04/13/2013 08:30 AM Senate HEALTH & SOCIAL SERVICES

         HJR 14-DELAY IMPLEMENTING AFFORDABLE CARE ACT                                                                      
                                                                                                                                
8:32:50 AM                                                                                                                    
CHAIR STEDMAN  announced the consideration of  HJR 14, requesting                                                               
the  United  States  Congress,  the  Governor,  and  the  state's                                                               
congressional  delegation  to  take actions  necessary  to  delay                                                               
implementation  of the  Patient  Protection  and Affordable  Care                                                               
Act.  [CSHJR 14(HSS)  was before  the committee.]  He noted  that                                                               
this was the  first hearing of the resolution and  the intent was                                                               
to   adopt   the   Senate  committee   substitute,   receive   an                                                               
introduction, take public  testimony and look to the  will of the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR MICCICHE  moved to adopt the  Senate committee substitute                                                               
(CS)  for CS  for HJR  14,  labeled 28-LS0187\C,  as the  working                                                               
document.                                                                                                                       
                                                                                                                                
CHAIR STEDMAN objected for purposes of an explanation.                                                                          
                                                                                                                                
8:33:46 AM                                                                                                                    
DARWIN  PETERSON, Staff,  Senator  Bert  Stedman, explained  that                                                               
version  C makes  four  changes, all  of  which remove  language.                                                               
First,  on page  1,  the  phrases "the  President  of the  United                                                               
States and the  Democratic majority in" and  "voting mainly along                                                               
party lines,"  were removed  from the  first whereas  clause. The                                                               
purpose  for this  was to  remove partisan  language. Second,  on                                                               
page 4, following  line 6, an entire whereas  clause was deleted.                                                               
It  stated,  "the  Obama  Administration   admits  that  tens  of                                                               
millions of  Americans are  at risk of  losing their  health care                                                               
coverage."  Third, on  page 5,  following  line 1,  the last  two                                                               
whereas  clauses   were  removed.   They  stated,   "the  Patient                                                               
Protection and  Affordable Care Act expands  Medicaid without any                                                               
significant reform, leaving the  state to assume an unsustainable                                                               
financial burden"  and "the required expansion  of Medicaid under                                                               
the Patient  Protection and  Affordable Care  Act will  cause the                                                               
number  of Alaskans  covered by  the  program to  increase by  at                                                               
least 30 percent."  The purpose of removing these  two clauses is                                                               
that  the legislature  would  be taking  a  position on  Medicaid                                                               
expansion  and the  governor intends  to  conduct a  cost-benefit                                                               
analysis over the interim and make a decision later.                                                                            
                                                                                                                                
CHAIR STEDMAN removed his objection.                                                                                            
                                                                                                                                
8:35:51 AM                                                                                                                    
SENATOR KELLY asked if there was feedback from the sponsor.                                                                     
                                                                                                                                
MR. PETERSON said the sponsor concurs with the changes.                                                                         
                                                                                                                                
CHAIR STEDMAN  found no further objection;  [therefore, version C                                                               
was before the committee.]                                                                                                      
                                                                                                                                
8:36:45 AM                                                                                                                    
DARRELL BREESE,  Staff, Representative  Bill Stoltze,  sponsor of                                                               
HJR 14, confirmed that the  sponsor worked with Senator Stedman's                                                               
office on the changes in the current CS.                                                                                        
                                                                                                                                
He  explained that  the  resolution  is a  call  for the  federal                                                               
government  to do  some cost  analysis, not  repeal the  Act. The                                                               
sponsor wants business  to move forward knowing  the actual costs                                                               
before implementation.                                                                                                          
                                                                                                                                
He noted  support for the  resolution by the  National Federation                                                               
of Independent Businesses.                                                                                                      
                                                                                                                                
He highlighted  several whereas clauses  in the Act.  The largest                                                               
insurance companies  in Alaska stated  that they  expect premiums                                                               
to  increase  between 30  to  80  percent for  individual  policy                                                               
holders due to the Act.  The average cost increase for individual                                                               
health insurance would increase by  $2,500 per year. There are 21                                                               
new  taxes which  will incur  costs. He  noted that  big business                                                               
will  remove  employees from  full-time  status  to avoid  paying                                                               
increased  costs.  The  estimate  is that  30  percent  of  small                                                               
businesses nationwide will remove  employees from their rolls. It                                                               
is  also estimated  that  8  to 10  percent  of people  receiving                                                               
insurance now will lose it altogether.  The total cost of the Act                                                               
has increased by more than three  times the original cost to $2.6                                                               
trillion a year  and is still being evaluated.  He concluded that                                                               
the resolution  requests the Obama administration  to clarify the                                                               
costs of the Act.                                                                                                               
                                                                                                                                
