Legislature(2009 - 2010)BUTROVICH 205

02/03/2010 01:30 PM Senate HEALTH & SOCIAL SERVICES


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01:33:39 PM Start
01:34:51 PM United Way, 211 Project
01:41:43 PM Alaska Health Care Commission Report
02:28:30 PM SB172
03:02:38 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Joint w/ (H) H&SS
Presentations: United Way - 211 Project
Presentation; Alaska Health Care
Commission Report
+= SB 172 ALASKA HEALTH CARE COMMISSION TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
      SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                    
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                        February 3, 2010                                                                                        
                           1:33 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                            
                                                                                                                                
 Senator Bettye Davis, Chair                                                                                                    
 Senator Joe Paskvan, Vice Chair                                                                                                
 Senator Johnny Ellis                                                                                                           
 Senator Joe Thomas                                                                                                             
 Senator Fred Dyson                                                                                                             
                                                                                                                                
HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                             
                                                                                                                                
 Representative Wes Keller, Co-Chair                                                                                            
 Representative Tammie T. Wilson, Vice Chair                                                                                    
 Representative Sharon Cissna                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                            
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                             
                                                                                                                                
 Representative Bob Herron, Co-Chair                                                                                            
 Representative Bob Lynn                                                                                                        
 Representative Paul Seaton                                                                                                     
 Representative Lindsey Holmes                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Presentation: United Way, 211 Project; Alaska Health Care                                                                       
Commission Report                                                                                                               
                                                                                                                                
SENATE BILL NO. 172                                                                                                             
"An Act establishing the Alaska Health Care Commission in the                                                                   
Department of Health and Social Services; and providing for an                                                                  
effective date."                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 172                                                                                                                  
SHORT TITLE: ALASKA HEALTH CARE COMMISSION                                                                                      
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
03/27/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/27/09       (S)       HSS, FIN                                                                                               
04/17/09       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
04/17/09       (S)       Scheduled But Not Heard                                                                                
04/18/09       (S)       HSS AT 10:00 AM BUTROVICH 205                                                                          
04/18/09       (S)       -- MEETING CANCELED --                                                                                 
02/03/10       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SUE BROGAN and KAREN BITZER                                                                                                     
Alaska 2-1-1                                                                                                                    
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Presented information about Alaska 2-1-1.                                                                 
                                                                                                                                
WARD HURLBURT M.D., MPH, Chief Medical Officer                                                                                  
Department of Health and Social Services                                                                                        
Division of Public Health                                                                                                       
Chairman, Alaska Health Care Commission                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Presented information regarding the work of                                                               
the Alaska Health Care Commission. Supported SB 172.                                                                            
                                                                                                                                
DEBORAH ERICKSON, Executive Director                                                                                            
Alaska Health Care Commission                                                                                                   
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Presented the Alaska Health Care Commission                                                               
2009 Report. Supported SB 172.                                                                                                  
                                                                                                                                
ELLEN ADLAM, Board Member                                                                                                       
Peninsula Community Health Services                                                                                             
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
DR. LARRY STINSON, representing himself                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
BEVERLY SMITH                                                                                                                   
Christian  Science  Committee on  Publication  for  the state  of                                                               
Alaska                                                                                                                          
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
RYAN SMITH, CEO                                                                                                                 
Central Peninsula Hospital and Heritage Place                                                                                   
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
J. KATE BURKHART, Executive Director                                                                                            
Alaska Mental Health  Board and the Advisory  Board on Alcoholism                                                               
and Drug Abuse                                                                                                                  
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Supported SB 172  as long as  the commission                                                             
includes representation for behavioral health.                                                                                  
                                                                                                                                
PAT LUBY, Advocacy Director for AARP                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
SHELLY HUGHES, Government Affairs Director                                                                                      
Alaska Primary Care Association                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 172.                                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:39 PM                                                                                                                    
CHAIR BETTYE  DAVIS called  the joint meeting  of the  Senate and                                                             
House Health and Social Services  Standing Committees to order at                                                               
1:33  p.m. Present  at the  call  to order  were Senators  Dyson,                                                               
Ellis,  Olson,  Paskvan  and Davis;  Representatives  Wilson  and                                                               
Keller.                                                                                                                         
                                                                                                                                
                    ^United Way, 211 Project                                                                                
                                                                                                                              
1:34:51 PM                                                                                                                  
CHAIR  DAVIS  announced  a  presentation   on  the  Alaska  2-1-1                                                               
Project.                                                                                                                        
                                                                                                                                
SUE  BROGAN and  KAREN BITZER,  Alaska 2-1-1,  Anchorage, Alaska,                                                               
said  hundreds  of people  call  every  day for  essential  human                                                               
services information  such as training for  employment, the hours                                                               
of  operation  of  a  food  pantry, help  for  an  aging  parent,                                                               
information  on  addiction  prevention programs,  and  affordable                                                               
housing  options.  Alaska 2-1-1  was  launched  in 2007;  it  has                                                               
answered 25,000 calls and made  27,586 referrals since that time.                                                               
It is a free, confidential  service available statewide from 8:30                                                               
to 5:00  Monday through Friday, even  in those areas that  do not                                                               
have  a 911  dialing option.  Referrals  are made  from a  robust                                                               
database  that   currently  has  875  provider   sites  and  1978                                                               
programs; data  is updated  on an ongoing  basis as  new resource                                                               
information becomes available. The  database is searchable on the                                                               
Alaska 2-1-1 website  at and has had 53,880 web  searches so far.                                                               
This is an easy way for  individuals to search for information or                                                               
referral services.                                                                                                              
                                                                                                                                
