Legislature(2023 - 2024)DAVIS 106
03/27/2023 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB21 | |
| Presentation(s): University of Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 21 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
HB 21-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
8:04:01 AM
CO-CHAIR ALLARD announced that the first order of business would
be HOUSE BILL NO. 21, "An Act relating to group insurance
coverage and self-insurance coverage for school district
employees, employees of the University of Alaska, and employees
of other governmental units in the state; and providing for an
effective date."
8:04:16 AM
The committee took an at-ease from 8:04 a.m. to 8:06 a.m.
8:06:35 AM
REPRESENTATIVE SARAH VANCE, Alaska State Legislature, as prime
sponsor, presented HB 21. She stated that the proposed
legislation would give the school districts, University of
Alaska, and governmental units the option to participate in the
state's health care program, AlaskaCare. She stated that this
would create the potential for school districts to save millions
of dollars in health care costs, while providing more health
care options.
8:07:49 AM
CO-CHAIR RUFFRIDGE requested a description of the process that
would save "millions." He expressed the understanding that the
University of Alaska may not join the plan, as it would see no
savings; however, the school district he represents has
expressed support, as there may be savings for it.
REPRESENTATIVE VANCE replied that the savings would come from
pooling larger numbers of people together. For some school
districts, the option is having a health care program that will
accept them. Being a part of a larger pool would allow new
people to be taken on, as some are having a difficult time
obtaining a comparable plan. She expressed the understanding
that the Matanuska-Susitna (Mat-Su) Borough School District
would save about $3,000 per employee. She suggested that as
people pool in, eventually the overall cost per employee would
drop.
8:10:29 AM
REPRESENTATIVE STORY expressed agreement with the idea of the
proposed legislation. She expressed the understanding that it
would require an actuarial analysis in a separate fiscal note.
She questioned whether this would happen if it moved to the
House Finance Standing Committee.
REPRESENTATIVE VANCE expressed the belief that this is the
process. She stated that there has been discussion concerning
the current fiscal note from the Department of Administration
(DOA). She explained that, for the proposed legislation, the
first year would be just the cost of adopting regulations, which
should not require DOA to hire many new employees. After the
first year, there would be a better understanding of how many
school districts and municipalities want to join, and then a
reevaluation of DOA's new hires would need to be done. In
response to a follow-up question, she said that Mat-Su, which
has the second largest school district, and the Kenai Borough,
which has the third largest school district, are both
interested. She stated that other districts have also reached
out.
8:12:33 AM
REPRESENTATIVE PRAX expressed the understanding this is an opt-
in plan. He stated that with health insurance there is an
"adverse selection risk." He suggested that a potential problem
would be districts already paying less for health insurance
would not join, while those paying more would, and this presents
the risk. He questioned whether this has been considered.
REPRESENTATIVE VANCE responded that this might be a question for
DOA.
8:13:57 AM
CO-CHAIR ALLARD questioned whether the original zero fiscal note
had changed.
REPRESENTATIVE VANCE expressed the understanding that the
proposed legislation could add to DOA's workload, creating the
need for additional staff. She reiterated that the first year
would only be creating the regulations, hence the zero fiscal
note. She suggested that from past actions, the governor and
the current administration would support the legislation.
8:16:13 AM
CO-CHAIR RUFFRIDGE pointed out that there has not been a change
in the fiscal note; rather there are two separate fiscal notes.
He stated that the zero fiscal note is from the university
system, as it does not plan to participate, while the other
fiscal note is from DOA, and this would be for the additional
positions.
REPRESENTATIVE VANCE responded in agreement. She addressed the
problems with fiscal notes in general.
8:18:08 AM
CO-CHAIR ALLARD expressed concern about the balances on the
fiscal notes.
8:18:42 AM
CO-CHAIR ALLARD open public testimony on HB 21.
8:19:11 AM
NATHAN ERFURTH, President, Kenai Peninsula Education
Association, provided public testimony in support of HB 21. He
expressed support for the proposed legislation. He stated that
Alaska spends more on health care than any other state. He
suggested that allowing school districts to join a larger pool
would be a positive action, as health care costs cut into the
overall budget for districts. He stated that some educators
have moved districts because of the high cost of health care.
