Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/01/2014 03:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB214 | |
| HB204 | |
| HB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 214 | TELECONFERENCED | |
| + | HB 204 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
HB 141-WORKERS' COMPENSATION MEDICAL FEES
4:22:34 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 141."An Act setting the fee for medical
treatment or services performed outside the state under the
Alaska Workers' Compensation Act, requiring a provider of
medical treatment or services under the Alaska Workers'
Compensation Act to submit bills for treatment or services to
employers within 180 days after the date the treatment or
services are rendered, and limiting the time for appealing an
employer's denial or reduction of a bill; and providing for an
effective date." He noted that this was the [first] hearing.
4:22:52 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State
Legislature, Juneau, Alaska, introduced HB 141 on behalf of the
sponsor. She explained that the bill sets the fee schedule for
workers' compensation claims treated outside Alaska and
establishes billing timelines for medical providers. Providing
some background, she said the state has used a usual, customary,
and reasonable fee schedule for workers' compensation that is
reflective of the costs and geographic area where services are
rendered. Services have been billed at the 90th percentile for
the past ten years. In 2011, the legislature passed House Bill
13, which extended the current fee schedule but what it failed
to do was to set parameters for where the fee schedule could be
used.
She reported that Alaska has the highest workers' compensation
premiums in the nation. The Oregon Department of Business and
Consumer Services conducts a biennial study of workers'
compensation rates that is considered the industry standard. For
the past ten years, Alaska has ranked in either the first or
second place for the highest workers' compensation insurance
premium rates in the nation.
4:24:19 PM
MS. LATHAM provided examples of some discrepancies between the
rates in Alaska and other western states. She directed attention
to the top 25 surgery procedure code fee comparison charts in
the bill packets. It shows that Alaska's costs are substantially
higher that those for Washington, Oregon, and Idaho. She drew
attention to page 40, chart 30, of the report entitled, "Medical
Data Report for the state of Alaska dated September 2013." This
chart ranks the top ten diagnostic codes by total claim
payments. It shows that the average payment in Alaska for
treating a diagnosis of a ruptured disc is $31,177 compared to
$17,049 nationwide. That's 182 percent higher in Alaska.
MS. LATHAM said there is nothing in statute from preventing
workers' compensation claims treated in the Lower 48 from being
billed at Alaska's higher rates. HB 141 changes that. Medical
services treated in-state would still be charged using the UCR
fee schedule that was established in 2011, and medical services
provided outside Alaska could not exceed the charges set by the
statute in the state where the services are rendered. The bill
also establishes billing timelines. It requires a provider to
submit bills within 180 days after the services are rendered and
limits the time for appealing an employer's denial or reduction
of a bill to 60 days. The effective date is immediate and there
is a retroactivity clause that includes transitional language.
The transition language allows medical providers to submit bills
for service within 180 days of the effective date, irrespective
of the date of service, and allows providers to submit an appeal
for denied payment within 60 days of the effective date,
irrespective of the date of the disputed payment. She summarized
that HB 141 sets reasonable time limits to provide certainty for
the employer and the insurer as they budget for the future.
CHAIR DUNLEAVY opened public testimony.
VINCE O'SHEA, Vice President, Pacific Seafood Processors
Association (PSPA), Juneau, Alaska, testified in support of HB
141. He reported that PSPA has over 27,000 workers in seafood
processing plants across the state and the high workers'
compensation rates need to be addressed. This will eliminate the
abuse and unnecessary expenses related to treatment, he said.
4:29:35 PM
SALLIE STUVEK, Human Resources Director, Fairbanks North Star
Borough (FNSB), Fairbanks, Alaska, said she oversees risk
management, which handles workers' compensation for the FNSB and
the FNSB School District (FNSBSD). She reported that the FNSB
spends about $1.1 million on workers' compensation benefits each
year. FNSB continues to see medical costs rising and believes
that the resolution adopted by the workers' compensation board
1301 dated September 27, 2013 is a positive step to address
these costs. The FNSB assembly passed a resolution on February
13, 2014 in support of continuing to pursue this legislation.
SENATOR MICCICHE stated support for the legislation and
commented that it might cut back on medical tourism.
4:31:18 PM
CHAIR DUNLEAVY held HB 141 in committee for further
consideration. Public testimony was open.