Legislature(2021 - 2022)BUTROVICH 205
01/20/2022 01:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| HB168 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 168 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE
January 20, 2022
1:30 p.m.
MEMBERS PRESENT
Senator David Wilson, Chair
Senator Shelley Hughes, Vice Chair
Senator Mia Costello
Senator Lora Reinbold
Senator Tom Begich
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 168
"An Act requiring the Department of Health and Social Services
to provide and allow submission of an electronic application for
certain state benefits; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 168
SHORT TITLE: ELECTRONIC APPLICATION FOR STATE BENEFITS
SPONSOR(s): REPRESENTATIVE(s) SNYDER
04/09/21 (H) READ THE FIRST TIME - REFERRALS
04/09/21 (H) HSS, FIN
04/13/21 (H) HSS AT 3:00 PM DAVIS 106
04/13/21 (H) Heard & Held
04/13/21 (H) MINUTE(HSS)
04/15/21 (H) HSS AT 3:00 PM DAVIS 106
04/15/21 (H) Moved HB 168 Out of Committee
04/15/21 (H) MINUTE(HSS)
04/16/21 (H) HSS RPT 5DP 1DNP 1NR
04/16/21 (H) DP: FIELDS, SPOHNHOLZ, MCCARTY, SNYDER,
ZULKOSKY
04/16/21 (H) DNP: PRAX
04/16/21 (H) NR: KURKA
04/16/21 (H) FIN REFERRAL REMOVED
04/16/21 (H) BILL REPRINTED
04/28/21 (H) TRANSMITTED TO (S)
04/28/21 (H) VERSION: HB 168
04/30/21 (S) READ THE FIRST TIME - REFERRALS
04/30/21 (S) HSS, FIN
01/20/22 (S) HSS AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE LIZ SNYDER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 168.
ARIELLE WIGGIN, Staff
Representative Liz Snyder
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for HB 168.
RON MEEHAN, Policy and Advocacy Manager
Food Bank of Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony on HB 168.
SHAWNDA O'BRIEN, Director
Division of Public Assistance
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: Answered questions on HB 168 on behalf of
the division.
ACTION NARRATIVE
1:30:18 PM
CHAIR DAVID WILSON called the Senate Health and Social Services
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Begich, Costello, Reinbold, Hughes,
and Chair Wilson.
HB 168-ELECTRONIC APPLICATION FOR STATE BENEFITS
1:31:25 PM
CHAIR WILSON announced the consideration of HOUSE BILL NO. 168
"An Act requiring the Department of Health and Social Services
to provide and allow submission of an electronic application for
certain state benefits; and providing for an effective date."
1:31:52 PM
REPRESENTATIVE LIZ SNYDER, Alaska State Legislature, Juneau,
Alaska, paraphrased the sponsor statement for HB 168.
[Original punctuation provided]
House Bill 168 will modernize public assistance
applications by creating an option for recipients to
apply and re-apply for benefits electronically.
The COVID-19 pandemic caused an increase in
applications for public assistance programs and
highlighted the need for administrative efficiencies.
In 2020, SNAP application processing backlogs cleared
up due to COVID-19 related application requirement
waivers, but the significant administrative burden
will return when those waivers lapse.
Currently, Alaska is one of the last states without a
fully electronic application for SNAP benefits.
Applicants can fill out a form online, but still need
to print, sign, and either send it through the mail or
physically deliver to a department location. This
creates a high administrative burden for both the
applicant and the Division of Public Assistance. A
fully electronic application option will increase
administrative efficiencies, reduce any current and
future application backlogs, and improve processing
times.
The Department of Health & Social Services has started
working on introducing online applications. HB 168
sets the stage for regulation, appropriation, and
implementation of these processes. It ensures a
reasonable timeline for implementation and that, once
available, online applications will always be
available.
Many Alaskans benefit from the services provided by
the Division of Public Assistance. The statutes and
regulations that guide our responses must keep pace
with the needs of our communities. HB 168 will
increase accessibility to important resources for
families in need, and I urge you to join me in
supporting this bill.
