Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/02/2015 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Public Testimony --
+= SB 18 HEALTH CARE SHARE MINISTRY NOT INSURANCE TELECONFERENCED
Heard & Held
* SB 69 BD OF CHIROPRACTIC EXAMINERS; PRACTICE
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+ SB 44 RELIGIOUS UNION EXEMPTION: PERA & AKRR TELECONFERENCED
Moved SB 44 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 2, 2015                                                                                          
                           1:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 44                                                                                                              
"An Act relating to the religious exemptions in the Public                                                                      
Employment Relations Act and the Alaska Railroad Corporation                                                                    
Act."                                                                                                                           
                                                                                                                                
     - MOVED  SB 44 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 69                                                                                                              
"An Act relating to the Board of Chiropractic Examiners and the                                                                 
practice of chiropractic."                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 18                                                                                                              
"An Act exempting a health care sharing ministry from regulation                                                                
as an insurer."                                                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  18                                                                                                                  
SHORT TITLE: HEALTH CARE SHARE MINISTRY NOT INSURANCE                                                                           
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
01/21/15       (S)       PREFILE RELEASED 1/16/15                                                                               

01/21/15 (S) READ THE FIRST TIME - REFERRALS

01/21/15 (S) HSS, L&C 02/18/15 (S) HSS AT 1:30 PM BUTROVICH 205 02/18/15 (S) Heard & Held 02/18/15 (S) MINUTE(HSS) 03/11/15 (S) HSS AT 1:30 PM BUTROVICH 205 03/11/15 (S) Moved SB 18 Out of Committee 03/11/15 (S) MINUTE(HSS) 03/13/15 (S) HSS RPT 4DP 1NR 03/13/15 (S) DP: STEDMAN, GIESSEL, KELLY, STOLTZE 03/13/15 (S) NR: ELLIS 04/02/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) BILL: SB 69 SHORT TITLE: BD OF CHIROPRACTIC EXAMINERS; PRACTICE SPONSOR(s): SENATOR(s) STOLTZE 03/06/15 (S) READ THE FIRST TIME - REFERRALS 03/06/15 (S) L&C, FIN 04/02/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) BILL: SB 44 SHORT TITLE: RELIGIOUS UNION EXEMPTION: PERA & AKRR SPONSOR(s): SENATOR(s) GIESSEL 02/09/15 (S) READ THE FIRST TIME - REFERRALS 02/09/15 (S) L&C, JUD 03/10/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/10/15 (S) Heard & Held 03/10/15 (S) MINUTE(L&C) 04/02/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) WITNESS REGISTER FORREST WOLFE, Staff Senator Giessel Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions related to SB 44. SENATOR BILL STOLTZE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 69. BRANDON BREFCZYNSKI, Staff Senator Bill Stoltze Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided a sectional analysis for SB 69: FRED PARADY, Deputy Commissioner Department of Commerce, Community and Economic Development Juneau, Alaska POSITION STATEMENT: Explained the DCCED fiscal note for SB 69. SHARI RYAN, Executive Administrator Alaska Chiropractic Society Anchorage, Alaska POSITION STATEMENT: introduced herself. PATRICIA CONNERS ALLEN, D.C., Chair Board of Trustees University of Western States Portland, Oregon POSITION STATEMENT: Testified in support of SB 69. EDWARD J. BARRINGTON, D.C., Member Board of Chiropractic Examiners Anchorage, Alaska POSITION STATEMENT: Testified in support of SB 69. JAMES F. HESTON, Member Board of Chiropractic Examiners Homer, Alaska POSITION STATEMENT: Provided supporting testimony for SB 69. TODD CURZIE D.C., President Alaska Chiropractic Society Homer, Alaska POSITION STATEMENT: Testified in support of SB 69 on behalf of the ACS. JORDAN SHILLING, Staff Senator John Coghill Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented SB 18 on behalf of the sponsor. LORI WING-HEIER, Director Division of Insurance Department of Commerce, Community and Economic Development POSITION STATEMENT: Answered questions and explained the fiscal note for SB 18. JOEL NOBLE Alliance of Health Care Sharing Ministries and Samaritan Ministries, Anchorage, Alaska POSITION STATEMENT: Testified in support of SB 18. JENNIFER MEYHOFF Alaska Association of Health Underwriters Anchorage, Alaska POSITION STATEMENT: Testified in opposition to SB 18. ACTION NARRATIVE 1:30:19 PM CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing Committee meeting to order at 1:30 p.m. Present at the call to order were Senators Meyer, Ellis, Stevens, Giessel, and Chair Costello. SB 44-RELIGIOUS UNION EXEMPTION: PERA & AKRR 1:30:53 PM CHAIR COSTELLO announced the consideration of SB 44. "An Act relating to the religious exemptions in the Public Employment Relations Act and the Alaska Railroad Corporation Act." She noted that this was the second hearing and public testimony was closed. 