Legislature(2025 - 2026)DAVIS 106

04/08/2025 03:15 PM House HEALTH & SOCIAL SERVICES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 4:00 p.m. --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 96 HOME CARE EMPLOYMENT STANDARDS ADV BOARD TELECONFERENCED
Moved CSHB 96(HSS) Out of Committee
+= HB 144 INSURANCE; PRIOR AUTHORIZATIONS TELECONFERENCED
Moved CSHB 144(HSS) Out of Committee
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         April 8, 2025                                                                                          
                           4:07 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Genevieve Mina, Chair                                                                                            
Representative Andrew Gray                                                                                                      
Representative Zack Fields                                                                                                      
Representative Donna Mears                                                                                                      
Representative Mike Prax                                                                                                        
Representative Justin Ruffridge                                                                                                 
Representative Rebecca Schwanke                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 96                                                                                                               
"An Act establishing the Home Care Employment Standards Advisory                                                                
Board; relating to payment for personal care services; and                                                                      
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 96(HSS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 144                                                                                                              
"An  Act relating  to prior  authorization  requests for  medical                                                               
care  covered by  a  health  care insurer;  relating  to a  prior                                                               
authorization  application  programming  interface;  relating  to                                                               
step therapy; and providing for an effective date."                                                                             
                                                                                                                                
     - MOVED CSHB 144(HSS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  96                                                                                                                  
SHORT TITLE: HOME CARE EMPLOYMENT STANDARDS ADV BOARD                                                                           
SPONSOR(s): REPRESENTATIVE(s) PRAX                                                                                              
                                                                                                                                
02/12/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/25       (H)       HSS, L&C                                                                                               
03/25/25       (H)       HSS AT 3:15 PM DAVIS 106                                                                               
03/25/25       (H)       Heard & Held                                                                                           
03/25/25       (H)       MINUTE(HSS)                                                                                            
04/08/25       (H)       HSS AT 3:15 PM DAVIS 106                                                                               
                                                                                                                                
BILL: HB 144                                                                                                                  
SHORT TITLE: INSURANCE; PRIOR AUTHORIZATIONS                                                                                    
SPONSOR(s): REPRESENTATIVE(s) RUFFRIDGE                                                                                         
                                                                                                                                
03/21/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/21/25       (H)       HSS, L&C                                                                                               
04/03/25       (H)       HSS AT 3:15 PM DAVIS 106                                                                               
04/03/25       (H)       Heard & Held                                                                                           
04/03/25       (H)       MINUTE(HSS)                                                                                            
04/08/25       (H)       HSS AT 3:15 PM DAVIS 106                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JARED KOSIN, President and CEO                                                                                                  
Alaska Hospital and Healthcare Association                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on HB
144.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
4:07:47 PM                                                                                                                  
                                                                                                                                
CHAIR GENEVIEVE MINA called the  House Health and Social Services                                                             
Standing   Committee    meeting   to    order   at    4:07   p.m.                                                               
Representatives  Prax, Fields,  Mears,  Ruffridge, Schwanke,  and                                                               
Mina  were present  at the  call to  order.   Representative Gray                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
        HB  96-HOME CARE EMPLOYMENT STANDARDS ADV BOARD                                                                     
                                                                                                                                
4:08:25 PM                                                                                                                    
                                                                                                                                
CHAIR MINA  announced that the  first order of business  would be                                                               
HOUSE BILL NO. 96, "An  Act establishing the Home Care Employment                                                               
Standards Advisory  Board; relating to payment  for personal care                                                               
services; and providing for an effective date."                                                                                 
                                                                                                                                
4:09:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX, as prime sponsor,  provided a brief recap of                                                               
the history  of HB  96.  He  said that HB  96 would  establish an                                                               
advisory board to address challenges with home care in Alaska.                                                                  
                                                                                                                                
4:10:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX moved to adopt  Amendment 1 to HB 96, labeled                                                               
34-LS0297\I.1, Radford, 4/2/25, which read as follows:                                                                          
                                                                                                                                
     Page 6, lines 2 - 3:                                                                                                       
          Delete "enrolled with"                                                                                                
          Insert "certified by"                                                                                                 
                                                                                                                                
CHAIR MINA objected for the purpose of discussion.                                                                              
                                                                                                                                
REPRESENTATIVE  PRAX explained  that  Amendment  1 would  clarify                                                               
previous concerns regarding HB 96.                                                                                              
                                                                                                                                
CHAIR  MINA  removed  her  objection   to  the  motion  to  adopt                                                               
Amendment 1.   There being no further objection,  Amendment 1 was                                                               
adopted.                                                                                                                        
                                                                                                                                
4:11:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX moved to adopt  Amendment 2 to HB 96, labeled                                                               
34-LS0297\I.2, Radford, 4/5/25, which read as follows:                                                                          
                                                                                                                                