1:32:32 PM
REPRESENTATIVE SNYDER emphasized that HB 168 does not remove any
existing mechanism or opportunities for individuals to apply for
public assistance. It simply adds an online option. She stated
that the application must be filled out and printed. It can be
mailed, faxed, scanned, photographed and emailed, or hand-
delivered to one of the Division of Public Assistance offices
listed on the form.
REPRESENTATIVE SNYDER listed the programs for which HB 168 would
authorize online electronic applications, including Medicaid for
Chronic and Acute Medical Assistance, the Supplemental
Assistance Program (SNAP), Adult Public Assistance, Senior
Benefits Program, Heating Assistance, Women, Infants & Children
(WIC), and Commodities Supplemental Food Program for seniors
over 60. It would allow for online renewals and recertification.
REPRESENTATIVE SNYDER stated that Alaska is one of the only
states that has not modernized the process of applying for
public assistance. She explained that the division currently
requires a wet signature. HB 168 would make using an electronic
signature an option.
REPRESENTATIVE SNYDER explained that some applications are
lengthy and complex, so having an online form would save costs
by reducing administrative time and delays. She worked closely
with the Department of Health and Social Services (DHSS) in
developing this bill. It supports DHSS's modernization efforts.
Authorizing online electronic applications in statute would
allow the department to implement processes, develop
regulations, accept appropriations, and ensure a timeline.
1:35:08 PM
REPRESENTATIVE SNYDER said that the governor's FY 2022 and FY
2023 budgets already account for the anticipated efficiencies.
She stated that members may recall the FY 2022 discussions,
including a $3.4 million Unrestricted General Fund (UGF) match
was cut, along with 101 public assistance positions. The
Governor's FY 2023 budget eliminated those positions. The
Governor's FY 2022 budget eliminated $848,000 in UGF matching
funds in anticipation of postage, printing, and envelopes due to
online submission forms. The FY 2023 budget eliminates an
additional $215,000 related to unneeded technology for the 101
eliminated positions. She emphasized the importance of moving
the process forward since the department counts on having
functioning online forms.
1:36:24 PM
REPRESENTATIVE SNYDER, in closing, stated that providing
statutory language will be helpful to ensure that eligible
Alaskans have access to the services that get them back on their
feet. It is important that the state achieves and maintains
these planned efficiencies.
CHAIR WILSON asked the sponsor's staff to proceed with the
sectional analysis.
1:36:59 PM
ARIELLE WIGGIN, Staff, Representative Liz Snyder, Alaska State
Legislature, Juneau, Alaska, read the sectional analysis for HB
168.
[Original punctuation provided]:
Sec. 1: Adds a new subsection (19) to AS 47.05.010
Duties of Department requiring the Department of
Health and Social Services to create and provide an
entirely online application process for individuals
applying for public assistance and defines an online
application. It does not mandate applicants apply
online or remove the written option.
1:37:20 PM
Sec. 2: Amends AS 47.08.150(b) Assistance For Chronic
or Acute Medical Conditions by adding language
requiring the Department of Health and Social Services
to establish an entirely online application process
for individuals applying for the Chronic and Acute
Medical Assistance program.
Sec. 3: Adds a new subsection (6) to AS 47.25.001(a)
Powers and Duties that requires the department
establish an entirely online application process and
allows applicants to apply in any form required by
state and federal law.
Sec. 4: Adds a new section (7) to AS 47.25.071(e)
Child Care Grant Program that requires the department
establish an entirely online application process for
assistance under the Child Care Grant Program.
1:38:04 PM
MS. WIGGIN continued reading the sectional analysis for HB
168.
[Original punctuation provided]
Sec. 5: Amends AS 47.25.095 Definitions For Day Care
Assistance and Child Care Grant Programs to define
electronic application.
Sec. 6: Amends AS 47.25.150 Application For Assistance
by adding language requiring the Department of Public
Assistance to establish an entirely online application
process for individuals applying for assistance from
the department and defines an online application.
Sec. 7: Amends AS 47.25.440 Application For Assistance
by adding language requiring the Department of Health
and Social Services to establish an entirely online
application process for individuals applying to
receive Adult Public Assistance and defines an online
application.
