                                             
                                                                                                                                
3:13:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  asked   about  the   parameters  of   the                                                              
definition for autism.                                                                                                          
                                                                                                                                
MS. RYAN explained that it was across the spectrum.                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON asked for  Ms. Ryan to  define the  ends of                                                              
the spectrum.                                                                                                                   
                                                                                                                                
MS.  RYAN  stated  that  autism  was  distinguishable  from  other                                                              
developmental  disabilities  as it  affected  social  interactions                                                              
and behaviors.                                                                                                                  
                                                                                                                                
3:16:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER   asked  for  a   list  of  the   guidelines  and                                                              
parameters, as they had broadened.                                                                                              
                                                                                                                                
MS. RYAN agreed to supply it.                                                                                                   
                                                                                                                                
REPRESENTATIVE   SEATON   asked   if  any   disruptive   play   or                                                              
communication problem, with a neurological base, was autistic.                                                                  
                                                                                                                                
MS. RYAN replied that there were diagnostic markers.                                                                            
                                                                                                                                
REPRESENTATIVE  SEATON  asked  for  a written  definition  of  the                                                              
autism spectrum.                                                                                                                
                                                                                                                                
3:18:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON asked if there were a graph for indicators.                                                                     
                                                                                                                                
3:18:52 PM                                                                                                                    
                                                                                                                                
MS.  RYAN said  that  there was  more information  which  included                                                              
some early warning signs for children.                                                                                          
                                                                                                                                
CO-CHAIR KELLER  commented that there  had been quite a  change in                                                              
diagnostic rates.                                                                                                               
                                                                                                                                
MS. RYAN  explained that  diagnosis was now  better.   She pointed                                                              
to slide 4, "Alaska  Information," that showed the  rise in Alaska                                                              
children receiving special education under the autism category.                                                                 
                                                                                                                                
3:20:15 PM                                                                                                                    
                                                                                                                                
MS.  RYAN  spoke  about the  cumulative  annual  cost  for  autism                                                              
listed on slide 5 "Alaska Information."                                                                                         
                                                                                                                                
3:20:53 PM                                                                                                                    
                                                                                                                                
MS.  RYAN  presented  slide  6,  "What  Research  Tells  Us,"  and                                                              
emphasized   that   early   intervention    made   a   significant                                                              
difference.  She  explained how important this  early intervention                                                              
was for the ability to acquire language skills.                                                                                 
                                                                                                                                
3:22:08 PM                                                                                                                    
                                                                                                                                
MS. RYAN  noted the cost savings  for early intervention  on slide                                                              
7, "If we Obtained Similar Results in Alaska."                                                                                  
                                                                                                                                
3:22:38 PM                                                                                                                    
                                                                                                                                
MS.  RYAN  pointed  to  slide  8,   "Previous  Activities,"  which                                                              
outlined some  of the actions  already started for  autism issues:                                                              
an autism  alliance, an  autism summit,  and funding to  establish                                                              
the Alaska Autism Resource Center.                                                                                              
                                                                                                                                
3:23:33 PM                                                                                                                    
                                                                                                                                
MS.  RYAN   reported  that   slide  9,   "Governor's  Council   on                                                              
Disabilities  &  Special  Education" and  slide  10,  "Committee's                                                              
Report"  explained   that  the  ad  hoc  committee   had  made  59                                                              
recommendations  to  change policy.    She  reported that  the  59                                                              
recommendations were  narrowed down to 5 interrelated  parts.  She                                                              
listed  these  to  be  universal  screening;  expanded  diagnostic                                                              
capacity;  enhanced  referral and  training;  workforce  training;                                                              
and   time  limited,   intensive  intervention   services.     She                                                              
explained  how  each  of  these was  necessary  for  an  effective                                                              
package.   She  elaborated on  the universal  screening, shown  on                                                              
slide  11,  "5-Part Autism  Initiative,  Universal  screening  for                                                              
ASD"  which   included  a   pilot  project   with  two   Anchorage                                                              
pediatricians,  and an autism  grant for  rapid response  in rural                                                              
and remote state areas.                                                                                                         
                                                                                                                                
