Legislature(2009 - 2010)SENATE FINANCE 532
02/11/2010 09:15 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB83 | |
| SB199 | |
| SB159 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 83 | TELECONFERENCED | |
| + | SB 199 | TELECONFERENCED | |
| + | SB 159 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 11, 2010
9:24 a.m.
9:24:31 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:24 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Joe Thomas
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson
ALSO PRESENT
David Logan, Alaska Dental Society; Mark Prator, Alaska
Dental Society, Wasilla; Senator Joe Paskvan; Trena Heikes,
Director, Division of Workers' Compensation, Department of
Labor and Workforce Development; Barbara Huff Tuckness,
General Teamsters 959. Don Etheridge, Alaska, AFL, CIO; Jon
Sherwood, Director, Office of Program Review, Department of
Health and Social Services (DHSS).
PRESENT VIA TELECONFERENCE
Kevin Dougherty, Alaska Laborers, Eagle River; Stacy Allen,
Laborers Local 341, Anchorage.
SUMMARY
SB 83 VOCATIONAL REHABILITATION COMMITTEE
CSSB 83 (L&C) was REPORTED out of Committee with a
"do pass" recommendation and with attached fiscal
note by the Department of Labor and Workforce
Development.
SB 199 MEDICAID COVERAGE FOR DENTURES
SB 199 was HEARD and HELD in Committee for further
consideration.
SB 159 WORKERS' COMPENSATION FUNERAL EXPENSES
SB 159 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 83
"An Act repealing the governor's committee on
employment of people with disabilities; creating the
state vocational rehabilitation committee and relating
to the committee; and providing for an effective date."
9:24:53 AM
Co-Chair Stedman introduced SB 83 and explained that today
was the second hearing for the bill. Public testimony was
taken on February 8, 2010.
9:26:29 AM AT EASE
9:27:00 AM RECONVENED
Senator Huggins MOVED to report CSSB 83 out of Committee
with individual recommendations and the accompanying fiscal
note.
There being NO OBJECTION, it was so ordered.
CSSB 83 (L&C) was REPORTED out of Committee with a "do pass"
recommendation and with attached fiscal note by the
Department of Labor and Workforce Development.
SENATE BILL NO. 199
"An Act providing for a two-year funding cycle for
medical assistance coverage for dentures."
9:28:08 AM
Senator Ellis shared a story about a gentleman who visited
his office and threatened to commit suicide following a
negative interaction with employees at the Medicaid Dental
Program. The interaction was negative because of statutes
and regulations concerning dentures and the Medicaid Dental
Program. The gentleman qualified for dentures under the
Medicaid Dental Plan, but was told that he had to choose to
have either his upper or lower dentures installed. To this
person, the situation was of dire concern as he was unable
to chew with only one set of dentures. The bill allows
patients to forward fund the complete set of dentures versus
waiting two years for the entire set of dentures.
Senator Ellis explained that studies have shown that if the
government helps people with dental health expenses,
expensive fiscal health problems are prevented. Allowing
patients to receive a full set of dentures during the same
fiscal year is crucial for oral health and will reduce the
impact on Medicaid patients and Alaska's dentists. The bill
allows patients who are eligible for dentures under the
Medicaid Adult Dental Program to forward fund the complete
set of dentures. Current law limits patients to $1150 in
preventative or restorative services. The bill does not
increase eligibility for the total amount of benefits, it
simply allows them to access the funding they would have
received the next fiscal year to complete a procedure in a
cost effective manner.
9:33:45 AM
JON SHERWOOD, DIRECTOR, OFFICE OF PROGRAM REVIEW, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES (DHSS), stated that the
department conceptually approves of the legislation. The
department agrees that it is best for patients to receive
two sets of dentures in the same appointment. If the
legislation passes, patients would receive both sets of
dentures in the same year. He acknowledged that the current
system does not always work. The department does project
that the expenditures will increase as most people will
address denture needs in the first few years. The department
projects costs of approximately $900 thousand in the first
year, with $300 thousand from general funds. The second year
projection includes $467 thousand in the second year with
$200 thousand from general funds. Administrative costs
include automating the two year limit. He expressed concerns
about the automation prior to freezing the claims processing
system, which requires one position for one year if manual
tracking is required.
9:37:53 AM
Co-Chair Stedman expressed concern about the fiscal note and
the positions needed. Potential positive fiscal effects also
exist as savings for people traveling from rural areas to
receive dentures.
