Legislature(2025 - 2026)BUTROVICH 205

03/27/2025 03:30 PM Senate HEALTH & SOCIAL SERVICES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 122 HEALTH INSURANCE NETWORK STANDARDS TELECONFERENCED
Heard & Held
+= SB 95 CHILD CARE: ASSISTANCE/GRANTS TELECONFERENCED
Moved SB 95 Out of Committee
+= SB 88 CHILD PLACEMENT; DILIGENT SEARCH TELECONFERENCED
Scheduled but Not Heard
Bills Previously Heard/Scheduled:
+= SB 121 HEALTH INSURANCE ALLOWABLE CHARGES TELECONFERENCED
Moved CSSB 121(HSS) Out of Committee
+= SCR 2 SUPPORT CRISIS CARE & MEDICAID REFORM TELECONFERENCED
Moved SCR 2 Out of Committee
+= SJR 15 OPPOSE MEDICAID CUTS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
      SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                    
                         March 27, 2025                                                                                         
                           3:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Forrest Dunbar, Chair                                                                                                   
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Matt Claman                                                                                                             
Senator Löki Tobin                                                                                                              
Senator Shelley Hughes                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 95                                                                                                              
"An Act  relating to  the child care  assistance program  and the                                                               
child care grant program; and providing for an effective date."                                                                 
                                                                                                                                
     - MOVED SB 95 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 121                                                                                                             
"An  Act  relating  to settlement  of  health  insurance  claims;                                                               
relating  to  allowable  charges  for  health  care  services  or                                                               
supplies; and providing for an effective date."                                                                                 
                                                                                                                                
     - MOVED CSSB 121(HSS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 2                                                                                              
Supporting  an all-payer  crisis continuum  of care  and Medicaid                                                               
reform;  and urging  the  Governor to  direct  the Department  of                                                               
Health and  the division of insurance  to develop recommendations                                                               
for an all-payer model for crisis care.                                                                                         
                                                                                                                                
     - MOVED SCR 2 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 122                                                                                                             
"An Act relating to insurance;  establishing standards for health                                                               
insurance  provider  networks;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE JOINT RESOLUTION NO. 15                                                                                                  
Calling on the state's congressional delegation to oppose cuts                                                                  
to federal spending on Medicaid.                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 88                                                                                                              
"An  Act  relating to  placement  of  a  child  in need  of  aid;                                                               
relating  to  adoption; relating  to  variances  for foster  care                                                               
licenses; relating to  the medical records of  children in foster                                                               
care; and providing for an effective date."                                                                                     
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  95                                                                                                                  
SHORT TITLE: CHILD CARE: ASSISTANCE/GRANTS                                                                                      
SPONSOR(s): HEALTH & SOCIAL SERVICES                                                                                            
                                                                                                                                
02/12/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/25       (S)       HSS, FIN                                                                                               
03/14/25       (S)       PRIME SPONSOR CHANGED - SENATE HEALTH                                                                  
                         AND SOCIAL                                                                                             
03/14/25       (S)       SERVICES   COMMITTEE   REPLACED   SENATE                                                               
                        RULES COMMITTEE                                                                                         
03/25/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/25/25       (S)       Heard & Held                                                                                           
03/25/25       (S)       MINUTE(HSS)                                                                                            
03/27/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 121                                                                                                                  
SHORT TITLE: HEALTH INSURANCE ALLOWABLE CHARGES                                                                                 
SPONSOR(s): GIESSEL BY REQUEST                                                                                                  
                                                                                                                                
03/05/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/05/25       (S)       HSS, L&C                                                                                               
03/11/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/11/25       (S)       Heard & Held                                                                                           
03/11/25       (S)       MINUTE(HSS)                                                                                            
03/20/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/20/25       (S)       Heard & Held                                                                                           
03/20/25       (S)       MINUTE(HSS)                                                                                            
03/27/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SCR  2                                                                                                                  
SHORT TITLE: SUPPORT CRISIS CARE & MEDICAID REFORM                                                                              
SPONSOR(s): HEALTH & SOCIAL SERVICES                                                                                            
                                                                                                                                
03/12/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/12/25       (S)       HSS, L&C                                                                                               
03/13/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/13/25       (S)       Heard & Held                                                                                           
03/13/25       (S)       MINUTE(HSS)                                                                                            
03/25/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/25/25       (S)       Heard & Held                                                                                           
03/25/25       (S)       MINUTE(HSS)                                                                                            
03/27/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 122                                                                                                                  
SHORT TITLE: HEALTH INSURANCE NETWORK STANDARDS                                                                                 
SPONSOR(s): GIESSEL BY REQUEST                                                                                                  
                                                                                                                                
03/05/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/05/25       (S)       HSS, L&C                                                                                               
03/11/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/11/25       (S)       Heard & Held                                                                                           
03/11/25       (S)       MINUTE(HSS)                                                                                            
03/20/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/20/25       (S)       <Bill Hearing Canceled>                                                                                
03/27/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR 15                                                                                                                  
SHORT TITLE: OPPOSE MEDICAID CUTS                                                                                               
SPONSOR(s): HEALTH & SOCIAL SERVICES                                                                                            
                                                                                                                                
