00                            SENATE BILL NO. 119                                                                         
01 "An Act relating to disclosure of health care services and price information; relating to                               
02 health care insurers; relating to availability of payment information and estimates of                                  
03 out-of-pocket expenses; relating to an incentive program for electing to receive health                                 
04 care services for less than the average price paid; relating to filing and reporting                                    
05 requirements; and providing for an effective date."                                                                     
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
08 to read:                                                                                                                
09       SHORT TITLE. This Act may be known as the Alaska Health Care Consumer's Right                                     
10 to Shop Act.                                                                                                            
11    * Sec. 2. AS 18.15.360(a) is amended to read:                                                                      
12            (a)  The department is authorized to collect, analyze, and maintain databases of                             
13       information related to                                                                                            

01                 (1)  risk factors identified for conditions of public health importance;                                
02                 (2)  morbidity and mortality rates for conditions of public health                                      
03       importance;                                                                                                       
04                 (3)  community indicators relevant to conditions of public health                                       
05       importance;                                                                                                       
06                 (4)  longitudinal data on traumatic or acquired brain injury from the                                   
07       registry established under AS 47.80.500(c)(1); [AND]                                                              
08                 (5)  health care services and price information collected under                                     
09       AS 18.23.400; and                                                                                             
10 (6)  any other data needed to accomplish or further the mission or goals                                            
11       of public health or provide essential public health services and functions.                                       
12    * Sec. 3. AS 18.23 is amended by adding new sections to read:                                                      
13              Article 4. Health Care Services and Price Information.                                                   
14 Sec. 18.23.400. Disclosure and reporting of health care services and price                                            
15 information. (a) A health care provider in the state and a health care facility in the                                
16 state shall annually compile a list, by procedure code, including a brief and easily                                    
17 understandable description, of the top 25 health care services from each of the six                                     
18 sections of  Category I, Current Procedural Terminology, adopted by the American                                        
19 Medical Association that a prudent person would consider of value in the management                                     
20 of their own affairs and the price for each service, including any discounts that may be                                
21       applicable.                                                                                                       
22 (b)  A health care provider and health care facility shall publish the lists                                            
23       compiled under (a) of this section by January 31 each year                                                        
24 (1)  by providing the list to the department for posting on the                                                         
25       department's public database under AS 18.15.360;                                                                  
26 (2)  by posting a copy of the list in a conspicuous public reception area                                               
27 at the health care provider's office or health care facility where the services are                                     
28       performed; and                                                                                                    
29 (3)  if the health care provider or health care facility has an Internet                                                
30       website, by posting the list on the website.                                                                      
31 (c)  A health care provider and health care facility may include a disclaimer in                                        

01 the publication under (b) of this section that explains that the price paid by the patient                              
02       may be higher or lower than the amount listed.                                                                    
03 (d)  The department shall compile and annually update the lists provided under                                          
04 (a) of this section by health care service and, where relevant, health care provider and                                
05 health care facility name and location, and post the information on the department's                                    
06 Internet website and enter the information in the database maintained under                                             
07       AS 18.15.360.                                                                                                     
08 (e)  If a health care provider or health care facility in the state performs fewer                                      
09 than 25 health care services in the state from each of the six sections of Category I,                                  
10 Current Procedural Terminology, adopted by the American Medical Association in the                                      
11 annual reporting period under this section, the provider or facility shall provide a list                               
12 of all of the health care services from each of the six sections of Category I, Current                                 
13       Procedural Terminology, performed by the provider or at the facility.                                             
14 (f)  A health care provider or health care facility that fails to comply with the                                       
15 requirements of this section is liable for a civil penalty. The department may impose a                                 
16 civil penalty of not more than $50 for each day after March 31 that a health care                                       
17 provider or health care facility fails to provide and post information as required under                                
18 (b) of this section. The total penalty may not exceed $2,500. A person penalized under                                  
19 this subsection may file an appeal with the superior court for judicial review of the                                   
20       penalty under AS 44.62.560.                                                                                       
21 Sec. 18.23.405. Cost estimates for health care services. (a) Upon written                                             
22 request of a patient or the patient's authorized agent, a health care provider shall                                    
23 provide the patient or agent with a comprehensive, good faith estimate of the total                                     
24 charges for a health care service that the patient is receiving or has been recommended                                 
25 to receive if the total charges exceed $250. The health care provider shall provide the                                 
26 estimate of total charges within five business days after receiving the written request                                 
27 and any additional information needed to provide a comprehensive estimate of total                                      
28       charges.                                                                                                          
29            (b)  The estimate of total charges must indicate,                                                            
30 (1)  if known, the network status of the health care provider under an                                                  
31       insured patient's health care insurance plan;                                                                     

