Legislature(2025 - 2026)BUTROVICH 205
03/13/2025 03:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| SB83 | |
| SB9 | |
| SCR2 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 9 | TELECONFERENCED | |
| += | SB 83 | TELECONFERENCED | |
| *+ | SCR 2 | TELECONFERENCED | |
SB 83-TELEHEALTH REIMBURSEMENT RATES
3:32:14 PM
CHAIR DUNBAR announced the consideration of SENATE BILL NO. 83
"An Act relating to health care insurance; relating to insurance
reimbursement for health care services provided through
telehealth; and providing for an effective date."
3:33:43 PM
CHAIR DUNBAR solicited a motion.
3:33:46 PM
SENATOR GIESSEL moved to adopt the committee substitute (CS) for
SB 83, work order 34-LS0413\O, as the working document.
3:33:56 PM
CHAIR DUNBAR objected for purposes of discussion.
3:34:17 PM
ARIELLE WIGGIN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, offered the summary of changes for
SB 83 version I to version O. She paraphrased the following:
[Original punctuation provided.]
SUMMARY OF CHANGES
CSSB 83: TELEHEALTH REIMBURSEMENT RATES
Version I to Version O
Title Changes:
- removes "relating to health care insurance
reimbursement rates" on account of removed
language in prior Section 3.
- Expanded to include "providing for an effective
date by repealing the effective date of secs. 9
and 10, ch. 38, SLA 2022;"
Prior version Section 3 removed: required health care
insurers to equally apply reimbursement rates for each
health care provider; renumbers following sections.
Page 1 Line 10 following "services"
Inserts "including behavioral health services,"
Page 5 Lines 3-4
Repeals Sections 9, 10, 13, and 14 of chapter 38 of
the Session Laws of Alaska 2022.
These are sections within House Bill 265, passed into
law in 2022. Sections 9 and 10 would be negated by
this legislation. Sections 13 and 14 have to do with
the effective date of the legislation, and repealing
these sections deletes the sunset date of June 30,
2030.
Page 5, Line 5
Creates an effective date of January 1st, 2026.
3:35:45 PM
SENATOR HUGHES noted that telehealth was originally intended to
reduce health care costs. She asked whether any cost projections
have been completed on how removing the telehealth sunset would
affect the Medicaid budget.
3:36:10 PM
SENATOR CLAMAN speaking as sponsor of SB 83 stated the question
is for Ms. Wing-Heier.
CHAIR DUNBAR asked to confirm that the projection extends to
2030 and that the next five years should already be incorporated
into the cost estimates.
SENATOR CLAMAN replied correct.
3:36:58 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, answered questions regarding SB 83. She answered that
the Division of Insurance does not handle Medicaid and that the
Department of Health would need to provide that information.
3:37:14 PM
SENATOR HUGHES expressed concern that establishing payment
parity between in-person care and telehealth may not help
control health care costs and affects only a small segment of
the market. She asked whether this approach could unfairly
burden that group.
3:37:59 PM
MS. WING-HEIER replied that that insurers reported they already
pay at parity. She said the Division of Insurance relayed that
information to the sponsor, who still wanted it codified to
ensure consistency. She noted that insurers have not opposed the
bill and do not view parity as a health care cost concern.
3:38:28 PM
SENATOR HUGHES stated that private insurers do not mirror Center
for Medicare and Medicaid Services (CMS) or Medicaid rates
exactly but often use them as a reference. She asked whether
insurers realized that removing Medicaid's telehealth sunset
under SB 83 would make payment parity permanent, eliminating the
possibility of future rate divergence and effectively locking
insurers into parity going forward.
3:39:37 PM
MS. WING-HEIER replied that she was unsure whether insurers are
aware, but insurers have had the same opportunity to review the
Committee Substitute for SB 83 and did not raise concerns or
submit opposition. She said the division assumes insurers are
aware and have no objections.
3:40:01 PM
SENATOR HUGHES said she sent a letter to a national association
for insurance carriers asking whether they would support
permanently locking in telehealth rates at in-person levels.
They replied no. She noted that she plans to follow up and share
that information with the sponsor and others.
3:40:57 PM
CHAIR DUNBAR removed his objection. He found no further
objection and CSSB 83 was adopted as the working document.
3:41:07 PM
CHAIR DUNBAR asked the sponsor of the bill for closing remarks.
3:41:20 PM
SENATOR CLAMAN explained that the committee substitute (CS)
reflects extensive discussions with stakeholders, including
insurance representatives. Some provisions were removed, the
sunset was revised, and the updated CS was carefully reviewed
with those who had engaged with their office. It is his belief
that SB 83 has broad support from both insurers and providers.
3:41:55 PM
SENATOR HUGHES asked why the provision requiring clinicians,
PAs, advanced nurse practitioners, and physicians to be paid at
the same rate was removed from SB 83.
SENATOR CLAMAN replied that the provision originated as an
amendment requested by Senator Giessel, but both the hospital
association and insurers raised concerns. After discussing it
with Senator Giessel, who has other legislation addressing
similar issues, she agreed to remove the provision, and it was
taken out of SB 83.
3:42:45 PM
SENATOR GIESSEL clarified that it was not truly an agreement.
The proposal would have codified unequal pay based on provider
licensure, which they found unacceptable; therefore, they
preferred removing the provision rather than adopting the
alternative.
3:43:24 PM
SENATOR HUGHES noted that although they previously supported
equal pay for the same service, they reconsidered because
providers have differing levels of training and expertise. She
concluded that equalizing rates could discourage medical
education and said they are relieved the provision was removed
from SB 83.
3:43:57 PM
SENATOR CLAMAN clarified that Senator Giessel recalled that the
alternative options were even less acceptable to her, and her
comments accurately reflect those discussions.
3:44:22 PM
CHAIR DUNBAR solicited the will of the committee.
3:44:22 PM
SENATOR GIESSEL moved to report CSSB 83, work order 34-LS0413\O,
from committee with individual recommendations and attached
fiscal note(s).
3:44:38 PM
CHAIR DUNBAR found no objection and CSSB 83(HSS) was reported
from the Senate Health and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 9 Version G 3.11.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 9 |
| SB 83 Version T 3.11.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 83 |
| CSSB 83 Version T Summary of Changes 3.12.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 83 |
| CSSB 9 Version G Summary of Changes 3.12.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 9 |
| CSSB 83 Version O 3.12.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 83 |
| CSSB 83 Version O Summary of Changes 3.12.25.pdf |
SHSS 3/13/2025 3:30:00 PM |
SB 83 |