03/19/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/19/25       (S)       HSS                                                                                                    
03/20/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/20/25       (S)       <Bill Hearing Canceled>                                                                                
03/25/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/25/25       (S)       Heard & Held                                                                                           
03/25/25       (S)       MINUTE(HSS)                                                                                            
03/27/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JANE CONWAY, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Explained the amendments for SB 121.                                                                      
                                                                                                                                
GARY STRANNIGAN, Vice President                                                                                                 
Congressional and Legislative Affairs                                                                                           
Premera Blue Cross Blue Shield of Alaska                                                                                        
Everett, Washington                                                                                                             
POSITION STATEMENT: Testified in opposition to SB 122.                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:34:46 PM                                                                                                                    
CHAIR  DUNBAR  called  the  Senate  Health  and  Social  Services                                                               
Standing Committee meeting  to order at 3:34 p.m.  Present at the                                                               
call to order  were Senators Hughes, Giessel,  Claman, Tobin, and                                                               
Chair Dunbar.                                                                                                                   
                                                                                                                                
               SB  95-CHILD CARE: ASSISTANCE/GRANTS                                                                         
                                                                                                                                
3:36:13 PM                                                                                                                    
CHAIR DUNBAR  announced the consideration  of SENATE BILL  NO. 95                                                               
"An Act  relating to  the child care  assistance program  and the                                                               
child care grant program; and providing for an effective date."                                                                 
                                                                                                                                
3:36:32 PM                                                                                                                    
CHAIR DUNBR  opened public testimony  on SB 95; finding  none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
3:36:57 PM                                                                                                                    
CHAIR  DUNBAR stated  SB 95  is the  same as  a bill  passed last                                                               
year.                                                                                                                           
                                                                                                                                
3:37:05 PM                                                                                                                    
CHAIR DUNBAR solicited the will of the committee.                                                                               
                                                                                                                                
3:37:07 PM                                                                                                                    
SENATOR GIESSEL  moved to report  SB 95, work  order 34-LS0446\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
3:37:18 PM                                                                                                                    
CHAIR DUNBAR found  no objection and SB 95 was  reported from the                                                               
Senate Health and Social Services Standing Committee.                                                                           
                                                                                                                                
3:37:25 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
           SB 121-HEALTH INSURANCE ALLOWABLE CHARGES                                                                        
                                                                                                                                
3:40:37 PM                                                                                                                    
CHAIR   DUNBR   reconvened   the  meeting   and   announced   the                                                               
consideration  of  SENATE  BILL  NO.  121  "An  Act  relating  to                                                               
settlement  of health  insurance  claims;  relating to  allowable                                                               
charges for health  care services or supplies;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
3:40:59 PM                                                                                                                    
CHAIR DUNBAR solicited a motion.                                                                                                
                                                                                                                                
3:41:02 PM                                                                                                                    
SENATOR  GIESSEL  moved to  adopt  Amendment  1, work  order  34-                                                               
LS0282\N.1.                                                                                                                     
                                                                                                                                
                                                                                                                                
                                               34-LS0282\N.1                                                                    
                                                     Wallace                                                                    
                                                     3/12/25                                                                    
                                                                                                                                
                                                                                                                                
                      A M E N D M E N T 1                                                                                   
                                                                                                                                
    OFFERED IN THE SENATE                BY SENATOR GIESSEL                                                                     
     TO:  SB 121                                                                                                                
                                                                                                                                
     Page 2, line 14, following "rates":                                                                                        
          Insert "for an allowable charge under (a) of this                                                                     
          section"                                                                                                              
                                                                                                                                
3:41:12 PM                                                                                                                    
CHAIR DUNBAR objected for purposes of discussion.                                                                               
                                                                                                                                
3:41:21 PM                                                                                                                    
JANE  CONWAY,   Staff,  Senator   Cathy  Giessel,   Alaska  State                                                               
Legislature,  Juneau,  Alaska,  offered  an  explanation  of  the                                                               
amendments  for SB  121.  She  noted that  on  page  2, line  14,                                                               
following  the  word  "rates"  was  inserted  "for  an  allowable                                                               
charge." She  stated that the amendment  establishes that out-of-                                                               
network  providers receive  the same  reimbursement for  the same                                                               
codes   as  in-network   providers,  while   allowing  in-network                                                               
providers to negotiate rates through contracts with insurers.                                                                   
                                                                                                                                
3:42:37 PM                                                                                                                    
SENATOR HUGHES  sought verification  of whether the  amendment is                                                               
establishing a requirement.                                                                                                     
                                                                                                                                
3:42:47 PM                                                                                                                    
MS.  CONWAY replied  that the  amendment would  require the  same                                                               
reimbursement for the same CPT code regardless of the provider.                                                                 
                                                                                                                                
