Legislature(2025 - 2026)
2026-05-20 Senate Journal
Full Journal pdf2026-05-20 Senate Journal Page 2890 HB 14 HOUSE BILL NO. 14 "An Act repealing programs for catastrophic illness assistance and medical assistance for chronic and acute medical conditions" was read the third time. Senator Claman moved the bill be returned to second reading for all amendments offered today. Without objection, the bill was returned to second reading. Senator Claman offered Amendment No. 1 : 2026-05-20 Senate Journal Page 2891 Page 1, line 1, following "Act": Insert "relating to health care insurance; relating to insurance reimbursement for health care services provided through telehealth; relating to telehealth;" Page 1, line 2, following "conditions": Insert "; providing for an effective date by amending the effective date of secs. 9 and 10, ch. 38, SLA 2022; and providing for an effective date" Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 21.42.422(b) is amended by adding a new paragraph to read: (3) "health care provider" has the meaning given in AS 21.07.250. * Sec. 2. AS 21.42.422 is amended by adding a new subsection to read: (c) A health care insurer shall reimburse a health care provider for health care services, including behavioral health services, provided through telehealth on the same basis and at least at the same rate as for comparable health care services provided in person. A health care insurer may use a geographic pay differential to reimburse out-of-state health care providers. * Sec. 3. AS 29.10.200 is amended by adding a new paragraph to read: (68) AS 29.20.420 (health care insurance plans). * Sec. 4. AS 29.20 is amended by adding a new section to article 5 to read: Sec. 29.20.420. Health care insurance plans. (a) If a municipality offers a group health care insurance plan covering municipal employees, including by means of self- insurance, the municipal health care insurance plan is subject to the requirements of AS 21.42.422(c). (b) This section applies to home rule and general law municipalities. (c) In this section, "health care insurance plan" has the meaning given in AS 21.54.500." 2026-05-20 Senate Journal Page 2892 Page 1, line 4: Delete "Section 1" Insert "Sec. 5" Renumber the following bill sections accordingly. Page 1, following line 7: Insert new bill sections to read: "* Sec. 6. AS 39.30.090(a) is amended to read: (a) The Department of Administration may obtain a policy or policies of group insurance covering state employees, persons entitled to coverage under AS 14.25.168, 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, employees of other participating governmental units, or persons entitled to coverage under AS 23.15.136, subject to the following conditions: (1) a group insurance policy shall provide one or more of the following benefits: life insurance, accidental death and dismemberment insurance, weekly indemnity insurance, hospital expense insurance, surgical expense insurance, dental expense insurance, audiovisual insurance, or other medical care insurance; (2) each eligible employee of the state, the spouse and the unmarried children chiefly dependent on the eligible employee for support, and each eligible employee of another participating governmental unit shall be covered by the group policy, unless exempt under regulations adopted by the commissioner of administration; (3) a governmental unit may participate under a group policy if (A) its governing body adopts a resolution authorizing participation and payment of required premiums; (B) a certified copy of the resolution is filed with the Department of Administration; and (C) the commissioner of administration approves the participation in writing; (4) in procuring a policy of group health or 2026-05-20 Senate Journal Page 2893 group life insurance as provided under this section or excess loss insurance as provided in AS 39.30.091, the Department of Administration shall comply with the dual choice requirements of AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to transact business in the state under AS 21.09, a hospital or medical service corporation authorized to transact business in this state under AS 21.87, or a health maintenance organization authorized to operate in this state under AS 21.86; an excess loss insurance policy may be obtained from a life or health insurer authorized to transact business in this state under AS 21.09 or from a hospital or medical service corporation authorized to transact business in this state under AS 21.87; (5) the Department of Administration shall make available bid specifications for desired insurance benefits or for administration of benefit claims and payments to (A) all insurance carriers authorized to transact business in this state under AS 21.09 and all hospital or medical service corporations authorized to transact business under AS 21.87 who are qualified to provide the desired benefits; and (B) insurance carriers authorized to transact business in this state under AS 21.09, hospital or medical service corporations authorized to transact business under AS 21.87, and third- party administrators licensed to transact business in this state and qualified to provide administrative services; the specifications shall be made available at least once every five years; the lowest responsible bid submitted by an insurance carrier, hospital or medical service corporation, or third-party administrator with adequate servicing facilities shall govern selection of a carrier, hospital or medical service corporation, or third-party administrator under this section or the selection of an insurance carrier or a hospital or medical service corporation to provide excess loss insurance as provided in AS 39.30.091; (6) if the aggregate of dividends payable under the group insurance policy exceeds the governmental unit's share of the premium, the excess shall be applied by the