Legislature(2009 - 2010)CAPITOL 106

02/19/2009 03:00 PM House HEALTH & SOCIAL SERVICES


Download Mp3. <- Right click and save file as

Audio Topic
03:11:49 PM Start
03:12:16 PM Presentations: Medicaid Reform
04:25:44 PM Cooperative Efforts in Medicaid Reform
05:01:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Medicaid Reform - TELECONFERENCED
Jerry Fuller, DHSS Medicaid Director;
Renee Gayhart, DHSS Tribal Liaison;
Jon Sherwood, DHSS Medical Assistance
Administrator
+ Cooperative Efforts in Medicaid Reform - TELECONFERENCED
Valerie Davidson, Senior Director of
Legal and Intergovernmental Affairs for
the Alaska Native Tribal Health
Consortium
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                       February 19, 2009                                                                                        
                           3:11 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: MEDICAID REFORM                                                                                                   
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION: COOPERATIVE EFFORTS IN MEDICAID REFORM                                                                            
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No Previous Action to Record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JERRY FULLER, Project Director                                                                                                  
Office of Program Review                                                                                                        
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions on                                                                      
Medicaid Reform.                                                                                                                
                                                                                                                                
JON SHERWOOD, Medicaid Special Projects                                                                                         
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Testified  and  answered   questions  on                                                             
Medicaid Reform.                                                                                                                
                                                                                                                                
VALERIE DAVIDSON, Senior Director                                                                                               
Legal and Intergovernmental Affairs                                                                                             
Alaska Native Tribal Health Consortium                                                                                          
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   presented  a  Power  Point titled  "Tribal                                                             
Medicaid Reform Initiative."                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:11:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WES KELLER  called the House Health  and Social Services                                                             
Standing   Committee    meeting   to    order   at    3:11   p.m.                                                               
Representatives Keller,  Seaton, Cissna,  Coghill, and  Lynn were                                                               
present at the  call to order.  Representative  Herron arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
^Presentations:  Medicaid Reform                                                                                              
                                                                                                                                
3:12:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER announced that the  first order of business would                                                               
be a presentation on Medicaid Reform.                                                                                           
                                                                                                                                
3:14:21 PM                                                                                                                    
                                                                                                                                
JERRY FULLER, Project Director,  Office of Program Review, Office                                                               
of  the Commissioner,  Department of  Health and  Social Services                                                               
(DHSS), described the history of  the long term care forecast for                                                               
Medicaid.  He  offered that the forecast model  was initiated for                                                               
both a 3-5 year  review and a 20 year review.   He noted that the                                                               
forecast indicated  that the Medicaid  budget would  quadruple in                                                               
20  years.   He  reported that  medical  inflation and  increased                                                               
demand as  the population aged  were the primary reasons  for the                                                               
budget  increase.   He observed  that the  Pacific Health  Policy                                                               
Group  was  hired  to  review   the  Medicaid  program  and  make                                                               
recommendations to control this cost increase.                                                                                  
                                                                                                                                
3:17:33 PM                                                                                                                    
                                                                                                                                
MR. FULLER said  that the review established that  long term care                                                               
was a  major cost  and suggested  a search  for ways  to increase                                                               
federal  support funds.   He  defined long  term care  to include                                                               
nursing   homes,  residential   and  community   based  services,                                                               
personal care, and pioneer homes.   He noted that the review also                                                               
suggested for  DHSS to work  more closely with the  Alaska Tribal                                                               
Health  organizations for  Medicaid managed  care.   He described                                                               
the Federal  Medical Assistance Percentage (FMAP)  as the federal                                                               
contribution percentage  for Medicaid  services, currently  at 51                                                               
percent,  with  an increase  to  57  percent after  the  stimulus                                                               
package.    He  reported  that  Medicaid  paid  100  percent  for                                                               
American Indians and Alaska Natives  who received service through                                                               
the Tribal Health organizations.                                                                                                
                                                                                                                                
3:21:53 PM                                                                                                                    
                                                                                                                                
MR.  FULLER   observed  that  two   years  ago   the  legislature                                                               
appropriated  $2 million  dollars  to  review 13  recommendations                                                               
from the Pacific Health Policy  Group.  He stated that designated                                                               
grants  were  given to  Alaska  Native  Tribal Health  Consortium                                                               
(ANTHC)  to review  and develop  a sustainable  long term  health                                                               
care system.   He went  on to discuss behavioral  health services                                                               
and endeavors with  the Center for Medicaid Services  (CMS) for a                                                               
narrow array  of services to  treat and prevent  substance abuse.                                                               
He recounted that a McDowell  Group report ascribed the cost from                                                               
substance abuse to be $750 million.                                                                                             
                                                                                                                                