3:43:11 PM                                                                                                                    
SENATOR HUGHES  asked whether the amendment  affected the ability                                                               
of in-network  physicians to negotiate higher  payment than other                                                               
clinician types for the same CPT code.                                                                                          
                                                                                                                                
3:43:30 PM                                                                                                                    
MS. CONWAY replied yes, it is a possible.                                                                                       
                                                                                                                                
3:43:41 PM                                                                                                                    
SENATOR  HUGHES asked  whether equal  protection  raised a  legal                                                               
issue if  an advanced nurse  practitioner or  physician assistant                                                               
(PA)  in network  received a  lower negotiated  payment than  the                                                               
same clinician type out of network.                                                                                             
                                                                                                                                
3:44:09 PM                                                                                                                    
MS. CONWAY replied the question is beyond her expertise.                                                                        
                                                                                                                                
3:44:29 PM                                                                                                                    
SENATOR GIESSEL  stated that SB  121 addresses  reimbursement for                                                               
out-of-network  providers  and  does not  affect  negotiated  in-                                                               
network contracts.                                                                                                              
                                                                                                                                
3:44:52 PM                                                                                                                    
CHAIR  DUNBAR stated  that the  issue  raised appeared  practical                                                               
rather  than constitutional  and likely  did not  implicate equal                                                               
protection  because   the  payments  resulted   from  arms-length                                                               
negotiations.                                                                                                                   
                                                                                                                                
3:45:15 PM                                                                                                                    
SENATOR  CLAMAN  said the  legislation  applies  only to  out-of-                                                               
network charges and  does not affect in-network  rates, which are                                                               
determined   through   contract   negotiations,   including   any                                                               
differences in payment for different clinician types.                                                                           
                                                                                                                                
3:46:00 PM                                                                                                                    
SENATOR HUGHES  stated that  she is  concerned that  paying nurse                                                               
practitioners  and  PAs  the  same as  physicians  for  the  same                                                               
service   may  undervalue   physicians'   greater  training   and                                                               
expertise,  reduce incentives  for  efficiency,  and eliminate  a                                                               
cost-saving  advantage PAs  and  nurse  practitioners provide  in                                                               
rural care. She  suggested a slightly lower rate for  PAs and NPs                                                               
could be more appropriate.                                                                                                      
                                                                                                                                
3:48:28 PM                                                                                                                    
CHAIR DUNBAR removed his objection and asked whether there were                                                                 
further questions.                                                                                                              
                                                                                                                                
3:48:40 PM                                                                                                                    
SENATOR HUGHES asked for a recap of the purpose for Amendment 1                                                                 
(N.1).                                                                                                                          
                                                                                                                                
3:49:09 PM                                                                                                                    
MS. CONWAY clarified that the purpose for Amendment 1 was that                                                                  
legislation applies only to out-of-network providers and does                                                                   
not affect in-network negotiations.                                                                                             
                                                                                                                                
SENATOR CLAMAN stated that the amendment aligns the language                                                                    
with the bill's original intent, ensuring consistency.                                                                          
                                                                                                                                
CHAIR DUNBAR asked if Senator Hughes maintained her objection.                                                                  
                                                                                                                                
3:49:43 PM                                                                                                                    
SENATOR HUGHES replied no.                                                                                                      
                                                                                                                                
3:49:48 PM                                                                                                                    
CHAIR DUNBAR found no further objection and Amendment 1 (N.1)                                                                   
was adopted.                                                                                                                    
                                                                                                                                
3:49:51 PM                                                                                                                    
CHAIR DUNBAR solicited a motion.                                                                                                
                                                                                                                                
3:49:55 PM                                                                                                                    
SENATOR GIESSEL moved to adopt Amendment 2, work order 34-                                                                      
LS0282\N.2.                                                                                                                     
                                                                                                                                
                                                 34-LS0282\N.2                                                                  
                                                      Wallace                                                                   
                                                      3/12/25                                                                   
                                                                                                                                
                                                                                                                                
                       A M E N D M E N T                                                                                    
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR GIESSEL                                                                 
                                                                                                                                
                                                                                                                                
     Page 1, line 14:                                                                                                           
         Delete "and must be the same across the state"                                                                         
          Insert ", must be the same across the state, and                                                                      
     be the greater of the allowable charge or 450 percent                                                                      
        of the federal Centers for Medicare and Medicaid                                                                        
     Services fee  schedule for the  state in effect  at the                                                                    
     time of delivery of the health care service or supply"                                                                     
                                                                                                                                
     Page 2, lines 4 - 7:                                                                                                       
          Delete "Allowable charges for primary care                                                                            
     providers must  be the greater of  the allowable charge                                                                    
     or 450 percent of the  federal Centers for Medicare and                                                                    
     Medicaid Services fee schedule  for the state in effect                                                                    
     at the time  of delivery of the health  care service or                                                                    
     supply."                                                                                                                   
                                                                                                                                
