Legislature(2005 - 2006)HOUSE FINANCE 519
04/26/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB13 | |
| HB53 | |
| HB275 | |
| SB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 13 | TELECONFERENCED | |
| += | HB 53 | TELECONFERENCED | |
| + | SB 67 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 275 | ||
CS FOR SENATE BILL NO. 67(JUD)(efd fld)
An Act relating to claims for personal injury or
wrongful death against health care providers.
BRIAN HOVE, STAFF, SENATOR RALPH SEEKINS, said that SB 67
would amend AS 09.55 by adding a new section (.549). The
section would place a two-step limit on non-economic damage
awards where health care providers render services. In
cases involving wrongful death or severe permanent physical
impairment, damages would be limited to $400 thousand
dollars, while all other cases would be limited to $250
thousand dollars.
The bill intends to alleviate a growing, two-pronged, crisis
in Alaska's health care industry, the dearth of liability
insurance carriers and the declining number of practicing
physicians. Liability insurance is necessary. Health care
providers understand the necessity of liability coverage.
Mr. Hove stated that in today's world, commercial enterprise
must have coverage. Medical malpractice insurance companies
have found Alaska uneconomic and have left that market,
which has created uncertainty and opened the door to higher
rates across the board.
Mr. Hove noted every Alaskan needing medical care pays the
added costs of doing business, however, there are more
serious concerns with a critical shortage of physicians.
Alaska ranks near the bottom in the number of physicians per
capita nationwide and that over half of Alaska's physicians
exceed the age of 50. Additionally, it is continually more
difficult to recruit new entries when other states have
capped non-economic damages at or near $250 thousand
dollars. It is important to note that SB 67 does not alter
awards for quantifiable damages such as lost wages and
medical expenses. Furthermore, it is not intended to be a
solution to the entire range of issues facing the health
care industry today. However, it does provide a step in the
right direction in terms of stabilizing the medical
insurance market in Alaska and boosting efforts to attract
the next generation of physicians.
4:39:59 PM
JIM JORDAN, EXECUTIVE DIRECTOR, ALASKA STATE MEDICAL
ASSOCIATION (ASMA), ANCHORAGE, testified in support of the
legislation. He mentioned the national shortage of
physicians. The Association of American Medical Colleges
has issued an alert that it is time to ramp up for the
medical shortage. He emphasized that the shortage is
particularly acute in the Western states.
Mr. Jordan maintained that the State of Alaska cannot afford
the loss of another physician. There are a variety of
reasons that physicians are being lost. He felt that SB 67
could aid in recruitment of new doctors. Mr. Jordan pointed
out that two of the four insurance companies that have left
the State are still doing business in Idaho. Alaska exceeds
Idaho's [medical insurance] rates by 50 percent. He urged
support for SB 67.
4:47:57 PM
Representative Foster referenced the materials in the file
which indicates that the number of doctors across the
country have tripled since 1989.
4:51:20 PM
Mr. Jordan questioned which report was being referenced.
Representative Foster restated that the report indicates the
tripling per capita. Mr. Jordan advised that the numbers
being discussed are the total number of physicians licensed
in the State. It is important to take into consideration
how many doctors are actually practicing. The national
organization of State Medical Boards indicates that 60% of
physicians have licenses in multiple states. The directory
is the best attempt to determine who the practicing
physicians are.
4:53:39 PM
Representative Weyhrauch questioned if 37 doctors had
dropped out of practice last year. Mr. Jordan said yes,
primarily due to the number of deployed military positions.
Representative Weyhrauch asked if they had purchased
malpractice insurance. Mr. Jordan believed that the retired
military had been covered under the federal torte act.
4:56:05 PM
MIKE HAUGEN, EXECUTIVE DIRECTOR, ALASKA PHYSICIANS AND
SURGEONS, ANCHORAGE, testified in support of the
legislation. Approximately, 60% of the Alaskan voters favor
placing a cap on non-economic damages in medical non-
practice cases. He added that 72% of the voters believe
that health care providers are doing a good job preventing
medical errors and promoting public safety. Nearly half of
the voters feel that some physicians have stopped providing
some complex or high-risk medical services to protect
themselves from the lawsuits. Voters fear that the medical
non-practice component will impact them directly.
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Mr. Haugen pointed out that Alaska ranks 46 out of 50
states in the number of per capita doctors. Those states
that have enacted meaningful, non-economic damage caps have
seen an average of about 12% more doctors per capita.
Mr. Haugen argued that the concern is one of access. With
only two insurance carriers left in the State, Alaska cannot
afford to loose one of them. There are enough senior
doctors in the State deciding to retire from practice. It
is very difficult to attract new doctors into Alaska and
with just two carriers, it will not be getting any easier.
He stated that SB 67 would help address these concerns.
4:59:16 PM
Representative Holm asked if it was in the best interest for
Alaskans to have young or old doctors. Mr. Haugen responded
that would depend on the qualifications and ability of that
physician. The doctors coming out of medical school are
exposed to the most current technology and theory while the
older physicians have experience. The fact is that Alaska
needs to attract more doctors of all ages.
Representative Holm pointed out that it is extremely
difficult to attract specialists in Fairbanks. He was
concerned that the legislation might attract only young
doctors.
Representative Holm referenced an article regarding a
liability insurance analysis undertaken by a group, which
ranks Alaska between 33%-36% nationwide. Alaska ranks very
low for doing business and recommended that torte reform be
implemented.
5:02:58 PM
Mr. Haugen explained that the proposed legislation was not
the ultimate solution to the problem. He thought that
eventually, the Legislature could create a better fix to the
problem.
5:04:59 PM
Representative Holm advised that there is no guarantee from
any insurance company that they will stay in Alaska either
with or without passage of the legislation.
CS SB 67(JUD)(efd fld) was HELD in Committee for further
consideration.
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