          Page 5, lines 11 - 23:                                                                                                
               Delete all material and insert:                                                                                  
               "(c)  The department shall take the                                                                              
          recommendations  of the  board into  consideration                                                                    
     when      setting  rates for  covered services.  If the                                                                    
     rate set by    the  department  for a  covered  service                                                                    
     differs   significantly  from the  rate recommended  by                                                                    
     the board,     the commissioner shall  notify the board                                                                    
     and the chair  of  each  legislative  committee  having                                                                    
     jurisdiction of     health   and  social   services  in                                                                    
     writing."                                                                                                                  
                                                                                                                                
CHAIR MINA objected for the purpose of discussion.                                                                              
                                                                                                                                
REPRESENTATIVE  PRAX explained  that Amendment  2 would  simplify                                                               
the  process  of producing  the  annual  report by  the  advisory                                                               
board.                                                                                                                          
                                                                                                                                
CHAIR  MINA  removed  her  objection   to  the  motion  to  adopt                                                               
Amendment 2.   There being no further objection,  Amendment 2 was                                                               
adopted.                                                                                                                        
                                                                                                                                
4:12:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS  moved to report  HB 96, as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHB  96(HSS)  was                                                               
reported out  of the  House Health  and Social  Services Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
4:13:19 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:13 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
             HB 144-INSURANCE; PRIOR AUTHORIZATIONS                                                                         
                                                                                                                                
4:15:49 PM                                                                                                                    
                                                                                                                                
CHAIR MINA  announced that the  final order of business  would be                                                               
HOUSE  BILL NO.  144,  "An Act  relating  to prior  authorization                                                               
requests  for medical  care  covered by  a  health care  insurer;                                                               
relating  to   a  prior  authorization   application  programming                                                               
interface;  relating  to  step  therapy;  and  providing  for  an                                                               
effective date."   [Before  the committee,  adopted as  a working                                                               
document on  4/3/25, was the  proposed committee  substitute (CS)                                                               
for HB 144, Version 34-LS0780\N, Wallace, 4/1/25.]                                                                              
                                                                                                                                
4:16:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE, as  prime  sponsor,  provided a  brief                                                               
recap  of the  history of  HB  144.   He said  that the  proposed                                                               
legislation would  improve prior  authorization by  reducing wait                                                               
times and increasing access for patients.                                                                                       
                                                                                                                                
4:17:23 PM                                                                                                                    
                                                                                                                                
CHAIR  MINA opened  public testimony  HB 144,  Version N.   After                                                               
ascertaining that  no one  wished to  testify, she  closed public                                                               
testimony.                                                                                                                      
                                                                                                                                
4:17:49 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:17 p.m. to 4:22 p.m.                                                                       
                                                                                                                                
4:22:23 PM                                                                                                                    
                                                                                                                                
CHAIR MINA ascertained that Amendment 1 would not be offered.                                                                   
                                                                                                                                
REPRESENTATIVE GRAY moved to adopt Amendment 2 to HB 144,                                                                       
Version N, labeled 34-LS0780\N.2, Wallace, 4/7/25, which read as                                                                
follows:                                                                                                                        
                                                                                                                                
          Page 2, line 19:                                                                                                      
               Delete "If"                                                                                                      
               Insert "Except as provided in (g) of this                                                                        
     section, if"                                                                                                               
                                                                                                                                
          Page 2, line 27, following "request":                                                                                 
               Insert "under (b) of this section,"                                                                              
                                                                                                                                
          Page 3, line 13, following "under":                                                                                   
               Insert "(b) of"                                                                                                  
                                                                                                                                
          Page 3, following line 15:                                                                                            
          Insert new subsections to read:                                                                                       
               "(g)  The times specified in (b) of this                                                                         
     section   for  notifying a  health care  provider of  a                                                                    
     decision do    not  apply  to  a health  care  provider                                                                    
     that submits a      prior  authorization   request  for                                                                    
     medical care to be  provided on equipment  owned by the                                                                    
     health care    provider, the facility  where the health                                                                    
     care provider  is  employed,  or an  entity  affiliated                                                                    
     with the facility   where the  health care  provider is                                                                    
     employed.                                                                                                                  
               (h)  The provisions of (g) of this section                                                                       
     do not    apply  to   a  prior   authorization  request                                                                    
     submitted by a      health care provider  employed by a                                                                    
     hospital licensed  in this state."                                                                                         
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected.                                                                                              
                                                                                                                                
REPRESENTATIVE PRAX objected.                                                                                                   
                                                                                                                                
REPRESENTATIVE RUFFRIDGE stated that HB 144 has been carefully                                                                  
crafted with compromises, and he does not believe Amendment 2                                                                   
would help the bill move forward.                                                                                               
                                                                                                                                