1:38:47 PM
Sec. 8: Adds a new subsection (4) to AS 47.25.622
Alaska Affordable Heating Program requiring the
Department of Health and Social Services to create and
provide an entirely online application process for
individuals applying for the Alaska Affordable Heating
Program and defines an online application.
Sec. 9: Adds a new subsection (4) to AS 47.25.980(a)
Duties of Department requiring the Department of
Public Assistance to create and provide an entirely
online application process for individuals applying
for the Supplemental Nutrition Assistance Program and
defines an online application.
Sec. 10: Amends AS 47.27.020(a) Application
Requirements by adding language requiring the
Department of Public Assistance to establish an
entirely online application process for individuals
applying for the Alaska Temporary Assistance Program.
Defines online application.
Sec. 11: Amends AS 47.45.302(a) Cash Assistance
Benefits by adding language requiring the Department
of Health and Social Services to establish an entirely
online application process for individuals applying
for the cash assistance program. Defines online
application.
Sec. 12: Adds a new section to the uncodified law of
the State of Alaska allowing the Department of Health
and Social Services to adopt regulations needed to
create and implement online applications.
Sec. 13: Requires Section 12 to take effect
immediately under AS 01.10.070(c).
Sec. 14: Provides an effective date of July 1, 2022.
1:40:24 PM
SENATOR REINBOLD asked for the total number of people the online
application would affect.
REPRESENTATIVE SNYDER deferred the question to the director of
the Division of Public Assistance.
1:40:56 PM
CHAIR WILSON said he anticipated that the director would join
the meeting shortly.
1:41:10 PM
SENATOR REINBOLD recalled HB 168 would allow for the option to
apply online, but the sponsor said the department is already
doing so. She said she was a little confused.
1:41:21 PM
REPRESENTATIVE SNYDER responded that the department was adding
the option. She related her understanding that online
applications are permitted but not required. HB 168 would
require an option for online application submittals.
1:42:04 PM
SENATOR REINBOLD expressed concern with potential data breaches
by allowing for online applications.
1:42:31 PM
SENATOR BEGICH advised members that the state has already
budgeted for DHSS's implementation of an electronic online
application system. This ensures that the state cannot
backslide. He related his understanding that the state could end
up where the DHSS cannot process applications because the
positions were already removed.
1:43:20 PM
REPRESENTATIVE SNYDER responded that it was a fair concern. She
said the division's budget was significantly cut in direct
anticipation of the availability of the electronic application.
She elaborated that the 2015 Division of Legislative Audit,
Performance Review of the Department of Health and Social
Services noted that the backlog was five to six months. She
understood that this backlog grew at the onset of the pandemic.
She suggested that the director could provide those specifics.
In 2020, the division hired approximately 20 people to handle
the backlog. Although the division reduced the backlog to 3-5
days, it could find itself with a significant backlog once
again.
1:44:15 PM
SENATOR BEGICH said he shared Senator Reinbold's concern about
data breaches and would like to discuss them once the division
director was online. The sectional analysis referred to entirely
online applications. He asked for clarification that she meant
that all DPA programs would allow for an online process, but the
division would still allow for paper applications.
REPRESENTATIVE SNYDER agreed. She said "entirely" referred to
the applicant's ability to press "submit," and the person's
electronic signature would be attached to the application and
submitted online. The form is currently online, but the
applicant cannot submit it online.
1:45:18 PM
SENATOR BEGICH asked if "entirely" means applicants can fill out
and sign their application online just as Alaskans sign their
permanent fund dividend application online.
1:45:44 PM
REPRESENTATIVE SNYDER responded that is correct.
1:45:52 PM
SENATOR HUGHES echoed the cybersecurity concerns about breaches
because applicants disclose personal information. She asked how
many positions the division needed if it only used paper
applications. She said she would like to determine the actual
cost savings in positions and dollars.
1:47:18 PM
REPRESENTATIVE SNYDER reported that 44 of the 101 positions cut
in the Governor's FY 2023 budget were vacant for at least six
months. The department filled an additional 56 positions for a
short time. The division functioned without them.
1:48:23 PM
SENATOR HUGHES pointed out that she did not see Medicaid listed
as one of the programs.