MS. BROGAN  continued; the  Alaska 2-1-1 project  is in  a unique                                                               
position  to play  a  role  in disaster  response.  They are  co-                                                               
located in the emergency operations  center in Anchorage and have                                                               
already   supported  two   local   responses:  providing   health                                                               
information when  Mount Redoubt  was erupting, and  assisting the                                                               
H1N1 immunization effort in Anchorage.                                                                                          
                                                                                                                                
She said Alaska 2-1-1 is connected  to a national system that has                                                               
answered nearly  14 million calls  since 2008.  It is built  on a                                                               
platform similar  to other  2-1-1 systems and  could be  asked to                                                               
answer  calls from  other states  or roll  its phones  to another                                                               
state if  needed. She noted  that the  "Calling for 2-1-1  Act of                                                               
2009" is  making its  way through  congress supported  by Senator                                                               
Murkowski, Senator Begich, and Representative Young.                                                                            
                                                                                                                                
While Alaska 2-1-1  is not a direct service  provider, Ms. Brogan                                                               
said,  the data  it  collects has  already  influenced some  very                                                               
positive change  in the  state. Recently  the data  collected was                                                               
used  in  a successful  presentation  to  a major  foundation  in                                                               
Alaska, which  resulted in  hundreds of  thousands of  dollars of                                                               
unrestricted  new  money being  distributed  for  use to  address                                                               
emergency food  and shelter needs.  She suggested that  the state                                                               
could increase efficiency  and save money if all  of the referral                                                               
services it  supports were  integrated into  Alaska 2-1-1  as the                                                               
sole source for health and human service referrals.                                                                             
                                                                                                                                
MS. BROGAN said  they have worked very hard during  the past year                                                               
to secure agreements with many  state departments to require that                                                               
their grantees  keep up-to-date information  in the  Alaska 2-1-1                                                               
database;    partnerships   with    Public   Safety,    Workforce                                                               
Development, Homeland  Security, and  others flourish.  She asked                                                               
that the  legislators include Alaska  2-1-1 in  their newsletters                                                               
and provide a link to the service on their websites.                                                                            
                                                                                                                                
In  conclusion,  Ms.  Brogan  stated   that  Alaska  2-1-1  helps                                                               
Alaskans connect to  the health and human services  they need. If                                                               
the  Calling for  2-1-1 Act  passes, Alaska  2-1-1 will  need the                                                               
state's  commitment  so  it can  access  federal  matching  grant                                                               
funds. She  said they welcome  feedback to help them  improve the                                                               
system  and invited  the committee  to celebrate  2-1-1 Day  with                                                               
them on February 11, 2010.                                                                                                      
                                                                                                                                
1:40:30 PM                                                                                                                    
CHAIR DAVIS  commended Ms. Brogan  and Ms. Bitzer for  their work                                                               
on the 2-1-1  program and assured them that  the legislators will                                                               
include information about it in  their newsletters and mention it                                                               
at their upcoming constituent meetings.                                                                                         
                                                                                                                                
1:41:23 PM                                                                                                                    
KAREN BITZER, Director for Alaska  2-1-1, Anchorage, Alaska, said                                                               
she is available for questions.                                                                                                 
                                                                                                                                
                                                                                                                              
                                                                                                                              
             ^Alaska Health Care Commission Report                                                                          
                                                                                                                                
1:41:43 PM                                                                                                                    
CHAIR  DAVIS  announced  a  report   by  members  of  the  Alaska                                                               
Healthcare Commission.                                                                                                          
                                                                                                                                
WARD  HURLBURT M.D.,  MPH, Chief  Medical Officer,  Department of                                                               
Health and Social Services, Division  of Public Health; Chairman,                                                               
Alaska Health Care Commission,  Anchorage, Alaska, introduced the                                                               
members  of the  commission: Ryan  Smith, Soldotna,  representing                                                               
the Alaska  State Hospital and Nursing  Home Association(ASHNHA);                                                               
Wayne  Stevens,  Juneau  representing the  Chamber  of  Commerce;                                                               
Larry Stinson  MD, Palmer;  Senator Donald  Olson; Representative                                                               
Wes Keller;  Commissioner Linda Hall,  with the  Alaska Insurance                                                               
Commission; Deb Erickson, Executive  Director, Alaska Health Care                                                               
Commission;  Valerie  Davidson,  representing the  Alaska  Native                                                               
Tribal  Health  Consortium  (ANTHC); Jeff  Davis,  Alaska  health                                                               
insurance industry representative; Keith  Campbell, a health care                                                               
consumer.                                                                                                                       
                                                                                                                                
DR. HURLBURT said the commission  was chartered by Governor Palin                                                               
on December  4, 2008 and  started work  in February 2009.  It has                                                               
had four formal meetings and several telephonic meetings.                                                                       
                                                                                                                                
