Legislature(1997 - 1998)

01/22/1998 08:00 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
        HOUSE STATE AFFAIRS STANDING COMMITTEE                                 
                   January 22, 1998                                            
                      8:00 a.m.                                                
                                                                               
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
NYLCARE HEARING                                                                
                                                                               
TAPES                                                                          
                                                                               
98-4, SIDES A & B                                                              
98-5, SIDE A                                                                   
                                                                               
CALL TO ORDER                                                                  
                                                                               
Representative James, Chair, convened the House State Affairs                  
Committee meeting at 8:00 a.m.                                                 
                                                                               
PRESENT                                                                        
                                                                               
Committee members present were Representatives James, Berkowitz,               
Elton, Hodgins, and Vezey.  Other legislators present were                     
Representatives Bunde and Davies.                                              
                                                                               
SUMMARY OF INFORMATION                                                         
                                                                               
REPRESENTATIVE JEANNETTE JAMES, CHAIR, gave the following opening              
statement:                                                                     
                                                                               
"Thank you all for participating in this hearing regarding NYL (New            
York Life) Care coverage.                                                      
                                                                               
"This is an opportunity for ALL sides of the situation to listen to            
each other's concerns.                                                         
                                                                               
"Please try to keep your testimony as brief as possible.  (I have              
set a two-minute limit but will allow some latitude.)  And please              
submit a written documented copy of your testimony by handing it to            
the committee aide, or by fax or letter.  Any information provided             
today will become part of the public record unless you indicate on             
written testimony that you wish it to be kept confidential.                    
                                                                               
"First, we will hear from the administrators of the program, both              
NYLCare personnel and state of Alaska personnel.                               
                                                                               
"Second, we will invite public testimony from consumers (employees             
covered by NYLCare) and from providers (doctors, dentists,                     
pharmacists).                                                                  
                                                                               
"Member of this State Affairs Committee are invited to comment or              
ask questions at any time during the hearing.                                  
                                                                               
"I was told that many problems have recently been solved by                    
NYLCare.  If this is true, I would like NYLCare to tell us if                  
there is a threshold date prior to which all of the issues or                  
concerns have been successfully concluded.  Then we can ask                    
participants to state at the beginning of their testimony whether              
their problem occurred before or after that date.                              
                                                                               
"In two weeks  we will have a follow-up hearing.  At that time, I              
hope NYLCare and the state Administration will address each                    
specific problem brought up today and let us know their solutions.             
If there is a better way for consumers and providers to avoid                  
misunderstandings in the future, we want that to be part of the                
overall solution."                                                             
                                                                               
ALISON ELGEE, with the Alaska Department of Administration,                    
presented the Administration's position regarding NYLCare coverage             
and discussed the state's recent change to self-insurance and the              
state's claim process.                                                         
                                                                               
MIKE WIGGINS, Director of Programs with NYLCare, presented                     
NYLCare's position, stating he is looking forward to ironing the               
bugs out.                                                                      
                                                                               
CHAIR JAMES stated she felt state employees had been misled into               
thinking NYLCare would offer the same coverage as the previous                 
insurance company, and she was disappointed to discover this is                
not true.                                                                      
                                                                               
REPRESENTATIVE CON BUNDE, Alaska State Legislator, discussed                   
problems he and his wife have had with NYLCare.  He voiced a                   
concern that NYLCare makes money by delaying payments.                         
                                                                               
REPRESENTATIVE JOHN DAVIES, Alaska State Legislator, outlined                  
problems he and his family have had with NYLCare.  He also                     
discussed confusion regarding the recovery account, stating he has             
put money in the account but is unable to get it out, and                      
mentioned problems with NYL Care's coverage of "step-families."                
                                                                               
MARTHA MOORE, Juneau resident, told the committee about her                    
problems with NYLCare, stating that she now pays more money for                
less coverage.                                                                 
                                                                               