MR.  FULLER   shared  that  Pacific   Health  Policy   Group  was                                                               
investigating the potential  for a waiver from  CMS for substance                                                               
abuse.   He  also  noted  that Pacific  Health  Policy Group  was                                                               
researching  for the  most effective  array of  provider services                                                               
for substance abusers.                                                                                                          
                                                                                                                                
3:26:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  noted that behaviors were  all correctable                                                               
with  treatment  or  relearning.    She  asked  if  the  provider                                                               
services could be expanded to include depression.                                                                               
                                                                                                                                
3:27:47 PM                                                                                                                    
                                                                                                                                
MR. FULLER  agreed that  the service  array would  include mental                                                               
health  services,  as  substance  abuse  was  very  often  a  co-                                                               
occurring disorder.                                                                                                             
                                                                                                                                
3:29:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  asked about  a  timeline  for the  report  from                                                               
Pacific Health Policy Group.                                                                                                    
                                                                                                                                
3:29:31 PM                                                                                                                    
                                                                                                                                
MR.  FULLER  responded  that  most  of the  research  was  to  be                                                               
finished  by early  to  mid April,  and he  looked  forward to  a                                                               
report by the end of the  session.  He mentioned that legislative                                                               
approval was necessary  for the department to  implement a budget                                                               
neutral waiver.                                                                                                                 
                                                                                                                                
3:32:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked,   since  Alaska's  population  was                                                               
aging, if  the increased  cost for  end of  life health  care was                                                               
being addressed.                                                                                                                
                                                                                                                                
3:33:27 PM                                                                                                                    
                                                                                                                                
MR. FULLER  responded that this  was part  of the long  term care                                                               
plan.   He advised  that a  properly constructed  case management                                                               
system could  intervene earlier in  a person's life to  avoid the                                                               
high costs  at the  end.   He offered an  example of  the Wyoming                                                               
Medicaid program that had "decent" results.                                                                                     
                                                                                                                                
3:35:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  noted that  care management had  a reduced                                                               
expenditure, but  that there could  still be  substantial expense                                                               
at the end of life unless this was also managed.                                                                                
                                                                                                                                
3:37:07 PM                                                                                                                    
                                                                                                                                
JON   SHERWOOD,  Medicaid   Special  Projects,   Office  of   the                                                               
Commissioner, Department  of Health  and Social  Services (DHSS),                                                               
recounted that  once people  were eligible  for Medicare,  it was                                                               
the  primary payer  of  acute and  primary care.    He said  that                                                               
Medicaid paid  for most  of the  long term care.   He  shared the                                                               
challenge of  making sound  investments in  long term  care while                                                               
the effects  were also  in acute  and primary  care expenditures.                                                               
He noted  that much  of the  care for end  of life  should happen                                                               
under the  Medicare program.   He allowed that Medicare  was best                                                               
suited for urban places.                                                                                                        
                                                                                                                                
3:39:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN observed  that rationing  health care  was a                                                               
moral issue.                                                                                                                    
                                                                                                                                
3:41:01 PM                                                                                                                    
                                                                                                                                
MR. FULLER  disclosed that  palliative care  was included  in the                                                               
Oregon  priority of  services.   He offered  his belief  that the                                                               
country was  not ready for  a serious discussion about  the moral                                                               
issues of health care.                                                                                                          
                                                                                                                                
3:42:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA referred  to  a chronic  care study  which                                                               
stated  that controlling  the severity  of chronic  disease would                                                               
lower  the  long term  cost.    She  suggested that  the  hospice                                                               
program in Alaska was not fully developed.                                                                                      
                                                                                                                                
3:45:44 PM                                                                                                                    
                                                                                                                                
MR. FULLER  opined that  there was no  control over  managed long                                                               
term care until Medicaid and Medicare were funded together.                                                                     
                                                                                                                                
3:46:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER talked  about the  preventive aspect  of managed                                                               
care.                                                                                                                           
                                                                                                                                