1:45:38 PM                                                                                                                    
Senator Thomas and Representative Cissna joined the meeting.                                                                    
                                                                                                                                
1:46:52 PM                                                                                                                    
DEBORAH   ERICKSON,  Executive   Director,  Alaska   Health  Care                                                               
Commission,  Anchorage, Alaska,  visited  the  history of  formal                                                               
attempts over the  past 20 years to  address problems surrounding                                                               
access  and affordability  of  health care  in  Alaska. She  said                                                               
Governor  Cowper  created  The  Governor's  Interim  Health  Care                                                               
Commission in  1987, which  came out  with a  report in  1988. In                                                               
1991  the Alaska  legislature created  the  Health Resources  and                                                               
Access Taskforce that came out  with a series of recommendations.                                                               
One  result   was  the  Alaska  Comprehensive   Health  Insurance                                                               
Association  (ACHIA), which  was  created in  1992 for  high-risk                                                               
individuals  who  have been  denied  health  coverage by  private                                                               
insurers  due  to a  pre-existing  medical  condition. A  private                                                               
group  formed in  2003  by  Commonwealth North  came  out with  a                                                               
report focused on improving access  and delivery of primary care.                                                               
In  2007,  Governor  Palin established  the  Alaska  Health  Care                                                               
Strategies Planning Council,  which met for about  six months and                                                               
came out with recommendations for  improving health care delivery                                                               
in the state.                                                                                                                   
                                                                                                                                
1:49:15 PM                                                                                                                    
MS.  ERICKSON  directed the  committee  members'  attention to  a                                                               
graph on  slide 3 that  was taken  from the Health  Resources and                                                               
Access Task Force  1993 Report. It shows a  projected increase in                                                               
health  care  expenditures from  $1.6  billion  in 1991  to  $5.5                                                               
billion  by 2003.  That figure  is now  estimated to  be over  $6                                                               
billion, and the state Medicaid  budget General Fund expenditures                                                               
are approaching $500 million.                                                                                                   
                                                                                                                                
MS.  ERICKSON  explained  that  Governor  Palin  established  the                                                               
current  Alaska Health  Care  Commission  specifically to  foster                                                               
development  of   a  statewide   health  care  plan   to  improve                                                               
affordability  and access  to  health care.  It  was required  to                                                               
submit a report to the Governor  and the Legislature on or before                                                               
January 15,  2010 regarding the commission's  recommendations and                                                               
activities.                                                                                                                     
                                                                                                                                
MS. ERICKSON observed  that health care is generally  quite a bit                                                               
higher  in  the  United  States than  in  other  countries.  That                                                               
impacts workers' and families' ability  to afford health care, as                                                               
insurance premiums are rising much  more quickly than income. The                                                               
commission found evidence that costs  for care in Alaska are even                                                               
higher  than  elsewhere in  the  United  States. Alaska  has  the                                                               
highest annual Medicaid expenditure  per enrollee in the country.                                                               
It is  also ranked first in  the nation for the  cost of workers'                                                               
compensation  premiums; that  is significant  because those  high                                                               
premiums are driven in part  by medical costs. Medical costs make                                                               
up 72 percent of workers'  compensation benefit claims in Alaska;                                                               
the national average  is 58 percent. The average  medical cost in                                                               
Alaska is  $40,000 per injury,  compared to the  national average                                                               
of $26,000. The  average cost per hospital stay in  this state is                                                               
nearly twice  the national average.  She added that  the Consumer                                                               
Price Index  (CPI) for Anchorage, specifically  for medical care,                                                               
doubled between 1991 and 2005.                                                                                                  
                                                                                                                                
1:55:06 PM                                                                                                                    
MS. ERICKSON said  the commission really didn't have  the time or                                                               
resources during its first year  to gather all of the information                                                               
it  needed to  study  the  issue of  pricing,  but examples  from                                                               
Alaska's Medicaid  fee schedules indicate that  Alaska's fees are                                                               
two  to three  times higher  than the  fees paid  by Washington's                                                               
Medicaid program.                                                                                                               
                                                                                                                                
She reported  that the commission was  particularly interested in                                                               
the  role individual  behaviors  play in  determining health  and                                                               
health  care  services.  Forty percent  of  the  determinants  of                                                               
health are driven by individual  behaviors, as opposed to just 10                                                               
percent by access to quality  health care. Nationwide, 70 percent                                                               
of  deaths are  caused by  chronic  diseases, most  of which  are                                                               
preventable, and 75  percent of all health  care expenditures are                                                               
costs  related  to  chronic  disease.   The  graph  on  slide  15                                                               
illustrates  that  two thirds  of  the  increase in  health  care                                                               
expenditures over  the past 20  years is  due to the  increase in                                                               
chronic  disease. Research  indicates that  if the  prevalence of                                                               
chronic disease in the population  had remained the same over the                                                               
past  20 years,  this country  would have  saved $200  billion in                                                               
health care costs.                                                                                                              
                                                                                                                                
She thanked Mark Foster, an  economist for the ISER Institute for                                                               
Social and  Economic Research, for  the equation on slide  16. It                                                               
shows that overall costs are driven by price, times utilization.                                                                
                                                                                                                                
