04/09/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB4 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 4 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 9, 2025
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 4
"An Act relating to a health care insurance policy incentive
program; relating to health care services; and providing for an
effective date."
- MOVED CSSB 4(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 4
SHORT TITLE: HEALTH CARE PRICES AND INCENTIVE PROGRAMS
SPONSOR(s): SENATOR(s) HUGHES
01/10/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) L&C, HSS
03/21/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/21/25 (S) Heard & Held
03/21/25 (S) MINUTE(L&C)
04/02/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/02/25 (S) Heard & Held
04/02/25 (S) MINUTE(L&C)
04/09/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR SHELLEY HUGHES, District M
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 28.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the explanation of changes from
version N to version G of SB 4.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding committee
substitute(CS) for SB 4.
ACTION NARRATIVE
1:33:31 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:33 p.m. Present at the call to
order were Senators Merrick, Gray-Jackson, Dunbar, Yundt and
Chair Bjorkman.
SB 4-HEALTH CARE PRICES AND INCENTIVE PROGRAMS
1:34:25 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 4
"An Act relating to a health care insurance policy incentive
program; relating to health care services; and providing for an
effective date."
1:35:16 PM
SENATOR SHELLEY HUGHES, District M, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 28 presented a brief recap of the
legislation. She stated that the Alaska Healthcare Right to Shop
Act establishes an incentive program that rewards Alaskans for
choosing lower-cost healthcare providers. If a patient selects a
provider charging below the average cost for a procedure, the
patient receives a share of the resulting savings.
1:36:06 PM
SENATOR GRAY-JACKSON asked if the Right to Shop program is
voluntary.
1:36:14 PM
SENATOR HUGHES replied that the program would apply to roughly
115,000118,000 Alaskans through insurance providers, with
potential consideration for AlaskaCare in the future. While some
states make such programs optional, the recommendation is to
implement it directly.
1:36:48 PM
SENATOR GRAY-JACKSON asked for thoughts on making the program
voluntary.
1:36:58 PM
SENATOR HUGHES stated her belief that insurers could already
offer programs voluntarily. However, requiring it provides clear
benefits. This type of program would ease financial strain on
families and seniors, gradually improve affordability, and
promote free-market principles without causing major disruption
to the healthcare system.
1:37:55 PM
SENATOR YUNDT sought clarification that participation in the
program is 100 percent voluntary for individuals, but insurance
companies must offer consumers the opportunity to participate.
1:38:20 PM
SENATOR HUGHES replied that it is voluntary for individuals to
participate but requires insurance companies to offer the
opportunity.
1:38:51 PM
CHAIR BJORKMAN commented that SB 4 applies mainly to a small
portion of Alaskans in the private insurance market, while
federal law limits broader action. He said the state must act
carefully when considering public market reforms. He said the
long-term goal is to expand the risk pool to achieve greater
efficiency, economies of scale, and better outcomes in Alaska's
small healthcare market.
1:40:11 PM
SENATOR HUGHES stated that the smaller market is the small
business owners and individuals who purchase their own
insurance. SB 4 would give these individuals and smaller
businesses potential savings to offset costs like deductibles.
She said it might also encourage broader participation from
providers and insurers, including TriCare, helping to lower
healthcare prices and, in turn, reduce insurance premiums for
everyone. This support is vital since these individuals bear the
full cost of coverage.
1:42:07 PM
CHAIR BJORKMAN solicited a motion.
1:42:08 PM
SENATOR MERRICK moved to adopt the committee substitute (CS) for
SB 4, work order 34-LS0040\G, as the working document.
1:42:19 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:42:42 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, offered the following explanation
of changes for SB 4 from version N to version G:
• Page 1, lines 8-14, to page 2, lines 1-28 removes
Section 2.
Page 5, lines 26-29, removes Section 4(b) .
•Page 6, lines 11-13, removes Section 5.
•Page 6, lines 14-27, removes Section 6.
•Page 6, line 28 to page 7, line 7, removes
Section 7.
The remaining sections are renumbered accordingly.
1:44:28 PM
SENATOR DUNBAR asked Mr. Jackson to remind the committee of the
impact of removing Section 5 and Section 6, starting on page 6
from the legislation.
1:44:56 PM
MR. JACKSON replied that Section 5 and 6 were removed from SB 4
to eliminate the requirement for the Director of Insurance and
the Department of Retirement and Benefits to provide an annual
report.
1:45:31 PM
SENATOR DUNBAR asked if Mr. Jackson was confident there aren't
other substantive changes.
1:45:43 PM
MR. JACKSON replied yes, these were the only changes requested.
1:46:14 PM
CHAIR BJORKMAN removed his objection
1:46:19 PM
CHAIR BJORKMAN found no further objection and CSSB 4 was adopted
as the working document.
1:46:38 PM
SENATOR YUNDT clarified that the insurance company, employer,
and employee share the savings from the program. He said SB 4 is
seen as a "win-win," for everyone involved. He stated that
reducing insurer losses, easing pressure on rates, and
encouraging individuals to take more control by shopping for
cost-effective care, occurs without harm to any party involved.
1:48:05 PM
SENATOR DUNBAR asked Ms. Wing-Heier to comment on the committee
substitute (CS) and summarize the changes. He asked if she
thought there were any substantive or practical differences in
how SB 4 would affect individual Alaskans compared to the
original version.
1:48:34 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community, and Economic Development(DCCED), Juneau,
Alaska, answered questions regarding the committee substitute
for SB 4. She replied that the changes are not substantive and
mainly remove reporting requirements. The Division of
Insurance's annual report will provide sufficient data. She said
another change was deleting the reporting and study requirements
for the Department of Administration and how it would impact
AlaskaCare. As a result, SB 4 now applies only to Title 21 and
does not affect AlaskaCare or union plans, unlike the earlier
version.
1:49:38 PM
SENATOR DUNBAR asked if Tricare is affected by the CSSB 4.
MS. WING-HEIER answered that is correct.
SENATOR DUNBAR asked if The Right to Shop program extends to
providers outside of Alaska.
MS. WING-HEIER replied yes. She said the program allows patients
to recoup savings if they choose a lower-cost provider, even
out-of-state. However, travel and related expenses must be
considered, which might offset potential savings.
SENATOR DUNBAR asked whether travel costs are only calculated
when a patient seeks to bill insurance, and whether unexpected
care while traveling would be excluded from the cost
calculation.
MS. WING-HEIER replied yes. She said if patients are already at
the location or cover travel themselves only the procedure's
cost is considered.
1:51:43 PM
CHAIR BJORKMAN solicited the will of the committee.
1:51:45 PM
SENATOR MERRICK moved to report CSSB 4, work order 34-LS0040\G,
from committee with individual recommendations and attached
fiscal note(s).
1:52:01 PM
CHAIR BJORKMAN found no objection and CSSB 4(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
1:52:31 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 1:52 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB4 DOI Response to SL&C 04.03.25.pdf |
SL&C 4/9/2025 1:30:00 PM |
SB 4 |
| SB4 Draft Proposed CS ver G.pdf |
SL&C 4/9/2025 1:30:00 PM |
SB 4 |
| SB4 Summary of Changes, ver N to ver G.pdf |
SL&C 4/9/2025 1:30:00 PM |
SB 4 |