Legislature(2015 - 2016)BARNES 124
04/08/2015 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| HB178 | |
| HB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 66 | TELECONFERENCED | |
| *+ | HB 178 | TELECONFERENCED | |
HB 178-WORKERS' COMP MEDICAL FEES; DELAY
4:21:22 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 178, "An Act relating to workers' compensation
fees for medical treatment and services; providing for an
effective date by amending the effective date of sec. 5, ch. 63,
SLA 2014; and providing for an effective date."
CHAIR OLSON reported that the initial bill last legislature,
House Bill 316, passed the Twenty-Eighth Alaska State
Legislature unanimously, except for those absent.
4:21:52 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, stated that HB 178 would offer a five-month
extension to the time constraints set by House Bill 316 [Twenty-
eighth legislature] for the creation of a new Workers'
Compensation Medical Services Review Committee (MSRC) tasked
with establishing a conversion factor and geographic
differential to be used in conjunction with a basic fee schedule
and a relative value unit methodology and implemented by
regulation. He said this bill could be likened to a simple
board extension with a zero fiscal note. Last year the
legislature passed House Bill 316, which asked the Medical
Services Review Committee (MSRC) to create a fee schedule based
on Medicaid rates with a multiplier for various services. Once
a conversion factor was set, the bill required the commissioner
of Department of Labor & Workforce Development approve the
multiplier and draft regulations, which the workers'
compensation board would implement. The bill envisioned this
work would be completed by July 1, 2015. The Medical Services
Review Committee (MSRC) has met numerous times and is very close
to completing its work, but does not anticipate completing its
work by July 1, 2015.
4:23:08 PM
CHAIR OLSON asked for the current Medical Services Review
Committee (MSRC) membership.
MR. JACKSON replied that the Medical Services Review Committee
(MSRC) consists of nine members, as follows: (1) one member who
is a member of the Alaska State Medical Association; (2) one
member who is a member of the Alaska Chiropractic Society; (3)
one member who is a member of the Alaska State Hospital and
Nursing Home Association; (4) one member who is a health care
provider, as defined in AS 09.55.560; (5) four public members
who are not within the definition of "health care provider" in
AS 09.55.560; and (6) one member who is the designee of the
commissioner and who shall serve as chair. He stated that all
of the stakeholders have a seat at the table in the discussion
to set the conversion factors. He reported that the department
requested the extension since the Medical Services Review
Committee (MSRC) was very close to completing its work, but the
July 1, 2015 completion date would not likely allow enough time
to complete the regulatory process. The bill has a zero fiscal
note since the costs were previously addressed in House Bill
316, which passed the legislature last year.
CHAIR OLSON said that he has not attended any of the MSRC
meetings, choosing to leave it to the Department of Labor &
Workforce Development.
4:24:46 PM
MICHAEL MONAGLE, Director, Central Office, Division of Workers'
Compensation, Department of Labor & Workforce Development
(DLWD), provided some background information on the Medical
Services Review Committee (MSRC), which began meeting in July
2014. The committee was established by statute in 2005 and met
for several years, making some recommendations in 2009. The
MSRC somewhat faded from activity so when House Bill 316 passed
last year, the committee was resurrected, including finding new
committee members to develop a request for proposal (RFP) for
subject matter expert contractor, obtain data from several data
sources, including the National Council on Compensation
Insurance and Fair Health, as well as to get approval for
contracts and develop non-disclosure agreements. It took until
November 2014 before the committee started its work. He
described the committee's work thus far, including that the MSRC
has held good discussions, but are still one conversion factor
away from completing its work, with the next meeting scheduled
for April 20, 2015. He anticipated that the last decision will
be made soon. As previously mentioned, the MSRC must provide the
commissioner with a written report, followed by public comment,
and recommendations would then be forwarded to the workers'
compensation board, who would notice a public meeting for 30
days. The Workers' Compensation Board would likely meet in
June, propose regulations and allow 30 days for the public
comment period. The board would adopt the regulations project,
send it to the Department of Law for review and on to the
Lieutenant Governor's office. He anticipated that the
regulations will be in place by the end of summer, which will
allow billers and payers three months to program their systems
with the new conversion factors ready for the new CMS [Centers
for Medicare & Medicaid Services] rates that will be published
on January 1, 2016. He expressed concern that the fee schedule
will not be ready by July 1, 2015, which he described as a
disastrous outcome.
4:28:06 PM
CHAIR OLSON said one member of the Medical Services Review
Committee (MSRC) remarked that he had initially been skeptical
about the committee, but after first meetings he began to enjoy
the process. He told members that he previously had
contemplated that the Medical Services Review Committee (MSRC)
could be on a tight schedule.
CHAIR OLSON, after first determining no one wished to testify,
closed public testimony on HB 178.
4:29:32 PM
REPRESENTATIVE HUGHES moved to report HB 178 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 178 was reported from the
House Labor and Commerce Standing Committee.
4:30:00 PM
The committee took an at-ease from 4:30 p.m. to 4:32 p.m.