3:27:37 PM                                                                                                                    
                                                                                                                                
MS.  RYAN  referred  to  slide  12,   "5-Part  Autism  Initiative,                                                              
Expanded  diagnostic  capacity,"  which  listed  the  programs  at                                                              
Children's Hospital at Providence, and the FY09 funding.                                                                        
                                                                                                                                
3:28:27 PM                                                                                                                    
                                                                                                                                
MS. RYAN presented  slide 13, "5-Part Autism  Initiative Outcomes"                                                              
which indicated the increases in referrals and evaluations.                                                                     
                                                                                                                                
3:29:18 PM                                                                                                                    
                                                                                                                                
MS.  RYAN  referred   to  slide  14,  "5-Part   Autism  Initiative                                                              
Enhanced referral  and training," and explained about  the funding                                                              
and the  contract to Special Education  Service Agency.   She also                                                              
spoke about  the Stone  Soup group  which offered skills  building                                                              
classes for the entire family.                                                                                                  
                                                                                                                                
3:30:41 PM                                                                                                                    
                                                                                                                                
MS.  RYAN continued  on  to slide  15, "5-Part  Autism  Initiative                                                              
Outcomes,"   which   listed  the   training,   the   informational                                                              
material, and the national recognition about autism.                                                                            
                                                                                                                                
3:31:23 PM                                                                                                                    
                                                                                                                                
MS.  RYAN   directed  attention   to  slide  16,   "5-Part  Autism                                                              
Initiative Workforce  Training," and  spoke about the  program and                                                              
the  funding  for  the University  of  Alaska,  Center  for  Human                                                              
Development curriculum.                                                                                                         
                                                                                                                                
MS.  RYAN  continued  with  slide  17,  5-Part  Autism  Initiative                                                              
Workforce  Training," and  described  the bachelor,  graduate  and                                                              
paraprofessional programs  which were being developed  and offered                                                              
to Alaskans for clinical work in the state autism network.                                                                      
                                                                                                                                
3:34:25 PM                                                                                                                    
                                                                                                                                
MS. RYAN  commented on slide  18, "5-Part Autism  Initiative Time-                                                              
limited,  intensive  intervention  services," and  explained  that                                                              
DHSS  was  looking  at  ways to  increase  and  fund  the  current                                                              
intensive  services program  for  kids less  than 10  years.   She                                                              
stated that  this included ways  to amend Medicaid  regulations to                                                              
include  more  autism  services,  as well  as  increasing  private                                                              
insurance mandates.                                                                                                             
                                                                                                                                
3:36:02 PM                                                                                                                    
                                                                                                                                
MS. RYAN  mentioned that the ad  hoc committee had  reconvened and                                                              
reviewed  the   progress  to   date,  prioritized  the   remaining                                                              
recommendations,  and met  with  the State  Board  of Education  &                                                              
Early Development  with some recommendations,  as listed  on slide                                                              
19, "Recent Recommendations."                                                                                                   
                                                                                                                                
3:37:34 PM                                                                                                                    
                                                                                                                                
MS. RYAN  directed attention to slide  20, "Next Steps,"  and said                                                              
that the council  was developing strategies for  implementing best                                                              
practices  across  different  systems.   She  explained  that  the                                                              
National   Autism  Center   had  almost   finished  its   National                                                              
Standards Project.                                                                                                              
                                                                                                                                
3:38:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON   asked  about  the  pilot  program   for  pooled                                                              
funding.                                                                                                                        
                                                                                                                                
MS.  RYAN  responded  that  it was  an  attempt  to  coordinate  a                                                              
comprehensive  group of  systems,  so that  no  single system  was                                                              
paying for all the services.                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  opined that parents  were either  concerned about                                                              
the  stigma, or  demanded  that the  school  district raise  their                                                              
child.                                                                                                                          
                                                                                                                                
3:41:16 PM                                                                                                                    
                                                                                                                                
MS. RYAN  observed that  a lot of  parents had researched  options                                                              
for their  children and  were frustrated  when they believed  that                                                              
the schools  did not  respond to  their needs.   She allowed  that                                                              
the  state  did  not  always  have   the  necessary  services  and                                                              
resources.  She stated the need for everyone to work together.                                                                  
                                                                                                                                