Mr. Sherwood added that if system changes were implemented
prior to the freeze, then the new position is not necessary,
which would reduce the cost. He spoke about research to
identify means of quantifying potential savings. He stated
that the department did not see many travel expenses
associated with providing a second set of dentures. Some
expenses incurred are the result of emergency room visits.
He stated that the department lacked data about potential
savings for the state.
Senator Thomas commented on the fiscal notes. He requested
further estimates of state expense. He asked about
contractual agreements for the department's electronic
changes. Mr. Sherwood responded that the department
contracts with the Affiliated Computer Systems (ACS) for the
operation of the current claims processing system.
Senator Thomas asked if the technical changes were made in
conjunction with dental offices. Mr. Sherwood answered that
the changes would happen on a technical level. The new
system will track expenditures over two years, but will not
affect the interaction with dental offices.
Senator Thomas hoped to recruit insight from the dental
practitioners about the filing of claims. Mr. Sherwood
responded that the change is internal and does not affect
the interface with dental offices.
9:44:26 AM
Co-Chair Stedman asked if the administration has a position
on the bill. Mr. Sherwood stated that SB 199 is under
consideration by the administration, although a position is
not currently stated.
Co-Chair Stedman reviewed the fiscal notes.
9:45:42 AM
DAVID LOGAN, ALASKA DENTAL SOCIETY spoke in favor of the
legislation. He opined that the bill is appropriate for many
reasons. The bill serves patients and dentists. He addressed
the medical cost of removing damaged teeth. He explained
that multiple trips are often required for the construction
of dentures. He noted that travel costs often dwarf the
denture expenditures. He shared a professional story. He
pointed out that SB 199 allows rehabilitation for those
patients in need of both upper and lower dentures.
9:50:01 AM
Senator Thomas compared the dental and the billing
procedures. Dr. Logan pointed out that the procedure
requires molds and dentures constructed at the same time. He
recalled a meeting with the Medicaid Dental Program allowing
insight into the process of claims and billing. He thought
that potential problems are yet unknown for the dental
society.
MARK PRATOR, ALASKA DENTAL SOCIETY, WASILLA, spoke in favor
of the legislation. He stated that he does accept Medicaid.
He pointed out that he donates approximately half of his fee
for the denture procedure, in order to be able to provide
the service for the fee provided by Medicaid. He
acknowledged that the cost of travel increases each time a
person travels for an appointment. He also saw savings in
emergency room visits. In the past, he has remade entire
sets of dentures as one set must fit well against the other.
Co-Chair Stedman asked if the department planned to take a
positive or negative position on the bill. Mr. Sherwood
noted that the administration's position has not been
established. Co-Chair Stedman encouraged the administration
look at the bill with consideration. Senator Thomas urged
the administration to address SB 199 during this session for
the benefit of the patients and the state. Senator Huggins
encouraged the department to consider the legislation.
9:58:37 AM
Senator Ellis stated that governor Murkowski brought adult
dental Medicaid. The end of the sunset led to the cost
savings intention, but he opined that it was not well
thought out. He expressed desire to work with the
department. He opined that the cost control measure was ill
advised.
SB 199 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 159
"An Act increasing the maximum funeral expenses payable
as a workers' compensation death benefit; and providing
for an effective date."
10:00:51 AM
SENATOR JOE PASKVAN presented the legislation and the merits
of SB 159. He gave a statement including history about the
workers' compensation death benefit. He discussed the cost
of funeral expenses. The payment of the death benefit is
granted to the survivors. The act increases the maximum
funeral expense payable as a workers' compensation death
benefit and provides for an effective date. The bill
addresses Section 1 of the statute stating that reasonable
and necessary funeral expenses are increased from $5000 to a
more appropriate level of $10,000. During the last ten years
there have been an average of 26 fatalities per year in
Alaska that require payment of funeral expenses under the
workers' compensation statutes. In that decade, the most
number of deaths in a year was 39 and the fewest number of
deaths was 15. Last year there were 17 fatalities in Alaska
that required the payment of workers' compensation funeral
expenses. He mentioned the wide range of necessary services
involved in a funeral. These funeral services easily surpass
the maximum death benefit. If SB 159 is implemented, there
is no fiscal impact to the state. System costs will increase
by less than 0.1 percent. Current funeral benefit has been
unchanged for a decade, and since then the cost of funeral
expenses has risen significantly.
10:03:58 AM
Co-Chair Stedman asked for an approximation of funeral
costs. Senator Paskvan responded that funeral expenses are
estimated at $12 to $15 thousand. The $10 thousand benefit
is designed to compensate for reasonable and moderate
funeral services.
