04/18/2014 08:00 AM Senate STATE AFFAIRS

             HB 356-ADVISORY COMMITTEE ON WELLNESS                                                                          
                                                                                                                                
11:18:28 AM                                                                                                                   
CHAIR   DYSON   reconvened   the  meeting   and   announced   the                                                               
consideration  of   HB  356.  [CSHB   356(STA)  was   before  the                                                               
committee.]                                                                                                                     
                                                                                                                                
11:18:46 AM                                                                                                                   
REPRESENTATIVE PAUL SEATON, Alaska  State Legislature, sponsor of                                                               
HB 356,  introduced the bill  paraphrasing the  following sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
     HB 356  requires the Commissioner of  the Department of                                                                    
     Administration to  implement procedures  for decreasing                                                                    
     the incidence  of disease  in Alaska  in order  to hold                                                                    
     the  inflation  of  healthcare   costs  of  active  and                                                                    
     retired Alaska state employees to 2% per year.                                                                             
                                                                                                                                
     According  to  the  Institute of  Social  and  Economic                                                                    
     Research, total  health care spending in  Alaska topped                                                                    
     $7.5 billion  in Alaska in 2010,  with state government                                                                    
     employers paying  over $400 million. A  major component                                                                    
     of  our  $12  billion  unfunded  pension  liability  is                                                                    
     retiree   healthcare  costs.   HB   356  requires   the                                                                    
     Commissioner   of  Administration   to  put   in  place                                                                    
     programs that  will decrease  the incidence  of disease                                                                    
     in  State   of  Alaska  employees,  both   current  and                                                                    
     retired, in order to hold  the inflation of costs to 2%                                                                    
     per year.                                                                                                                  
                                                                                                                                
     This  bill  focuses  on  preventing  the  incidence  of                                                                    
     disease as opposed to  treatment of disease. Prevention                                                                    
     of   disease  is   the   policy  approach   unanimously                                                                    
     requested of  the Governor  by the  legislature through                                                                    
     HCR 5 in 2011. This is  an area of healthcare where the                                                                    
     most  economic impact  can be  achieved. For  instance,                                                                    
     recent studies show that an  action as simple as taking                                                                    
     a  daily  supplement  of  5,000 IU  of  vitamin  D  can                                                                    
     dramatically   reduce  the   risk  of   heart  disease,                                                                    
     diabetes,  cancer, autism,  gingivitis, and  many other                                                                    
     conditions.                                                                                                                
                                                                                                                                
     HB 354 creates an  Advisory Committee on Wellness which                                                                    
     is   charged  with   making   recommendations  to   the                                                                    
     Commissioner of Administration on  ways to decrease the                                                                    
     incidence of disease  in Alaska. HB 365  will enforce a                                                                    
     paradigm  shift for  the  Department of  Administration                                                                    
     and the  Department of Health  and Social  Services. It                                                                    
     will  require the  agencies  to  implement policies  to                                                                    
     keep  Alaska  state  employees  healthy  by  preventing                                                                    
     disease,  rather than  the common,  reactive policy  of                                                                    
     waiting until people get sick and then treating them.                                                                      
                                                                                                                                
11:21:23 AM                                                                                                                   
SENATOR GIESSEL  asked how this  advisory committee  differs from                                                               
the  Alaska  Health  Care Commission  (AHCC),  which  is  already                                                               
established.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  replied  AHCC   deals  broadly  with  all                                                               
Alaskans, whereas  the proposed  Advisory Committee  on Wellness,                                                               
working within  the Department of Administration,  would focus on                                                               
active  and   retired  State  of   Alaska  employees   and  their                                                               
dependents to encourage participation in wellness measures.                                                                     
                                                                                                                                
SENATOR GIESSEL questioned what would  change with passage of the                                                               
bill, because she already sees that happening.                                                                                  
                                                                                                                                
REPRESENTATIVE  SEATON  explained   that  the  existing  wellness                                                               
committee    meets   infrequently    and   the    Department   of                                                               
Administration feels  this would ensure that  any recommendations                                                               
are  taken seriously.  Although AHCC  has done  some things  like                                                               
negotiate for lower  gym memberships, it has  limited ability and                                                               
direction to talk about such  things as co-pays if DOA determines                                                               
it  would be  beneficial to  the  state in  reducing health  care                                                               
costs.                                                                                                                          
                                                                                                                                
11:23:43 AM                                                                                                                   
CHAIR DYSON asked  if he was saying that DOA  can't negotiate co-                                                               
pays without the proposed volunteer committee.                                                                                  
                                                                                                                                
REPRESENTATIVE  SEATON  clarified  that  there  is  no  statutory                                                               
direction for DOA to do that, but it has the authority.                                                                         
                                                                                                                                
CHAIR DYSON commented that there is  nothing to keep any group of                                                               
experts  from forwarding  suggestions and  recommendations on  to                                                               
DOA regarding employee health issues.                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON replied that is  correct, but there isn't a                                                               
formal process. He reported that  there was great interest in the                                                               
advisory group  last year, but  the departments  weren't required                                                               
to respond to their recommendations and the group fell apart.                                                                   
                                                                                                                                
11:25:05 AM                                                                                                                   
CHAIR  DYSON questioned  whether it  couldn't be  resurrected and                                                               
operate under existing statute.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON said there's  nothing that prevents it, but                                                               
there's nothing  in statute that specifies  that there's anything                                                               
to be done.                                                                                                                     
                                                                                                                                
11:25:39 AM                                                                                                                   
CHAIR DYSON held HB 354 in committee.