Legislature(2013 - 2014)CAPITOL 106
04/02/2013 03:00 PM House HEALTH & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HJR14 | |
| HB54 | |
| Alaska Children's Services | |
| HB134 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HJR 14 | TELECONFERENCED | |
| += | HB 54 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 134 | TELECONFERENCED | |
HJR 14-DELAY IMPLEMENTING AFFORDABLE CARE ACT
3:06:13 PM
CHAIR HIGGINS announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 14, Requesting the United States
Congress and the Governor to take actions necessary to delay
implementation of the Patient Protection and Affordable Care
Act.
REPRESENTATIVE BILL STOLTZE, Alaska State Legislature, stated
that he had drafted this resolution out of concern for the
implementation of the Patient Protection and Affordable Care
Act, and offered his belief that this act was not well vetted.
He suggested that the Supreme Court had identified the act as "a
massive tax increase." He said that the crux of this proposed
resolution was to seek delay for the implementation of the
Patient Protection and Affordable Care Act. He stated that his
goal was not to oppose it, but delay its implementation until
Congress had examined all the employer costs and impacts on the
private sector. He declared that he had contacted the National
Federation of Independent Business (NFIB), which he deemed to be
an advocacy group for "watching and protecting the interests of
the mom and pops in small businesses" which "make up the fabric
of our economy." He pointed out that the act did not take
effect until 2014. He questioned how many jobs would be lost
with the act. He offered his belief that this act was a tax
policy, declaring that "taxes affect behavior." He surmised
that the application of the act would affect employment and
business. He opined that this was one of the largest tax
increases in U.S. history.
3:11:41 PM
The committee took a brief at-ease.
3:12:19 PM
CHAIR HIGGINS brought the committee back to order, and opened
public testimony.
3:12:38 PM
MARK REGAN said that the State of Alaska, by not setting up a
health exchange and not actively regulating health insurance in
Alaska, had created a position whereby there was little the
state could do to stop the Patient Protection and Affordable
Care Act from going into effect. [indisc.] He suggested that
the business community was not as nervous about the
implementation of the act, as it had been earlier. He expressed
his hope that the committee would delay consideration of this
resolution until it had heard more balanced information.
3:14:21 PM
KEN HELANDER, Associate Director for Advocacy, AARP, said that
he was speaking on behalf of the 95,000 AARP members in Alaska,
and that AARP strongly objected to HJR 14 and a delay to
implementation of the Patient Protection and Affordable Care
Act. He stated that HJR 14 did little to advance any meaningful
purpose, pointing out that the act had been repeatedly upheld.
He suggested that the legislature should look for ways to
improve the opportunity for all Alaskans, instead of looking for
ways to stand in the way. He declared that the act presented
many opportunities for growth and economic stimulus in Alaska.
He referenced the Northern Economic study which concluded that
the Medicaid expansion would add an additional $15 in federal
funds for every state dollar, would generate 4,000 new jobs by
2017, and would generate a cumulative economic benefit between
2014 and 2019 of $2.3 billion. [indisc.] He pointed out that
Alaska had opted not to create its own health insurance
exchange, which would bring federal involvement for a federally
facilitated exchange. He emphasized that implementation of the
act in Alaska would allow all Alaskans access to affordable,
comprehensive health care coverage. He declared that AARP would
act collaboratively with policy makers to ensure that a
successful marketplace would be established, providing all
Alaskans with health care coverage.
3:17:54 PM
REPRESENTATIVE NAGEAK asked for the written comments to be sent
to the committee.
3:18:39 PM
PEGGYANN MCCONNOCHIE, Owner, Cycle Alaska, said that her
company, Cycle Alaska, employed "just under the amount necessary
for mandated health care." She said that her company wanted to
grow. She declared support for proposed HJR 14. She reviewed
that the annual [health care] premium for the average family
would increase by $2100, while the IRS estimated that a family
insurance plan in 2013 would be $20,000. She declared that her
insurance cost had just increased by 13 percent. She referenced
a report by the Congressional Budget Office (CBO) which
estimated that 7 million people would lose employer based
coverage, and she opined that this was due to employer penalties
for lack of employee insurance. She suggested that employers
would recommend for employees to purchase insurance through the
various health exchanges. She reported that other business
owners were not hiring, were dividing their companies into units
of fewer than 50 employees, or were reducing hours from full
time employment in order to avoid this requirement. Again
referencing the CBO, she declared there were 1 trillion new
taxes under the Patient Protection and Affordable Care Act. She
declared that she did not "need or want any more taxes." She
offered an anecdote about her pre-existing health condition, and
stated that she had always had health care. She opined that the
act would increase her health care costs, and would remove some
of her current choices. She urged support for HJR 14.