Co-Chair Stedman noted the zero fiscal note from the
Department of Labor and Workforce Development.
10:05:37 AM
TRENA HEIKES, DIRECTOR, DIVISION OF WORKERS' COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT stated that
the department does not have a position on the bill. She
researched the average funeral cost excluding burial and
cemetery charges and the cost is between $6 and $7 thousand
for the casket and the funeral home cost.
Co-Chair Stedman requested various amounts of funeral
expenses comparing cremation versus burial.
Senator Huggins asked if insurance is available to workers
in the state. He asked about insurance offered by unions or
recurring employers. Ms. Heikes responded that for work
related deaths, workers' compensation would pay up to $5000.
She supposed that private insurance and unions might also
contribute if a person participated in them.
Senator Huggins asked if the payment is doubled from $5 to
$10 thousand, who pays for the additional amount.
10:09:40 AM
Ms. Heikes answered that the workers' compensation insurance
carrier who contracts with the employer to provide workers'
compensation insurance. The overall increase in premium is
0.1 percent. She clarified that if an employer paid $1000
premium per year, the cost would be an additional dollar for
the increase from $5 to $10 thousand.
Senator Thomas asked if private benefits would compromise
the ability to collect workers' compensation benefits. Ms.
Heikes answered that if the person has private insurance for
funerals, then the first $5000 would be covered by workers'
compensation.
10:11:25 AM
DON ETHERIDGE, ALASKA, AFL, CIO spoke in support of the
legislation. He acknowledged that funeral costs have
increased dramatically. Typically when a person is lost on
the job, the income is lost for the family. He opined that
the increase is appropriate.
Senator Huggins asked about the percentage increase for the
employees. Mr. Etheridge responded that he was not aware of
the percentage increase for individuals. Senator Huggins
thought that the information was important to determine
exactly how the legislation would impact those involved.
10:13:29 AM
BARBARA HUFF TUCKNESS, DIRECTOR OF LEGISLATIVE and
GOVERNMENTAL AFFAIRS, GENERAL TEAMSTERS LOCAL 959, spoke in
support of the legislation. She noted the safety perspective
and the history of members lost though work related efforts.
She noted that the impact and focus on safety issues is
greater. She added that despite the choice of casket versus
burial, the act of transporting the body adds additional
expense.
10:16:10 AM
Co-Chair Stedman pointed out questions regarding data
retrieval about the number of deaths that occurred in the
workplace. He requested data about the cost of funerals and
additional expenses. He expressed curiosity about the
employees in union and out of union.
KEVIN DOUGHERTY, ALASKA LABORERS, EAGLE RIVER (via
teleconference) spoke in favor of the legislation. He
pointed out that the amount of work related deaths has
declined. He opined that the legislation is of benefit to
workers and also saves insurance funding for workers'
compensation. He stated that he sent price data to the
committee from various funeral homes around Alaska. The data
shows that a typical funeral has escalated from $6 to $10
thousand. The bill would allow the workers' compensation
insurance to cover up to $10 thousand, but a funeral charge
that is less would only receive the amount necessary. He
noted that the benefit has not increased for approximately
10 years, yet the cost of funerals has increased
considerably.
STACY ALLEN, LOBORERS LOCAL 341, ANCHORAGE (via
teleconference) relayed a recent experience where a union
member was lost and she was privy to the financial worries
that greatly affect families and compound the tragedy. She
noted that collections and resources were received from
other union members, but she could not imagine the absence
of the union family.
10:21:27 AM
Senator Thomas asked about the fatalities listed in the
documentation provided by the Department of Labor and
Workforce Development, "Total Filings by Type" (Copy on
File). He was uncertain about the fatality numbers listed in
the lower section of the table beginning with number 224 in
FY99 running to FY08.
Ms. Heikes responded that the upper portion of the data
sheet indicates the actual numbers of injuries reported in
the division. The lower portion represents the number of
files open by insurers. She noted that ongoing death
benefits were payable to the survivors under the statute.
The insurance carriers would have open files because they
continue to pay benefits. The numbers cited by Senator
Thomas indicate the ongoing files through which benefits are
paid. The questions address the issue of whether or not the
workers' compensation act had jurisdiction over the reported
injuries.
SB 159 was HEARD and HELD in Committee for further
consideration.
10:29:10 AM
Co-Chair Stedman provided an overview of the upcoming
committee meetings.
ADJOURNMENT
The meeting was adjourned at 10:35 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2010_02_10 AARP Support for SB 199.pdf |
SFIN 2/11/2010 9:15:00 AM |
SB 199 |