Legislature(2003 - 2004)
04/07/2003 01:03 PM Senate HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 105-MEDICAID:CHILDREN/PREGNANT WOMEN/FACILITY
CHAIR FRED DYSON called the Senate Health, Education and Social
Services Standing Committee meeting to order at 1:33 p.m. All
members were present. He announced SB 105 to be up for
consideration and that there was a proposed committee substitute
(CS).
COMMISSIONER JOEL GILBERTSON, Department of Health and Social
Services (DHSS), explained that SB 105 would lock-in FY 03
administrative standards at 200 percent of the poverty level for
Denali Kid Care clients and pregnant women under Medicaid and at
300 percent of the special income standard for the FY 03
administrative standards for seniors in long term care and
individuals receiving home or community based waiver services.
He explained:
The administration's position is that the standards
that are applied in the bill are those that are being
currently utilized by the program. Locking them in
will remove the inflation factor in the coming years.
We believe it's a responsible step to control the
growth in the knowledge that we have reached the
maximum carrying capacity for our Medicaid program
under current financial constraints.
COMMISSIONER GILBERTSON said that the standards are very high
and that the chairman has an amendment to lower them. However,
the governor supports the high standards.
CHAIR DYSON said he struggled because he wanted to cut to the
lowest levels. He asked why the [commissioner] didn't do that.
COMMISSIONER GILBERTSON replied that the application of a
uniform standard across various family sizes is necessary to
meet some of the equal protection concerns within the program
itself. DHSS doesn't believe that the federal government would
approve a plan to establish a differentiating standard for
individuals who are technically under the same economic status,
though it is adjusted in terms of the income level based on
number of children. DHSS believes that there needs to be at
least some uniform standard, even if it is a locked, fixed
dollar amount.
CHAIR DYSON asked if this bill were amended, would he prefer
that it be amended to a percentage level or to fixed numbers
under that percentage level.
COMMISSIONER GILBERTSON replied that it would be hard for him to
say at this stage whether to use a fixed dollar amount or a
percentage. Either approach would lead to a reduced eligibility
standard from the eligibility standards dedicated in the
governor's bill.
CHAIR DYSON explained if they go to a fixed amount, the
mechanism the governor supports (letting inflation reduce the
impact in the out-years) would be accomplished. If they use a
percentage amount, it could be argued that inflation would take
it back up to the nominal value it's been at and it would need
to be revisited in two or three years.
COMMISSIONER GILBERTSON replied that he understood that, but the
governor's concern is the inability of some people to remain in
the program. The governor is interested in seeing standards that
resemble the 200 percent of poverty standard for FY 03 going
into the future. Looking at the chart now, he didn't think they
would be capturing the same group of individuals.
SENATOR GARY WILKEN asked if they have an idea of what every
ratchet down is worth in general fund money.
COMMISSIONER GILBERTSON replied that one estimate he has is a 25
percent reduction going from 200 percent to 175 percent (150% is
the lowest they can go and still be eligible for the enhanced
federal match rate under the children's health insurance program
with the Denali Kid Care's Alaska component). They are expecting
a true general fund savings of roughly $2 million. Going down to
150 percent of poverty level would be going from $3.5 to $4
million.
SENATOR WILKEN moved to adopt amendment 2 as follows: on page
4, line 7 insert $1,635; on line 8 insert $2,208; on line 9
insert $2,782; on line 11 insert $3,355; on line 13 (family of
5) insert $3,928; on line 14 insert $4,501; on line 15 insert
$5,074; on line 17 insert $5,647; and on line 19 insert $5,647,
plus an additional $574.
SENATOR GRETCHEN GUESS objected.
SENATOR WILKEN explained that he didn't have a frame of
reference other than dollars per hour. So, this was very much a
judgment call. His numbers do not use a permanent fund dividend
component. They need to get the numbers "nailed down" as a
matter of finance. At 200 percent, they picked up people who are
making $9 per hour and yet, in the family of four category, a
person could have a job at $19 per hour and in the family of
eight category, a person could make $32 per hour. At the other
end of the spectrum, at 150 percent, you're at $7 per hour, $14
per hour or $24 per hour. He just took the middle number to get
a sense of where they are. Now, a family of one can make $8 per
hour and that seemed appropriate to him. A family of four would
make a little over $17 per hour.
