04/10/2014 03:00 PM House HEALTH & SOCIAL SERVICES

             HB 356-ADVISORY COMMITTEE ON WELLNESS                                                                          
                                                                                                                                
3:19:02 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS announced that the  next order of business would be                                                               
HOUSE BILL NO.  356, "An Act establishing  the Advisory Committee                                                               
on Wellness;  and relating to  the administration of  state group                                                               
health insurance policies."                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  explained, as the sponsor  of the proposed                                                               
bill,  that  HB 356  would  establish  an advisory  committee  on                                                               
wellness within the Department of  Administration (DOA), and said                                                               
that the purpose  was to implement a prevention  of disease model                                                               
for  health care.   He  stated  that Sections  2 and  3 were  the                                                               
impetus of the  bill which asked that the DOA,  as determiners of                                                               
the health care policy through  the insurance provided, include a                                                               
wellness advisory  committee.  He  explained that  this committee                                                               
would have at least seven members,  and he relayed that 90 people                                                               
had  applied  for appointment  to  an  earlier wellness  advisory                                                               
committee.   He stated that  there was a  lot of interest  in the                                                               
population to promote  wellness.  He reported  that this proposed                                                               
committee  would   have  the  power  to   require  the  submitted                                                               
recommendations   be  addressed,   similar  to   the  Office   of                                                               
Children's  Services (OCS)  advisory committee.   He  shared that                                                               
DOA did  not have opposition  to the  proposed bill, as  its goal                                                               
was to control  the escalation of health care costs.   He pointed                                                               
out that  $3.8 billion  of unfunded liability  was caused  by the                                                               
escalation  of health  care costs  above the  original long  term                                                               
estimate for an  annual cost increase of 2 percent.   He directed                                                               
attention to  the handout  [Included in  members' packets]  for a                                                               
proposed  initiative to  save up  to  $10 million  annually.   He                                                               
spoke about  Vitamin D, nutritional  guidelines, and  wellness in                                                               
the  work place  initiatives.   He  explained  that the  wellness                                                               
committee would  work on proscriptive  solutions for  a voluntary                                                               
means to  reduce disease in  workers and the  retired population.                                                               
He lauded the  benefit of a wellness committee with  the power to                                                               
solicit a  response.  He pointed  out that this was  also defined                                                               
as  practical and  reasonable suggestions  for solutions  to hold                                                               
down  health  care  escalation  costs.    He  reported  that  the                                                               
committee  could meet  via teleconference,  as the  proposed bill                                                               
had a zero fiscal note.                                                                                                         
                                                                                                                                
CHAIR HIGGINS questioned the accomplishments  of the multitude of                                                               
committees, and asked  about the need for another  committee.  He                                                               
directed   attention  to   the  current   [Alaska]  Health   Care                                                               
Commission, which reviewed all of the  State of Alaska.  He noted                                                               
that a  committee on controlled  substances, formed more  than 32                                                               
years previously, had never met.                                                                                                
                                                                                                                                
3:26:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  replied  that   the  Alaska  Health  Care                                                               
Commission  was  under  the  Department   of  Health  and  Social                                                               
Services  (DHSS), and  reviewed  a different  spectrum than  this                                                               
proposed  committee  would  under  the  DOA,  which  administered                                                               
health policies and negotiated contracts  with state workers.  He                                                               
pointed out that  there had been a  voluntary wellness committee,                                                               
however  its focus  had not  been for  prevention of  disease and                                                               
there  had  not   been  any  requirement  for   response  to  its                                                               
suggestions.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER respectfully  pointed  out that,  although                                                               
the  Alaska  Health  Care  Commission did  not  solely  dwell  on                                                               
prevention,  it did  focus on  ways to  reduce health  care costs                                                               
with prevention as  a top priority.  He declared  his support for                                                               
the proposed  bill.   He shared  that he  had long  been involved                                                               
with prevention  groups, and  he reported  that many  people were                                                               
working on  prevention related to  smoking, obesity,  and chronic                                                               
disease.   He expressed  his discomfort  with an  indictment that                                                               
committees had  not reduced the  cost of health care,  noting the                                                               
difficulty  for documentation.   Directing  attention to  page 1,                                                               
line 9,  he questioned  the intent language,  "the state  has not                                                               
adequately focused state policy  on avoiding disease," and stated                                                               
that it did not mean that many  people were not trying.  He noted                                                               
that the  smoking cessation program  had required a lot  of work.                                                               
He  asked that  respect be  shown toward  those people  currently                                                               
working on prevention programs.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  replied that the proposed  bill focused on                                                               
the DOA, and that  he did not intend to impugn  any other work on                                                               
wellness and  prevention.   He declared  a need  to focus  on the                                                               
budgetary  situation,  and  getting wellness  programs  initiated                                                               
with state  workers and  their dependents.   He pointed  out that                                                               
the current  Wellness committee had  not met since December.   He                                                               
explained  that  the  proposed bill  required  responses  to  its                                                               
recommendations, similar to the  authority of the Citizens Review                                                               
Panel  with the  Office of  Children's Services  (OCS).   He said                                                               
that he did  not want to denigrate other work,  and this proposed                                                               
bill was for wellness programs  through DOA, as insurance and the                                                               
subsequent health care inflation were housed there.                                                                             
                                                                                                                                
REPRESENTATIVE  KELLER acknowledged  the  other various  wellness                                                               
committees.                                                                                                                     
                                                                                                                                
REPRESENTATIVE NAGEAK  asked if  Department of Health  and Social                                                               
Services (DHSS)  would increase its education  for prevention, in                                                               
lieu of the creation of another committee.                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON replied that DHSS  had its own mission, and                                                               
its ways for working on change  in the state, which was different                                                               
than DOA, which oversees the  health care insurance policies.  He                                                               
offered his belief that it  was necessary to reduce the increases                                                               
to  health  insurance.    He relayed  that  incentives  to  place                                                               
wellness  programs, such  as co-pays  and  deductibles, could  be                                                               
offered through the health care contracts.                                                                                      
                                                                                                                                
CHAIR  HIGGINS   asked  for   clarification  that   the  wellness                                                               
committee would target the insurance policies.                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  said that  the proposed bill  would target                                                               
insurance  for  the  active workforce  employees,  retirees,  and                                                               
dependents in the State of Alaska for reductions in liabilities.                                                                
                                                                                                                                
CHAIR HIGGINS asked for an explanation to the zero fiscal note.                                                                 
                                                                                                                                
REPRESENTATIVE  SEATON  replied  that   DOA  had  stated  that  a                                                               
wellness  committee  was advisable  and,  as  it was  a  non-paid                                                               
position,  there  would be  volunteer  members  who would  attend                                                               
telephonic meetings.   He  opined that,  if successful,  it could                                                               
have huge benefits toward reducing the state budget.                                                                            
                                                                                                                                
3:38:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  report  HB  356,  Version  28-                                                               
LS1465\C, out  of committee  with individual  recommendations and                                                               
the accompanying fiscal notes.   There being no objection, HB 356                                                               
was  moved from  the House  Health and  Social Services  Standing                                                               
Committee.