Legislature(2011 - 2012)CAPITOL 106
03/20/2012 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HR11 | |
| HB219 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HR 11 | TELECONFERENCED | |
| += | HB 219 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 20, 2012
8:06 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Wes Keller, Vice Chair
Representative Paul Seaton
Representative Peggy Wilson
Representative Max Gruenberg
Representative Pete Petersen
Representative Kyle Johansen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE RESOLUTION NO. 11
In support of providing TRICARE program health care benefits to
United States military retirees as promised.
- MOVED CSHR 11(STA) OUT OF COMMITTEE
HOUSE BILL NO. 219
"An Act exempting certain emergency medical and fire department
services from regulation as insurance."
- MOVED CSHB 219(STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HR 11
SHORT TITLE: MILITARY RETIREES' TRICARE BENEFITS
SPONSOR(s): STATE AFFAIRS
03/12/12 (H) READ THE FIRST TIME - REFERRALS
03/12/12 (H) STA
03/20/12 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 219
SHORT TITLE: FIRE AND EMERGENCY MEDICAL SERVICES
SPONSOR(s): FEIGE
03/31/11 (H) READ THE FIRST TIME - REFERRALS
03/31/11 (H) CRA, STA
02/16/12 (H) CRA AT 8:00 AM BARNES 124
02/16/12 (H) Heard & Held
02/16/12 (H) MINUTE(CRA)
03/01/12 (H) CRA AT 8:00 AM BARNES 124
03/01/12 (H) Moved Out of Committee
03/01/12 (H) MINUTE(CRA)
03/02/12 (H) CRA RPT 3DP 3NR
03/02/12 (H) DP: AUSTERMAN, DICK, FOSTER
03/02/12 (H) NR: SADDLER, GARDNER, MUNOZ
03/15/12 (H) STA AT 8:00 AM CAPITOL 106
03/15/12 (H) Heard & Held
03/15/12 (H) MINUTE(STA)
03/20/12 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified in support of HR 11.
RIC DAVIDGE
Vietnam Veterans of America Chapter 904
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HR 11.
MICHAEL PASCHELL, Staff
Representative Eric Feige
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 219 on behalf of
Representative Feige, sponsor.
ACTION NARRATIVE
8:06:08 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:06 a.m. Representatives Keller, Seaton,
Johansen, Petersen, Gruenberg, and Lynn were present at the call
to order. Representative P. Wilson arrived as the meeting was
in progress.
HR 11-MILITARY RETIREES' TRICARE BENEFITS
8:06:33 AM
CHAIR LYNN announced that the first order of business was HOUSE
RESOLUTION NO. 11, In support of providing TRICARE program
health care benefits to United States military retirees as
promised.
8:06:37 AM
REPRESENTATIVE KELLER moved to adopt the proposed committee
substitute (CS) for HR 11, Version 27-LS1429\I, Wayne, 3/16/12,
as a work draft. There being no objection, Version I was before
the committee.
8:06:58 AM
CHAIR LYNN handed the gavel to Vice Chair Keller.
8:07:24 AM
REPRESENTATIVE LYNN presented HR 11 on behalf of the House State
Affairs Standing Committee, sponsor. He disclosed that he
receives health insurance from the State of Alaska, through
Medicare, and - because of his status as a veteran of the
Vietnam War - from the U.S. Government's military Tri-Care plan.
He said the federal administration plans to increase costs to
military families and retirees by increasing Tri-Care rates,
adding enrollment fees, indexing fees to medical inflation, and
establishing "means testing." He opined that means testing
would "turn earned benefits into a welfare-based handout," and
he emphasized that military health care is not welfare. He said
the U.S. promised him continued health benefits after a period
of twenty years' honorable service. He stated, "A promise is a
contract." He said the proposed resolution supports the
continuation of the Tri-Care program as it is now.
REPRESENTATIVE LYNN said those in the military swear an oath to
protect the nation, and in return they are promised that the
country would take care of them. He said that is a promise that
must be kept. He offered an excerpt of a 3/12/12 editorial in
The Anchorage Daily News, written by Paul Jenkins of The
Anchorage Daily Planet, which read as follows:
We send them to the God-forsaken back alleys of the
world. We pay them squat. We talk the talk; they and
theirs get to walk the talk. We tell them: If you
will offer us your lives, and put your future in
doubt, we will take care of you.