3:42:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL   reiterated  the  need  to   receive  the                                                              
expanded  autism   definition.     He  asked  whether   an  autism                                                              
diagnosis  by a  nurse  practitioner was  considered  preliminary,                                                              
but would still initiate the service delivery system.                                                                           
                                                                                                                                
3:43:35 PM                                                                                                                    
                                                                                                                                
MS. RYAN, in  response to a question from  Representative Coghill,                                                              
explained  that  currently  there  was  only  one  advanced  nurse                                                              
practitioner,  but  that  an autism  diagnosis  would  require  an                                                              
additional level of training.                                                                                                   
                                                                                                                                
REPRESENTATIVE   COGHILL  asked   about  the   progress  for   the                                                              
University of Alaska Bachelor level program.                                                                                    
                                                                                                                                
3:44:51 PM                                                                                                                    
                                                                                                                                
MS. RYAN declared that UAA was working on its details.                                                                          
                                                                                                                                
REPRESENTATIVE  COGHILL  asked if  there  was a  curriculum  ready                                                              
program to import,  or if it required accreditation  and work with                                                              
staff to build-up an existing program.                                                                                          
                                                                                                                                
3:45:37 PM                                                                                                                    
                                                                                                                                
MS. RYAN  replied that it  was a mixture,  as Dr. Richard  Kiefer-                                                              
O'Donnell  had worked  with  other  universities  to put  together                                                              
curriculums.                                                                                                                    
                                                                                                                                
3:46:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  opined   that  most  everyone  was  still                                                              
working   to  fully   understand   all  aspects   of  the   Autism                                                              
Initiative.                                                                                                                     
                                                                                                                                
3:46:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER   reaffirmed  the  need  for  the   committee  to                                                              
understand how autism was diagnosed.                                                                                            
                                                                                                                                
3:47:33 PM                                                                                                                    
                                                                                                                                
MS. RYAN  offered for  professionals from  Providence Hospital  in                                                              
Anchorage  to speak with  the committee  about diagnostic  methods                                                              
for autism.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether  [slide  18, "5-Part  Autism                                                              
Initiative   Time-limited,  intensive   intervention   services,"]                                                              
"information on  private insurance  mandates implemented  in other                                                              
states,"  was  a  prelude  to  proposing  a  mandate  for  private                                                              
insurance  coverage in  Alaska.   He also  asked to  know if  this                                                              
coverage  already existed  under the state  insurance policy,  and                                                              
what the impact would be on insurance costs.                                                                                    
                                                                                                                                
3:49:18 PM                                                                                                                    
                                                                                                                                
MS. RYAN reported  that autism claims by many  families were being                                                              
denied  by  insurance  carriers.     She  described  some  of  the                                                              
different  approaches the  states  had taken:  some states  funded                                                              
services through  ages 18  - 21; some  states had specific  autism                                                              
interventions that  were covered; some covered  various therapies;                                                              
some treated  autism similar to  mental health services;  and some                                                              
states  had caps.    She  added that  she  was informed  that  the                                                              
increased cost  for mandated  coverage would  be about  $1.25 each                                                              
month per policy.                                                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON reflected  that  broadening the  definition                                                              
could  affect  the  cost,  and  he would  want  to  see  a  fiscal                                                              
analysis.                                                                                                                       
                                                                                                                                
^Presentation: Rates-On-Going  Process on Efforts to  Develop Fair                                                            
and Consistent  Rate Methodologies  for Service Providers  Such as                                                            
Assisted Living Homes, Foster Care, etc.                                                                                      
                                                                                                                                
CO-CHAIR KELLER announced  that the final order  of business would                                                              
be  a presentation  on the  Rates-On-Going Process  on Efforts  to                                                              
Develop  Fair  and  Consistent  Rate   Methodologies  for  Service                                                              
Providers Such as Assisted Living Homes, Foster Care, etc.                                                                      
                                                                                                                                