governmental unit for the sole benefit of the employees; (7) a person receiving benefits under AS 14.25.110, AS 22.25, AS 39.35, or former AS 39.37 may 2026-05-20 Senate Journal Page 2894 continue the life insurance coverage that was in effect under this section at the time of termination of employment with the state or participating governmental unit; (8) a person electing to have insurance under (7) of this subsection shall pay the cost of this insurance; (9) for each permanent part-time employee electing coverage under this section, the state shall contribute one-half the state contribution rate for permanent full-time state employees, and the permanent part-time employee shall contribute the other one-half; (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for that person and eligible dependents under this section; the level of coverage for persons over 65 shall be the same as that available before reaching age 65 except that the benefits payable shall be supplemental to any benefits provided under the federal old age, survivors, and disability insurance program; a person electing to have insurance under this paragraph shall pay the cost of the insurance; the commissioner of administration shall adopt regulations implementing this paragraph; (11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person and eligible dependents under this section; a person who elects insurance under this paragraph shall pay the cost of the insurance premium; the commissioner of administration shall adopt regulations to implement this paragraph; (12) each licensee holding a current operating agreement for a vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that applies to governmental units other than the state; (13) a group health insurance policy covering employees of a participating governmental unit must meet the requirements of AS 21.42.422(c). * Sec. 7. AS 39.30.091 is amended to read: Sec. 39.30.091. Authorization for self-insurance and excess loss insurance. Notwithstanding AS 21.86.310 or 2026-05-20 Senate Journal Page 2895 AS 39.30.090, the Department of Administration may provide, by means of self-insurance, one or more of the benefits listed in AS 39.30.090(a)(1) for state employees eligible for the benefits by law or under a collective bargaining agreement and for persons receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall procure any necessary excess loss insurance under AS 39.30.090. A self-insured group health insurance plan covering active state employees provided under this section is subject to the requirements of AS 21.42.422(c)." Renumber the following bill sections accordingly. Page 5, line 8: Delete "sec. 4" Insert "sec. 10" Page 5, line 9, following "date": Insert "of sec. 10" Page 5, line 12: Delete "sec. 2" Insert "sec. 8" Page 5, line 16, following "date": Insert "of sec. 8" Page 5, line 17, following "date": Insert "of sec. 8" Page 5, line 18: Delete "sec. 3" Insert "sec. 9" Page 5, line 22, following "date": Insert "of sec. 9" Page 5, line 24, following "date": Insert "of sec. 9" 2026-05-20 Senate Journal Page 2896 Page 5, following line 24: Insert new bill sections to read: "* Sec. 19. Section 14, ch. 38, SLA 2022, is amended to read: Sec. 14. If secs. 9 and 10, ch. 38, SLA 2022, [OF THIS ACT] take effect under sec. 13 of this Act, they take effect June 30, 2040 [2030]. * Sec. 20. Sections 1 - 4, 6, 7, and 19 of this Act take effect January 1, 2027." Senator Claman moved for the adoption of Amendment No. 1. Senator Myers objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: HB 14 Second Reading Amendment No. 1? YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Bjorkman, Claman, Dunbar, Giessel, Gray-Jackson, Hoffman, Kawasaki, Kiehl, Merrick, Olson, Stedman, Stevens, Tobin, Wielechowski Nays: Cronk, Kaufman, Myers, Rauscher, Tilton, Yundt and so, Amendment No. 1 was adopted. Amendment No. 2 was not offered. Senator Giessel offered Amendment No. 3 : Page 1, line 1, following "Act": Insert "relating to workers' compensation coverage for disability from diseases for certain firefighters;" Page 1, line 2, following "conditions": Insert "; relating to occupational disability benefits and medical benefits available under the public employees' retirement system; and providing for an effective date" 2026-05-20 Senate Journal Page 2897 Page 1, following line 3: Insert a new bill section to read: "* Section 1. AS 23.30.121(b) is amended to read: (b) For a firefighter covered under AS 23.30.243, (1) there is a presumption that a claim for compensation for disability as a result of the following diseases is within the provisions of this chapter: (A) respiratory disease; (B) cardiovascular events that are experienced within 72 hours after exposure to smoke, fumes, or toxic substances; and (C) the following cancers: (i) primary brain cancer; (ii) malignant melanoma; (iii) leukemia; (iv) non-Hodgkin's lymphoma; (v) bladder cancer; (vi) ureter cancer; (vii) kidney cancer; (viii) prostate cancer; and (ix) breast cancer; (2) notwithstanding AS 23.30.100(a), following termination of service, the presumption established in (1) of this subsection extends to the firefighter for a period of six [THREE] calendar months for each year of requisite service but may not extend more than 120 [60] calendar months following the last date of employment; (3) the presumption established in (1) of this subsection applies only to an active or former firefighter who has a disease described in (1) of this subsection that develops or manifests itself after the firefighter has served in the state for at least six [SEVEN] years and who (A) underwent [WAS GIVEN] a qualifying medical examination (i) upon the first employment as [BECOMING] a firefighter that did not show evidence of the disease; (ii) at least once every two years [(B) WAS GIVEN AN ANNUAL MEDICAL EXAM] during [EACH OF] the first six [SEVEN] years of employment as a firefighter that did not show evidence of the disease; and (B) [(C)] with regard to diseases described in (1)(C) of this subsection, demonstrates that, while in the course of employment as a firefighter, the firefighter was exposed to a known carcinogen, as 2026-05-20 Senate Journal Page 2898 defined by the International Agency for Research on Cancer or the National Toxicology Program, and the carcinogen is associated with a disabling cancer." Page 1, line 4: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 1, following line 7: Insert new bill sections to read: "* Sec 3. AS 39.35.410(d) is amended to read: (d) The monthly amount of an occupational disability benefit is 75 [40] percent of the disabled employee's gross monthly compensation at the time of termination due todisability. * Sec. 4. AS 39.35.870 is amended by adding a new subsection to read: (h) Notwithstanding (a) and (g) of this section, a disabled employee who is eligible to obtain a disability benefit under AS 39.35.890 is eligible to obtain retiree major medical insurance benefits under AS 39.35.880. * Sec. 5. AS 39.35.880(g) is amended to read: (g) Except as provided under (l) of this section, the [THE] cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is (1) not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage; (2) eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare: (A) 30 percent if the member had 10 or more, but less than 15, years of service; (B) 25 percent if the member had 15 or more, but less than 20, years of service; (C) 20 percent if the member had 20 or more, but less than 25, years of service; (D) 15 percent if the member had 25 or more, but less than 30, years of service; (E) 10 percent if the member had 30 or more years of service. * Sec. 6. AS 39.35.880 is amended by adding a new subsection to read: 2026-05-20 Senate Journal Page 2899 (l) An eligible member or surviving spouse who receives a disability benefit as provided under AS 39.35.890 or 39.35.891 and is not eligible for Medicare is not required to pay a premium for retiree major medical insurance coverage. * Sec. 7. AS 39.35.890(d) is amended to read: (d) The monthly amount of an occupational disability benefit is 75 [40] percent of the disabled employee's gross monthly compensation at the time of termination due to disability. Notwithstanding AS 39.35.790(b), at the time a member is appointed to disability, the member becomes fully vested in the employer contributions made under AS 39.35.750(a). A disabled member is fully vested in the contributions to the member's individual account made under this subsection. An employee is not entitled to elect distributions from the employee's individual contribution account under AS 39.35.810 while the employee is receiving disability benefits under this section. While an employee is receiving disability benefits, based on the disabled employee's gross monthly compensation at the time of termination due to disability, the employer shall make contributions (1) to the employee's individual account under AS 39.35.730 on behalf of the employee, without deduction from the employee's disability payments; and (2) on behalf of the employee under AS 39.35.750." Renumber the following bill sections accordingly. Page 5, line 8: Delete "sec. 4" Insert "sec. 10" Page 5, line 9, following "date": Insert "of sec. 10" Page 5, line 12: Delete "sec. 2" Insert "sec. 8" Page 5, line 16, following "date": Insert "of sec. 8" Page 5, line 17, following "date": 2026-05-20 Senate Journal Page 2900 Insert "of sec. 8" Page 5, line 18: Delete "sec. 3" Insert "sec. 9" Page 5, line 22, following "date": Insert "of sec. 9" Page 5, line 24, following "date": Insert "of sec. 9" Page 5, following line 24: Insert a new bill section to read: "* Sec. 19. Sections 1 and 3 - 7 of this Act take effect immediately under AS 01.10.070(c)." Senator Giessel moved for the adoption of Amendment No. 3. Senator Myers objected, then withdrew his objection. There being no further objection, Amendment No. 3 was adopted. HOUSE BILL NO. 14 am S(efd add S) "An Act relating to workers' compensation coverage for disability from diseases for certain firefighters; relating to health care insurance; relating to insurance reimbursement for health care services provided through telehealth; relating to telehealth; repealing programs for catastrophic illness assistance and medical assistance for chronic and acute medical conditions; relating to occupational disability benefits and medical benefits available under public employees' retirement system; and providing for an effective date" was automatically in third reading. The question being: "Shall HOUSE BILL NO. 14 am S(efd add S) "An Act relating to workers' compensation coverage for disability from diseases for certain firefighters; relating to health care insurance; relating to insurance reimbursement for health care services provided through telehealth; relating to telehealth; repealing programs for catastrophic illness assistance and medical assistance for chronic and acute medical conditions; relating to occupational disability benefits and medical benefits available under public employees' retirement system; and providing for an effective date" pass the Senate?" The roll 2026-05-20 Senate Journal Page 2901 was taken with the following result: HB 14 am S(efd add S) Third Reading - Final Passage Effective Date(s) YEAS: 19 NAYS: 1 EXCUSED: 0 ABSENT: 0 Yeas: Bjorkman, Claman, Cronk, Dunbar, Giessel, Gray-Jackson, Hoffman, Kaufman, Kawasaki, Kiehl, Merrick, Olson, Rauscher, Stedman, Stevens, Tilton, Tobin, Wielechowski, Yundt Nays: Myers and so, HOUSE BILL NO. 14 am S(efd add S) passed the Senate. Senator Giessel moved and asked unanimous consent the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered and the bill was signed by the President and Secretary and returned to the House.