3:47:59 PM                                                                                                                    
                                                                                                                                
MR.  FULLER  expanded  on the  recommendation  from  the  Pacific                                                               
Health  Policy  Group  to  work   with  tribal  organizations  to                                                               
configure  tribal health  care as  managed care.   He  cited that                                                               
Alaska did  not have any private  managed care.  He  allowed that                                                               
tribal  health  care  approximated   a  pre-natal  through  death                                                               
managed care  system.  He  said that Pacific Health  Policy Group                                                               
did not  understand tribal  health care systems.   He  noted that                                                               
managed care  required infrastructure,  which both the  state and                                                               
the  Alaska Tribal  Health care  lacked.   He suggested  that the                                                               
Alaska  Tribal Health  care  organization  needed more  services,                                                               
which would  allow better use  of the FMAP payment  for services.                                                               
He said that  federal funding was flat, and had  not kept up with                                                               
either   inflation  or   population   growth.     He  said   that                                                               
reimbursement did not cover the costs.   He reported that a close                                                               
look at  the reimbursement methodologies  was required  to assist                                                               
the tribal health service to  expand their Medicaid services.  He                                                               
referred to  Senate Bill 61  as a means  to look at  doing things                                                               
differently.                                                                                                                    
                                                                                                                                
3:54:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER asked who produced the long term forecast.                                                                      
                                                                                                                                
MR. FULLER explained  that the Lewin Group reported  in 2006, and                                                               
DHSS updated the forecast each year.   He said that DHSS had made                                                               
significant changes in order to decrease some of the costs.                                                                     
                                                                                                                                
3:57:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  said  that  state   spending  still  showed  an                                                               
increase.    He  referred  to  the  "Progress  report  on  Alaska                                                               
Medicaid reform"  handout.  [Included  in the  members' packets.]                                                               
He pointed out  that the nine projects listed on  the report were                                                               
not reflected in the latest DHSS forecast.                                                                                      
                                                                                                                                
MR. FULLER  referred to ongoing  and completed programs  that had                                                               
made a difference.                                                                                                              
                                                                                                                                
CO-CHAIR KELLER asked  if the expenditure results  of Senate Bill                                                               
61 were incorporated in the DHSS update.                                                                                        
                                                                                                                                
MR. FULLER allowed that a number of reports were not included.                                                                  
                                                                                                                                
3:59:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked if any  studies existed regarding the                                                               
habits  of senior  citizens, as  Alaska was  the leader  of habit                                                               
forming conditions.                                                                                                             
                                                                                                                                
4:00:34 PM                                                                                                                    
                                                                                                                                
MR. FULLER said that he was not aware of any such study.                                                                        
                                                                                                                                
MR. SHERWOOD  explained that Senate  Bill 61 was focused  on ways                                                               
to  make Medicaid  more sustainable  and  that much  of the  bill                                                               
centered on  long term  care, as  Alaska's senior  population was                                                               
only exceeded  by Nevada.   He shared  that the  Medicaid program                                                               
projected  a shift  from care  for  children to  service for  the                                                               
elderly  and disabled.   He  stated that  DHSS was  reviewing the                                                               
rate  setting  methodology  so  that  home  and  community  based                                                               
program rates were  more in balance with the provider  costs.  He                                                               
explained that  some health care providers  were public entities,                                                               
such as government  or tribal providers.  He said  that the state                                                               
match to  Medicaid for public  entities, and any increase  to the                                                               
rate, could be met by  certifying public expenditures.  He shared                                                               
that one  advantage of working  with tribal partners  to increase                                                               
services to its  beneficiaries was that there was  no increase in                                                               
the state match.                                                                                                                
                                                                                                                                
4:05:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER asked  how many Medicaid providers  there were in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. SHERWOOD replied  that he was unsure, but that  it was in the                                                               
thousands, and  he shared that  there were 356  different in-home                                                               
and community based providers.                                                                                                  
                                                                                                                                
4:06:26 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER asked  to know  the  number of  both active  and                                                               
qualified providers.                                                                                                            
                                                                                                                                