3:50:01 PM                                                                                                                    
CHAIR DUNBAR objected for purposes of discussion.                                                                               
                                                                                                                                
3:50:06 PM                                                                                                                    
MS.  CONWAY  explained  Amendment  2   (N.2).  She  said  SB  121                                                               
specifies 450 percent  of CMS Medicare rates, and  the intent was                                                               
for all  providers to  have 450  percent floor  as a  minimum. To                                                               
achieve this,  on page 1, line  14, "and must be  the same across                                                               
the state" was deleted and inserted  "must be the same across the                                                               
state and  be greater of the  allowable charge or 450  percent of                                                               
the CMS Medicare and Medicaid  Services fee schedule in effect at                                                               
the time of  service delivery." Consequently, page  2, lines 47,                                                                
was  removed,  which previously  applied  only  to primary  care,                                                               
since the floor now applies to all providers.                                                                                   
                                                                                                                                
3:51:31 PM                                                                                                                    
SENATOR HUGHES  asked whether the  original bill applied  the 450                                                               
percent rate only to primary care,  but as amended extends to all                                                               
medical care providers.                                                                                                         
                                                                                                                                
MS. CONWAY replied correct.                                                                                                     
                                                                                                                                
3:51:52 PM                                                                                                                    
SENATOR HUGHES said Amendment 2 is  a very big expansion and said                                                               
she  wanted to  maintain  her objection  because  an analysis  is                                                               
needed on  how the  change would impact  small businesses  and 15                                                               
percent  of the  population.  She stated  her  belief that  rates                                                               
would increase considerably, impacting the cost of insurance.                                                                   
                                                                                                                                
3:52:26 PM                                                                                                                    
CHAIR DUNBAR  removed his objection  and asked if  Senator Hughes                                                               
maintains objection.                                                                                                            
                                                                                                                                
3:52:36 PM                                                                                                                    
SENATOR HUGHES replied yes.                                                                                                     
                                                                                                                                
CHAIR DUNBAR asked for further discussion.                                                                                      
                                                                                                                                
3:52:42 PM                                                                                                                    
SENATOR  GIESSEL explained  that after  the repeal  of the  prior                                                               
reimbursement  rule, no  minimum payment  floor was  established,                                                               
leading to  sharply reduced reimbursement rates  for primary care                                                               
cliniciansdown   to  about  145  percent of  Medicare,  which  is                                                               
already  low  and potentially  declining  further.  As a  result,                                                               
clinics are  struggling to cover  rising costs such  as supplies,                                                               
staffing,  and  billing services,  and  some  have had  contracts                                                               
canceled or  renegotiated at unsustainable rates.  She said these                                                               
pressures  are  causing  clinic closures,  difficulty  recruiting                                                               
physicians,  and  long-standing   family-run  practices  becoming                                                               
unsellable. The  purpose of establishing  a 450  percent Medicare                                                               
floor is  to stabilize reimbursement,  keep primary  care clinics                                                               
financially  viable,  and  maintain   access  to  healthcare  for                                                               
Alaskans.                                                                                                                       
                                                                                                                                
3:55:18 PM                                                                                                                    
SENATOR HUGHES stated that while  the sponsor's goal is to ensure                                                               
adequate  reimbursement for  primary  care,  the expansion  would                                                               
apply the floor to all  medical providers, including specialists,                                                               
with  unknown  impacts on  costs.  She  is concerned  this  could                                                               
increase  premiums for  insured  Alaskans and  cannot support  SB
121.                                                                                                                            
                                                                                                                                
3:56:26 PM                                                                                                                    
CHAIR DUNBAR found  the objection was maintained and  asked for a                                                               
roll call vote.                                                                                                                 
                                                                                                                                
A roll call vote was  taken. Senators Giessel, Tobin, Claman, and                                                               
Dunbar voted  in favor  of Amendment 2  (N.2) and  Senator Hughes                                                               
voted against it. The vote was 4:1.                                                                                             
                                                                                                                                
CHAIR DUNBAR announced that Amendment 2  was adopted on a vote of                                                               
4 yeas and 1 nay.                                                                                                               
                                                                                                                                
3:57:34 PM                                                                                                                    
CHAIR DUNBAR opened public testimony  on SB 121; finding none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
3:57:49 PM                                                                                                                    
CHAIR DUNBAR asked for closing comments.                                                                                        
                                                                                                                                
3:58:01 PM                                                                                                                    
SENATOR CLAMAN said  he viewed SB 121 as  important. He expressed                                                               
frustration with  the lack of  transparency in  how reimbursement                                                               
rates are  set and disclosed  by insurers and state  agencies. He                                                               
noted  difficulty  obtaining   meaningful  rate  information  and                                                               
related this difficulty to the  confusion over medical bills that                                                               
consumers face. He criticized the  punitive nature of the current                                                               
185  percent   Medicare  out-of-network  rate.  He   said  he  is                                                               
concerned  about  whether  a 450  percent  Medicare  floor  could                                                               
exceed existing  contract rates, noting that  supporters claim it                                                               
would  not, but  he lacks  sufficient  data to  make an  informed                                                               
decision.                                                                                                                       
                                                                                                                                