He continued that this cost should not negatively affect
instructional funding. He expressed understanding about the
adverse risk and fiscal note concerns. However, if the state
wants quality educators for its students, he argued that it
should support HB 21.
8:21:02 AM
KATHY LEARY, City Administrator, City of Gustavus, provided
public testimony in support of HB 21. She stated that Gustavus
is small with six or seven employees. Currently health
insurance is provided to employees working 30 hours or more a
week. She stated that the plan is affordable, but not very
good, as it does not cover families. She expressed excitement
over the proposed legislation, as the city could have something
more to offer perspective employees. She stated that a clerk
that had worked for the city for five years moved to the
National Parks Service because of the health insurance benefit.
She expressed the concern that the regulations would only allow
a minimum number of people [from an entity] to join the pool.
She argued that something needs to be done to help retain
employees, and this is a "big issue."
8:23:25 AM
CANDY MILLER, representing self, provided public testimony. She
stated that she lives in the Mat-Su Valley, and she and her
husband are retired. She shared the cost of health insurance
she pays and related the understanding of what other people pay.
She expressed the opinion that individuals should be able to
choose their own health care insurance, as opposed to having
only the choice of the state plan. She concluded that the
funding for health care should go directly to the individuals so
they can choose their own plan.
8:26:02 AM
CO-CHAIR ALLARD, after ascertaining that there was no one else
who wished to testify, closed public testimony.
8:26:14 AM
REPRESENTATIVE STORY expressed the understanding that there is
not a limit on the number of employees [within an entity] needed
to join the plan.
REPRESENTATIVE VANCE responded in the affirmative, stating that
there is no minimum threshold. She suggested that a
conversation with DOA would help understand the cost/benefit of
this. In response to a follow-up question, she expressed the
understanding that the fiscal note would eventually reflect how
many entities join the plan, as this is currently unknown. She
suggested that there would be additional costs.
8:28:37 AM
CO-CHAIR RUFFRIDGE questioned whether the state would be able to
not allow a person or entity to join the plan. He suggested
that with the proposed legislation, the state would have to
allow this.
REPRESENTATIVE VANCE answered in the affirmative. She quoted
from page 5 of the bill, which related that DOA would have the
flexibility to determine what is best for parties - whether this
is joining with a larger pool or having their own self insurance
policy. She stated that the proposed legislation would reduce
the burden for school districts and municipalities to shop for
their own health care. She stated that as written, the proposed
legislation would accept everyone. In response to a follow-up
question, she stated that she would report back to the committee
on the per-person cost for state insurance. She added that the
bill would require specifications on the best health care
options to be reviewed every five years. She discussed the
volatility of health insurance costs in the state.
8:34:55 AM
REPRESENTATIVE VANCE, in response to a question from
Representative Himschoot, stated that governmental units would
include municipalities, boroughs, and other entities defined by
statute. In response to a follow-up question, she stated that
if school districts opted into the state insurance plan, the
payouts on claims would transfer, and the closing balance would
go into the group insurance, and this pool would be available to
offer distributions. She continued that a 10-year window would
be given for this.
8:37:17 AM
CO-CHAIR RUFFRIDGE moved to report HB 21 out of committee with
individual recommendations and the accompanying fiscal notes.
8:37:39 AM
REPRESENTATIVE PRAX objected. He pointed out that there had
been questions on the fiscal note.
8:38:12 AM
REPRESENTATIVE PRAX withdrew his objection.
8:38:31 AM
[The committee continued as if an objection was maintained.]
A roll call vote was taken. Representatives Prax, McKay,
Himschoot, Story, Ruffridge, and Allard voted in favor of the
motion to report HB 21 out of committee with individual
recommendations and the accompanying fiscal notes. Therefore,
HB 21 was reported out of the House Education Standing Committee
by a vote of 6-0.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 21 - Fiscal Note - University of Alaska.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB 21 - Letter of Support from KPBSD.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB 21 - Presentation.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB21A.PDF |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| UA House Education Committee Presentation FINAL 3 27 2023.pdf |
HEDC 3/27/2023 8:00:00 AM |
UA House Presentation |
| HB 21 - Fiscal Note - DOA.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| faculty by tenure status & university.pdf |
HEDC 3/27/2023 8:00:00 AM |
Facilty Information - Questions & Answers |