4:06:41 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD stated  that DHSS had hired HCBS  Strategies to help                                                               
develop a  long term  care plan.   He  declared that  the report,                                                               
"Alaska Long  Term Care Plan,"  was a most  comprehensive report,                                                               
and  he shared  some of  the suggestions:  improve the  method of                                                               
matching people with  the needed services, develop  the aging and                                                               
disability resource  center as one  stop shops,  explore changing                                                               
the new  personal care  program to a  cash and  counseling model,                                                               
and  provide   more  support  for  cognitive   impairments.    He                                                               
mentioned a new  federal option for certain  targeted groups with                                                               
benchmark  plans  to be  provided  with  a  mix of  services  for                                                               
limited managed care plans.                                                                                                     
                                                                                                                                
4:11:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  asked  that  Mr.  Sherwood  explain  the                                                               
process to change a waiver.                                                                                                     
                                                                                                                                
4:11:24 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD  said that  it required  a statement  of legislative                                                               
intent.                                                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL  clarified that the application  had to be                                                               
made through the state plan.                                                                                                    
                                                                                                                                
MR. SHERWOOD agreed  that, along with the statement  of intent, a                                                               
federally  approved amendment  or waiver  of the  state plan  was                                                               
necessary.   He said that  this could take  from a few  months to                                                               
much longer, dependent on the prior approvals for other states.                                                                 
                                                                                                                                
4:13:26 PM                                                                                                                    
                                                                                                                                
MR. SHERWOOD,  in response to  Representative Coghill,  said that                                                               
DHSS would  anticipate a significant time  frame, probably longer                                                               
than 6 months.                                                                                                                  
                                                                                                                                
4:13:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL noted that this  could not be done in this                                                               
budget cycle.                                                                                                                   
                                                                                                                                
MR. SHERWOOD offered  his appreciation of the  clarification.  He                                                               
expressed  the necessity  for thoughtful  implementation, as  the                                                               
inadvertent consequences could be substantial.                                                                                  
                                                                                                                                
4:14:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked when was the last waiver change.                                                                    
                                                                                                                                
MR. SHERWOOD  said that the  service mix for the  current waivers                                                               
was  about the  same  as approved  in 1993.    He explained  that                                                               
clearer service definitions were done a few years ago.                                                                          
                                                                                                                                
4:17:02 PM                                                                                                                    
                                                                                                                                
MR. FULLER  stated that conversations  regarding the  best waiver                                                               
would continue with  Medicare and Medicaid.   He highlighted that                                                               
the  long  term  goal  for  DHSS was  to  make  the  system  more                                                               
efficient and  cost effective.   He  said that  the focus  was on                                                               
people and dollars.                                                                                                             
                                                                                                                                
4:19:08 PM                                                                                                                    
                                                                                                                                
MR.  SHERWOOD summarized  that some  cognitive impairments  might                                                               
not qualify  for home  and community based  services.   He shared                                                               
that consultants  had suggested  several federal  funding sources                                                               
which  included: Medicaid  funding for  cognitive impairments  of                                                               
patients in  the pioneer homes, technical  procedural changes for                                                               
the waivers, and review of  the state funded pioneer home payment                                                               
assistance program.   He shared  that another  recommendation was                                                               
for DHSS  to involve  stake holders  in the  sustainable planning                                                               
process of a long term care  strategy.  He summarized that Senate                                                               
Bill 61 included  prior authorization of drugs,  step therapy for                                                               
drugs,  a review  of the  pharmacy  reimbursement for  compliance                                                               
with  federal requirements,  and a  re-appraisal of  the personal                                                               
care program.  He stated that  it was important to coordinate all                                                               
DHSS efforts with Alaska Tribal Health.                                                                                         
                                                                                                                                
^Cooperative Efforts in Medicaid Reform                                                                                       
                                                                                                                                
4:25:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER announced that the  final order of business would                                                               
be  a Power  Point  presentation titled  "Tribal Medicaid  Reform                                                               
Initiative."  [Included in members' packets.]                                                                                   
                                                                                                                                
4:25:51 PM                                                                                                                    
                                                                                                                                
VALERIE  DAVIDSON, Senior  Director, Legal  and Intergovernmental                                                               
Affairs,   Alaska  Native   Tribal  Health   Consortium  (ANTHC),                                                               
presented  the  Power Point  and  spoke  about slide  3,  "Alaska                                                               
Tribal Health  System."  She  explained that tribal health  was a                                                               
voluntary  affiliation   of  more  than  30   tribes  and  tribal                                                               
organizations  and  noted  that  it was  often  the  only  health                                                               
service in a community.                                                                                                         
                                                                                                                                