4:00:53 PM                                                                                                                    
SENATOR  CLAMAN  said  he  is unconvinced  that  450  percent  of                                                               
Medicare  is  always  below contract  rates  and  wants  clearer,                                                               
procedure-specific data to evaluate the  impact. He supported the                                                               
bill's advancement and praising its  design but stressed the need                                                               
for  transparent   rate  comparisons  to   ensure  out-of-network                                                               
payments  do  not  exceed  in-network  rates.  He  cited  broader                                                               
frustration  with   the  lack   of  accessible   healthcare  cost                                                               
information.                                                                                                                    
                                                                                                                                
4:02:16 PM                                                                                                                    
SENATOR   HUGHES   stated   her  concern   that   reinstating   a                                                               
reimbursement floor  so soon after repealing  the 80th percentile                                                               
rule could again drive-up healthcare  costs. She noted historical                                                               
cost  increases  and  questioning  how the  percentile  rule  was                                                               
previously  characterized.  She   emphasized  that  the  affected                                                               
population is largely small business  owners who already struggle                                                               
to  provide insurance  and warned  that SB  121 lacks  sufficient                                                               
data and  clarity on several  technical issues.  She acknowledged                                                               
the  need  for providers  and  access  to  care, she  argued  the                                                               
proposal  is premature,  undermines  free-market principles,  and                                                               
could harm  Alaskans without further analysis  and dialogue among                                                               
insurers and providers.                                                                                                         
                                                                                                                                
4:06:06 PM                                                                                                                    
SENATOR  GIESSEL noted  that  past  analyses, including  Milliman                                                               
studies, showed specialists such  as orthopedists were reimbursed                                                               
well  above Medicare  without causing  excess  payments and  that                                                               
high  healthcare costs  in Alaska  are driven  more by  insurance                                                               
expenses  than provider  reimbursement. She  argued SB  121 would                                                               
protect  patients  from   high  out-of-network  bills,  encourage                                                               
providers  to   join  networks,   and  ultimately   protect  both                                                               
clinicians and consumers.                                                                                                       
                                                                                                                                
4:08:52 PM                                                                                                                    
CHAIR DUNBAR solicited the will of the committee.                                                                               
                                                                                                                                
4:08:55 PM                                                                                                                    
SENATOR GIESSEL moved  to report SB 121,  work order 34-LS0282\N,                                                               
as amended,  from committee  with individual  recommendations and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
4:09:10 PM                                                                                                                    
CHAIR DUNBAR  found no objection  and CSSB 121(HSS)  was reported                                                               
from the Senate Health and Social Services Standing Committee.                                                                  
                                                                                                                                
4:09:15 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
          SCR  2-SUPPORT CRISIS CARE & MEDICAID REFORM                                                                      
                                                                                                                                
4:11:05 PM                                                                                                                    
CHAIR  DUNBAR announced  the consideration  of SENATE  CONCURRENT                                                               
RESOLUTION  NO. 2  Supporting an  all-payer  crisis continuum  of                                                               
care and Medicaid  reform; and urging the Governor  to direct the                                                               
Department of  Health and  the division  of insurance  to develop                                                               
recommendations for an all-payer model for crisis care.                                                                         
                                                                                                                                
4:11:33 PM                                                                                                                    
CHAIR DUNBAR opened  public testimony on SCR 2;  finding none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
4:11:49 PM                                                                                                                    
CHAIR DUNBAR  explained that  Anchorage has  worked for  years on                                                               
developing a  crisis response continuum, including  mobile crisis                                                               
teams,  but  emphasized  that   these  teams  require  supporting                                                               
services and  facilities to function  effectively. He  noted that                                                               
providers  are  attempting to  open  crisis  facilities but  face                                                               
billing  challenges, and  expressed hope  for unified  support to                                                               
advance Crisis Now and the broader continuum of care statewide.                                                                 
                                                                                                                                
4:13:07 PM                                                                                                                    
SENATOR  CLAMAN  expressed  support for  the  resolution,  noting                                                               
prior  legislative   work  on   related  crisis   care  measures,                                                               
including  Senate Bill  120 and  House Bill  172, and  views this                                                               
resolution as a continuation of those important efforts.                                                                        
                                                                                                                                
4:13:53 PM                                                                                                                    
CHAIR DUNBAR solicited the will of the committee.                                                                               
                                                                                                                                
4:13:54 PM                                                                                                                    
SENATOR GIESSEL  moved to report  SCR 2, work  order 34-LS0644\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
4:14:10 PM                                                                                                                    
CHAIR DUNBAR found  no objection and SCR 2 was  reported from the                                                               
Senate Health and Social Services Standing Committee.                                                                           
                                                                                                                                