REPRESENTATIVE LYNN concluded as follows:
Yes, something does need to be done about [the] out-
of-control federal deficit, but we don't need to
balance the budget by throwing our military under the
bus. The administration's plan to renege on our
military is obscene and it's disgraceful; it defaults
on the contract between the [U.S.] Department of
Defense and America's military. This resolution
before you sends a message to those who need to hear
it.
8:11:14 AM
REPRESENTATIVE SEATON directed attention to page 2, lines 3-4,
and noted that the proposed resolution would cover only those
retired military personnel who had served "during times of war
and armed conflict". He asked if it is the intent to exclude
those retired military personnel who did not serve during times
of war and armed conflict.
CHAIR LYNN said he intended to include all military retirees.
8:13:38 AM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature, noted that
he is the chair of the House Special Committee on Military and
Veterans' Affairs, and he stated his support of HR 11. He
offered his understanding that the [federal government's] plan
is to increase Tri-care fees for military retirees who are under
65 and eligible for Medicare. The increases are from 30 to 78
percent the first year, rising over the next five years to
between 94 percent and 345 percent. He said these increases are
the U.S. Department of Defense's (DoD's) efforts to cut $487
billion from its budget over the next ten years. He said
parenthetically if cuts cannot be made somewhere else in the
multi-trillion-dollar federal budget, then DoD will be back
before Congress looking for another half trillion dollars in
cuts. Representative Saddler said he does not think military
retirees should bear the brunt of these cuts. He echoed
Representative Lynn's statement that military members have made
a promise to the nation, and the nation in turn has made a
promise to them in the form of providing health care.
REPRESENTATIVE SADDLER said it is not yet clear whether the
intent of the increased Tri-care fees is to force military
retirees in to the "Obama-Care" federal health care program. He
said it has been reported that the goal of the administration in
making these increases is to discourage the military retirees
from using their health care benefits, by increasing the cost.
It has further been reported that the increases are not being
assessed equitably, because they will hit military retirees but
will not affect the civilian employees of DoD. He opined,
"That's just not right."
8:16:01 AM
REPRESENTATIVE GRUENBERG stated his objection to the use of the
word "obscene," because he said "that's just name calling." He
said the people in Washington are just trying to cut the budget;
this may not be the right way to do it. He observed that there
is nothing in the committee packet that indicates the reasons
for the cuts. He indicated that HJR 11 is a vehicle solely of
the House, and he said the committee is only getting one side of
the story. He stated, "It sounds pretty partisan to me."
8:17:46 AM
REPRESENTATIVE SADDLER said a certain amount of passion is
brought to this issue, and he offered his understanding that the
language to which Representative Gruenberg referred came from
the quoted language of the aforementioned Mr. Jenkins.
REPRESENTATIVE GRUENBERG said he is not pointing fingers at
anybody, and he knows it is difficult to point out both sides.
He said his remarks were intended as "constructive commentary."
8:19:59 AM
REPRESENTATIVE LYNN, in response to Representative Seaton,
acknowledged that the word "obscene" was in his opening
statement, but it is not in the proposed resolution. He said
those in the military are fighting for one cause, not for
partisan politics.
REPRESENTATIVE GRUENBERG stated support of HR 11.
8:20:49 AM
REPRESENTATIVE JOHANSEN, in response to Representative
Gruenberg's previous comment that HJR 11 was only a House
resolution, pointed out that there are a diverse group of people
in the caucus.
8:22:31 AM
REPRESENTATIVE GRUENBERG replied that this is an unusual
situation, because normally a measure like this would be a joint
resolution, since it is addressed to the federal government.
8:23:27 AM
REPRESENTATIVE P. WILSON remarked that legislators usually
conduct themselves in committee with respect for those who
testify.
8:24:21 AM
VICE CHAIR KELLER, regarding the idea of a broken promise, he
said it is not the first. He remarked upon the critical state
of the nation's health care system. He mentioned the money that
came to the state for inoculations that is now drying up. He
stated support for HJR 11. He predicted the legislature will be
facing similar issues in the future - not related solely to
veterans.
