Legislature(2023 - 2024)BARNES 124
04/12/2023 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Construction Tax Fraud | |
| HB149 | |
| HB21 | |
| HB86 | |
| HB88 | |
| HB112 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| *+ | HB 149 | TELECONFERENCED | |
| *+ | HB 21 | TELECONFERENCED | |
| += | HB 88 | TELECONFERENCED | |
| += | HB 112 | TELECONFERENCED | |
| += | HB 86 | TELECONFERENCED | |
HB 21-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
4:35:13 PM
CHAIR SUMNER announced that the next 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."
4:35:51 PM
REPRESENTATIVE SARAH VANCE, Alaska State Legislature, as prime
sponsor, presented HB 21 via a PowerPoint presentation, titled
"HB 21 School Healthcare Consolidation" [hard copy included in
the committee packet]. She turned attention to slide 2
regarding what drives the cost of public education in Alaska.
She explained that the three biggest factors are funding for
small schools in rural areas, energy costs, and healthcare plans
for school district employees.
REPRESENTATIVE VANCE continued to slide 3 through slide 5 and
stated that Alaska has the highest per capita healthcare costs
in the U.S. She pointed out that Alaska's unadjusted per-pupil
spending on teacher salaries cost is 14th in the nation;
however, after adjusting for the cost of living, the amount
moves to 23 percent below the national average. She further
pointed out that Alaska's unadjusted per-pupil spending on the
education system's employee benefits is 64 percent above the
U.S. average; however, it is only 9 percent above the average
when adjusted for cost of living.
4:40:31 PM
RANDY TRANI, PhD, Superintendent, Matanuska School District,
Palmer, Alaska, informed the committee that a change in teacher
healthcare benefits would require a change in the collective
bargaining agreement. He expressed the opinion that a plan
which offers group insurance policies would reduce the cost.
4:42:19 PM
REPRESENTATIVE PRAX asked whether the school board would support
the idea.
DR. TRANI answered that wages and insurance are often the
biggest parts of collective bargaining. If the bill were
passed, the board would be able to consider the idea for the
next collective bargaining agreement. In response to a follow-
up question, he said the board would look at the state's
collective bargaining agreements to ensure that they are
comparable.
4:44:29 PM
REPRESENTATIVE RUFFRIDGE asked what the cost of insurance per
person is in the Matanuska-Susitna Borough School District.
DR. TRANI answered that it is $2,000 a month for teachers. The
teachers pay between $4,000 and $6,000 per month, for a total
annual cost of $28,000 to $30,000.
REPRESENTATIVE RUFFRIDGE asked what the cost is on a state
level.
4:47:02 PM
BETSY WOOD, Chief Health Administrator, Division of Retirement
and Benefits, Department of Administration, answered that the
state pays a healthcare contribution of $1683 per employee, per
month. She said that there is a range which depends on the
number of people being covered by the state employee's plan.
4:48:24 PM
REPRESENTATIVE FIELDS asked whether there is a model which
considers Alaska Care.
MS. WOOD answered that the division has a model, although it is
older. She added that if the bill were to reach the House
Finance Committee, further analysis would take place. In
response to a follow-up question, she said that the exact cost
to Alaska Care is unknown.
REPRESENTATIVE FIELDS asked whether there are other
opportunities to achieve an economy of scale.
MS. WOOD answered that she is unaware of other possibilities,
but offered her opinion that it is likely.
4:52:52 PM
REPRESENTATIVE PRAX asked whether it is correct that an
actuarial analysis only begins when a bill reaches the finance
committee.
MS. WOOD answered yes. In response to a follow-up question, she
said that the analysis would likely take a few weeks to be
completed.
4:54:03 PM
REPRESENTATIVE VANCE commented that the bill still requires
contributions from those who opt into the new plan, which would
prevent the state from having a larger burden.
[HB 21 was held over.]