4:14:18 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
           SB 122-HEALTH INSURANCE NETWORK STANDARDS                                                                        
                                                                                                                                
4:16:04 PM                                                                                                                    
CHAIR   DUNBAR  reconvened   the   meeting   and  announced   the                                                               
consideration  of  SENATE  BILL  NO.  122  "An  Act  relating  to                                                               
insurance; establishing  standards for health  insurance provider                                                               
networks; and providing for an effective date."                                                                                 
                                                                                                                                
4:16:27 PM                                                                                                                    
CHAIR DUNBAR opened public testimony on SB 122.                                                                                 
                                                                                                                                
4:16:55 PM                                                                                                                    
GARY  STRANNIGAN, Vice  President, Congressional  and Legislative                                                               
Affairs,  Premera  Blue Cross  Blue  Shield  of Alaska,  Everett,                                                               
Washington,  testified in  opposition to  SB 122  and paraphrased                                                               
the following:                                                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     At  Premera,  we  feel  that  efforts  to  promote  the                                                                    
     affordability of our products  are key to continuing to                                                                    
     be  able to  provide care  for our  customers. This  is                                                                    
     because  affordability has  become  the  highest bar  a                                                                    
     person must  clear, in order  to gain access  to health                                                                    
     insurance and health care services.                                                                                        
                                                                                                                                
     SB 122 would put in  place the most restrictive network                                                                    
     adequacy system of  any state in the  United States. If                                                                    
     (a big  if) a  carrier could  actually comply  with the                                                                    
     measure's provisions,  it would certainly be  at a very                                                                    
     high cost.                                                                                                                 
                                                                                                                                
     Invited testimony  from Mr.  Jeff Davis  indicated that                                                                    
     this bill  is intended to  address a problem  that does                                                                    
     not yet  exist: narrow networks in  Alaska. Premera has                                                                    
     the broadest  network of any  carrier in the  state and                                                                    
     we  don't  foresee  a narrow  network  in  our  future.                                                                    
     Further, from  what we can tell,  our competitors don't                                                                    
     employ  narrow  networks  either.   This  bill  is  not                                                                    
     needed.                                                                                                                    
                                                                                                                                
4:17:59 PM                                                                                                                    
MR. STRANNIGAN continued with his testimony for SB 122:                                                                         
                                                                                                                                
     Mr. Davis  also suggested  to the committee  that there                                                                    
     are  no  network  adequacy  requirements  in  place  in                                                                    
     Alaska.  While it  is true  that  Alaska is  one of  18                                                                    
     mostly  rural  states  that  does  not  have  a  state-                                                                    
     specific set of requirements  for network adequacy, the                                                                    
     federal   government   does   have   network   adequacy                                                                    
     requirements  for Qualified  Health Plans  (QHPs) under                                                                    
     the Affordable  Care Act (ACA)    including  those that                                                                    
     serve   Alaskans.    Premera   complies    with   these                                                                    
     requirements for  our individual  health plans,  and by                                                                    
     extension, the rest  of our lines of business  do so as                                                                    
     well.  This   is  because   we  essentially   have  one                                                                    
     (compliant) network for all our products                                                                                   
                                                                                                                                
     To   touch  on   a  few   of  the   bill's  problematic                                                                    
     provisions:                                                                                                                
     -In  the case  of both  the 100  percent threshold  for                                                                    
     facilities, and the 95  percent threshold for specialty                                                                    
     providers,  virtually  every  provider  will  have  the                                                                    
     opportunity  to   hold  a  health  plan   hostage.  The                                                                    
     provider will  be able demand whatever  rate they want.                                                                    
     If  the  health  plan  would like  to  do  business  in                                                                    
     Alaska,  the health  plan  must  agree. This  provision                                                                    
     will have an  upward spiraling effect on  costs, if not                                                                    
     completely  crash the  health  insurance marketplace                                                                       
     all it  would take to  disqualify a carrier is  for one                                                                    
     provider to  refuse to contract  and that  carrier does                                                                    
     not comply. This is to  say nothing of the small subset                                                                    
     of  providers  to  do   not,  under  any  circumstances                                                                    
     contract  with  insurance  companies. Would  they  also                                                                    
     carry  a veto  over  health carriers?  Under the  bill,                                                                    
     carriers  would need  to contract  with  95 percent  of                                                                    
     specialty  and subspecialty  providers in  an area.  In                                                                    
     many   instances,   the   number   of   specialty   and                                                                    
     subspecialty  providers in  an area  can be  counted on                                                                    
     one  hand.  Mathematically,  a carrier  would  need  to                                                                    
     contract with  five out of  five providers and  if just                                                                    
     one  declines,  that  carrier  does  not  meet  the  95                                                                    
     percent  threshold  and   is  disqualified  from  doing                                                                    
     business in Alaska.                                                                                                        
     -There is  no exception  in the  bill for  poor quality                                                                    
     providers/facilities  or   those  providers   who  have                                                                    
     previously been excluded from a  carrier network due to                                                                    
     fraud concerns. By requiring  carriers to contract with                                                                    
     them,  it  will  subject members  to  potentially  low-                                                                    
     quality   care    and/or   fraudulent    behavior.   In                                                                    
     conclusion,  we  urge the  legislature  to  set SB  122                                                                    
     aside  and instead  focus on  the  countless other,  in                                                                    
     many  cases,   serious,  pressing   problems  currently                                                                    
     confronting the  Alaska legislature. There is  no sense                                                                    
     investing   effort  in   a  problem   that  is   purely                                                                    
     theoretical; especially  when the proposed  solution is                                                                    
     so costly.                                                                                                                 
                                                                                                                                