8:27:17 AM
RIC DAVIDGE, Vietnam Veterans of America (VVA) Chapter 904,
testified on behalf of VVA Chapter 904. He said he has served
as the national chair of government affairs and chief lobbyist
for VVA, as well as the chair of the Commission of Military and
Veterans Affairs in the Municipality of Anchorage. He said
recently a group of doctors came to the commission with
emotional testimony that as a community it is no longer going to
be able to provide health care services to Tri-Care members,
because Tri-Care now pays only 21 percent of the cost of
services. Mr. Davidge said there has been a bi-partisan
response to [HJR 11]. He said he does not know any member of
Congress who has said he/she supports the cut. He stated, "Both
the House and Senate chairs of the respective committees have
come out strongly against this reduction."
MR. DAVIDGE said he serves the chair of the National Defense of
Veterans Affairs Committee for the Alaska Republican Party. He
said there is an amendment to the party platform that basically
states that when someone enlists or is commissioned in military
service, the benefit package at that time cannot be diminished
over the terms of his/her service. He said he suspects this
will be carried forward through state and national conventions,
and he noted that there are people in the Democratic Party
looking at the same idea.
MR. DAVIDGE said the U.S. Coast Guard is not a part of DoD; it
is part of the U.S. Department of Homeland Security. He opined
that the U.S. Coast Guard should be included in HJR 11. He said
George Washington once stated that the way the nation treats its
military veterans will, in many ways, determine the country's
ability to defend itself in the future. He stated, "This is a
fundamental basic anger that veterans have against their
government: the notion that they were promised a certain level
of services, based on an extraordinary dedication to protect
this country and advance the notion of human freedom, only to
find after 20 years of service that those benefits are
diminished." He said he thinks that is why both parties are
looking at this platform issue.
8:31:27 AM
REPRESENTATIVE GRUENBERG suggested adding language to the
proposed resolution, as follows:
Whereas a group of Anchorage physicians recently
announced that, because Tri-Care pays less than 21
percent of the cost of care for eligible patients,
they will no longer serve Tri-Care patients.
MR. DAVIDGE said that is a direct reflection of his comments,
and he said he would support such an amendment.
8:32:56 AM
REPRESENTATIVE SEATON asked if including Homeland Security would
include more than veterans of the Coast Guard. He said he wants
to ensure that the language is not broadened to the point of
including non-military personnel.
8:33:45 AM
MR. DAVIDGE answered that that clarification could be made by
specifying the U.S. Coast Guard.
REPRESENTATIVE SEATON suggested: "and Coast Guard personnel of
the Department of Homeland Security."
MR. DAVIDGE said that would take care of it.
8:34:40 AM
REPRESENTATIVE PETERSEN noted that Secretary of Defense, Leon
Panetta, was quoted as saying that some of the fees have not
been increased since 1990. He asked Mr. Davidge if he thinks
that is accurate information.
MR. DAVIDGE confirmed that is correct. He said the cost of
service has gone up, and the ability to pay has decreased. He
said the aforementioned group of doctors had formed a work group
to try to find a way to continue to help military families and
retired service members, but were unsuccessful.
REPRESENTATIVE PETERSEN asked if the reason for a 300-percent
increase in fees is an attempt to catch up with the cost of
health care.
MR. DAVIDGE responded that health care is one of the biggest
cost explosions that DoD has faced, but one of the biggest bills
the department pays each year is unemployment insurance. He
stated that the value of tri-care coverage over the last 20
years has deteriorated, and the families have had to come up
with the balance.
8:37:22 AM
MR. DAVIDGE, in response to Vice Chair Keller, said he thinks
adding "the U.S. Coast Guard/Department of Homeland Security"
would make it clear that the only entity outside of DoD to be
added to the resolution would be the U.S. Coast Guard.
8:38:10 AM
VICE CHAIR KELLER, after ascertaining that there was no one else
who wished to testify, closed public testimony.
8:38:39 AM
REPRESENTATIVE GRUENBERG moved to adopt Conceptual Amendment 1,
a handwritten amendment, which read as follows [original
punctuation provided]:
Whereas a group of Anchorage physicians recently
announced that, because Tricare pays less than 21% of
the cost of care for eligible patients, they will no
longer serve Tricare patients; and
Add to the appropriate line in the bill
REPRESENTATIVE KELLER objected for the purpose of discussion.