SENATOR GUESS explained that she objected because they are
talking about pregnant women and kids and, therefore, need to
have some economic analysis of the true impact when those groups
aren't covered. She pointed out:
We know the amount of pressure there is on our
emergency rooms, especially with kids. And I know from
the research I did, and I think all the committee
knows that when pregnant women don't have access to
health care, they have more low birth weight babies
who cost society more and that abortion rates go up.
I'm not going to be a part of any bill, whether it's
the governor's bill or any other bill personally...if
it pulls pregnant women off.
She said she pays all the bills and budgets for her family and
tried to make a budget to actually be able to afford health
care. She said:
Although $17 or $32 might sound like a lot, Gary, I
would actually challenge the committee and Senate to
see now - after taxes - on rent, utilities, insurance
and try to find the room where you can have $600 to
$700 so you can afford insurance and that's what we're
talking about in the trade offs with families.
CHAIR DYSON asked for a roll call vote.
SENATORS GREEN, WILKEN, and DYSON voted yea; SENATORS GUESS and
DAVIS voted nay; and amendment 2 was adopted.
SENATOR WILKEN moved to pass CSSB 105(HES) and its attached
fiscal note with individual recommendations out of committee.
SENATOR BETTYE DAVIS objected.
CHAIR DYSON asked if anyone else wanted to testify.
MS. MARIE LAVIGNE, Executive Director, Alaska Public Health
Association, said she represents over 200 health care
professionals across Alaska who are deeply committed to
developing sound public health policies to improve the health of
all Alaskans including access to health care. She urged them to
continue eligibility for the Denali Kid Care program at the
fullest level possible and stated that SB 105 reduces
eligibility. This will have a negative impact on the health of
pregnant women and children and others. She explained:
Public health research on the health impacts of the
uninsured is noteworthy. Uninsured children who need
medical [indisc.] care, are four times more likely to
go without the care they need than insured children of
the same health needs. As Senator Guess mentioned,
when they do get care, they are sicker and are more
likely to be seen in the emergency room. Uninsured
children are four and a half times more likely to do
without needed prescriptions and eye glasses; five
times more likely to not receive dental care.
Uninsured children are one and a half times more
likely to arrive to kindergarten without their
vaccinations; they are eight times more likely not to
have had a well child visit [recommended periodic
check up by a physician] before they arrive at school.
Uninsured pregnant women are less likely to receive
prenatal care, placing them at risk to deliver early,
low birth weight babies and the greatest risk for
fetal maternal deaths.
In the governor's transmittal letter he states, 'while
the cost savings associated with this bill are modest
in the short term, this measure will significantly
reduce future year costs.' From the public health
perspective, any short term savings, if not compared
to the greater loss in terms of the health and well
being of pregnant women and children and others
impacted under this bill - we urge you to consider
this issue from a different perspective. SB 105 is
seeking to lower the enrollment of medical assistance
programs by reducing eligibility. Yet the most
effective approach the Legislature could take is to
assist employers and working families to get
affordable health insurance....
While there are many factors that contribute to one in
five Alaskan's lack of health insurance coverage, one
of the greatest barriers remains access to affordable
health insurance. A study by the Anchorage Access to
Health Care coalition released this fall indicated
that 16,000 adults in Anchorage are uninsured; 71% of
those are working adults. The majority are in
businesses with less than 10 employees. We need the
Legislature to take steps to join with businesses in
addressing the issue of affordable health care
insurance. In the meantime, we urge you to keep the
eligibility for this program at the full 200% of its
federal poverty level to maximize the health of
pregnant women and children who are covered. Thank
you.
CHAIR DYSON asked for a roll call vote.
SENATORS WILKEN, GREEN, and DYSON voted yea; SENATORS DAVIS and
GUESS voted nay; and CSSB 105(HES) passed out of committee.
| Document Name | Date/Time | Subjects |
|---|