4:19:29 PM                                                                                                                    
SENATOR  HUGHES noted  that the  proposal may  impose one  of the                                                               
strictest  network adequacy  standards  in the  nation and  asked                                                               
what the federal requirements are for the Affordable Care Act.                                                                  
                                                                                                                                
4:19:51 PM                                                                                                                    
MR. STRANNIGAN said he is  hearing two questions. One question is                                                               
about  the network  adequacy  requirements  under the  Affordable                                                               
Care   Act  and   the  second   question  is   about  the   state                                                               
requirements.                                                                                                                   
                                                                                                                                
4:20:14 PM                                                                                                                    
SENATOR  HUGHES replied  that  she primarily  wants  to know  the                                                               
federal requirements and  how Alaska compares to  other states if                                                               
SB 122 is passed.                                                                                                               
                                                                                                                                
4:20:34 PM                                                                                                                    
MR.  STRANNIGAN  said  the proposal  would  set  uniquely  strict                                                               
network adequacy  standards, including a 100  percent requirement                                                               
for  facilities and  a 95  percent  requirement for  specialties,                                                               
effectively  forcing   insurers  to  contract  with   nearly  all                                                               
providers.  He   noted  that  no   other  state   has  comparable                                                               
requirements  and offered  to provide  information on  Affordable                                                               
Care Act standards if requested.                                                                                                
                                                                                                                                
4:21:56 PM                                                                                                                    
SENATOR HUGHES requested the additional information.                                                                            
                                                                                                                                
4:22:00 PM                                                                                                                    
SENATOR  CLAMAN said  the bill  is  often described  as a  narrow                                                               
network  bill. He  asked  whether there  are  states with  narrow                                                               
network laws  that are acceptable from  an insurance perspective,                                                               
or as  a representative of  Premera are all narrow  network bills                                                               
unacceptable.                                                                                                                   
                                                                                                                                
4:22:28 PM                                                                                                                    
MR. STRANNIGAN  replied that Premera  operates in  Washington and                                                               
Alaska,  with  Washington's  insurance department  proud  of  its                                                               
robust network adequacy laws. He  suggested there is currently no                                                               
need for  narrow network laws  in Alaska  if there are  no narrow                                                               
networks. He offered  to research narrow network  laws to provide                                                               
a clearer overview of available options.                                                                                        
                                                                                                                                
4:23:33 PM                                                                                                                    
SENATOR CLAMAN asked if he could  provide an overview in a couple                                                               
of days.                                                                                                                        
                                                                                                                                
MR. STRANNIGAN replied  that he could deliver some data  in a few                                                               
days.                                                                                                                           
                                                                                                                                
4:24:10 PM                                                                                                                    
CHAIR DUNBAR closed public testimony on SB 122.                                                                                 
                                                                                                                                
4:24:23 PM                                                                                                                    
CHAIR DUNBAR held SB 122 in committee.                                                                                          
                                                                                                                                
                  SJR 15-OPPOSE MEDICAID CUTS                                                                               
                                                                                                                                
4:24:36 PM                                                                                                                    
CHAIR  DUNBAR   announced  the  consideration  of   SENATE  JOINT                                                               
RESOLUTION   NO.  15   Calling  on   the  state's   congressional                                                               
delegation to oppose cuts to federal spending on Medicaid.                                                                      
                                                                                                                                
4:24:44 PM                                                                                                                    
CHAIR DUNBAR stated he had  hoped to adopt a committee substitute                                                               
for  SJR 15,  but  didn't receive  a draft  in  time for  today's                                                               
meeting.                                                                                                                        
                                                                                                                                
4:24:54 PM                                                                                                                    
CHAIR  DUNBAR  stated  that  he  has  conceptual  amendments  for                                                               
discussion but  does not plan  to introduce them  now, preferring                                                               
to  include them  in a  committee  substitute (CS).  He hoped  to                                                               
discuss and  answer questions before  being absent  next Tuesday,                                                               
so the CS can be smoothly adopted in his absence.                                                                               
                                                                                                                                
4:25:40 PM                                                                                                                    
CHAIR DUNBAR invited Senator Tobin to speak to Amendment 1.                                                                     
                                                                                                                                