3:21:30 PM
CHAIR HIGGINS closed public testimony.
3:21:47 PM
The committee took a brief at-ease.
3:22:35 PM
CHAIR HIGGINS brought the committee back to order.
[CHAIR HIGGINS passed the gavel to Vice Chair Keller.]
CHAIR HIGGINS brought attention to proposed Amendment 1, labeled
28-LS0187\U.1, Bailey, 4/1/13, which read:
Page 1, line 1:
Delete "and the Governor"
Insert ", the Governor, and the state's
congressional delegation"
Page 5, following line 12:
Insert new material to read:
"FURTHER RESOLVED that the Alaska State
Legislature calls on the state's Congressional
delegation to introduce, sponsor, support, and vote to
pass legislation in both houses of the United States
Congress that will delay the implementation of the
Patient Protection and Affordable Care Act until a
full analysis of the economic effect of the Act on
Alaskans and Alaska can be clearly quantified; and be
it"
CHAIR HIGGINS explained that the proposed amendment added
another whereas which would also urge the Alaska congressional
delegation in Washington, D.C. to take action to delay
implementation of the act.
VICE CHAIR KELLER moved to adopt Amendment 1, labeled 28-
LS0187\U.1, Bailey, 4/1/13. [Text included above]
REPRESENTATIVE PRUITT objected for discussion.
REPRESENTATIVE STOLTZE expressed appreciation for the proposed
amendment which was consistent with his stated intent.
VICE CHAIR KELLER explained that proposed Amendment 1 would
delete "and the Governor" on page 1, line 1, and insert "the
Governor, and the state's congressional delegation". He noted
that, on page 5, line 12, a new "Further Resolved" would be
added, and he read:
further resolved that the Alaska State Legislature
calls on the state's Congressional delegation to
introduce, sponsor, support, and vote to pass
legislation in both houses of the United States
Congress that will delay the implementation of the
Patient Protection and Affordable Care Act until a
full analysis of the economic effect of the Act on
Alaskans and Alaska can be clearly quantified;
3:24:44 PM
REPRESENTATIVE PRUITT removed his objection.
VICE CHAIR KELLER objected.
REPRESENTATIVE NAGEAK asked if there would be further discussion
on the proposed resolution.
VICE CHAIR KELLER stated that there would be further discussion
and he removed his objection. There being no further objection,
Amendment 1 was approved.
3:25:13 PM
The committee took a brief at-ease.
[Vice Chair Keller returned the gavel to Chair Higgins]
CHAIR HIGGINS brought the committee back to order.
3:25:41 PM
REPRESENTATIVE NAGEAK questioned why there had not been any
testimony from the rest of the state regarding proposed HJR 14.
He pointed out that the committee had not heard anything from
municipalities or tribal governments. He remarked that comments
about a resolution of this magnitude should have been heard from
the rest of the state.
3:26:56 PM
REPRESENTATIVE KELLER declared that he supported the resolution.
He said the resolution had been properly posted to allow the
public to offer its comments. He offered his belief that the
estimated costs to the act would increase. He noted that there
were now more taxes, which created an unsustainable burden.
3:28:21 PM
REPRESENTATIVE STOLTZE offered his belief that AARP "cut a deal"
to market its insurance. He expressed his agreement with
earlier testimony that things had changed in the previous six
months, although, he opined, things had not "gotten rosier" as
the public and private sector were simply more acquiescent
toward the issues. He offered his belief that the stakes were
elevating even higher, referencing some recent newspaper
articles. He suggested that the public was "numbed." He
offered his belief that the NFIB testimony represented the
private sector and small businesses. He suggested to
Representative Nageak that he "be careful about having a lot of
trust in that long term; what the federal government gives, it
can yank away, and does routinely."