1:59:24 PM                                                                                                                    
MS. ERICKSON highlighted the issues  identified by the commission                                                               
and included in its report:                                                                                                     
   - Costs are unaffordably high and continue to climb.                                                                         
                                                                                                                                
   - The system is fragmented.                                                                                                  
                                                                                                                                
   - Financing and payment mechanisms are very complex.                                                                         
                                                                                                                                
   - Many Alaskans lack access to health insurance.                                                                             
                                                                                                                                
   - Some Alaskans are on Medicare or have private insurance but                                                                
   can't find a physician.                                                                                                      
   - There are high vacancy rates in many  of the health care job                                                               
   categories.                                                                                                                  
                                                                                                                                
   - Levels and variations  in the quality  of care are  not well                                                               
   understood.                                                                                                                  
                                                                                                                                
   - Both consumers and providers are frustrated.                                                                               
                                                                                                                                
   - The system as designed is not sustainable.                                                                                 
                                                                                                                                
                                                                                                                                
2:01:39 PM                                                                                                                    
MS.  ERICKSON said  the commission's  strategic plan  laid out  a                                                               
five-year  planning  framework  that started  with  developing  a                                                               
vision of  the ideal health  care delivery system for  Alaska; it                                                               
calls for  accurately identifying  the problems with  the current                                                               
system, building a foundation for  reform, designing the elements                                                               
that will move it forward,  measuring progress along the way, and                                                               
engaging  the  public  and  stakeholders   in  the  process.  The                                                               
commission came  up with 31  specific recommendations  around the                                                               
priority  issues  it had  identified;  included  with the  policy                                                               
recommendations  was   a  directive  to  the   governor  and  the                                                               
legislature. Tables on  pages 63 through 68 of  the Alaska Health                                                               
Care Commission 2009  Report lay out a suggested  action plan for                                                               
the  recommendations. The  commission also  included a  2010 work                                                               
plan with  the hope that there  will be a health  care commission                                                               
continuing this work.                                                                                                           
                                                                                                                                
She  stressed  that  this commission  believes  the  health  care                                                               
delivery system focuses  too much on providing sick  care and not                                                               
enough on  improving health  status. Alaska  needs a  system that                                                               
maximizes the  dollars spent, is sustainable,  and satisfies both                                                               
consumers  and providers.  She read  quickly through  the vision,                                                               
reform goals, and values on slide 20.                                                                                           
                                                                                                                                
2:04:03 PM                                                                                                                    
At the commission's first meeting  in February of 2009, the group                                                               
defined the following priorities for their first year:                                                                          
   - Consumers' Role In Health Care - This  is related to healthy                                                               
   lifestyles and the importance of primary care.                                                                               
                                                                                                                                
   - Statewide Leadership  - They  realized immediately  that one                                                               
   year is not enough to conduct a  thorough analysis and develop                                                               
   a comprehensive understanding of the problems with the current                                                               
   system or  to  formulate  strategies  to  address  them;  they                                                               
   recommend  that  the  state  establish  a  permanent  body  in                                                               
   statute. She  pointed out  that no  recommendations were  made                                                               
   regarding improving access to health insurance because so much                                                               
   work is being done at the national level.                                                                                    
   - Health Care Workforce - Recognizing that there  are a lot of                                                               
   health care workforce issues, they pinpointed physician supply                                                               
   for their attention.                                                                                                         
                                                                                                                                
   -  Health  Information   Technology  -  They   identified  the                                                               
   importance of  developments  in  the  move  toward  electronic                                                               
   health  records  and  the  health-information  exchange  as  a                                                               
   priority.                                                                                                                    
                                                                                                                                
   - Medicare Access Problem  - The problems  Medicare enrollees,                                                               
   especially those  in  urban  areas  of Alaska,  experience  in                                                               
   accessing primary care and  finding a physician who  will take                                                               
   new Medicare patients, was the final  issue targeted for study                                                               
   the first year.                                                                                                              
                                                                                                                                
                                                                                                                                
MS. ERICKSON said the pyramid chart  on slide 22 reveals that the                                                               
first four priorities come together  neatly for an overall health                                                               
care transformation strategy. She  emphasized the group's concern                                                               
that the fifth element, Medicare  access, might be the "canary in                                                               
the coal  mine," an  early indication  that Alaska's  health care                                                               
system is beginning to fail.                                                                                                    
                                                                                                                                
2:08:14 PM                                                                                                                    
She  said  the  31  recommendations she  referenced  earlier  cut                                                               
across the  five priority areas.  Slides 25-28 provide  key high-                                                               
level recommendations associated with each priority area.                                                                       
                                                                                                                                
MS. ERICKSON  asked if any  members of  the committee have  had a                                                               
chance to  look at the  bills coming out  of both the  U.S. House                                                               
and the U.S.  Senate and underscored that there is  no one agency                                                               
in  the state  that is  responsible  for looking  at health  care                                                               
overall  and understanding  the  impact of  federal proposals  on                                                               
Alaska's  families   and  businesses.  One  of   the  committee's                                                               
recommendations is that the state  develop the infrastructure and                                                               
capacity  to  analyze and  respond  to  the impacts  of  national                                                               
reform efforts.                                                                                                                 
                                                                                                                                