4:25:48 PM                                                                                                                    
SENATOR TOBIN spoke  to her Amendment 1, noting  that the medical                                                               
needs  and  care  of  some Alaskans  are  100  percent  federally                                                               
reimbursed. She  opined that  if there  were changes  to Medicaid                                                               
they may not  have access to preventive or acute  services at any                                                               
time.  She  said  Amendment  1  highlights  the  full  impact  to                                                               
Alaskans if changes to Medicaid through SJR 15 were fulfilled.                                                                  
                                                                                                                                
4:26:48 PM                                                                                                                    
CHAIR DUNBAR speaking to Amendment 2:                                                                                           
                                                                                                                                
     Goes to  a comment that  Senator Hughes made  about 880                                                                    
     billion versus  2 trillion. There  are some  folks that                                                                    
     think that  there are ways  to measure, it in  which it                                                                    
     is 2 trillion,  but I went with your  number of Senator                                                                    
     Hughes. I  think 880  billion has  become sort  of what                                                                    
     people are talking about and  understand it to be. That                                                                    
     is the amount  that they expect to have  to find within                                                                    
     the budget  reconciliation process. I also  deleted "to                                                                    
     fund tax breaks for the  wealthy." I do think that that                                                                    
     is  a factual  statement, but  I don't  want us  to get                                                                    
     into  the controversies  around tax  policy. Ultimately                                                                    
     this is  about Medicaid and its  importance to Alaska's                                                                    
     economy  and to  our  health. So,  I  am deleting  that                                                                    
     verbiage out of there.                                                                                                     
                                                                                                                                
4:27:36 PM                                                                                                                    
SENATOR HUGHES noted that a  testifier mentioned the $880 billion                                                               
figure  applies over  ten years,  and she  asked if  it would  be                                                               
appropriate to include that timeframe in the amendment.                                                                         
                                                                                                                                
4:27:53 PM                                                                                                                    
CHAIR DUNBAR  replied that  he would talk  offline and  talk with                                                               
legislative legal to get the CS in on time.                                                                                     
                                                                                                                                
4:28:17 PM                                                                                                                    
SENATOR HUGHES stressed the importance  of avoiding Medicaid cuts                                                               
for  vulnerable populations  while  considering restructuring  to                                                               
encourage able-bodied,  working-age adults  to move  to employer-                                                               
based  insurance, highlighting  that nearly  a third  of Alaskans                                                               
are on  Medicaid, which  poses a  significant budget  burden. She                                                               
asked if  the committee  is interested in  saying no  to Medicaid                                                               
cuts.                                                                                                                           
                                                                                                                                
4:30:11 PM                                                                                                                    
SENATOR TOBIN noted  that while about 30 percent  of Alaskans are                                                               
on  Medicaid, roughly  5  percent are  Alaska  Native with  fully                                                               
federally  funded  coverage,  and  815   percent  of  able-bodied                                                               
adults,  some  with  disabilities,   also  access  Medicaid.  She                                                               
acknowledged  the  complexity  of   these  distinctions  and  the                                                               
difficulty  of fully  capturing them  in a  resolution, providing                                                               
context rather than opposition.                                                                                                 
                                                                                                                                
4:31:31 PM                                                                                                                    
SENATOR  GIESSEL  referenced  the annual  Mesa  Medicaid  report,                                                               
noting a gap between those  eligible and those actually accessing                                                               
services. She asked what portion  of these are able-bodied adults                                                               
who might work but avoid  raises to maintain Medicaid coverage in                                                               
case of job-related injuries.                                                                                                   
                                                                                                                                
4:32:27 PM                                                                                                                    
CHAIR  DUNBAR acknowledged  concerns  about able-bodied  Medicaid                                                               
recipients  and work  requirements, noting  that such  issues are                                                               
complex and  not fully captured  in the resolution.  He supported                                                               
moving  forward  with  the  current  version,  anticipating  that                                                               
amendments addressing these concerns  could be debated later, but                                                               
he does not plan to introduce one.                                                                                              
                                                                                                                                
4:33:51 PM                                                                                                                    
CHAIR DUNBAR held SJR 15 in committee.                                                                                          
                                                                                                                                
4:34:18 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Dunbar adjourned  the Senate  Health  and Social  Services                                                               
Standing Committee meeting at 4:34 p.m.                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
SB 121 Support Emails Batch 2 3.25.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Support Batch 3 3.25.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB121 Opposition AK Chamber 3.20.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Opposition Olson 3.18.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Opposition NABIP AK 3.19.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Opposition Lamp 3.20.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Opposition Izer 3.20.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB 121 Comparison Then and Now.jmc.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
SB122 Health Insurance Networks Opposition Letter SHSS 3.25.25.pdf SHSS 3/27/2025 3:30:00 PM
SB 122
Alaska SB 122 Comment Letter Premera.pdf SHSS 3/27/2025 3:30:00 PM
SB 122
N.1.pdf SHSS 3/27/2025 3:30:00 PM
SB 121
N.2.pdf SHSS 3/27/2025 3:30:00 PM
SB 121