3:31:44 PM
REPRESENTATIVE KELLER commented that a tension from the Patient
Protection and Affordable Care Act (PPACA) was that it "cuts
huge amounts out of Medicare." He deemed that the provider had
to pay the difference as Medicare was reduced. He opined that
this would create a dependence on Medicaid, "a needs based
program." He expressed his concern for seniors, and he
suggested that a delay of the act would allow time for more
thought.
3:33:17 PM
REPRESENTATIVE STOLTZE concluded that he had focused his
objections, and that "government can't give us anything unless
they yank it away from someone else first."
3:33:58 PM
REPRESENTATIVE NAGEAK acknowledged that he was not personally
concerned as he had very good insurance, but he expressed his
unease for those who could not afford insurance.
3:35:03 PM
REPRESENTATIVE REINBOLD offered her belief that it was
"important to look out for the fabric of America that's holding
our economy together." She said "this is an unbelievable bill
and I think it's really important that we slow this process
down."
3:35:28 PM
REPRESENTATIVE TARR, reporting on the history of the Patient
Protection and Affordable Care Act, referenced the individual
mandate discussions during the early 1990s. She opined that the
individual mandate was the crux of this act and had been
supported by the Alaska congressional delegation, as well as
endorsed by the Heritage Foundation, which was a well-known pro-
business, conservative organization. She declared that this
history was important to remember. She remarked that the
catalyst for change resulted from the rising health care costs,
which were hurting businesses. She declared that "she wouldn't
want us to kick the can down the road and not address the
issue." She shared her interest in ensuring that "as many
Alaskans as possible have health insurance, have access to
affordable health insurance." She pointed out that the state
with the most insured citizens was Massachusetts, under its
health care program, known as "Romneycare." She directed
attention to a table titled, "Health Care Model Comparison."
[Included in members' packets] She declared that the
Massachusetts model was similar to the PPACA, although more
restrictive with regard to the employer mandate for required
insurance coverage.
3:37:39 PM
CHAIR HIGGINS stated that this discussion was not for a
comparison of Massachusetts care to PPACA, and that
Representative Tarr should "wrap this up."
REPRESENTATIVE TARR replied that her comments were valid for the
record, and that she did not appreciate her discussion time
being shortened as this was a very important issue. She opined:
"I don't think 35 minutes in committee over something that
affects thousands and thousands of Alaskans is too much time."
She pointed to the success of Massachusetts with insuring a high
number of individuals, and suggested a look at the components of
the Massachusetts plan, as they were important pieces of
information for developing a plan to attain this goal of
insuring more Alaskans.
3:38:39 PM
CHAIR HIGGINS stated that he had previously heard arguments
about the Massachusetts plan, which he deemed were "about
Massachusetts only and not about any other state, so it's
comparing apples to oranges, it's completely different, and
that's why the numbers are different."
3:39:16 PM
REPRESENTATIVE KELLER commented: "I really think we need to
really go slow on this." He indicated a statistic from a 2010
Institute of Social and Economic Research (ISER) study which
said that Alaskans spent $7.5 billion for health care, which was
projected to double. He said that this was approximately half
of the earnings of all Alaskans. He offered his belief that a
change was forthcoming, and that it would affect the lives of
the elderly and others in Alaska.
REPRESENTATIVE KELLER moved to report HJR 14, Version 28-
LS0187\U, [as amended], out of committee with individual
recommendations and the accompanying zero fiscal notes. There
being no objections, CSHJR 14(HSS) was moved from the House
Health and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR14 Sponsor Statement.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR 14 Proposed Amendment Ver U.1.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR14.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR14 Summary.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR14 Resolution Sources.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR14 Supporting Documents - ADN Article.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR14 Supporting Documents - Alaska Dispatch Article.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| HJR Supporting Documents - NFIB.pdf |
HHSS 4/2/2013 3:00:00 PM |
HJR 14 |
| ACS Capsis.pdf |
HHSS 4/2/2013 3:00:00 PM |
ACS Presentation |
| ACS distance based delivery system.pdf |
HHSS 4/2/2013 3:00:00 PM |
ACS Presentation |
| Overview -20130402.pdf |
HHSS 4/2/2013 3:00:00 PM |
ACS Presentation |
| ANTHC ACS Letter 1.pdf |
HHSS 4/2/2013 3:00:00 PM |
ACS Presentation |
| HB054 Research - House HSS information from 4-2-13.pdf |
HHSS 4/2/2013 3:00:00 PM |
HB 54 |