Legislature(2025 - 2026)BUTROVICH 205

03/13/2025 03:30 PM Senate HEALTH & SOCIAL SERVICES

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled:
+= SB 9 SURRENDER OF INFANTS; INF. SAFETY DEVICE TELECONFERENCED
Moved CSSB 9(HSS) Out of Committee
+= SB 83 TELEHEALTH REIMBURSEMENT RATES TELECONFERENCED
Moved CSSB 83(HSS) Out of Committee
*+ SCR 2 SUPPORT CRISIS CARE & MEDICAID REFORM TELECONFERENCED
Heard & Held
             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