3:53:16 PM                                                                                                                    
                                                                                                                                
PATRICK HEFLEY,  Deputy Commissioner, Office of  the Commissioner,                                                              
Department  of Health  and Social  Services  (DHSS), presented  an                                                              
overview of  activities for rate review.   He noted the  impact on                                                              
health  policy and  health  financing issues.    He reported  that                                                              
many less  costly service  alternatives to  hospitals and  nursing                                                              
homes had  evolved in the  last 35 years.   He noted that  many of                                                              
these  alternatives allowed  people  to stay  in  their homes  and                                                              
their communities.   He  reported that many  of the services  were                                                              
struggling  financially  as  they  had not  had  any  increase  in                                                              
grants or Medicaid rates since 1992.                                                                                            
                                                                                                                                
3:55:40 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY stated  that these businesses received  a modest "bump"                                                              
last year.   He  surmised that  the financing  for these  services                                                              
needed to be reviewed.   He opined that these services  often kept                                                              
patients from entering more expensive health care facilities.                                                                   
                                                                                                                                
CO-CHAIR KELLER  asked what about  the context of  the legislative                                                              
intent for fee increases.                                                                                                       
                                                                                                                                
JON  SHERWOOD,  Medical  Assistance   Administrator,  Division  of                                                              
Health Care  Services, Department  of Health  and Social  Services                                                              
(DHSS),  reported  that  the  department   did  receive  a  budget                                                              
increment for  an increase  to provider rates.   He was  not aware                                                              
of  the intent  language, although  he mentioned  that there  were                                                              
discussions  with the  House Health  and  Social Services  Finance                                                              
Subcommittee  to develop  consistent rational  rate processes,  as                                                              
opposed to annually returning to ask for rate increases.                                                                        
                                                                                                                                
3:57:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER  asked if the process  was to set  a predetermined                                                              
rate of increase.                                                                                                               
                                                                                                                                
MR. SHERWOOD offered his belief that it was not that specific.                                                                  
                                                                                                                                
3:58:25 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY opined  that the  objective  was to  establish a  rate                                                              
methodology.   He  explained  the factors  of  the methodology  to                                                              
include geographic  cost; a  fixed point in  time so the  data was                                                              
based on a point  prevalence review; and the ability  to breakdown                                                              
the elements into  a common field for comparable  information.  He                                                              
admitted that  the department  had a service  with no  unified way                                                              
for determining  costs or how  to set those  costs.   He explained                                                              
that the legislature  had empowered the department to  find a rate                                                              
methodology  to be  used for  a health  care service  that had  no                                                              
prior rate setting.                                                                                                             
                                                                                                                                
3:59:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  agreed that there was a need  to raise and                                                              
set rates.  He  offered his belief that there  was intent language                                                              
for the department  to research a methodology.   He explained that                                                              
part of  the design  was to  raise the  service provider  rates in                                                              
order to draw a larger work force into these work areas.                                                                        
                                                                                                                                
4:01:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  noted  that there  were  five  service  provider                                                              
areas  to  review  on the  handout  "Rate  Increases  for  Service                                                              
Providers"  [included in  the members'  packets] and  he asked  if                                                              
these providers were in a critical status.                                                                                      
                                                                                                                                
4:01:57 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  declared that those  provider areas needed  increases,                                                              
but  that  it  was necessary  to  apply  a  methodology  to  these                                                              
programs.   He acknowledged  that a rate  review had not  yet been                                                              
done, except for the Senior and Disabilities Services (SDS).                                                                    
                                                                                                                                
4:02:30 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  said that  the department  looked  at each program  to                                                              
find a methodology  to apply to a broad spectrum  of programs.  He                                                              
explained that  the SDS program was  the first test.   He reported                                                              
that the  difficulty they  encountered with  this methodology  was                                                              
finding  an  individual cost,  as  many  costs were  bundled  into                                                              
packages.   He allowed that  this accounting methodology  was very                                                              
challenging for many of the providers.                                                                                          
                                                                                                                                
4:05:14 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY,  in response  to  a  question from  Co-Chair  Keller,                                                              
stated that  the methodology  objective was  to find median  price                                                              
as a  basis for  setting rates.   He allowed  that the  difficulty                                                              
was in  the variability of  the factors surrounding  each service;                                                              
for  example, the  cost to  bathe  a person  would vary  depending                                                              
upon that patient's level of function.                                                                                          
                                                                                                                                
