Legislature(1995 - 1996)

04/20/1995 08:45 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 219                                                           
                                                                               
       "An  Act   authorizing  special   medical  parole   for                 
       terminally ill prisoners."                                              
                                                                               
  DENNIS  DEWITT,  STAFF, REPRESENTATIVE  MULDER  testified in                 
  support of  HB 219.   He  provided members  with a  proposed                 
  committee  substitute for  HB 219,  work  draft #9-LSO810\M,                 
  dated  4/19/95  (copy  on  file).   He  explained  that  the                 
  committee substitute  removes the  requirement for  parolees                 
  and prisoners to pay for drug testing.   He observed that HB
  219 provides the Department  of Corrections additional tools                 
  to control  spiraling inmate  health care  cost by  allowing                 
  special  medical  parole  for  terminally ill  and  severely                 
  disabled  prisoners.     The  legislation  also  allows  the                 
  Department to charge for medical services within facilities.                 
  The  legislation  creates a  new  category of  parole called                 
  "special medical parole" for inmates  who are suffering from                 
  terminal   diseases  or   are   severely   disabled.     The                 
  classification only allows  parole.   It does not  guarantee                 
  parole.  The judgment will still rest with the Parole Board.                 
  The  change  was  recommended   by  the  Alaska   Sentencing                 
  Commission.    He  observed  that  inmates may  be  medicaid                 
  eligible if they are  paroled.  Medicaid pays 50  percent of                 
  health care costs.                                                           
                                                                               
  Mr. DeWitt noted  that the legislation  will also allow  the                 
  Commissioner of the  Department of Corrections to  establish                 
  charges for the health care provided  by the Department.  He                 
  emphasized  that the legislation  will help  deter frivolous                 
  use of health care by inmates.                                               
                                                                               
  In  response  to  a question  by  Representative  Brown, Mr.                 
  DeWitt  clarified that the committee substitute would result                 
  in  a zero  fiscal note  by the  Department of  Corrections.                 
  Representative  Brown asked  if  there  would  be  projected                 
  savings.    Mr.  DeWitt  acknowledged   that  a  savings  is                 
  expected.  He  emphasized that it is difficult  to calculate                 
  the  savings.    Representative  Mulder  observed  that  the                 
  Department  expressed  concern  that  their  budget  not  be                 
  effected by an anticipated savings.                                          
                                                                               
  Representative Mulder spoke in support of  HB 219.  He noted                 
  that the Department is in  strong support of the legislation                 
  in  order  to   control  spiraling  medical  costs   in  the                 
                                                                               
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  institutions.  He  MOVED to  adopt the committee  substitute                 
  for  HB 219,  work  draft #9-LSO810\M,  dated  4/19/95.   He                 
  explained that the  costs of administering the  drug testing                 
  repayment  overshadowed  the  benefits  in the  legislation.                 
  There  being  NO  OBJECTION,   work  draft  #9-LSO810\M  was                 
  adopted.                                                                     
                                                                               
  JERRY SHRINER, SPECIAL ASSISTANT, DEPARTMENT OF  CORRECTIONS                 
  clarified that the Department of Corrections would support a                 
  zero fiscal note  with the adoption of  CSHB 219 (FIN).   He                 
  stressed that collection would be  difficult and the cost of                 
  collecting could exceed the amount collected.                                
                                                                               
  In  response  to a  question  by Representative  Martin, Mr.                 
  Shriner  noted that  there  are no  prisoners  who would  be                 
  currently affected by the legislation.  He stated that it is                 
  difficult to anticipate potential savings.                                   
                                                                               
  Mr. DeWitt reiterated  that parolees  would be eligible  for                 
  the medicaid program.                                                        
                                                                               
  In response to a question by Representative Grussendorf, Mr.                 
  DeWitt  clarified  that  parole  cannot   be  forced  on  an                 
  individual.  He  stated that the  state or the inmate  could                 
  initiate a request for parole.   The current terms of parole                 
  would not be changed.  Representative Grussendorf noted that                 
  some  prisoners  may have  no  place  to go  outside  of the                 
  prison.                                                                      
                                                                               
