04/11/2010 11:00 AM Senate FINANCE

SENATE BILL NO. 139                                                                                                           
                                                                                                                                
     "An  Act  establishing  a loan  repayment  program  and                                                                    
     employment  incentive program  for certain  health care                                                                    
     professionals employed in the  state; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
11:07:53 AM                                                                                                                   
                                                                                                                                
Senator  Ellis  proposed  committee substitute,  work  draft                                                                    
#26-LS0503\U, Mischel, 4/9/10. Co-Chair Stedman OBJECTED.                                                                       
                                                                                                                                
DENISE  LICCIOLI, STAFF,  SENATOR  OLSON noted  that the  CS                                                                    
before the  committee makes four significant  changes to the                                                                    
bill. The new  Section 1, Page 1 was added  to reinforce the                                                                    
primary purpose of the bill  of making health care providers                                                                    
available to  rural areas of  the state. In  addition, areas                                                                    
that  serve the  uninsured, Medicare  recipients, and  those                                                                    
with  tribal   medical  benefits  are  also   targeted.  She                                                                    
highlighted a  rewording on Page  4, Line 19 added  with the                                                                    
same  intent  which  states  that  the  "commissioner  shall                                                                    
prioritize eligible  sights based  on the remoteness  of the                                                                    
site and  the percentage of  patients treated at  the site."                                                                    
The  previous  Section  1  which  held  loan  repayments  as                                                                    
incentive  was  removed.  It  was   decided  that  the  loan                                                                    
repayment  piece  required  further research  best  done  in                                                                    
future   legislative  sessions.   The  applicable   sections                                                                    
referencing  Section  1 were  also  updated  to reflect  the                                                                    
change. She introduced the third  change on Page 4, Lines 4-                                                                    
6.  The section  was reworded  to direct  the department  to                                                                    
reserve funding with  which to make payments  as it provided                                                                    
a  clear statement.  The final  change is  found on  Page 4,                                                                    
Lines  23-25  and  implements a  sunset  which  directs  the                                                                    
department to cease the writing  of new three year contracts                                                                    
after June  10, 2017.  Page 5, Lines  17-25 further  guide a                                                                    
request for a final report and provide a sunset date.                                                                           
                                                                                                                                
Co-Chair  Stedman  REMOVED  his  OBJECTION.  Version  U  was                                                                    
adopted.                                                                                                                        
                                                                                                                                
11:13:28 AM                                                                                                                   
                                                                                                                                
Senator  Olson stated  that the  bill establishes  incentive                                                                    
regulations  that allow  licensed health  care providers  to                                                                    
arrive  in Alaska  and treat  patients, especially  in urban                                                                    
inner-city or rural parts of the state.                                                                                         
                                                                                                                                
Co-Chair  Stedman mentioned  one zero  fiscal note  from the                                                                    
Department  of Education  and Early  Development (DEED)  and                                                                    
one fiscal  impact note  from the  Department of  Health and                                                                    
Social Services  (DHSS) for $2,847,300  in general  funds to                                                                    
cover the estimated  cost of incentive payments  and to hire                                                                    
one  additional full  time staff  person  to administer  the                                                                    
program.                                                                                                                        
                                                                                                                                
Senator  Thomas asked  about the  last change  considered on                                                                    
Page 4, Line 23-25. He asked  if the purpose was for Alaskan                                                                    
residents  to  become  more  engaged   in  the  system.  Ms.                                                                    
Liccioli  responded that  the  profits  from the  Washington                                                                    
Alaska Montana  Idaho (WAMI) program  would be  available in                                                                    
seven years allowing the contracts to play out.                                                                                 
                                                                                                                                
Senator Olson expressed appreciation for the hearing.                                                                           
                                                                                                                                
11:16:14 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman MOVED to report  CS SB 139 out of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CS SB  139 was REPORTED  out of  Committee with a  "do pass"                                                                    
recommendation and with one new  fiscal impact note from the                                                                    
Department of Health and Social Services.