1:31:50 PM FORREST WOLFE, Staff, Senator Cathy Giessel offered to answer questions related to SB 44. SENATOR STEVENS summarized his understanding that the bill allows an employee to select the charity to which his/her union dues equivalent will be contributed. MR. WOLFE agreed with the description. Currently the union collects the fees and in lieu of them going to the union they are contributed to a charitable organization of the union's choosing. The bill allows the employee to select where the funds are contributed. SENATOR STEVENS offered his understanding that under this exemption the employee would pay dues but not be a member of the bargaining unit. MR. WOLFE confirmed that was correct. 1:33:36 PM SENATOR COSTELLO found no further questions and asked the will of the committee. 1:33:46 PM SENATOR GIESSEL motioned to report SB 44, labeled 29-LS0061\W, from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO announced that without objection, SB 44 is reported from the Senate Labor and Commerce Standing Committee. 1:34:09 PM At ease SB 69-BD OF CHIROPRACTIC EXAMINERS; PRACTICE 1:35:57 PM CHAIR COSTELLO reconvened the meeting and announced the consideration of SB 69. "An Act relating to the Board of Chiropractic Examiners and the practice of chiropractic." She noted that this was the first hearing. 1:36:25 PM SENATOR BILL STOLTZE, sponsor of SB 69, introduced SB 69 speaking to the following sponsor statement: Healthcare and wellness have developed and progressed over the years, and patient preferences have changed along with them. In some cases, state laws have not kept up with this progress. Senate Bill 69 endeavors to update and clarify the statutes guiding chiropractic care in Alaska. SB 69 addresses training and utilization of chiropractic clinical assistants and interns; strengthens current law allowing chiropractors to perform school physicals; revises penalties for fraudulent practices; and updates definitions and modernizes terminology. SB 69 makes timely changes to our statutes guiding chiropractic care, resulting in chiropractic physicians being able to treat patients more efficiently and affordably. 1:41:57 PM SENATOR GIESSEL pointed out that in addition to physicians, nurse practitioners and physician assistants are qualified to perform pre-participation sports physicals. She questioned whether the education statutes needed to be updated to include chiropractors for performing those physicals. SENATOR STOLTZE admitted he didn't know. 1:43:36 PM CHAIR COSTELLO asked for a sectional analysis. 1:43:48 PM BRANDON BREFCZYNSKI, Staff, Senator Bill Stoltze, provided the following sectional analysis for SB 69: Section 1: Amends AS 08.20.055 by adding new language allowing the board to adopt regulations for chiropractic interns and preceptors, chiropractic clinical assistants, and performance of patient examinations. Section 2: Amends AS 08.20.100(b) clarifying how chiropractors can accept referrals, allowing chiropractors to perform school physicals, and allowing the employment of certified chiropractic clinical assistants, interns, and preceptors. Section 3: Adds new subsection to AS 08.20.100 exempting from this section chiropractic interns under certain conditions. Section 4: Amends AS 08.20.160 regarding the requirements for temporary permits. Section 5: Adds new section to AS 08.20 regarding chiropractic clinical assistants. Section 6: Amends 08.20.185 to modernize terminology. Section 7: Amends AS 08.20.200 by updating penalties for unlicensed practice. 1:46:31 PM SENATOR GIESSEL noted that her question was answered; AS 14.30.070 and 14.30.120 identify chiropractors as being able to perform physical examinations for students and education programs. CHAIR COSTELLO asked what chiropractors are not qualified to diagnose. SENATOR STOLTZE deferred the question. SENATOR COSTELLO asked if the bill provides further clarification that chiropractors are able to perform pre- participation physicals because that's not universally understood. SENATOR STOLTZE replied that's one reason, and he hopes to hear from one of the organizations. CHAIR COSTELLO requested a general statewide overview of which schools districts do and do not accept physicals from chiropractors. SENATOR STOLTZE agreed to provide the information. CHAIR COSTELLO asked Mr. Parady to review the fiscal note. 1:50:09 PM FRED PARADY, Deputy Commissioner, Department of Commerce, Community and Economic Development (DCCED), said SB 69 adds new licensure requirements for chiropractic assistants and will require additional administrative procedures to authorize chiropractic interns and preceptors. The fiscal note requests one part time licensing examiner for up to 14 hours per week to manage the estimated additional 200 plus chiropractic assistants and new intern preceptor approval processes. Professional licensing programs within the Division of Corporations, Business and Professional Licensing are entirely receipt supported so the fiscal note includes no undesignated general funds. He noted that the estimated cost of $750 per license likely will be lower based on FY2014 data that shows the 314 licensees paid $450 per license. Responding to an earlier question, he relayed that when he worked for the North Slope Borough School District, chiropractors performed pre-performance sports physicals. CHAIR COSTELLO asked if public health nurses are able to do sports physicals. SENATOR GIESSEL answered no. 1:53:10 PM CHAIR COSTELLO opened public testimony. 