REPRESENTATIVE SNYDER answered that one component of Medicaid,
the Chronic and Acute Medical Assistance (CAMA), is part of the
multi-application online form.
SENATOR HUGHES offered her understanding that Medicaid is not an
online process.
REPRESENTATIVE SNYDER answered that is correct.
1:49:16 PM
CHAIR WILSON turned to invited testimony.
1:49:42 PM
RON MEEHAN, Policy and Advocacy Manager, Food Bank of Alaska,
Anchorage, Alaska, spoke in support of HB 168. He stated that
the Food Bank of Alaska has a robust federally-funded
Supplemental Nutrition Assistance Program (SNAP) carried out in
partnership with the state. The food bank provides education,
outreach, application assistance, and critical status updates
for current and potential SNAP recipients. Nearly 25 percent of
Alaskans eligible for SNAP do not access the program.
MR. MEEHAN said Alaskans face significant and unique challenges
in accessing benefits. One major barrier is a lack of options to
apply, which the creation and addition of an online program will
reduce. Alaska currently uses a paper application that requires
a pen-to-paper "wet" signature for SNAP and many other programs.
Although there is an online submission option, it requires a
person to use a finger or stylus signature not available to many
applicants. Not all communities have a Division of Public
Assistance (DPA) office and due to COVID-19, offices are closed.
Thus, it can be challenging for applicants to obtain a paper
application.
MR. MEEHAN explained that some clients don't have access to the
PDF application online, some don't have printing or mailing
capabilities, and some need help walking through and
understanding the questions on the 28-page application. The Food
Bank's SNAP Outreach team helps people via the phone, asking
questions and filling out the application for them. If clients
don't have printing capabilities, which many do not, the food
bank's staff mails the application to them with a pre-paid
return envelope. The client can review, sign and mail back the
application. This process can take weeks for rural residents who
often do not ultimately submit their applications.
1:51:45 PM
MR. MEEHAN stated that some clients have access to the internet
and could self-submit their forms online, with phone assistance
from staff, which saves mail time and postage. Further, the
outreach team could assist the application process for clients
needing multiple benefits since they can identify the necessary
forms, simplifying a daunting process. An online application
could be designed to be predictive, requiring clients to answer
relevant questions and provide explanations as needed.
Streamlining the application process could create efficiencies
in DPA's processing and the food bank's outreach efforts. An
online SNAP application process would eliminate the need for
printing thousands of applications every year. An online SNAP
application would allow applicants to reach the service,
complete the application at their own pace and receive benefits
timely. It is one of the surest ways to ensure access to
benefits in a state as unique and diverse as Alaska.
1:53:12 PM
CHAIR WILSON thanked Mr. Meehan for the services that he
provides to Alaskans.
1:53:25 PM
CHAIR WILSON opened public testimony on HB 168; finding none; he
closed public testimony. He stated that the committee would
accept written testimony at shss@akleg.gov until Monday, January
24 at 5:00 p.m.
1:53:58 PM
At ease
2:02:04 PM
CHAIR WILSON reconvened the meeting.
2:02:26 PM
SHAWNDA O'BRIEN, Director, Department of Health and Social
Services, Division of Public Assistance, Juneau, Alaska,
introduced herself.
2:02:46 PM
SENATOR REINBOLD asked how many Alaskans receive benefits that
would be affected by HB 168.
MS. O'BRIEN answered that approximately 275,000 to 300,000
Alaskans receive public assistance benefits.
2:03:24 PM
SENATOR REINBOLD asked for the purpose of the bill since the
department was already putting its applications online.
MS. O'BRIEN answered that the department was currently
developing online electronic applications. The department does
not need statutory authority to continue doing so. She deferred
to the bill sponsor to respond.
2:04:15 PM
CHAIR WILSON related his understanding that HB 168 changes the
"may" to a "shall."
REPRESENTATIVE SNYDER agreed that the statutory changes were not
needed to make the online application possible. However, placing
it in statute ensures that electronic, online applications will
always remain an option. Electronic applications modernize the
department's process by improving services and efficiencies.