4:23:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRAY   explained    that   Amendment   2   would                                                               
disincentivize  the   practice  of  self-dealing,   during  which                                                               
physicians prescribe imaging  on equipment they already  own.  He                                                               
said that this  practice is already outlawed in  other states and                                                               
contributes to the increasing cost of healthcare.                                                                               
                                                                                                                                
4:26:54 PM                                                                                                                    
                                                                                                                                
CHAIR  MINA asked  how Amendment  2 would  help lower  healthcare                                                               
costs.                                                                                                                          
                                                                                                                                
REPRESENTATIVE   GRAY   responded    that   Amendment   2   would                                                               
disincentivize  ordering tests  that  are unnecessary.   He  said                                                               
that HB 144 would provide  an expedited pathway for physicians to                                                               
have prior  authorizations approved  quickly for  tests performed                                                               
on their own  equipment.  This may cause  physicians to prescribe                                                               
testing  that  is  more  expensive   to  the  patient,  yet  more                                                               
profitable for the physician.                                                                                                   
                                                                                                                                
CHAIR MINA  asked about  the situation in  rural Alaska,  where a                                                               
patient might have access only  to one federally qualified health                                                               
center (FQHC), which owns its own equipment.                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  responded that equipment  at an FQHC  is not                                                               
owned by the  providers ordering tests, so Amendment  2 would not                                                               
apply to them.                                                                                                                  
                                                                                                                                
CHAIR MINA asked about the  situation in rural Alaska where there                                                               
is only one provider who owns their own equipment.                                                                              
                                                                                                                                
REPRESENTATIVE GRAY responded that  he believes that situation is                                                               
extremely  unlikely and  emphasized  that  imaging for  emergency                                                               
care does not  require prior authorization, so  Amendment 2 would                                                               
still not apply.                                                                                                                
                                                                                                                                
4:30:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  said that there  is a diverse  range of                                                               
FQHCs  in Alaska.    He described  one FQHC  in  Skagway and  the                                                               
limited access  that Skagway residents  have to  healthcare other                                                               
than that FQHC.  Therefore,  patients do not always have multiple                                                               
options   for  care   that  will   be  approved   with  a   prior                                                               
authorization.                                                                                                                  
                                                                                                                                
4:32:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY moved Conceptual  Amendment 1 to Amendment 2,                                                               
as follows:                                                                                                                     
                                                                                                                                
     Page 1, line 19                                                                                                            
          Insert "or FQHC" after "hospital"                                                                                     
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected.                                                                                              
                                                                                                                                
REPRESENTATIVE PRAX objected.                                                                                                   
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE   said   that   he   appreciated   the                                                               
opportunity to exempt  FQHCs from the provisions  of Amendment 2,                                                               
but  he  believes that  exemptions  highlight  the difficulty  of                                                               
Amendment 2 itself.                                                                                                             
                                                                                                                                
4:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX emphasized  that the goal of HB  144 would be                                                               
to compromise the  interests of all the parties  it involves, and                                                               
Amendment  2 with  its conceptual  amendment, would  disrupt that                                                               
process.                                                                                                                        
                                                                                                                                
4:35:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  [moved to  withdraw] Conceptual  Amendment 1                                                               
to Amendment 2.  [There  being no objection, Conceptual Amendment                                                               
1 was withdrawn.]                                                                                                               
                                                                                                                                
4:36:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  said that  his objection  to Amendment  2 is                                                               
the  same as  his  objection  to its  conceptual  amendment.   He                                                               
explained that Amendment 2 would complicate  HB 144 in a way that                                                               
would make it difficult for the bill to move forward.                                                                           
                                                                                                                                
4:36:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  said that  there is nothing  in HB  144 that                                                               
would  reduce healthcare  costs.   He  said  that expediting  the                                                               
timeline of  prior authorizations might actually  increase costs.                                                               
He emphasized  that self-dealing is  extraordinarily problematic.                                                               
He  said  that removing  the  barriers  that prior  authorization                                                               
creates to prescribe expensive testing  may increase the practice                                                               
of self-dealing.                                                                                                                
                                                                                                                                
4:40:05 PM                                                                                                                    
                                                                                                                                
CHAIR  MINA asked  what types  of equipment  other than  magnetic                                                               
resonance imaging (MRI) machines Amendment 2 would apply to.                                                                    
                                                                                                                                