1:53:40 PM SHARI RYAN, Executive Administrator, Alaska Chiropractic Society, introduced herself. CHAIR COSTELLO asked about the difference in training for a medical doctor and a chiropractic doctor. MS. RYAN replied the educational requirements are comparable and she would follow up with specifics. SENATOR STEVENS asked about chiropractic clinical assistants and interns. MS. RYAN explained that a chiropractic clinical assistant does therapy and assists the chiropractor. Their training ranges from a two year program at the Palmer College of Chiropractic to online programs. A chiropractic intern has completed the required training and education and wants on-the-job training supervised by a preceptor. 1:56:08 PM CHAIR COSTELLO asked how many chiropractors are performing school physicals across the state. MS. RYAN offered to follow up with the information. CHAIR COSTELLO asked what a physical costs. MS. RYAN offered to follow up with the information. SENATOR MEYER asked if other states allow chiropractors to perform pre-participation sports physicals. MS. RYAN replied 35 states allow that. 1:57:47 PM PATRICIA CONNERS ALLEN, D.C., Chair, Board of Trustees, University of Western States, said she has practiced chiropractic medicine in Juneau since 1984 and previously served on the Board of Chiropractic Examiners. She explained that the bill allows the Board of Examiners to establish a process so that chiropractic interns can come to Alaska and be supervised by a preceptor doctor. 1:59:23 PM EDWARD J. BARRINGTON, D.C., representing himself, reported that he serves on the Board of Chiropractic Examiners and is chair of two committees in the Alaska Chiropractic Society. He explained that chiropractors practice in primary care and their training and diagnostic capabilities exceeds their practice statute. SB 69 will update the statutes to bring the law closer to the current training and education of chiropractic physicians. It also clarifies that chiropractic physicians are able to perform pre-participation sports physicals. The Alaska School Athletic Association (ASAA) has requested that the statute specifically include the pre-participation language. Chiropractors are currently authorized to perform physicals on children before they enter school and to keep them out of sports activities. It makes sense that they should also be authorized to perform pre- participation sports physicals. SB 69 will also help regulate the training and certification of chiropractic clinical assistants. Medical assistants are trained and often work in chiropractic offices but they are not under the auspices of the Board of Chiropractic Examiners. The bill also provides a name change for the peer review committee. 2:05:39 PM JAMES F. HESTON, member, Board of Chiropractic Examiners, described SB 69 as basic housekeeping that has been discussed for years. However, the $700 licensing fee described in the fiscal note misrepresents the intention, which was simply to get statutory authority to adopt regulations to regulate chiropractic assistants. The board would like to use a national certification program provided through an organization such as the Federation of Chiropractic Licensing Boards for training, testing, and two-year certification. He noted that the board had yet to vote to support this in a resolution but it was likely. CHAIR COSTELLO said she didn't intend to move the bill today so there was time for the resolution to pass before the committee took any action. 2:07:37 PM TODD CURZIE D.C., President, Alaska Chiropractic Society (ACS), stated that ACS coordinates continuing education and training for its members, many of whom are also active in other national organizations. ACS supports SB 69 as a responsible way to modernize chiropractic practices and protect the public. 2:09:06 PM CHAIR COSTELLO announced that she would keep public testimony open and hold SB 69 for further consideration. SB 18-HEALTH CARE SHARE MINISTRY NOT INSURANCE 2:09:43 PM CHAIR COSTELLO announced the consideration of SB 18. "An Act exempting a health care sharing ministry from regulation as an insurer." She noted this was the first hearing. 2:10:05 PM JORDAN SHILLING, Staff, Senator John Coghill stated that SB 18 has two main purposes: 1) to define health care sharing ministries and 2) to exempt them from insurance statutes because they are charitable organizations. Health care sharing is a payment arrangement for health care among persons of similar beliefs. It is administered by a nonprofit corporation. He noted the three largest sharing ministries are Christian Health Care Ministries, which was established in 1990, MediShare, established in 1993, and Samaritan Ministries, established in 1994. All three are biblically based and have membership requirements, such as living a Christian lifestyle and abstaining from tobacco. MR. SHILLING continued to explain that health care sharing ministries are different from regular insurance. Insurance is the transfer of risk from one entity to another in exchange for a guaranteed payment. The sharing ministries are 501(c)(3)s and no member is required by law to pay anyone's medical bills. They don't assume or transfer risk, pool money or use actuaries, and they don't purchase reinsurance policies. They are a group of people who come together voluntarily and agree to share costs. He stated that most states do not consider sharing ministries a form of insurance, including the Alaska Division of Insurance. There are about 3,400 Alaskans in sharing ministries. He noted 30 states have passed laws similar to SB 18. If the state were to regulate these sharing ministries as insurance companies, they would likely cease to exist. SENATOR MEYER asked Ms. Wing-Heier her opinion of the bill and what it attempts to do from an insurance perspective. 