2:04:57 PM
SENATOR REINBOLD said she had planned to amend the bill on page
1, line 7 to change "shall" to "may" to ensure data privacy. She
referred to the language in paragraph (3) "minimum standards for
personnel employed by the department and adopt necessary
regulations to maintain those standards;". She asked what types
of standards the department should put in place.
SENATOR BEGICH clarified that this language is an existing
statute and is not being changed by HB 168. Those provisions are
necessary for the department to operate. He referred to page 4,
lines 1-7, for the new language related to the electronic
application process.
2:06:02 PM
SENATOR REINBOLD observed that the testimony given conflicts
with changing the language from "may" to "shall". She asked for
clarification.
2:06:21 PM
CHAIR WILSON referred to page 4, paragraph (19), for the
statutory change that would require the department to establish
an electronic application process for all assistance programs.
He explained that [AS 47.05.010 paragraphs (1)-(18)] is existing
statutory language outlining the duties of the department.
2:06:53 PM
MS. O'BRIEN agreed that the only change HB 168 made was to allow
applicants to submit their applications through an online
electronic process.
2:07:20 PM
SENATOR BEGICH stated that the language is "may" because it
currently doesn't exist in statute. Applicants could choose to
submit their applications online or choose not to do so.
2:07:36 PM
At ease
2:08:37 PM
CHAIR WILSON reconvened the meeting.
2:08:44 PM
SENATOR REINBOLD expressed concern if the statute read "shall"
that the division would be forced to keep the electronic
application online if a data breach occurred.
2:09:21 PM
REPRESENTATIVE SNYDER acknowledged and agreed that Alaska's
privacy concerns are of the most importance. She deferred to
Legislative Legal Services to respond to the effects of the
[September 16, 2021, DHSS] data breach.
2:10:07 PM
CHAIR WILSON asked if the data breach caused any temporary halts
to programs and any consequences for the department.
2:10:29 PM
MS. O'BRIEN answered that the division experienced some
disruptions. The childcare assistance and licensing system was
completely disrupted and wholly taken offline. Other systems
were partially affected if they were housed on a server affected
by the cyberattack. The division accepts paper forms and
documents but using a manual rather than an automated process
takes more time. She said this results in work backlogs, which
happened with the Child Care Program and the Alaska Temporary
Assistance Program (ATAP) work service program. The cyberattack
affected the division primarily through inefficiencies and
backlogs. She highlighted that any automated or online system
requires an option for people to submit paper applications,
which the division would continue to offer. The division
receives applications by fax, email, photographed and emailed,
or by the online application process currently being developed.
2:13:36 PM
SENATOR HUGHES asked if anything requires the department to shut
down its online application process if it suffers a security
breach.
2:14:22 PM
MS. O'BRIEN answered that the state and DPA have protocols in
place if a breach or infiltration occurs. For example, during a
cyberattack the division would take the affected servers or
network connections offline. The division would assess whether
any data was infiltrated or accessed, and it would revert to
solely using paper applications as a backup to allow Alaskans to
apply for services. Some protocols were related to continuity of
services, and others were federal requirements imposed on the
department.
2:15:58 PM
SENATOR HUGHES stated that internal protocols could change. She
acknowledged that current protocols might be based on best
practices. However, the Alaska Constitution provides for privacy
protections. She said she supports the department moving towards
electronic application processes for cost savings and
efficiencies. She acknowledged the committee would want to
discuss the statutory language with Legislative Legal. She
suggested that protocols should require the department to revert
to paper applications until it was safe to go online.
2:17:26 PM
CHAIR WILSON suggested those cybersecurity protocols might
already be in place. For example, the commissioner might be able
to waive statutory requirements.
2:17:49 PM
SENATOR COSTELLO highlighted that cybersecurity is critical. She
remarked that the Senate State Affairs Committee will hear a
presentation on cybersecurity today, which members may want to
attend.
2:18:21 PM
SENATOR BEGICH referred to Sections 10 and 12, which provided
regulatory transition language. She asked if the department's
regulations would establish any protocols.
2:18:49 PM
MS. O'BRIEN explained that she is not an expert on the Health
Insurance Portability and Accountability Act of 1996 (HIPAA) and
confidentially requirements, so she would defer to the
Department Security Office. Still, the division must adhere to
confidentiality requirements associated with federal oversight
purposes and not look to the electronic application language to
satisfy those requirements.