PAT WELLINGTON, Chair of the Alaska PERS (Public Employees                     
Retirement System) Board, discussed retirees' coverage via                     
teleconference from Anchorage.                                                 
                                                                               
CHAIR JAMES read into the record a statement regarding problems                
with retirees' coverage from Denny DeWitt, Legislative Assistant               
to Representative Eldon Mulder.                                                
                                                                               
JANET PARKER, Deputy Director of the Alaska Division of Retirement             
and Benefits, responded to concerns about retirees' coverage.                  
                                                                               
DALE MCKIERNAN of North Pole testified via teleconference from                 
Fairbanks about his problems with NYLCare's retiree coverage.                  
                                                                               
CANDY CORCORAN, employed in Juneau by Dr. Henry Akiyama, presented             
problems that health care providers are having with NYLCare.  She              
stated "double coverage is a nightmare" and added that                         
communication is the key and the state needs to take partial blame             
for the problems.  She said in Dr. Akiyama's office they have                  
about $50,000 additional "float" in accounts receivable because of             
the change to NYLCare coverage, plus the cost of hiring additional             
accounting personnel.                                                          
                                                                               
CHAIR JAMES referred to a letter from North Pole Prescription                  
Laboratory as an example of problems which pharmacists are having              
with NYLCare.                                                                  
                                                                               
REBECCA DEAN, Administrator of the Tanana Valley Clinic in                     
Fairbanks and representative for 32 health care providers,                     
testified via teleconference in Fairbanks about the myriad                     
difficulties doctors are having with NYLCare. She added that the               
clinic is having problems fulfilling its mission statement because             
of NYLCare.                                                                    
                                                                               
LINDA SALMI, Business Manager of the Tanana Valley Clinic in                   
Fairbanks, verified Ms. Dean's testimony and added more details.               
She noted that Tanana Valley Clinic carries an additional $30,000              
float per month now under NYLCare.                                             
                                                                               
ROGER BLACKETT testified via teleconference in Kodiak regarding                
problems he is having with NYLCare as a retired state employee,                
and the confusion caused because his wife is still an active state             
employee covered by NYLCare.                                                   
                                                                               
JANET DOWNING, who is covered by NYLCare under a COBRA extension,              
testified via teleconference in Fairbanks, referring to her letter             
which was in the committee members' packets.                                   
                                                                               
TOM MANNINEN, Legislative Aide to Representative Mark Hodgins,                 
presented difficulties he and his family have had with their                   
NYLCare coverage.                                                              
                                                                               
SHIRLEY ARMSTRONG, Legislative Aide to Representative Norm                     
Rokeberg, discussed her problems with NYLCare.                                 
                                                                               
MELINDA HOFSTAD, Legislative Aide to Representative Bill Hudson,               
testified concerning constituent problems with NYLCare's mail                  
order prescription policies, noting that there is now an incentive             
to order out-of-state.  She added that after extensive research                
she could discover no appreciable savings to the state under                   
NYLCare.                                                                       
                                                                               
GARY CADD, Legislative Aide to Representative Mark Hodgins,                    
presented his problems with NYLCare.                                           
                                                                               
ANNOUNCEMENTS                                                                  
                                                                               
A follow-up NYLCare hearing will be held Tuesday, February 3,                  
1998, at 8:00 a.m.                                                             
                                                                               
COMMITTEE ACTION                                                               
                                                                               
The committee took no action.                                                  
                                                                               
ADJOURNMENT                                                                    
                                                                               
CHAIR JAMES adjourned the meeting at 10:00 a.m.                                
                                                                               
NOTE:                                                                          
                                                                               
The meeting was recorded and handwritten log notes were taken.  A              
copy of the tape(s) and log notes may be obtained by contacting                
the House Records Office at 130 Seward Street, Suite 211, Juneau,              
Alaska 99801-1182, (907) 465-2214, and after adjournment of the                
second session of the Twentieth Alaska State Legislature, in the               
Legislative Reference Library.                                                 

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