She stated that  building the health care workforce has  to be an                                                               
ongoing priority for  the legislature and the  governor on health                                                               
care reform and on economic  development agendas. Children should                                                               
be exposed to health care as  a workforce opportunity as early as                                                               
preschool and should  get the educational foundation  in math and                                                               
science they  will need if  they choose  to pursue it.  The state                                                               
also needs  to build  on the innovation  and adaptation  that has                                                               
made Alaska a global leader  in creative approaches to delivering                                                               
health  care, like  the  community health  aide  program and  the                                                               
dental  health aide  program that  were developed  in the  tribal                                                               
health system for rural and remote communities.                                                                                 
                                                                                                                                
2:11:06 PM                                                                                                                    
MS. ERICKSON said a  lot is going on in the  area of planning for                                                               
workforce  development by  organizations  such  as the  Workforce                                                               
Investment Board, the  Mental Health Trust and  the Department of                                                               
Health  and Social  Services. While  the commission  acknowledged                                                               
those individual efforts, it recommended  that a single entity be                                                               
designated  to coordinate  and  oversee them  in  order to  avoid                                                               
duplication.   The   series   of  recommendations   specific   to                                                               
increasing  the  supply   of  primary-care  physicians  includes:                                                               
establishing  educational loan  repayment programs,  implementing                                                               
more  Graduate Medical  Education (GME)  residency programs,  and                                                               
expanding  the   Washington,  Wyoming,  Alaska,   Montana,  Idaho                                                               
(WWAMI) medical school program.                                                                                                 
                                                                                                                                
2:13:10 PM                                                                                                                    
She  moved  on  to  slide   27  and  some  general  groupings  of                                                               
recommendations for deploying  health care information technology                                                               
including  the  importance  of   privacy  and  security  and  the                                                               
appropriate role  for government  in supporting the  adoption and                                                               
utilization of  electronic health records and  the development of                                                               
the health  information exchange.  The commission also  looked at                                                               
telemedicine,  another   area  where  Alaska  is   a  leader;  it                                                               
recommended   that    the   state    improve   telecommunications                                                               
infrastructure   and   make    more   resources   available   for                                                               
telemedicine services.                                                                                                          
                                                                                                                                
MS.  ERICKSON   admitted  that  Medicare   access  is   really  a                                                               
challenging   problem  and   a  critical   one.  The   commission                                                               
determined that the  most important thing the state can  do is to                                                               
increase the supply of primary  providers. It also recognized the                                                               
importance  of mid-level  practitioners (nurse  practitioners and                                                               
physicians assistants)  and of  establishing a  residency program                                                               
for internal medicine providers.                                                                                                
                                                                                                                                
She  said  the  commission  recommended  state  support  for  the                                                               
federal safety-net  programs, Federally Qualified  Health Centers                                                               
(FQHC), and Rural Health Clinics  (RHC), and the development of a                                                               
Program of All-Inclusive  Care for the Elderly (PACE).  PACE is a                                                               
Medicaid,  Medicare waiver  program that  provides comprehensive,                                                               
integrated,  wrap-around services  for seniors  who are  eligible                                                               
for and need a nursing home level of care.                                                                                      
                                                                                                                                
2:16:07 PM                                                                                                                    
MS.  ERICKSON read  briefly from  the remaining  slides on  other                                                               
transformation elements.  She closed  by saying that  the current                                                               
commission under  AO 246  expires April 10,  2010, but  there are                                                               
three bills  pending in  the legislature  that would  establish a                                                               
health care commission in statute: SB 172, HB 25 and HB 75.                                                                     
                                                                                                                                
2:18:28 PM                                                                                                                    
SENATOR PASKVAN  asked Ms. Erickson  to define the  term "chronic                                                               
disease."                                                                                                                       
                                                                                                                                
DR.  HURLBURT responded  that when  he  came to  Alaska in  1961,                                                               
doctors saw mostly  episodic events that they could  treat and be                                                               
done with.  Chronic diseases  are those  that people  acquire and                                                               
that generally go on for  life. Some are wear-and-tear conditions                                                               
like  arthritis, but  most are  diseases of  choice. Insufficient                                                               
exercise and poor diet cause  diabetes and heart disease. Smoking                                                               
causes chronic  lung disease.  There is no  magic bullet  to cure                                                               
these.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  KELLER thanked  the other  commissioners and  the                                                               
director for  their efforts and  expressed his respect  for their                                                               
knowledge and professionalism.                                                                                                  
                                                                                                                                
2:22:18 PM                                                                                                                    
REPRESENTATIVE  CISSNA  said  she  believes  the  commission  has                                                               
produced a fine result and has  managed to look at the system and                                                               
its problems in a new way.                                                                                                      
                                                                                                                                
2:24:51 PM                                                                                                                    
SENATOR THOMAS commented  that the commission has  gathered a lot                                                               
of information and knows what  the problems are; he asked whether                                                               
the  next steps  will  concentrate primarily  on  how to  control                                                               
costs through education in the schools.                                                                                         
                                                                                                                                