2:20:12 PM
SENATOR BEGICH recalled that the Administrative Procedures Act
refers to the federal laws and protections. He asked if HIPAA
would be referred to in the regulatory processes.
2:20:40 PM
MS. O'BRIEN answered that he was correct.
SENATOR BEGICH related his understanding that there are
protections in the federal laws that require the state to adhere
to specific confidentiality and privacy guidelines. He said the
broader questions Senators Hughes and Reinbold asked directly
related to DHSS's data breach. This act states that consumers
could use electronic submittal of data as an option. He wondered
what protections DPA has in response to the data breach to
assure Alaskans that this isn't doing anything to expand data
risk.
2:22:09 PM
MS. O'BRIEN deferred to the DHSS Department Security Office
(DSO) or the Department of Administration, Office of Information
Technology, State Security Office for specific details.
2:22:36 PM
SENATOR BEGICH suggested that the committee could request a
presentation on data breaches from the Department Security
Office.
SENATOR BEGICH stated that Alaska has an indigenous population
whose first language may not be English. He asked if the
division works with public interest groups to identify ways to
ensure that the forms are accessible online in various
languages.
2:23:50 PM
MS. O'BRIEN answered that the division contracts for interpreter
services through LanguageLine. LanguageLine provides
interpretation for over 200 languages to assist clients with
online or paper applications. The division has limited options
to offer all languages in written form, but it works to
communicate with individuals on how to obtain those services.
2:25:00 PM
SENATOR BEGICH asked if the division assists those with
disabilities.
MS. O'BRIEN answered yes. The division understands this is an
area that the department could continually improve. She said
that electronic options offer variety and alternative solutions.
2:25:41 PM
SENATOR BEGICH pointed out that not all Alaskans have access to
high-speed internet. He asked if the division would provide
paper applications for those with low bandwidth.
MS. O'BRIEN answered that the paper process is currently one
option for those with low bandwidth. She reported that with the
implementation of the Virtual Contact Center, the division could
accept applications via the phone, including authorizing
applicants to use electronic signatures. The application via
phone will still be an option once the online electronic
application process is in place. She characterized it as a
positive solution.
2:27:14 PM
SENATOR BEGICH remarked if he were the governor and asked the
director to stop using the electronic forms if she would do so.
MS. O'BRIEN answered that she would have to honor the request.
SENATOR BEGICH stated that is why HB 168 should place "shall" in
statute, so long as the data is protected.
SENATOR REINBOLD said she supports privacy protections provided
in Article I, Section 22 of the Alaska Constitution. She opined
that the legislature was failing to meet its constitutional
obligations to do so. She expressed concern that if the language
reads "shall," it could create liability if the power shuts
down. She said she was glad the legislature was getting briefed
on cybersecurity because of the significant DHSS data breach.
She stated that the committee shared concerns about potential
cyberattacks and the importance of protecting Alaskan's personal
information.
2:30:18 PM
CHAIR WILSON asked if DPA has the means to detect fraud and
verify the individual if the application is not signed.
2:30:48 PM
MS. O'BRIEN responded that the division uses standard
authentication requirements. The online electronic application
process will use multiple steps to validate and verify the
identity of recipients. The DPA has a Fraud Control Unit that
reviews recipients through data mining. For example, people can
submit their Medicaid applications using a myAlaska account to
authenticate their identity. Members may have used myAlaska to
apply for their fishing license or permanent fund dividend and
may be familiar with the steps embedded in that process. The DPA
hopes to use similar authentication requirements for other
programs.
2:32:16 PM
CHAIR WILSON pointed out he could purchase fishing licenses for
other individuals so long as he has their personal information.
He asked whether the person receiving public assistance benefits
must apply or if another person could apply on their behalf.
2:32:37 PM
MS. O'BRIEN answered that an authorized representative could
apply for another person since some people require assistance.
She said that the division would use its Fraud Control Unit to
detect fraud.
