00SENATE BILL NO. 167                                                                                                     
01 "An Act creating the Group Health Care Purchasing Task Force; and providing                                             
02 for an effective date."                                                                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  FINDINGS.  The legislature finds that                                                                  
05           (1)  many residents of the state are not covered by a group health insurance                                  
06 plan, do not qualify for public assistance programs, and cannot afford to pay individual health                         
07 insurance premiums; a vast majority of the uninsured are either employed or are dependents                              
08 of employed state residents;                                                                                            
09           (2)  many state residents do not receive necessary health care services due to                                
10 exclusions and limitations in their health insurance policies;                                                          
11           (3)  the health insurance coverage for many state residents does not cover costly                             
12 illnesses or injuries causing catastrophic financial consequences to them and their families;                           
13           (4)  it would enhance the ability of Alaska businesses to remain competitive if                               
14 they had better access to affordable group health care coverage for their employees;                                    

01   (5)  expansion of the existing state group health plan pool may result in                                             
02 substantial cost savings to the state;                                                                                  
03   (6)  securing joint direct health care purchasing agreements with health care                                         
04 providers could result in health care cost savings that could be passed on to pool participants.                        
05    * Sec. 2.  PURPOSE.  It is the purpose of this Act to study the possibility of                                       
06   (1)  providing comprehensive group health coverage to as many residents of the                                        
07 state as possible and to do so in a cost-effective manner by pooling such groups under a state                          
08 group health insurance plan or plans;                                                                                   
09   (2)  expanding the existing state group health plan pool in a manner that does                                        
10 not affect the existing collective bargaining process between the state and employee unions                             
11 and only after the state has determined that pooling groups will result in cost savings to the                          
12 state.                                                                                                                  
13    * Sec. 3.  GROUP HEALTH CARE PURCHASING TASK FORCE.  (a)  The Group                                                  
14 Health Care Purchasing Task Force is created in the Department of Administration.  The task                             
15 force is composed of three individuals consisting of the commissioner of administration, the                            
16 commissioner of health and social services, and the commissioner of commerce and economic                               
17 development.  As a nonvoting technical advisory committee to assist the task force, the                                 
18 governor shall also assign one representative each from the division of insurance, the division                         
19 of retirement and benefits, and the Office of the Governor; and the presiding officer of each                           
20 house of the legislature shall assign a member from that house.                                                         
21      (b)  The task force shall select a chair from among the members of the task force.                                 
22    * Sec. 4.  DUTIES OF THE TASK FORCE.  The task force shall                                                           
23           (1)  determine ways to establish group health plan pools, to provide coordinated                              
24 group health care purchasing to residents of the state, and to administer the pooled group                              
25 health coverage;                                                                                                        
26           (2)  consider adding certain groups to the state group health plan pool on an                                 
27 orderly and gradual basis; groups that shall be considered include                                                      
28          (A)  municipalities;                                                                                          
29          (B)  school districts;                                                                                        
30          (C)  employers;                                                                                               
31          (D)  the University of Alaska;                                                                                

01          (E)  persons who are committed to the custody of the state;                                                   
02   (F)  Medicaid enrollees; and                                                                                         
03          (G)  residents who are uninsured;                                                                             
04   (3)  discover any processes where the state can pass along the economies of                                           
05 scale it realizes as a large purchaser of health care services to the other participants of the                         
06 proposed pool.                                                                                                          
07    * Sec. 5.  REPORT.  The task force shall, before January 31, 1998, provide a final report                            
08 to the legislature and the governor that recommends a program for providing pooled state                                
09 group health plan purchasing to residents of the state, including recommendations for                                   
10 implementing the program in an expeditious, orderly manner.                                                             
11    * Sec. 6.  This Act is repealed January 31, 1998.                                                                    
12    * Sec. 7.  This Act takes effect immediately under AS 01.10.070(c).