2:26:09 PM                                                                                                                    
DR. HURLBURT  said that  will certainly  be part  of it,  but the                                                               
issues  are broad.  He pointed  to  the importance  of doing  the                                                               
right thing to encourage proper  nutrition and positive lifestyle                                                               
changes. Educating  kids about these  things should  begin before                                                               
they  are   in  school;  but   school  does  give   educators  an                                                               
opportunity to reach them.                                                                                                      
                                                                                                                                
2:27:22 PM                                                                                                                    
CHAIR DAVIS  called an  at ease  at 2:27  and called  the meeting                                                               
back to order at 2:28.                                                                                                          
                                                                                                                                
              SB 172-ALASKA HEALTH CARE COMMISSION                                                                          
                                                                                                                                
2:28:30 PM                                                                                                                    
CHAIR DAVIS announced consideration of SB 172.                                                                                  
                                                                                                                                
2:28:47 PM                                                                                                                    
SENATOR  OLSON,  sponsor of  SB  172,  said Alaska  is  currently                                                               
facing serious health care cost,  access, and quality issues. The                                                               
ISER report alluded  to by Deborah Erickson,  stated that between                                                               
1991  and 2005  health care  expenditures in  the state  tripled,                                                               
going  from  $1.6  billion  to  $5.3  billion.  These  costs  are                                                               
expected  to  double  by  2013.  All  levels  of  government  are                                                               
affected; what is more important  is that Alaska's economy cannot                                                               
sustain this inflationary growth.                                                                                               
                                                                                                                                
The issues involved  are broad and complex; they  cannot be dealt                                                               
with unless there is a permanent  body to plan and follow through                                                               
with  long-range  comprehensive  reforms. Both  the  Commonwealth                                                               
North Alaska Health  Care Roundtable group and  the Alaska Health                                                               
Care Strategies  Planning Council have  recommended establishment                                                               
of a permanent body to address the problems Alaska is facing.                                                                   
                                                                                                                                
The  Health  Care  Commission  will   be  established  under  the                                                               
Department of Health and Social  Services and will consist of ten                                                               
members including public officials  and private citizens. It will                                                               
provide recommendations  for the development of  a statewide plan                                                               
to  address  the  quality,  accessibility,  and  availability  of                                                               
health care  to all  residents of the  state of  Alaska. Alaska's                                                               
need for  health care reform is  pressing and must be  dealt with                                                               
thoroughly  and  efficiently,  with   a  long-range  view  toward                                                               
meaningful and lasting change. The  Alaska Health Care Commission                                                               
will  play an  important role  in this  process; it  is essential                                                               
that  the  legislature  make  it a  permanent  component  of  the                                                               
Department  of Health  and Social  Services so  that present,  as                                                               
well as  future issues  with Alaska's health  care can  be better                                                               
anticipated, understood, and addressed.                                                                                         
                                                                                                                                
2:33:36 PM                                                                                                                    
ELLEN ADLAM,  Board Member, Peninsula Community  Health Services,                                                               
Soldotna, Alaska,  said she is  an X-ray technician and  has been                                                               
involved  for a  long  time with  community  health centers.  She                                                               
agreed that health  care is a big problem in  this state and said                                                               
she supports  SB 172, but the  board would like to  see a primary                                                               
care "safety net"  seat established on the  commission to provide                                                               
a voice  for the underinsured and  uninsured. Peninsula Community                                                               
Health Services  is one  of the three  largest health  systems in                                                               
the state, serving 81,000 patients.  It includes 26 organizations                                                               
with 142 sites,  and those sites see Medicare patients,  so it is                                                               
very  important   that  they  be  included.   She  suggested  the                                                               
commission  use a  provider from  a health  center, because  they                                                               
provide not only medical, but  dental and behavioral health. That                                                               
seat  would encompass  the  voice for  the  underinsured and  the                                                               
primary provider.                                                                                                               
                                                                                                                                
2:37:43 PM                                                                                                                    
DR. LARRY STINSON, representing  himself, Anchorage, Alaska, said                                                               
he supports  SB 172 and recognizes  that the there needs  to be a                                                               
balance  between representation  and the  number of  people on  a                                                               
committees  in order  to get  things  done. This  bill creates  a                                                               
manageable  group; it  also keeps  any one  entity from  having a                                                               
majority vote that might dominate the outcome.                                                                                  
                                                                                                                                
2:39:18 PM                                                                                                                    
DEBORAH   ERICKSON,  Executive   Director,  Alaska   Health  Care                                                               
Commission, Anchorage, Alaska, said  this particular bill mirrors                                                               
very  closely Administrative  Order  246,  which established  the                                                               
current  commission and  includes a  transition clause  that will                                                               
automatically appoint  the members  of the current  commission to                                                               
the new one if SB 172 passes  in its current form. She added that                                                               
the  commission's work  during  its first  year  really laid  the                                                               
groundwork  and will  be a  good jumping-off  point if  this bill                                                               
passes.                                                                                                                         
                                                                                                                                