  Representative  Brown  noted   that  the  sponsor  statement                 
  estimated  that  5 to  10 prisoners  may  be affected.   Mr.                 
  DeWitt emphasized that there would not  be a large number of                 
  inmates affected.  Representative Mulder stressed that a few                 
  drive  the  majority of  the costs.    He observed  that one                 
  terminally ill prisoner had medical bills of $567.0 thousand                 
  dollars over two months.                                                     
                                                                               
  Representative  Brown asked  if  prisoners have  alternative                 
  health insurance.  Mr. Shriner estimated that very few would                 
  have alternative health  insurance other than medicaid.   He                 
  noted that one prisoner  who would have been eligible  under                 
  the bill was recently placed in a nursing home.                              
                                                                               
  Representative  Brown  noted  that  section  13 states  that                 
  prisoners are  responsible for  their own  medical care  and                 
  would  be required to pay a  portion of the costs based upon                 
  the  prisoner's  ability to  pay.    Mr. DeWitt  noted  that                 
  section 13 is  new policy.   He stressed  that many  inmates                 
  have some funds.   He stated  that the co-payments would  be                 
  small.  The  provision is designed to act as  a deterrent to                 
  frivolous complaints.                                                        
                                                                               
                                                                               
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  Representative Brown  expressed concern with the effect that                 
  the provision  would have on  people with resources  and who                 
  are confined for  some period  of time.   She observed  that                 
  health insurance is more expensive if the person is not part                 
  of  an  employee's  plan.    Mr.  DeWitt  replied  that  the                 
  expectation is that there would be a relatively small number                 
  of inmates that would  have the independent wealth  to cover                 
  their own health care.  He stressed that it is an attempt to                 
  allow  the  Department  to  get  control on  utilization  as                 
  opposed to securing revenue.                                                 
                                                                               
  Mr. DeWitt noted that there  will be individuals in  halfway                 
  houses  and soft  beds  that  will  have other  coverage  or                 
  resources.  The legislation allows  the Department to become                 
  a secondary payer to the primary health care provider.                       
                                                                               
  Representative Brown asked if the income of a working spouse                 
  could be  reached by  the Department.   Mr. DeWitt  expected                 
  that  the  initial  focus  would  be  to  deter  unnecessary                 
  utilization  and  capture  available  other  coverage.    He                 
  acknowledged   that  the   legislation   allows  a   broader                 
  interpretation.    He  emphasized  that   Alaska  is  not  a                 
  community  property  state.   He  stressed that  because the                 
  institution does not have its own billing system it is going                 
  to be difficult to bill other coverage externally.  He noted                 
  that the intent is to allow the Department to take advantage                 
  of other  coverage  that  is  available  or  to  access  the                 
  resources of someone that is independently wealthy.                          
                                                                               
  Representative   Brown  questioned   the  legality   of  the                 
  retroactive provision.                                                       
                                                                               
  MICHAEL STARK, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW                 
  assured her that the retroactive provision would not present                 
  a legal problem.   He emphasized  that the provision is  not                 
  intended as part of the punishment imposed on an inmate.  It                 
  is a reasonable effort by  the state to defer expenses.   He                 
  added  that  institutionalized  populations   often  include                 
  individuals that manifest medical complaints in which  there                 
  is no basis in fact.  He stressed  that the legislation will                 
  deter frivolous medical complaints.                                          
                                                                               
  Representative Brown reiterated concerns with the breadth of                 
  the provision.   She asked  to what extent  the state  would                 
  pursue  other  resources.   Mr.  Stark  suggested  that some                 
  mechanism  could  be  developed  to  pursue  resources  that                 
  inmates  may have.   He stressed that  it will take  time to                 
  develop  procedures.  He  emphasized that  there will  be no                 
  denial of medical  services.   He observed that  regulations                 
  will have to be adopted.                                                     
                                                                               
  Representative Therriault MOVED to report CSHB 219 (FIN) out                 
                                                                               
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  of Committee  with individual  recommendations and with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 219  (FIN) was  reported out  of Committee  with a  "do                 
  pass" recommendation and with two  zero fiscal notes; one by                 
  the Department of Administration, dated  3/27/95; and one by                 
  the   House  Finance   Committee  for   the   Department  of                 
  Corrections, dated 4/20/95.                                                  

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