01                 (2)  if known, whether the health care services of another health care                                  
02       provider are necessary or recommended to complete the health care service being                                   
03       recommended or provided; and                                                                                      
04 (3)  if health care services from another provider are necessary or                                                     
05 recommended for the health care service being recommended or provided, that the                                         
06 patient or the patient's authorized agent must make a separate request to the other                                     
07       health care provider for                                                                                          
08                      (A)  an estimate of the charges for health care services to be                                     
09            provided by the other health care provider; and                                                              
10 (B)  information on the network status of the other health care                                                         
11            provider under an insured patient's health care insurance plan.                                              
12            (c)  If the patient is uninsured, the health care provider shall                                             
13 (1)  include in the estimate of total charges any financial assistance                                                  
14       available to the patient from the health care provider; and                                                       
15 (2)  direct the patient or the patient's authorized agent to Internet                                                   
16 websites, if available, that provide information about standard charges for the type of                                 
17       health care provider that provides the health care service.                                                       
18 (d)  The patient or the patient's authorized agent may request that the                                                 
19       information required under this section be provided in writing or electronically.                                 
20            (e)  The estimate of total charges                                                                           
21 (1)  must represent a good faith effort to provide accurate information                                                 
22       to the patient or the patient's authorized agent;                                                                 
23                 (2)  is not a binding contract between the parties; and                                                 
24 (3)  is not a guarantee that the estimate of total charges will be the                                                  
25       amount actually charged or will account for unforeseen conditions.                                                
26 (f)  This section does not apply to health care services provided for the                                               
27 treatment of an emergency medical condition or for the treatment of an emergency                                        
28       medical condition that results in hospitalization.                                                                
29            Sec. 18.23.420. Definitions. In AS 18.23.400 - 18.23.420,                                                  
30                 (1)  "department" means the Department of Health and Social Services;                                   
31 (2)  "emergency medical condition" has the meaning given in                                                             

01       AS 21.07.250;                                                                                                     
02 (3)  "health care facility" means a private, municipal, state, or federal                                               
03 hospital, psychiatric hospital, independent diagnostic testing facility, residential                                    
04 psychiatric treatment center as defined in AS 47.32.900, tuberculosis hospital, kidney                                  
05 disease treatment center (including freestanding hemodialysis units), the offices of                                    
06 private physicians or dentists whether in individual or group practice, an ambulatory                                   
07 surgical center as defined in AS 47.32.900, a free-standing birth center as defined in                                  
08 AS 47.32.900, and a rural health clinic as defined in AS 47.32.900; "health care                                        
09 facility" does not include an Alaska tribal health organization or another federally                                    
10       operated hospital or facility;                                                                                    
11 (4)  "health care insurance plan" has the meaning given in                                                              
12       AS 21.54.500;                                                                                                     
13 (5)  "health care provider" means an individual licensed, certified, or                                                 
14 otherwise authorized or permitted by law to provide health care services in the                                         
15       ordinary course of business or practice of a profession;                                                          
16 (6)  "health care service" means a service or procedure provided in                                                     
17 person or remotely by telehealth or other means by a health care provider or at a health                                
18 care facility for the purpose of or incidental to the care, prevention, or treatment of a                               
19       physical or mental illness or injury;                                                                             
20 (7)  "price" means the charges billed directly to a recipient for services                                              
21 rendered without complications or exceptional circumstances; "price" does not include                                   
22 a negotiated discount for in-network, out-of-network, or self-insured services rendered                                 
23       or the costs paid by a third party for those services;                                                            
24 (8)  "recipient" means an individual to whom health care services are                                                   
25       provided in the state by a health care provider or at a health care facility;                                     
26                 (9)  "telehealth" has the meaning given in AS 47.05.270(e);                                             
27 (10)  "third party" means a public or private entity, association, or                                                   
28 organization that provides, by contract, agreement, or other arrangement, insurance,                                    
29 payment, price discount, or other benefit for all or a portion of the cost of health care                               
30 services provided to a recipient; "third party" does not include a member of the                                        
31       recipient's immediate family.                                                                                     