2:42:12 PM                                                                                                                    
WARD  HURLBURT  M.D., MPH,  Chief  Medical  Officer, Division  of                                                               
Public Health,  Department of Health and  Social Services (DHSS);                                                               
Chairman, Alaska Health Care  Commission, Anchorage, Alaska, said                                                               
the  commission  under  this   bill  should  provide  significant                                                               
continuity;  the membership  reflects excellent  professional and                                                             
geographic  diversity   and  has  achieved  momentum   that  will                                                               
continue under SB 172.                                                                                                          
                                                                                                                                
As  was previously  discussed, he  said,  the commission's  major                                                               
focus will be on health care  costs, which now represent about 18                                                               
percent of  the U.S. gross  national product; Alaska  is spending                                                               
about $6  billion per year.  The American Health  Insurance Plans                                                               
Association announced  today that  the expectation  nationally is                                                               
for commercial  health insurance premiums  to go up more  than 10                                                               
percent in 2010, as compared to  a 1.4 percent increase in wages.                                                               
He said Medicaid  is a huge chunk of  the governor's supplemental                                                               
request to the legislature for  funding, and ventured to say that                                                               
every  department, in  every state  in the  country, has  to make                                                               
control of Medicaid costs almost their top priority.                                                                            
                                                                                                                                
DR.  HURLBURT  shared   that  he  is  a  cynic   with  regard  to                                                               
commissions,  but  thinks the  members  on  this commission  have                                                               
worked well  together and that  making it permanent is  the right                                                               
step.                                                                                                                           
                                                                                                                                
2:47:08 PM                                                                                                                    
BEVERLY  SMITH, Christian  Science Committee  on Publication  for                                                               
the state of Alaska, Juneau, Alaska,  said one of her roles is to                                                               
ensure  the  legislature   has  accurate  information  concerning                                                               
spiritual  healing as  practiced  in Christian  Science, so  this                                                               
cost-effective and  reliable form  of care  is not  overlooked or                                                               
restricted  in  the  state's health  care  reform  efforts.  With                                                               
regard to  SB 172,  she requested that  access to  spiritual care                                                               
for  the  treatment and  cure  of  disease be  given  appropriate                                                               
consideration  during   discussions  of  the  development   of  a                                                               
statewide  health  plan.  To   facilitate  this  discussion,  she                                                               
recommended  that the  bill  mandate  one of  the  duties of  the                                                               
commission be  to recommend  the extent to  which and  under what                                                               
circumstances access to  spiritual care should be  addressed in a                                                               
comprehensive statewide  health care policy. Because  health care                                                               
reform discussions  at the state  and federal levels  have raised                                                               
issues  that could  impact the  insurance coverage  for spiritual                                                               
care, it  is important that these  issues be discussed so  as not                                                               
to create  unintended results that  could limit the  coverage for                                                               
spiritual care.                                                                                                                 
                                                                                                                                
She  said  she  noticed  the  bill  does  not  mandate  insurance                                                               
coverage for all  Alaskans, but asks the commission  to develop a                                                               
strategy  that encourages  acquisition  of  health insurance  and                                                               
that  increases the  number of  insurance  options available  for                                                               
health care services. If Alaskans  pay health insurance premiums,                                                               
they should  be able to  be reimbursed  for the health  care they                                                               
choose, whether that is medical care or spiritual treatment.                                                                    
                                                                                                                                
MS. SMITH referred to page 2  of her memorandum to the committee,                                                               
dated  February  3, 2010,  which  cites  a  number of  state  and                                                               
federal  programs that  offer benefits  for  spiritual care.  She                                                               
pointed out that Alaska does  allow spiritual treatment under the                                                               
state employees'  health insurance plans. Christian  Science care                                                               
can also be  deducted under medical expenses  from federal income                                                               
tax.                                                                                                                            
                                                                                                                                
She closed by saying that  she hopes the commission will preserve                                                               
the insurance  coverage for spiritual care  that Alaska residents                                                               
now enjoy and recommend that  it be expanded to include religious                                                               
non-medical nursing services. If  the commission were directed in                                                               
statute to include  spiritual care in its  discussions of reform,                                                               
it would prevent such access from being overlooked or minimized.                                                                
                                                                                                                                
2:51:34 PM                                                                                                                    
MS. SMITH  thanked the committee  and the sponsor for  their work                                                               
on  health  care  reform and  respectfully  requested  that  this                                                               
commission   have   the   responsibility   for   discussing   and                                                               
recommending how  access to spiritual  treatment and care  can be                                                               
part of the overall health care plan in Alaska.                                                                                 
                                                                                                                                
2:52:10 PM                                                                                                                    
RYAN SMITH,  CEO, Central Peninsula Hospital  and Heritage Place,                                                               
Soldotna,  Alaska,  and  a  member  of  the  Alaska  Health  Care                                                               
Commission, thanked  the committee  and others for  their support                                                               
for health care reform and expressed strong support for SB 172.                                                                 
                                                                                                                                
2:53:53 PM                                                                                                                    
J. KATE BURKHART, Executive Director,  Alaska Mental Health Board                                                               
and the Advisory  Board on Alcoholism and  Drug Abuse, Anchorage,                                                               
Alaska, said both boards were  created by statute, with statutory                                                               
duties  that  include providing  advice  and  advocacy on  issues                                                               
related to  mental health  and substance  abuse to  the executive                                                               
and legislative branches.                                                                                                       
                                                                                                                                