8:39:06 AM
VICE CHAIR KELLER moved to amend Conceptual Amendment 1, to
change the last line of Conceptual Amendment 1 to reflect that
"they have determined to no longer serve". He said the reason
is "we don't know exactly what will happen" or "exactly the
action that was taken."
8:40:41 AM
REPRESENTATIVE GRUENBERG clarified that Conceptual Amendment 1,
if amended by the proposed amendment to Conceptual Amendment 1,
would read as follows:
Whereas a group of Anchorage physicians recently
announced that, because Tricare pays less than 21% of
the costs of care for eligible patients, they have
determined that they will no longer serve Tricare
patients; and
8:41:44 AM
REPRESENTATIVE PETERSEN suggested "they will no longer provide
medical services for Tricare patients".
REPRESENTATIVE GRUENBERG said he thinks that should be offered
as a separate amendment.
VICE CHAIR KELLER concurred.
8:42:19 AM
REPRESENTATIVE LYNN questioned whether the proposed changes
would be as meaningful on a national level as to Alaska.
REPRESENTATIVE GRUENBERG said he would like the committee to
focus on the proposed amendment to Conceptual Amendment 1.
8:42:47 AM
VICE CHAIR KELLER asked if there was any objection to the motion
to adopt the amendment to Conceptual Amendment 1. [No objection
was stated, and the amendment to Conceptual Amendment 1 was
treated as adopted.]
8:43:12 AM
REPRESENTATIVE PETERSEN indicated his intent was to offer an
amendment to Conceptual Amendment 1, as amended; however, he
said he thinks it is not necessary.
REPRESENTATIVE GRUENBERG encouraged Representative Petersen to
offer the amendment.
VICE CHAIR KELLER asked the committee to "press on."
8:43:42 AM
REPRESENTATIVE GRUENBERG spoke to Conceptual Amendment 1, as
amended. He said it reflects how this issue is affecting the
largest community in Alaska.
8:44:18 AM
REPRESENTATIVE PETERSEN ventured that if there are physicians in
Anchorage who are saying they will no longer be able to treat
Tricare patients, then perhaps this is occurring in other
locations across the U.S., as well.
8:44:46 AM
REPRESENTATIVE JOHANSEN expressed concern that adopting
Conceptual Amendment, as amended, may adversely affect the
chances of the resolution passing on the House floor. He said
the identification of "a group of Anchorage physicians" is
vague.
8:46:30 AM
MR. DAVIDGE clarified that this was a group of physicians in
Anchorage that had been serving Tricare patients until its
members reached a point where they could no longer afford to do
so. He stated, "I did not detect any partisan interest at all;
this was just genuinely a concern by the medical community in
Anchorage." He said the group included surgeons and primary
physicians, and he said he could find out the names of those
individuals in the group.
8:47:37 AM
VICE CHAIR KELLER maintained his objection to the motion to
adopt Conceptual Amendment 1, as amended.
8:47:52 AM
8:48:01 AM
REPRESENTATIVE GRUENBERG said he was unaware of this issue
before hearing Mr. Davidge's testimony. He expressed concern
about physicians not being able to serve the increasing number
of Baby Boomers reaching the age where they qualify for
Medicare.
8:48:43 AM
VICE CHAIR KELLER, in response to Representative Lynn, suggested
that the amendment could be added now and addressed by the House
Rules Standing Committee or by the body on the House floor.
REPRESENTATIVE LYNN expressed discomfort in adding a local issue
to the resolution. He echoed Representative Johansen's remark
that he does not know who this group of doctors is.
8:50:07 AM
REPRESENTATIVE GRUENBERG proffered that apparently this was a
significant group of doctors, and the point is that they can no
longer serve Tricare patients.
8:50:27 AM
REPRESENTATIVE JOHANSEN reiterated that he is uncomfortable
interjecting a local issue into a broad resolution and not
knowing the exact identity of the group of physicians. He said
he does not want to jeopardize the resolution. He said, "It's
the chairman's bill, and whatever he wants to do I'll support."
8:52:15 AM
REPRESENTATIVE PETERSEN suggested generalizing [Conceptual
Amendment 1, as amended] by taking out "the local option."
VICE CHAIR KELLER said that would require a separate amendment.
8:52:31 AM
A roll call vote was taken. Representative Gruenberg voted in
favor of adopting Conceptual Amendment 1, as amended.