01    * Sec. 4. AS 21.06.110 is amended to read:                                                                         
02 Sec. 21.06.110. Director's annual report. As early in each calendar year as is                                        
03 reasonably possible, the director shall prepare and deliver an annual report to the                                     
04 commissioner, who shall notify the legislature that the report is available, showing,                                   
05       with respect to the preceding calendar year,                                                                      
06                 (1)  a list of the authorized insurers transacting insurance in this state,                             
07       with a summary of their financial statement as the director considers appropriate;                                
08                 (2)  the name of each insurer whose certificate of authority was                                        
09       surrendered, suspended, or revoked during the year and the cause of surrender,                                    
10       suspension, or revocation;                                                                                        
11 (3)  the name of each insurer authorized to do business in this state                                                   
12 against which delinquency or similar proceedings were instituted and, if against an                                     
13 insurer domiciled in this state, a concise statement of the facts with respect to each                                  
14       proceeding and its present status;                                                                                
15 (4)  a statement in regard to examination of rating organizations,                                                      
16 advisory organizations, joint underwriters, and joint reinsurers as required by                                         
17       AS 21.39.120;                                                                                                     
18                 (5)  the receipts [RECEIPT] and expenses of the division for the year;                              
19 (6)  recommendations of the director as to amendments or                                                                
20       supplementation of laws affecting insurance or the office of director;                                            
21 (7)  statistical information regarding health insurance, including the                                                  
22 number of individual and group policies sold or terminated in the state; this paragraph                                 
23       does not authorize the director to require an insurer to release proprietary information;                         
24 (8)  the annual percentage of health claims paid in the state that meets                                                
25       the requirements of AS 21.36.495(a) and (d);                                                                      
26 (9)  the total amount of contributions reported and the total amount of                                                 
27       credit claimed under AS 21.96.070 and 21.96.075;                                                                  
28 (10)  the total number of public comments received and the director's                                                   
29 efforts, to the extent allowable by law, to improve or maintain public access to                                        
30 information on individual health insurance rate filings before they become effective;                                   
31       [AND]                                                                                                             

01                 (11)  the most recent incentive program report compiled under                                       
02       AS 21.96.235; and                                                                                             
03                 (12)  other pertinent information and matters the director considers                                
04       proper.                                                                                                           
05    * Sec. 5. AS 21.96 is amended by adding new sections to read:                                                      
06 Sec. 21.96.200. Access to payment information. A health care insurer shall                                            
07 establish an interactive mechanism for use by a covered person on the publicly                                          
08 accessible Internet website of the health care insurer that allows a covered person to                                  
09 request and obtain from the health care insurer, or a designated third party,                                           
10 information on the payments made by the health care insurer to network health care                                      
11 providers for health care services. The interactive mechanism must allow a covered                                      
12 person seeking information about the cost of a particular health care service to                                        
13 compare prices among network health care providers for the incentive program under                                      
14       AS 21.96.210.                                                                                                     
15 Sec. 21.96.205. Estimate of out-of-pocket expenses. (a) Upon request of a                                             
16 covered person, within five working days, a health care insurer shall disclose a good                                   
17 faith estimate of the amount of out-of-pocket expenses that the covered person will be                                  
18 responsible to pay for a nonemergency health care service that is a medically                                           
19 necessary benefit covered by the health care insurance plan of the covered person,                                      
20 including any copayment, coinsurance, or other out-of-pocket amount, based on the                                       
21       information available to the health care insurer at the time of the request.                                      
22 (b)  Nothing in this section prohibits a health care insurer from imposing the                                          
23 cost-sharing requirements disclosed under the health care insurance plan of the                                         
24 covered person for unforeseen health care services or additional costs that arise out of                                
25 the nonemergency health care service or services that were not included in the                                          
26       estimate provided under (a) of this section.                                                                      
27 (c)  The health care insurer shall disclose to the covered person that an estimate                                      
28 provided under (a) of this section is an estimated cost and that the actual amount that                                 
29 the covered person will be responsible to pay may vary because of unforeseen health                                     
30 care services or additional costs that arise out of the nonemergency health care service                                
31       or services.                                                                                                      