4:27:17 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON pointed  to slide 4, a map of  Alaska showing Alaska                                                               
Tribal Health  System locations,  and slide 5  "Economic Impact."                                                               
She reported that  tribal health employed more  than 7,000 people                                                               
statewide,  and that  it was  often the  only health  provider in                                                               
rural areas.                                                                                                                    
                                                                                                                                
4:27:55 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  referred to slide 6,  "Alaska Native Demographics,"                                                               
and  noted that  Alaska  Natives represented  20  percent of  the                                                               
population.   She  offered slide  7,  "ATHS Service  Population,"                                                               
which reflected  the Alaska Native population  distribution.  She                                                               
spoke quickly about  the major health issues  for Alaska Natives,                                                               
slide 8, "Alaska Native Health Status."                                                                                         
                                                                                                                                
4:28:27 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON noted  that slide 9, "Medical  Care Service Levels,"                                                               
explained the multi tiered health care delivery system.                                                                         
                                                                                                                                
4:29:07 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON examined  the  Alaska map  on  slide 10,  "Referral                                                               
Patterns."   She spoke  about the importance  for access  to care                                                               
which  was   mentioned  on   slide  11,   "Village-Based  Medical                                                               
Services."                                                                                                                      
                                                                                                                                
4:31:20 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON skipped  slide 12,  and explained  the role  of the                                                               
"Alaska Native Tribal Health Consortium," slide 13.                                                                             
                                                                                                                                
4:32:03 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON  spoke briefly  about  the  "Alaska Native  Medical                                                               
Center," shown on slide 14, slide  15, and slide 16.  She pointed                                                               
out that  Alaska Tribal Health  Service was also a  public health                                                               
agency, slide  17, "Community Health  Services," and  shared that                                                               
wellness and  prevention activities reduced the  need for primary                                                               
care.                                                                                                                           
                                                                                                                                
4:32:56 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON observed that many  people believed that the federal                                                               
government  paid  for  Indian Health  Services  (IHS),  but  that                                                               
funding  only  paid for  51  percent  of  the basic  health  care                                                               
services, as shown on slide 19, "Sustainability Issues."                                                                        
                                                                                                                                
4:33:58 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  explained the funding  level gaps  which restricted                                                               
some services  noted on  slide 20, "Rationed  Health Care."   She                                                               
said that the wait period  for the limited number of "Residential                                                               
Treatment Centers,"  slide 22,  was between  six to  nine months.                                                               
She pointed to  slide 23, "Authority to bill,"  and explained the                                                               
reimbursement sources for IHS.                                                                                                  
                                                                                                                                
4:35:02 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON pointed  out  the  FMAP savings  for  the State  of                                                               
Alaska when Medicaid  patients used the IHS  facilities, as shown                                                               
on slide 24,"Alaska benefits."                                                                                                  
                                                                                                                                
4:35:50 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  moved on to  slide 25, "Medicaid  Information," and                                                               
read that 40  percent of Alaska's Medicaid  population was Alaska                                                               
Native.   She pointed  out that most  of the  non-tribal provider                                                               
payments  were  for  long  term   care,  behavioral  health,  and                                                               
hospital  services, as  IHS had  historically not  funded any  of                                                               
these.                                                                                                                          
                                                                                                                                
4:37:13 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON  read  slide  26,   "Pacific  Health  Policy  Group                                                               
Report,"  and  stated that  there  was  both  a financial  and  a                                                               
quality  of  service  interest to  enhance  the  tribal  provider                                                               
capacity, especially for long term care.                                                                                        
                                                                                                                                
4:37:41 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  explained slide 27, "Legislature  authorized SB 61,                                                               
Tribal Medicaid  Demonstration," which provided resources  for an                                                               
ANTHC statewide and regional study  of several focus areas, which                                                               
included long term care, behavioral  health service and financial                                                               
infrastructure, to establish model delivery systems.                                                                            
                                                                                                                                
4:38:51 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON,  in response to  Co-Chair Herron, shared  that both                                                               
the state and  the ANTHC were mindful to not  rush in and develop                                                               
service  delivery systems  faster than  either tribal  health was                                                               
able to absorb  or the state was able to  implement.  She offered                                                               
her belief  that a  quarterly evaluation  should be  required for                                                               
the  first two  years  to review  the  reimbursement levels,  the                                                               
obstacles, and the necessary changes.                                                                                           
                                                                                                                                
