Legislature(2025 - 2026)BUTROVICH 205
04/03/2025 03:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| SB122 | |
| SB134 | |
| Confirmation Hearing(s): State Medical Board | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 122 | TELECONFERENCED | |
| += | SB 134 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
| += | SB 88 | TELECONFERENCED | |
SB 122-HEALTH INSURANCE NETWORK STANDARDS
3:47:29 PM
CHAIR DUNBAR announced the consideration of SENATE BILL NO. 122
"An Act relating to insurance; establishing standards for health
insurance provider networks; and providing for an effective
date."
3:48:03 PM
CHAIR DUNBAR invited the sponsor to give a recap of SB 122.
3:48:09 PM
SENATOR GIESSEL recapped the purpose of SB 122 stating it is a
consumer protection bill. SB 122 would require insurance
companies to maintain adequate provider networks in their
policies.
3:49:14 PM
CHAIR DUNBAR said the committee would hear two amendments.
3:49:27 PM
CHAIR DUNBAR solicited a motion.
3:49:29 PM
SENATOR GIESSEL moved to adopt Amendment 1, work order 34-
LS0281\N.1.
4-LS0281\N.1
Wallace
3/25/25
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR GIESSEL
TO: SB 122
Page 1, lines 5 - 10:
Delete all material and insert:
"Sec. 21.07.035. Minimum provider network
standards. (a) A health care insurer shall take the
network requirements of this section into account when
calculating the benefits of, or other contractual
requirements applicable to, a covered person's health
care insurance policy that, as determined by the
director,
(1) requires the covered person to use a
limited network of health care providers, as defined
in regulation by the director; or
(2) creates a substantial financial or
other incentive or disincentive for the covered person
to use a limited network of health care providers."
3:49:32 PM
CHAIR DUNBAR objected for purposes of discussion.
3:49:40 PM
SENATOR GIESSEL explained that in the original SB 122, section
21.05.035 emphasizes its core purpose as consumer protection by
establishing minimum provider network standards. The bill
directs the Division of Insurance to assess network adequacy,
clarifying that insurers must consider network breadth when
calculating benefits. She said the director will evaluate
whether networks are so narrow or low-cost that consumers may be
misled or lack meaningful choice and will weigh whether
consumers are fully informed when selecting between limited,
lower-cost networks and broader, higher-cost options.
3:51:47 PM
SENATOR HUGHES asked for clarification on why Amendment 1 is
needed if 90 percent of providers are required to be in-network.
3:52:06 PM
SENATOR GIESSEL responded that the example is used to illustrate
the risk that insurers may intentionally offer extremely narrow
networks to attract consumers seeking low premiums. SB 122 is
intended as a safeguard to prevent consumers from unknowingly
choosing low-cost plans that later limit access to needed
specialists, resulting in inadequate coverage when medical needs
arise.
3:53:35 PM
SENATOR HUGHES reiterated that she doesn't understand the need
based on large percentages in SB 122. She requested the Division
of Insurance Director speak to the committee for further
understanding.
3:54:09 PM
HEATHER CARPENTER, Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, answered questions about SB 122. She introduced herself.
SENATOR HUGHES asked whether she sees the amendment as
necessary.
3:54:53 PM
MS. CARPENTER replied that how Senator Giessel described it is
probably accurate. She said Alaska doesn't have a narrow network
and she doesn't know if it would apply to someone who doesn't
have privileges at a hospital because of how the networks look.
3:55:37 PM
SENATOR HUGHES asked whether the amendment would hurt the
consumer.
3:55:47 PM
MS. CARPENTER answered that she doesn't think it will hurt the
consumer. She stated she agrees with Senator Giessel that
consumers need to be more informed.
3:56:10 PM
CHAIR DUNBAR removed his objection. He found no further
objection and Amendment 1 (N.1) was adopted.
3:56:25 PM
CHAIR DUNBAR solicited a motion.
3:56:31 PM
SENATOR CLAMAN moved to adopt Amendment 2, work order 34-
LS0281\N.2.
34-LS0281\N.2
Wallace
4/1/25
A M E N D M E N T 2
OFFERED IN THE SENATE BY SENATOR CLAMAN
TO:SB 122
Page 3, line 3:
Delete "85"
Insert "70"
Page 3, line 7:
Delete "85"
Insert "70"
Page 3, line 10:
Delete "90"
Insert "75"
Page 3, line 14:
Delete "90"
Insert "75"
Page 3, line 18:
Delete "95"
Insert "80"
Page 3, line 22:
Delete "95"
Insert "80"
3:56:36 PM
CHAIR DUNBAR objected for purposes of discussion.