01 Sec. 21.96.210. Incentive program. (a) A health care insurer shall develop                                            
02 and implement a program that provides an incentive for a covered person enrolled in a                                   
03 health care insurance plan to elect to receive a health care service that is covered under                              
04 the health care insurance plan from a health care provider that charges less than the                                   
05 average price paid by the health care insurer for that health care service. At a                                        
06 minimum, a health care insurer shall include the following categories of health care                                    
07 services, and any other categories adopted by the director by regulation, in the health                                 
08       care insurer's incentive program:                                                                                 
09                 (1)  physical and occupational therapy services;                                                        
10                 (2)  obstetrical and gynecological services;                                                            
11                 (3)  radiology and imaging services;                                                                    
12                 (4)  laboratory services;                                                                               
13 (5)  infusion therapy;                                                                                                  
14 (6)  dental services;                                                                                                   
15 (7)  vision services;                                                                                                   
16                 (8)  behavioral health services;                                                                        
17                 (9)  inpatient or outpatient surgical procedures; and                                                   
18                 (10)  outpatient nonsurgical diagnostic tests or procedures.                                            
19 (b)  A health care insurer shall provide an incentive as a cash payment to the                                          
20 covered person as provided under this subsection. An incentive may be calculated as a                                   
21 percentage of the difference in price, as a flat dollar amount, or by some other                                        
22 reasonable methodology adopted by regulation. If a covered person receives coverage                                     
23 under a group health insurance policy offered by an employer, an incentive must                                         
24 provide a covered person with at least 33.4 percent of the savings for the health care                                  
25 insurer resulting from the covered person's election to receive a health care service                                   
26 from a health care provider that charges less than the average price paid by the health                                 
27 care insurer for that health care service, and the employer shall receive at least 33.3                                 
28 percent of the savings resulting from the covered person's election. If a covered person                                
29 receives coverage under a health insurance policy offered in the individual market, an                                  
30 incentive must provide a covered person with at least 50 percent of the savings for the                                 
31       health care insurer resulting from the covered person's election.                                                 

01 (c)  A health care insurer shall base the average price for a health care service                                       
02 under this section on the average amount paid to in-network health care providers for                                   
03       the health care service within a reasonable period of time, but not to exceed one year.                           
04 Sec. 21.96.215. Availability of program; notice. A health care insurer shall                                          
05 make an incentive program under AS 21.96.210 available as a component of all health                                     
06 care insurance plans offered in this state. Annually, at enrollment or renewal, a health                                
07 care insurer shall provide notice about the availability of the program to any person                                   
08       covered under a health care insurance plan eligible for the program.                                              
09 Sec. 21.96.220. Filing requirements. Before offering an incentive program                                             
10 under AS 21.96.210, a health care insurer shall file a description of the program with                                  
11 the director in the manner determined by the director. The director may review the                                      
12 filing to determine whether the incentive program complies with the requirements of                                     
13       AS 21.96.200 - 21.96.300.                                                                                         
14 Sec. 21.96.225. Out-of-network health care providers. If a covered person                                             
15 participates in an incentive program under AS 21.96.210 and elects to receive a health                                  
16 care service listed under AS 21.96.210(a) from an out-of-network health care provider                                   
17 that results in a savings for the health care insurer, the health care insurer shall apply                              
18 the amount paid for the health care service toward the cost sharing owed by the                                         
19 covered person as specified in the applicable health care insurance plan as if the health                               
20       care services were provided by an in-network health care provider.                                                
21 Sec. 21.96.230. Classification as administrative expense. An incentive                                                
22 program payment made under AS 21.96.210 is not an administrative expense of the                                         
23       health care insurer for rate development or rate filing purposes.                                                 
24 Sec. 21.96.235. Reporting requirements. (a) A health care insurer shall                                               
25 annually file a report with the director relating to an incentive program under                                         
26       AS 21.96.210 for the most recent calendar year that includes                                                      
27                 (1)  the total number of incentive program payments;                                                    
28 (2)  information on the use of the incentive program by category of                                                     
29       service;                                                                                                          
30                 (3)  the total amount of incentive program payments;                                                    
31 (4)  the average amount of each incentive program payment for each                                                      