MS. DAVIDSON  referred back to  the Power Point  presentation and                                                               
slide 28,  "Long-Term Care."   She  pointed out  that it  was not                                                               
just for the  elderly as there were people  with disabilities who                                                               
also required long term care.   She observed that there were home                                                               
and  community based  services which  allowed independent  living                                                               
for as long  as possible.  She explained  one recommendation that                                                               
was for  a short term  pilot project  at three existing  sites of                                                               
home and  community based services.   She said the  project would                                                               
see what  was working  and what  needed to  be changed  to ensure                                                               
that  the programs  were sustainable.   She  suggested that  this                                                               
would lead to  an expanded state wide  comprehensive system plan.                                                               
She  said that  there  would  always be  a  need for  residential                                                               
services.   She observed that  the study identified bed  needs at                                                               
the  sub  regional  level, which  was  especially  important  for                                                               
traditional lifestyle communities.                                                                                              
                                                                                                                                
4:45:13 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON moved  on  to slide  29,  "Behavioral Health,"  and                                                               
explained  some of  the lessons  learned from  the tribal  health                                                               
program, which  included a focus on  integrated behavioral health                                                               
and on primary care.                                                                                                            
                                                                                                                                
4:48:10 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON said  that an adequate system of  care was dependent                                                               
on regulatory and program support, and workforce development.                                                                   
                                                                                                                                
4:48:29 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON  identified  slide  30, "Other  Services  &  System                                                               
Efficiencies,"   and    explained   the   importance    of   care                                                               
coordination.  She  noted that in October and  November more than                                                               
371 patients had been diverted  from Alaska Native Medical Center                                                               
to   Providence  Hospital   in  Anchorage.     She   stated  that                                                               
implementation   of   electronic   health  records   and   health                                                               
information exchanges would improve the system efficiency.                                                                      
                                                                                                                                
4:50:08 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON, in  response to  Co-Chair  Herron, explained  that                                                               
Alaska Native Medical Center had to  pay for patients who did not                                                               
have alternative resources.   She emphasized that  for the tribal                                                               
health system  to be  sustainable there must  be systems  of care                                                               
that worked in a variety of  places.  She quickly discussed slide                                                               
32, "Sustainability  Issues," and slide  33, slide 34,  and slide                                                               
35,  "Sustainability  Issues:  Energy   Crisis,"  and  noted  the                                                               
increase  of infectious  diseases  as  financial pressure  forced                                                               
overcrowding in homes without adequate sanitation facilities.                                                                   
                                                                                                                                
4:53:12 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  advised that alcohol  and substance use was  also a                                                               
problem.   She shared that  the energy crisis was  increasing the                                                               
demand  for  care and  decreasing  the  ability for  clinics  and                                                               
hospitals to  provide the  care.  She  reported that  every major                                                               
tribal  health   organization  had  to  implement   cost  cutting                                                               
measures.                                                                                                                       
                                                                                                                                
4:55:02 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  returned to slide  31, "Managed  Care Feasibility,"                                                               
and explained the difference between  a managed care organization                                                               
and managing the  care of Alaskans.  She pointed  to the benefits                                                               
from implementing wellness and  prevention activities, looking at                                                               
cost  based reimbursement  structures, expanding  capacities, and                                                               
improving efficiencies.                                                                                                         
                                                                                                                                
4:57:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  requested a  graph that  showed the  tribal cost                                                               
when  a patient  was referred  out  of the  Alaska Tribal  Health                                                               
system.                                                                                                                         
                                                                                                                                
4:58:46 PM                                                                                                                    
                                                                                                                                
MR.  FULLER announced  that it  was extremely  important for  the                                                               
state and tribal  organizations to work together.   He summarized                                                               
that the  committee could expect  more discussion of  choices for                                                               
long term  general fund  savings and  tribal sustainability.   He                                                               
noted that the Medicaid program  needed to look at maximizing the                                                               
FMAP for reimbursement to public providers.                                                                                     
                                                                                                                                
5:01:45 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 5:01 p.m.                                                                                                          

Document Name Date/Time Subjects
Alaska Medicaid Reform.doc HHSS 2/19/2009 3:00:00 PM
ANTHC SB 61 for HSS final 2_09.ppt HHSS 2/19/2009 3:00:00 PM
SB 61