3:56:43 PM
SENATOR CLAMAN described Amendment 2 stating it reduces the
required provider network coverage percentages in all six
regions by 15 percent, such as lowering 85 percent to 70 percent
and 90 percent to 75 percent, while maintaining the bill's
consumer protections and making the requirements more acceptable
to insurers.
3:57:39 PM
JERRFERY DAVIS, Principal, Weston Group Consulting, Wenatchee,
Washington, answered questions concerning SB 122. He stated that
the revised percentages are intended to preserve the bill's
consumer protection goals and apply only to narrow network plan
designs, particularly those with little or no out-of-network
coverage. He said in cases where consumers may be drawn to
lower-cost plans without fully understanding network
limitations, SB 122 requires insurers offering such plans to
meet specified network adequacy percentages, which are believed
to still fulfill the bill's original intent.
3:59:27 PM
CHAIR DUNBAR removed his objection. He found no further
objection and Amendment 2 (N.2) was adopted.
3:59:45 PM
CHAIR DUNBAR opened public testimony on SB 122.
4:00:33 PM
At ease.
4:00:49 PM
CHAIR DUNBAR reconvened the meeting and resumed public
testimony.
4:01:03 PM
BRENDA SNYDER, Director, State Government Affairs, CVS Health,
Tacoma, Washington, testified in opposition to SB 122. She
explained that health carriers offer employers and plan sponsors
various cost-saving tools, including network design, to balance
access, cost, and quality while improving outcomes and
controlling expenses. She said carriers already must meet ACA
and CMS network adequacy standards, overseen by the Alaska
Division of Insurance, and have expanded provider networks
significantly in recent years. She argued that the bill's
proposed changes to network adequacy percentages would disrupt
this balance, weaken quality safeguards, increase provider
leverage in negotiations, raise costs and out-of-pocket
expenses, and potentially put patient safety at risk.
4:03:33 PM
STEVE COMPTON, MD, representing self, Anchorage, Alaska,
testified in opposition to SB 122. He emphasized that Alaska
already suffers from severe provider shortages across multiple
specialties, including pulmonology, endocrinology, cardiology,
pediatric neurosurgery, and primary care, forcing some patients
to leave the state for care. He argued that insurers' cost-
control strategies often reduce access to care, that there is
currently no clear standard for network adequacy, and that
consumer protections are lacking, particularly in light of
statements by a dominant out-of-state insurer indicating plans
to implement a new network strategy in Alaska.
4:07:00 PM
CHAIR DUNBAR closed public testimony on SB 122.
4:07:13 PM
SENATOR HUGHES asked why SB 122 references Medicare Advantage,
noting that it is not available in Alaska and primarily serves
individuals over age 65. She asked whether the reference is
merely to identify a list of specialties and, if so, how
pediatric care would be accounted for.
4:07:57 PM
SENATOR GIESSEL suggested that Mr. Davis answer the question.
4:08:14 PM
MR. DAVIS replied that the reference is to a list of specialties
and acknowledged the point brought up about pediatrics.
4:08:32 PM
SENATOR HUGHES asked whether this is something that needs to be
fixed.
MR. DAVIS replied that adding pediatrics would be a good
addition but it's referencing a list not products.
4:08:50 PM
SENATOR HUGHES stated that the amendment improves SB 122 but
remains concerned that it adds another layer of network adequacy
requirements beyond those already mandated by the Affordable
Care Act. She questioned the use of percentage-based standards
rather than provider-to-population ratios. She stated that she
is worried that the thresholds may still be too high given
Alaska's limited specialists, and cautioned that mandated
percentages could increase provider leverage, raise health care
costs, and discourage insurer participation, ultimately reducing
competition and harming consumers.
4:11:00 PM
CHAIR DUNBAR solicited the will of the committee.
4:11:03 PM
SENATOR GIESSEL moved to report SB 122, work order 34-LS0281\N,
as amended, from committee with individual recommendations and
attached fiscal note(s).
4:11:19 PM
CHAIR DUNBAR found no objection and CSSB 122(HSS) was reported
from the Senate Health and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 134 Supporting Document PBM License Registration Tracking NAIC 04.02.25.pdf |
SHSS 4/3/2025 3:30:00 PM |
SB 134 |
| SJR 15 Fiscal Note LEG SESS 3.19.25.pdf |
SHSS 4/3/2025 3:30:00 PM |
SJR 15 |
| SB 134 DOI Response to SHSS 4.3.25.pdf |
SHSS 4/3/2025 3:30:00 PM |
SB 134 |
| SB 122 Amendment N.1 3.25.25 (002).pdf |
SHSS 4/3/2025 3:30:00 PM |
SB 122 |
| SB 122 Amendment N.2 4.2.25.pdf |
SHSS 4/3/2025 3:30:00 PM |
SB 122 |