Representatives Johansen, Seaton, Keller, Petersen, and Lynn
voted against it. Therefore, Conceptual Amendment 1, as
amended, failed by a vote of 1-5.
8:53:03 AM
REPRESENTATIVE SEATON moved to adopt Conceptual Amendment 2, a
handwritten amendment, which read as follows [original
punctuation provided]:
Page 1 line 13
insert after military
"and US Coast Guard"
There being no objection, Conceptual Amendment 2 was adopted.
8:53:35 AM
REPRESENTATIVE SEATON moved to adopt Conceptual Amendment 3, as
follows:
Page 2, line 3, between "and" and "served":
Delete "who have"
Page 2, line 4, between "nation" and "the TRICARE":
Delete "during times of war and armed conflict"
REPRESENTATIVE SEATON said he thinks other language in the
resolution has identified those who "are at risk of mortal
harm", and he indicated that [Conceptual Amendment 3] would
remove a limitation from the proposed resolution.
8:55:11 AM
REPRESENTATIVE JOHANSEN objected for the purpose of discussion.
REPRESENTATIVE SEATON, in response to Representative Johansen,
clarified the reason for taking out "during times of war and
armed conflict" is to include those in the military who have
served [in times of peace], when they could have been at risk at
any time, having sworn an oath.
REPRESENTATIVE LYNN remarked that everyone is at risk of going
to war whether or not he/she is sent to war.
REPRESENTATIVE JOHANSEN removed his objection.
8:56:48 AM
VICE CHAIR KELLER announced that Conceptual Amendment 3 was
adopted.
8:57:00 AM
REPRESENTATIVE SEATON moved to report CSHR 11, Version 27-
LS1429\I, Wayne, 3/16/12, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHR 11(STA) was reported out of the
House State Affairs Standing Committee.
8:57:20 AM
The committee took an at-ease from 8:57 a.m. to 8:59 a.m.
[During the at-ease, Vice Chair Keller handed the gavel back to
Chair Lynn.]
HB 219-FIRE AND EMERGENCY MEDICAL SERVICES
8:59:41 AM
CHAIR LYNN announced that the final order of business was HOUSE
BILL NO. 219, "An Act exempting certain emergency medical and
fire department services from regulation as insurance."
8:59:54 AM
REPRESENTATIVE KELLER moved to adopt the committee substitute
(CS) for HB 219, Version 27-LS0638\D, Bailey, 3/15/12, as a work
draft. There being no objection, Version D was before the
committee.
9:00:16 AM
MICHAEL PASCHELL, Staff, Representative Eric Feige, Alaska State
Legislature, presented HB 219 on behalf of Representative Feige,
sponsor. He disclosed that Representative Feige is the chief of
the Chickaloon Fire Service, Inc., and said he is the assistant
chief and board member of the Rural Deltana Volunteer Fire
Department. He said HB 19 would provide a mechanism to provide
fire and emergency services organizations to receive donations
or support from community members, and if the entities charge
for their services, they could, in turn, discount the services
for those people who contributed to the organization. The
problem has been that that activity is deemed as insurance, and
HB 219 would remove that activity from the state insurance laws.
MR. PASCHELL said Version D would make changes in response to
committee comments at the last bill hearing. Those changes are:
on page 1, lines 5 and 10, the word "voluntary" was added before
"agreement"; and on page 1, lines 8 and 13, the phrase "in the
community" was added. In response to a request at the previous
hearing, he said he spoke to the Alaska Municipal League (AML),
and he indicated that issuing an opinion on HB 219 was not high
on AML's priority list.
9:02:23 AM
REPRESENTATIVE SEATON reported that [his office] contacted
Anchor Point Volunteer Fire & Rescue, Bear Creek Fire/Emergency
Medical Services Department, Central Emergency Services,
Kachamak Emergency Services, Seward Fire Department, Homer
Volunteer Fire Department, and Moose Pass Volunteer Fire
Company, all of which expressed no problem with the proposed
bill and "generally support it."
9:02:53 AM
REPRESENTATIVE KELLER opined that HB 219 is a good bill.
9:02:59 AM
REPRESENTATIVE KELLER moved to report CSHB 219, Version 27-
LS0638\D, Bailey, 3/15/12, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 219(STA) was reported out of the House State
Affairs Standing Committee.
9:03:45 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:04
a.m.