She prefaced  her testimony  by saying  that the  information and                                                               
positions she expresses today are those  of the boards and not of                                                               
the  governor's office  or the  Department of  Health and  Social                                                               
Services.  On   behalf  of  both   boards,  she   extended  their                                                               
appreciation to  the Alaska Health  Care Commission for  the work                                                               
it has  done and stated that  they support the continuation  of a                                                               
health care  commission in whatever  form that takes, as  long as                                                               
it includes representation of the Behavioral Health system.                                                                     
                                                                                                                                
MS.   BURKHART  enumerated   three   reasons   that  having   the                                                               
perspective   and   representation   of  an   active,   licensed,                                                               
behavioral  health   professional  on  the  commission   is  very                                                               
important:                                                                                                                      
                                                                                                                                
   1. The state of  Alaska invests a substantial  amount of money                                                               
   in the behavioral health  system. As Ms. Erickson  stated, the                                                               
   current health  system is  very  fragmented, and  to create  a                                                               
   commission that  doesn't  include  representation of  a  major                                                               
   health care system will not help to resolve that fragmentation                                                               
   problem.                                                                                                                     
                                                                                                                                
   2. The  issue of  co-morbidity when  working with  populations                                                               
   that experience  a  mental  health  disorder  is  significant.                                                               
   Often, people with serious  mental illness live 25  years less                                                               
   than others  who  do  not have  a  mental  illness. Given  the                                                               
   commission's focus  on chronic  diseases, representation  from                                                               
   the behavioral health field seems appropriate.                                                                               
   3.  What   is  contemplated   here  is   system  change.   The                                                               
   commission's report says that the  system as it is  now is not                                                               
   sustainable.  If  the  legislature  is  going   to  address  a                                                               
   comprehensive system change, all of its  health systems should                                                               
   be represented.                                                                                                              
                                                                                                                                
In  response to  concerns that  the commission  could become  too                                                               
large  and unwieldy,  she suggested  AS 18.09.020(1)(e)  seems to                                                               
contemplate that the  health care provider who  is not affiliated                                                               
with  ASHNHA is  a primary  health  care provider.  She said  she                                                               
thinks it is possible to have  a seat for a primary care provider                                                               
from  Alaska's   federally  qualified  health  centers   and  the                                                               
providers  who  serve indigent  populations,  and  another for  a                                                               
behavioral health  professional. She  pointed out that  there are                                                               
movements afoot to integrate primary  care and behavioral health.                                                               
Examples  include Peninsula  Community Health  and South  Central                                                               
Foundation.                                                                                                                     
                                                                                                                                
2:58:42 PM                                                                                                                    
PAT  LUBY, Advocacy  Director for  AARP, Anchorage,  Alaska, said                                                               
they are  in full support  of SB 172.  He praised the  members of                                                               
the Alaska  Health Care Commission  for the great work  they have                                                               
done  on some  targeted  issues  and for  their  ability to  work                                                               
collaboratively for  the good of all  Alaskans, despite different                                                               
backgrounds or political affiliations.                                                                                          
                                                                                                                                
2:59:54 PM                                                                                                                    
SHELLY HUGHES,  Government Affairs Director, Alaska  Primary Care                                                               
Association,  Anchorage, Alaska,  said  part  of reason  Governor                                                               
Palin  and Governor  Parnell established  the current  commission                                                               
was due  to a  report by Commonwealth  North, Alaska  Health Care                                                               
Roundtable   Group,   titled    "Alaska   Primary   Health   Care                                                               
Opportunities and Challenges;" She  pointed to the words "Primary                                                               
Care" and  said that primary care  is the gateway to  health care                                                               
and  includes  behavioral  health,   dental,  and  medical  care.                                                               
Without  a designated  seat for  primary care,  she is  concerned                                                               
that the commission will be  missing expertise and input that may                                                               
be  helpful in  working out  a  statewide plan.  She agreed  with                                                               
previous  speakers that  the commission  could get  "two for  the                                                               
price of  one" because,  if the legislature  adds a  primary care                                                               
safety-net  seat,  it  will  also be  getting  expertise  on  the                                                               
uninsured problem in this state.                                                                                                
                                                                                                                                
She  emphasized that  the  three largest  health  systems in  the                                                               
state are the hospitals, tribal  health, and the community health                                                               
centers. The first  two of these are designated in  the bill; the                                                               
primary care  safety-net or community  health centers are  not in                                                               
the bill. The one provider seat may  or may not be a primary care                                                               
provider but  is a  specialist at this  time. She  encouraged the                                                               
committee to consider adding a  primary care provider seat. While                                                               
she  understands the  need to  keep the  commission compact,  she                                                               
believes this is  a key component and something  very integral to                                                               
working on a statewide plan.                                                                                                    
                                                                                                                                
She  mentioned  that  the  state Chamber  of  Commerce  passed  a                                                               
position for this session in  agreement with the establishment of                                                               
the health care commission, including a seat for primary care.                                                                  
                                                                                                                                
[SB 172 was held in committee.]                                                                                                 
                                                                                                                                
3:02:38 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Davis adjourned the meeting at 3:02 p.m.                                                                                  

Document Name Date/Time Subjects