4:06:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  reflected  on the  purported  10-20  percent  of                                                              
fraudulent billing to Medicaid.                                                                                                 
                                                                                                                                
MR.  SHERWOOD, in  response  to  Co-Chair Keller,  explained  that                                                              
there was a statutory  requirement to audit a  specific number and                                                              
variety of Medicaid providers.                                                                                                  
                                                                                                                                
MR.  HEFLEY reported  that  a  national policy  required  Medicaid                                                              
audits.  He  opined that Alaska had  done a good job  of educating                                                              
providers about Medicaid billing.                                                                                               
                                                                                                                                
4:09:35 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  continued to explain  the methodology.   He summarized                                                              
one difficulty was  the determination of cost per  unit of service                                                              
as compared with  an overall budget.  He explained  the difficulty                                                              
of where to account  for an actual cost which was  not included in                                                              
the  basis.   He reported  that the  solution was  to develop  ten                                                              
statistical  methodologies   which  adjusted  for   the  reporting                                                              
factors.   He disclosed  that this allowed  a statistical  mean to                                                              
provide a cost.   He noted that there were 356  different types of                                                              
providers.   He expressed  that the  difficulty of collecting  the                                                              
data, verifying  the information, factoring in the  variables, and                                                              
modifying  the  numbers for  many  divergences  made for  a  slow,                                                              
arduous process.   He also noted the necessity  of determining the                                                              
correct language for  intent of use to avoid any  legal costs.  He                                                              
referred  to  SB  32  [An  Act  relating   to  medical  assistance                                                              
payments for home and community-based  services] as being close to                                                              
having the correct language for the rate proposal.                                                                              
                                                                                                                                
4:15:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  acknowledged the daunting task,  and asked                                                              
if the  formulation for adjustment  of geographic  differences was                                                              
available.                                                                                                                      
                                                                                                                                
MR.  HEFLEY  said  that  he did  not  know  where  the  geographic                                                              
difference formula originated.                                                                                                  
                                                                                                                                
MR.  SHERWOOD  responded  that  geographic   differentials  for  a                                                              
limited number of services were developed in 1993.                                                                              
                                                                                                                                
REPRESENTATIVE  COGHILL asked  about the  significant increase  in                                                              
the rate for personal care attendants.                                                                                          
                                                                                                                                
4:18:46 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  identified the  quest as a search  for the  fair price                                                              
of doing  business.   He acknowledged the  need for stability  and                                                              
predictability for the provider.                                                                                                
                                                                                                                                
4:20:19 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY,  in  response to  Representative  Cissna,  noted  the                                                              
difference of a  policy decision for health care  cost containment                                                              
as  opposed   to  the  mechanics   of  cost  and   allocation  for                                                              
businesses.                                                                                                                     
                                                                                                                                
CO-CHAIR  HERRON  referred  to the  handout  "Rate  Increases  for                                                              
Service Providers,"  [included in  members' packets] and  asked if                                                              
there was a priority to the bulleted points.                                                                                    
                                                                                                                                
MR. HEFLEY  noted that  there were  a variety  of categories  that                                                              
still needed  a methodology  assessment and  determination  of the                                                              
necessity for an imminent review.                                                                                               
                                                                                                                                
4:23:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   HERRON  asked   again   about  the   priority  to   the                                                              
aforementioned bullet points.                                                                                                   
                                                                                                                                
MR. HEFLEY  replied that a priority  had not been made  and that a                                                              
determination might  be made within each area as  opposed to which                                                              
area.                                                                                                                           
                                                                                                                                
4:25:42 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY  noted  that  a  Medicaid  task  force  had  been  put                                                              
together  to  make  recommendations   for  the  upcoming  stimulus                                                              
package.                                                                                                                        
                                                                                                                                
4:26:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON commented that  policy decisions  needed to                                                              
be made  on "what  we want  to do,"  and "not  on a comparison  of                                                              
potential costs... ."                                                                                                           
                                                                                                                                