8:41:54 AM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
CHAIR  STEDMAN  noted the  zero  fiscal  note. He  opened  public                                                               
testimony.                                                                                                                      
                                                                                                                                
8:42:20 AM                                                                                                                    
MARK  REGAN, Attorney,  Disability Law  Center of  Alaska, raised                                                               
questions  about  the  factual  validity   of  HJR  14.  He  drew                                                               
attention  to  the statement  that  says  Garden Restaurants  has                                                               
transferred nearly 75 percent of  the chain's employees from full                                                               
time to  part time status  in an attempt  to limit the  number of                                                               
employees for whom  health insurance would be  mandated under the                                                               
Act. He maintained  that there were problems  with that statement                                                               
and it  was based  on an  Associated Press  story from  2012 that                                                               
wasn't  accurate. He  explained  that the  chain  already has  75                                                               
percent  of  its employees  in  part  time  status and  was  only                                                               
testing the  possibility of converting  full time  employees, but                                                               
decided  not to  do so.  He proposed  that the  committee doesn't                                                               
know if that  is the only factual error in  the resolution, so it                                                               
would be a bad idea for the committee to pass it.                                                                               
                                                                                                                                
8:45:27 AM                                                                                                                    
ROBERT   HEINRICH,  Member,   Anchorage   Chamber  of   Commerce,                                                               
testified in support of the concept  of HJR 14 and the removal of                                                               
the clauses  proposed in  the Senate  CS. He  opined that  it was                                                               
premature  to discuss  the impact  of the  Medicaid expansion  at                                                               
this point.                                                                                                                     
                                                                                                                                
DENNIS  DEWITT,  Lobbyist,  National  Federation  of  Independent                                                               
Businesses, stated support of HJR 14.                                                                                           
                                                                                                                                
8:47:43 AM                                                                                                                    
BILL  STRUER,  Commissioner,  Department  of  Health  and  Social                                                               
Services  (DHSS),  stated that  HJR  14  is  headed in  the  same                                                               
direction as the  department with respect to  the Affordable Care                                                               
Act, which  is to  move slowly.  He didn't see  any way  that the                                                               
state  wouldn't see  increased costs  with the  implementation of                                                               
the program.  There are already significant  problems with access                                                               
to Medicaid and Medicare.                                                                                                       
                                                                                                                                
He  offered his  belief that  the clauses  that were  removed are                                                               
fundamentally accurate. The Medicaid  population will increase by                                                               
30 percent.  He said  Mr. Breese's comments  are accurate  and it                                                               
will be a challenge and expensive.                                                                                              
                                                                                                                                
8:50:14 AM                                                                                                                    
CHAIR STEDMAN asked  about page 2, line 31, the  reference to the                                                               
Garden Restaurants.                                                                                                             
                                                                                                                                
MR. BREESE said  the information was based on  another AP article                                                               
from October 9, 2012, not the  one the caller mentioned. He noted                                                               
he hasn't researched farther than that.                                                                                         
                                                                                                                                
CHAIR STEDMAN suggested asking the  sponsor to check the accuracy                                                               
of  that article  and  to offer  an amendment  on  the floor,  if                                                               
needed.                                                                                                                         
                                                                                                                                
8:51:54 AM                                                                                                                    
MR. BREESE said  the clause goes to the heart  of the resolution.                                                               
He noted  the information related  to the Act is  changing daily.                                                               
He agreed to research the aforementioned issue.                                                                                 
                                                                                                                                
SENATOR KELLY  asked the sponsor's  staff to get  the information                                                               
requested and remove the anecdotal information.                                                                                 
                                                                                                                                
SENATOR MICCICHE agreed with the suggestion.                                                                                    
                                                                                                                                
SENATOR  KELLY   suggested  saying  "nationwide   businesses  are                                                               
considering."                                                                                                                   
                                                                                                                                
CHAIR STEDMAN found no further  questions or discussion and asked                                                               
the will of the committee.                                                                                                      
                                                                                                                                
8:53:56 AM                                                                                                                    
SENATOR MICCICHE moved  to report [Senate] CS for CS  for HJR 14,                                                               
version  C, from  committee with  individual recommendations  and                                                               
attached fiscal note.                                                                                                           
                                                                                                                                
CHAIR STEDMAN announced that without  objection SCS CSHJR 14(HSS)                                                               
moved  from  the  Senate  Health  and  Social  Services  Standing                                                               
Committee.