01       category of service;                                                                                              
02                 (5)  the total savings achieved below the average price of the health                                   
03       care service in each category of service; and                                                                     
04                 (6)  the total number and percentage of covered persons who                                             
05       participated in the incentive program.                                                                            
06 (b)  Annually, by April 1, beginning April 1, 2019, the director shall submit an                                        
07 aggregate report for all health care insurers with the information required under (a) of                                
08 this section to the chairs of the committee in each house of the legislature with                                       
09       jurisdiction over labor and commerce.                                                                             
10            Sec. 21.96.300. Definitions. In AS 21.96.200 - 21.96.300,                                                  
11 (1)  "emergency medical condition" has the meaning given in                                                             
12       AS 21.07.250;                                                                                                     
13 (2)  "health care insurance plan" has the meaning given in                                                              
14       AS 21.54.500;                                                                                                     
15                 (3)  "health care insurer" has the meaning given in AS 21.54.500;                                       
16                 (4)  "health care provider" has the meaning given in AS 18.23.420;                                      
17                 (5)  "health care service" has the meaning given in AS 18.23.420;                                       
18 (6)  "nonemergency" does not include treatment of an emergency                                                          
19       medical condition.                                                                                                
20    * Sec. 6. AS 29.10.200 is amended by adding a new paragraph to read:                                               
21 (66)  AS 29.35.142 (disclosure and reporting of health care services and                                                
22       price information).                                                                                               
23    * Sec. 7. AS 29.35 is amended by adding a new section to read:                                                     
24 Sec. 29.35.142. Regulation of disclosure and reporting of health care                                                 
25 services and price information. (a) The authority to regulate the disclosure or                                       
26 reporting of price information for health care services by health care providers, health                                
27 care facilities, or health care insurers is reserved to the state, and, except as                                       
28 specifically provided by statute, a municipality may not enact or enforce an ordinance                                  
29 regulating the disclosure or reporting of price information for health care services by                                 
30       health care providers, health care facilities, or health care insurers.                                           
31            (b)  This section applies to home rule and general law municipalities.                                       

01            (c)  In this section,                                                                                        
02                 (1)  "health care facility" has the meaning given in AS 18.23.420;                                      
03                 (2)  "health care insurer" has the meaning given in AS 21.54.500;                                       
04                 (3)  "health care provider" has the meaning given in AS 18.23.420;                                      
05                 (4)  "health care service" has the meaning given in AS 18.23.420.                                       
06    * Sec. 8. AS 39.30.090(a) is amended to read:                                                                      
07 (a)  The Department of Administration may obtain a policy or policies of group                                          
08 insurance covering state employees, persons entitled to coverage under AS 14.25.168,                                    
09 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,                                               
10 employees of other participating governmental units, or persons entitled to coverage                                    
11       under AS 23.15.136, subject to the following conditions:                                                          
12 (1)  a group insurance policy shall provide one or more of the following                                                
13 benefits: life insurance, accidental death and dismemberment insurance, weekly                                          
14 indemnity insurance, hospital expense insurance, surgical expense insurance, dental                                     
15       expense insurance, audiovisual insurance, or other medical care insurance;                                        
16 (2)  each eligible employee of the state, the spouse and the unmarried                                                  
17 children chiefly dependent on the eligible employee for support, and each eligible                                      
18 employee of another participating governmental unit shall be covered by the group                                       
19 policy, unless exempt under regulations adopted by the commissioner of                                                  
20       administration;                                                                                                   
21                 (3)  a governmental unit may participate under a group policy if                                        
22 (A)  its governing body adopts a resolution authorizing                                                                 
23            participation and payment of required premiums;                                                              
24 (B)  a certified copy of the resolution is filed with the                                                               
25            Department of Administration; and                                                                            
26 (C)  the commissioner of administration approves the                                                                    
27            participation in writing;                                                                                    
28 (4)  in procuring a policy of group health or group life insurance as                                                   
29 provided under this section or excess loss insurance as provided in AS 39.30.091, the                                   
30 Department of Administration shall comply with the dual choice requirements of                                          
31 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to                                       