4:40:32 PM                                                                                                                    
                                                                                                                                
JARED KOSIN,  President and CEO,  Alaska Hospital  and Healthcare                                                               
Association, responded  that he does not  entirely understand the                                                               
intention  behind  Amendment  2.   He  said  that  the  equipment                                                               
typically  owned by  physicians is  imaging equipment.   He  said                                                               
that  this  amendment,  by  focusing  on  providers  rather  than                                                               
patients, would  undermine patients'  ability to  quickly receive                                                               
care.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  GRAY responded  that he  has never  done a  prior                                                               
authorization  for  an  x-ray  and that  Amendment  2  would  not                                                               
prevent  a patient  from receiving  any  kind of  procedure.   He                                                               
emphasized that  the intention  of Amendment 2  is to  stop self-                                                               
dealing.                                                                                                                        
                                                                                                                                
4:43:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE  said she appreciates the  thought behind                                                               
Amendment  2.   She expressed  concern about  restricting private                                                               
businesses  who made  business decisions,  like buying  their own                                                               
equipment, under  laws that allowed them  to do so for  their own                                                               
profit.                                                                                                                         
                                                                                                                                
4:44:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE asked if  healthcare providers, or their                                                               
employers, would  be on  a list  of entities  that own  their own                                                               
equipment.   He also asked  who would police  insurance companies                                                               
from approving prior authorizations  from those entities on their                                                               
own equipment.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  GRAY   responded  to   Representative  Schwanke's                                                               
concerns,  stating  that  the owners  of  imaging  equipment  are                                                               
making  millions  of  dollars  at  the expense  of  Alaska.    He                                                               
emphasized  that it  is unfair  to  self-deal.   He responded  to                                                               
Representative  Ruffridge, stating  that  Amendment  2 would  not                                                               
place a burden on the  state, but insurance companies should know                                                               
who orders a test and on what equipment.                                                                                        
                                                                                                                                
4:48:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  said  that  Amendment 2  would  add  a                                                               
burden to  the state  because the  responsibility would  not fall                                                               
solely on the insurance company.   He emphasized that Amendment 2                                                               
would delay care and hurt patients.                                                                                             
                                                                                                                                
4:50:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY said  that  current law  in Alaska  requires                                                               
that doctors  being paid by  Medicare or Medicaid, who  own their                                                               
equipment, must disclose that information  to their patients.  He                                                               
disagreed that Amendment 2 would delay care.                                                                                    
                                                                                                                                
4:51:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS  asked  if  Amendment 2  would  address  an                                                               
existing  issue or  would  close  a loophole  that  HB 144  would                                                               
create.                                                                                                                         
                                                                                                                                
REPRESENTATIVE GRAY  responded that there is  an existing problem                                                               
in Alaska.   He said that Amendment 2 would  not fix this problem                                                               
but would prevent the problem from becoming easier to occur.                                                                    
                                                                                                                                
REPRESENTATIVE MEARS  asked about practices of  self-dealing that                                                               
could be addressed outside of Amendment 2.                                                                                      
                                                                                                                                
REPRESENTATIVE GRAY  responded that a bill  stopping self-dealing                                                               
practices would not be widely supported.                                                                                        
                                                                                                                                
4:54:35 PM                                                                                                                    
                                                                                                                                
CHAIR MINA said she would not support Amendment 2.                                                                              
                                                                                                                                
4:55:29 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Gray  voted in favor                                                               
of  Amendment 2  to HB  144,  Version N.   Representatives  Prax,                                                               
Ruffridge, Schwanke,  Mears, Fields,  and Mina voted  against it.                                                               
Therefore, Amendment 2 failed to be adopted by a vote of 1-6.                                                                   
                                                                                                                                
4:56:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY asked the sponsor  of the bill to address how                                                               
all entities would save money under HB 144, Version N.                                                                          
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  responded that the  prior authorization                                                               
process requires  a large workload,  which increases  their cost.                                                               
He  said  HB  144,  Version  N,  would  increase  efficiency  and                                                               
decrease   the   employees   needed   to   complete   the   prior                                                               
authorization process, thus decreasing the cost to treat                                                                        
patients.                                                                                                                       
                                                                                                                                
5:00:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS  moved  to  report CSHB  144,  Version  34-                                                               
LS0780\N,  Wallace,  4/1/25,  out of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection, CSHB  144  (HSS)  was reported  out  of the  House                                                               
Health and Social Services Standing Committee.                                                                                  
                                                                                                                                
5:01:16 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
HB 96 Combined Testimony 04.08.25.pdf HHSS 4/8/2025 3:15:00 PM
HB 96
HB 144 Combined Testimony as of 4.7.25.pdf HHSS 4/8/2025 3:15:00 PM
HB 144
HB 144 Amendment N.2.pdf HHSS 4/8/2025 3:15:00 PM
HB 144
HB 96 Amendment I.1.pdf HHSS 4/8/2025 3:15:00 PM
HB 96
HB 96 Amendment I.2.pdf HHSS 4/8/2025 3:15:00 PM
HB 96