2:34:23 PM
SENATOR REINBOLD said she was astonished that people could apply
by phone. She stated that [the Department of Health & Social
Services and Department of Law Joint Legislative Report on
Fraud, Abuse, and Waste required under AS 47.07.076] identified
issues. She suggested adding language to the bill to ensure that
the state is not expanding a broken program. She asked the
sponsor to identify the goal.
REPRESENTATIVE SNYDER said she was unsure she could rephrase the
goal of the bill in another way.
2:35:40 PM
SENATOR BEGICH asked what the division currently does to protect
consumers from anyone purchasing their personal information.
2:36:40 PM
MS. O'BRIEN answered that the data and security protocols
require the division to follow HIPAA and confidentiality
standards. A person's personal information is protected from the
point that they sign into their myAlaska account to submit their
Medicaid application through multiple layers and levels by the
state's security system. She offered to provide the committee
with specific citations to ensure that applicants' information
is secure from third parties and the federal regulations that
provide oversight on how the agency must protect personal
information.
2:37:58 PM
SENATOR BEGICH acknowledged that he would like the information
to understand the consumer protections. He asked for the
incidence of fraud for the 275,000 to 300,000 DPA recipients.
MS. O'BRIEN answered that the department produces an annual
report that outlines cases of fraud that she could share with
the committee.
2:38:59 PM
SENATOR REINBOLD said she was unaware of any statutes imposing
penalties for individuals committing fraud, just for providers.
She expressed concern that people could apply for benefits in
Hawaii, then come to Alaska and apply for them here. She
emphasized that her concern is over a gargantuan program that
the state needs to fix so the program will be sustainable.
2:39:52 PM
CHAIR WILSON stated that fraud is theft, so the Department of
Law could prosecute the individuals for theft of services.
2:40:41 PM
REPRESENTATIVE SNYDER emphasized the three primary motivators
for introducing HB 168. It modernizes the Division of Public
Assistance process in statute to ensure it is robust, resilient,
and cannot be revoked on a whim. In 2006, the USDA recommended
an online electronic application process to achieve efficiencies
and improve access to programs. Alaska is one of the last states
to change. She offered to research how other states have handled
some of the issues. Second, HB 168 would remove barriers to
access. As Mr. Meehan from the Food Bank of Alaska testified,
only about 75 percent of eligible Alaskans participate in their
programs. Some of that limitation is due to access. She pointed
out that sometimes the back and forth between the applicant and
the agency results in the recipient quitting the process. Third,
the goal is to achieve improved efficiencies. HB 168 can help
the state operate the programs at lower costs and redirect some
staff time and resources to the important concerns raised,
including fraud and security issues. The 2015 Division of
Legislative Audit, Performance Review of the Department of
Health and Social Services recognized the Division of Public
Assistance for its efforts to address fraud. She offered to do
research to find answers to the questions she could not answer
today and report back to the committee.
2:43:20 PM
CHAIR WILSON held HB 168 in committee.
2:43:50 PM
SENATOR BEGICH pointed out that AS 47.05.210 refers to Medicaid
fraud as a criminal offense, punishable as a class A
misdemeanor.
2:43:59 PM
SENATOR REINBOLD recalled from subcommittee work that the
penalties were for providers.
SENATOR BEGICH responded that AS 47.05.210 applies to
applicants.
SENATOR REINBOLD said she would research this because she did
not believe the division was actively pursuing fraud cases. She
said the audit identified it as a significant problem.
CHAIR WILSON recalled that the report related to fraud, waste
and abuse will come out in November, [as required by AS
47.07.076].
[HB 168 was held in committee.]
2:44:47 PM
There being no further business to come before the committee,
Chair Wilson adjourned the Senate Health and Social Services
Standing Committee meeting at 2:44 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 168 32-LS0639 W.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |
| HB 168 DHSS FN 1.14.2022.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |
| HB 168 DHSS FN 4.14.2021.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |
| HB 168 Letter of Support - Received 4.19.2021.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |
| HB 168 Sectional Analysis Ver. W 4.12.2021.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |
| HB 168 Sponsor Statement Version B 4.12.2021.pdf |
SHSS 1/20/2022 1:30:00 PM |
HB 168 |