4:28:37 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY  expressed  that  cost   was  just  one  factor.    He                                                              
reflected  that the  cost was the  topic in  the committee  arena,                                                              
but that the care was the topic among his colleagues.                                                                           
                                                                                                                                
4:29:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL   asked  when  to  anticipate   the  final                                                              
report.  He expressed  the desire for a management  tool to define                                                              
expected  costs  for  budget  certainty.   He  allowed  it  was  a                                                              
separate question from the source of funding.                                                                                   
                                                                                                                                
4:31:19 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY expressed  his unawareness for an expected  report.  He                                                              
noted that  fee setting  methodologies were  being finalized,  and                                                              
that   this  presentation   was   an  update   before  the   final                                                              
recommendations.                                                                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL  noted  that  the  budget  was  now  being                                                              
finalized.                                                                                                                      
                                                                                                                                
MR.  HEFLEY offered  to have  a methodology  by  February 18,  for                                                              
implementation  in the  budget.   He  stressed that  this was  the                                                              
first step and the beginning of the process.                                                                                    
                                                                                                                                
4:34:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL,  in response  to  Representative  Seaton,                                                              
explained  that  the intention  of  the  House Health  and  Social                                                              
Services  Finance  Subcommittee  was to  incrementally  raise  the                                                              
current rates,  and to look at  a methodology to ensure  they were                                                              
on  the right  track.    He stated  that  the expectation  was  to                                                              
assure the money was being spent in the right places.                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON said  that  there might  be policy  choices                                                              
that were  made by dollars.   He commented  that the  House Health                                                              
and  Social  Services  Standing Committee  should  be  looking  at                                                              
policy  choices, and  should not  leave it  to a  decision by  the                                                              
House Health and Social Services Finance Subcommittee.                                                                          
                                                                                                                                
4:37:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  noted that  there  were ongoing  Medicaid                                                              
discussions including  quality of care, and the  qualification for                                                              
billing.  He emphasized that a budget was a policy statement.                                                                   
                                                                                                                                
CO-CHAIR  KELLER  asked  for  a  comprehensive  list  of  all  the                                                              
services  which rates  were being  set  for, and  a comparison  of                                                              
provider services.   He asked  to know the  dollars spent  on each                                                              
type of provider.                                                                                                               
                                                                                                                                
4:40:08 PM                                                                                                                    
                                                                                                                                
MR.  HEFLEY  explained that  there  was  a  book that  listed  the                                                              
contractors and grantors.                                                                                                       
                                                                                                                                
MR.  SHERWOOD said  that DHSS  would  provide summary  information                                                              
and make suggestions.                                                                                                           
                                                                                                                                
CO-CHAIR KELLER asked for an executive summary.                                                                                 
                                                                                                                                
MR. HEFLEY asked  for the level and the format that  would be most                                                              
useful.                                                                                                                         
                                                                                                                                
4:42:24 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  noted that  the volume  and complexity for  addressing                                                              
the  comments  received  from the  provider  groups  affected  the                                                              
timeline for the project.                                                                                                       
                                                                                                                                
CO-CHAIR HERRON  noted that both  committees must figure  out what                                                              
was important for Alaskans.                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA   commented  that  the  decision   must  be                                                              
outcome  driven in  order to  meet the  constitutional mandate  to                                                              
promote and protect public health.                                                                                              
                                                                                                                                
REPRESENTATIVE   COGHILL   offered   to  distribute   the   policy                                                              
initiatives  from the  House Health  and  Social Services  Finance                                                              
Subcommittee  to   all  the  House  Health  and   Social  Services                                                              
Standing Committee members.                                                                                                     
                                                                                                                                
4:46:04 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Health  and   Social  Services  Standing  Committee   meeting  was                                                              
adjourned at 4:46 p.m.                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
5-Part Autism Initiative Overview.doc HHSS 2/10/2009 3:00:00 PM
Autism Plan.doc HHSS 2/10/2009 3:00:00 PM
Rate Increase HSS presentation.doc HHSS 2/10/2009 3:00:00 PM
Autism Presentation 2-10-09.ppt HHSS 2/10/2009 3:00:00 PM
Diagnosis of Autism Spectrum Disorders.doc HHSS 2/10/2009 3:00:00 PM