01 transact business in the state under AS 21.09, a hospital or medical service corporation                                
02 authorized to transact business in this state under AS 21.87, or a health maintenance                                   
03 organization authorized to operate in this state under AS 21.86; an excess loss                                         
04 insurance policy may be obtained from a life or health insurer authorized to transact                                   
05 business in this state under AS 21.09 or from a hospital or medical service corporation                                 
06       authorized to transact business in this state under AS 21.87;                                                     
07 (5)  the Department of Administration shall make available bid                                                          
08 specifications for desired insurance benefits or for administration of benefit claims and                               
09 payments to (A) all insurance carriers authorized to transact business in this state                                    
10 under AS 21.09 and all hospital or medical service corporations authorized to transact                                  
11 business under AS 21.87 who are qualified to provide the desired benefits; and (B)                                      
12 insurance carriers authorized to transact business in this state under AS 21.09, hospital                               
13 or medical service corporations authorized to transact business under AS 21.87, and                                     
14 third-party administrators licensed to transact business in this state and qualified to                                 
15 provide administrative services; the specifications shall be made available at least once                               
16 every five years; the lowest responsible bid submitted by an insurance carrier, hospital                                
17 or medical service corporation, or third-party administrator with adequate servicing                                    
18 facilities shall govern selection of a carrier, hospital or medical service corporation, or                             
19 third-party administrator under this section or the selection of an insurance carrier or a                              
20 hospital or medical service corporation to provide excess loss insurance as provided in                                 
21       AS 39.30.091;                                                                                                     
22 (6)  if the aggregate of dividends payable under the group insurance                                                    
23 policy exceeds the governmental unit's share of the premium, the excess shall be                                        
24       applied by the governmental unit for the sole benefit of the employees;                                           
25 (7)  a person receiving benefits under AS 14.25.110, AS 22.25,                                                          
26 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in                                       
27 effect under this section at the time of termination of employment with the state or                                    
28       participating governmental unit;                                                                                  
29 (8)  a person electing to have insurance under (7) of this subsection                                                   
30       shall pay the cost of this insurance;                                                                             
31 (9)  for each permanent part-time employee electing coverage under                                                      

01 this section, the state shall contribute one-half the state contribution rate for permanent                             
02 full-time state employees, and the permanent part-time employee shall contribute the                                    
03       other one-half;                                                                                                   
04 (10)  a person receiving benefits under AS 14.25, AS 22.25, AS 39.35,                                                   
05 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person                                    
06 and eligible dependents under this section; the level of coverage for persons over 65                                   
07 shall be the same as that available before reaching age 65 except that the benefits                                     
08 payable shall be supplemental to any benefits provided under the federal old age,                                       
09 survivors, and disability insurance program; a person electing to have insurance under                                  
10 this paragraph shall pay the cost of the insurance; the commissioner of administration                                  
11       shall adopt regulations implementing this paragraph;                                                              
12 (11)  a person receiving benefits under AS 14.25, AS 22.25, AS 39.35,                                                   
13 or former AS 39.37 may obtain long-term care insurance for that person and eligible                                     
14 dependents under this section; a person who elects insurance under this paragraph                                       
15 shall pay the cost of the insurance premium; the commissioner of administration shall                                   
16       adopt regulations to implement this paragraph;                                                                    
17 (12)  each licensee holding a current operating agreement for a vending                                                 
18 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that                                       
19       applies to governmental units other than the state;                                                           
20 (13)  a group health insurance policy covering employees of a                                                       
21 participating governmental unit is subject to the requirements under                                                
22       AS 18.23.400, 18.23.405, and AS 21.96.200 - 21.96.300.                                                        
23    * Sec. 9. AS 39.30.091 is amended to read:                                                                         
24 Sec. 39.30.091. Authorization for self-insurance and excess loss insurance.                                           
25 Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration                                          
26 may provide, by means of self-insurance, one or more of the benefits listed in                                          
27 AS 39.30.090(a)(1) for state employees eligible for the benefits by law or under a                                      
28 collective bargaining agreement and for persons receiving benefits under AS 14.25,                                      
29 AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall                                      
30 procure any necessary excess loss insurance under AS 39.30.090. A group health                                      
31 insurance policy provided under this section covering employees of a                                                

01       participating governmental unit is subject to the requirements under                                          
02       AS 18.23.400, 18.23.405, and AS 21.96.200 - 21.96.300.                                                        
03    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
04 read:                                                                                                                   
05 TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                                     
06 Economic Development may adopt regulations necessary to implement this Act. The                                         
07 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the                               
08 effective date of the law implemented by the regulation.                                                                
09    * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c).                                  
10    * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect January 1, 2018.