2:13:57 PM LORI WING-HEIER, Director, Division of Insurance, Department of Commerce, Community and Economic Development (DCCED), said the decision to join a health care sharing ministry is a personal commitment by an individual who trusts an organization to assume the responsibility to pay their medical bills. About 3,500 people participate in health care sharing ministries in Alaska. She explained that sharing ministries were specifically carved- out of the Affordable Care Act (ACA) as long as they were in existence in 1999. The bill codifies that this is ongoing in the state and that previous administrations have not taken exception to it. CHAIR COSTELLO asked for an explanation of the DCCED fiscal note. 2:16:30 PM MS. WING-HEIER said the Division of Insurance submitted a zero fiscal note because the bill maintains the status quo. It will not impact the current organization or work load of the division; health care ministries are not taxed currently and won't be in the future. SENATOR MEYER asked how a group qualifies for this exemption. MS. WING-HEIER replied the organization is set up as a 501(c)(3) nonprofit. She deferred further explanation to the sponsor. 2:18:11 PM JOEL NOBLE, Alliance of Health Care Sharing Ministries and Samaritan Ministries, explained that this is one of the accepted exemptions within the Affordable Care Act for not having individual insurance. Some of the qualifying standards include being in existence before December 31, 1999 and providing an annual audit upon request. SENATOR MEYER asked the significance of the 1999 date. MR. NOBLE surmised that it was to keep false actors from starting for the sake of getting out from under the individual mandate of the AFA. The date was set based on the starting dates of the three national ministries. About 50 Mennonite churches also qualify. SENATOR MEYER continued to question the date since the Affordable Care Act passed in 2010. MR. NOBLE said the date came from the U.S. Senate Committee on Finance and he wasn't sure what the thinking was. CHAIR COSTELLO asked how health care sharing ministries work. MR. NOBLE explained that they are member-to-member sharing entities based on the Amish model of community help, but applied to medical needs. He used his membership in Samaritan Ministries as an example. Each month the ministry newsletter includes the name and address of a member along with their medical need. Depending on the need, other members are assigned the same name. He and the other members each send a check to the injured party that is equivalent to the monthly cost of membership. Those checks total the amount of the bill and the injured party uses them to pay their medical costs. He also related that when his kids were born, he received a number of checks from ministry members and he cashed them to pay the hospital and doctors. 2:23:04 PM JENNIFER MEYHOFF, Alaska Association of Health Underwriters (AHU), said this professional organization represents over 100 licensed health insurance brokers, agents, consultants, and benefits specialists. They help individuals and employers purchase, administer and utilize their individual and group health insurance coverage. She said AHU is concerned with consumer protection and integrity of the health care and insurance markets in Alaska. As such, the lack of Division of Insurance oversight of the exemption under SB 18 is very troubling. AHU understands that this is not insurance, but it looks and feels like insurance to the 3,500 consumers in Alaska. She questioned what would happen in the event of a $1 million claim or a prescription drug need in excess of $30 thousand per month. The bill doesn't address this and other important consumer protections, which is why the Alaska Association of Health Underwriters opposes SB 18. 2:26:37 PM SENATOR COSTELLO closed public testimony and held SB 18 in committee for further consideration. 2:26:58 PM There being no further business to come before the committee, Chair Costello adjourned the Senate Labor and Commerce Standing Committee meeting at 2:26 p.m.

Document Name Date/Time Subjects
SB 69 - Version A.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Sponsor Statement.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Fiscal Note.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Hearing Request.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Sectional Analysis.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Support Letter Dr. Campbell.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Support Letter Logan University.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Support Letter Palmer College.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 69 - Support Letter Univ. Western States.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
SB 18 - Version H.PDF SL&C 4/2/2015 1:30:00 PM
SB 18
SB 18 - Sponsor Statement.pdf SL&C 4/2/2015 1:30:00 PM
SB 18
SB 18 - Fiscal Note.pdf SL&C 4/2/2015 1:30:00 PM
SB 18
SB 18 - HCSM Summary.pdf SL&C 4/2/2015 1:30:00 PM
SB 18
SB 18 - Catholic Anchor Article.pdf SL&C 4/2/2015 1:30:00 PM
SB 18
SB 18 - ACA Exemption.pdf SL&C 4/2/2015 1:30:00 PM
SB 18
AG Opinion - Occupational Licensing 1991.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
ASBCE Newsletter Excerpt - 2003.pdf SL&C 4/2/2015 1:30:00 PM
SB 69
2015.04.08 Alaska State Medical Association Letter.pdf SL&C 4/2/2015 1:30:00 PM
SB 69