04/15/2010 08:30 AM House FINANCE

CS FOR SENATE BILL NO. 172(FIN) am                                                                                            
                                                                                                                                
     "An Act establishing the Alaska Health Care Commission                                                                     
     in the Department of Health and Social Services; and                                                                       
     providing for an effective date."                                                                                          
                                                                                                                                
7:16:24 PM                                                                                                                    
                                                                                                                                
DENISE LICCIOLI,  STAFF, SENATOR  DONALD OLSON,  stated that                                                                    
Alaska  is facing  a health  care shortage  with access  and                                                                    
quality  issues.  Health care  costs  tripled  from 1991  to                                                                    
2005. She  noted that the  cost is expected to  double again                                                                    
by 2013 to  over $10 billion. The purpose  of the commission                                                                    
is  to  provide  recommendations  for a  statewide  plan  to                                                                    
assess  the  quality,  accessibility,  and  availability  of                                                                    
health care  for all  Alaskans. The  duties are  outlined in                                                                    
the  bill  and in  the  sponsor  statement.  The CS  has  13                                                                    
members,  10 of  which  are  voting and  the  others are  ex                                                                    
officio  members.  The  commission   would  be  tasked  with                                                                    
holding public  hearings and submitting an  annual report to                                                                    
the governor  and legislature regarding  its recommendations                                                                    
and activities. The cost alone  justifies the changes on the                                                                    
national level.  The national changes  allow for  a planning                                                                    
body  that provides  for the  policy  information that  will                                                                    
make  meaningful  change. She  highlighted  Line  8, Page  3                                                                    
ending on Page 4, line 12, which lists the members.                                                                             
                                                                                                                                
7:19:35 PM                                                                                                                    
                                                                                                                                
Representative   Gara  asked   if  the   intention  of   the                                                                    
legislation was to replace the  new standing body for health                                                                    
care  recommendations.  Ms.   Liccioli  explained  that  our                                                                    
previous   governor  had   an   administrative  order   that                                                                    
established the health care commission.  The order has since                                                                    
expired.  Without the legislation, there would be no body.                                                                      
                                                                                                                                
Representative  Gara understood  that there  were additional                                                                    
costs.                                                                                                                          
                                                                                                                                
Ms.  Liccioli   stated  that  the   cost  of   the  previous                                                                    
commission was not  funded by the state,  but instead funded                                                                    
out of  the existing  budget. She  noted that  Senator Olson                                                                    
appreciated the hearing.                                                                                                        
                                                                                                                                
7:21:47 PM                                                                                                                    
                                                                                                                                
DR. WARD HURLBURT, CHEIF  HEALTH CARE COMMISSION, DEPARTMENT                                                                    
OF   HEALTH  AND   SOCIAL   SERVICES,   informed  that   the                                                                    
administration  is in  support  of the  legislation and  the                                                                    
health  care commission.  He  explained  that the  challenge                                                                    
with health care reform is  great. The funding is designated                                                                    
to  pay  for the  position  of  the executive  director,  an                                                                    
administrative support person,  and outside consultation. He                                                                    
furthered  that  much  work  with  the  impact  of  national                                                                    
analysis will  occur for health  care reform. He  noted that                                                                    
each bill  comes representing a constituency.  He noted that                                                                    
the  cost of  health care  is approximately  $6 billion  per                                                                    
year.                                                                                                                           
                                                                                                                                
7:25:55 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker Moved Conceptual Amendment 1.                                                                                   
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair  Hawker  explained  the amendment.  He  wished  the                                                                    
membership to reflect the critical  cohorts of healthcare in                                                                    
Alaska. He preferred  11 voting members. He  opined that the                                                                    
missing cohort  was one involved  in the U.S.  Department of                                                                    
Veterans Affairs  (VA). He stated  that a  representative of                                                                    
the VA was critical to the commission.                                                                                          
                                                                                                                                
Co-Chair Stoltze asked if the  member would be a consumer or                                                                    
a provider. Co-Chair Hawker stated a provider.                                                                                  
                                                                                                                                
Representative Doogan  asked if  the voting  membership will                                                                    
change from  10 to 11.  Ms. Liccioli responded  that Senator                                                                    
Olson was willing to go with the will of the committee.                                                                         
                                                                                                                                
Co-Chair   Stoltze   removed   his   objection.   Conceptual                                                                    
amendment 1 was adopted.                                                                                                        
                                                                                                                                
7:29:33 PM                                                                                                                    
                                                                                                                                
WILLIAM  HOGAN,  COMMISSIONER,   DEPARTMENT  OF  HEALTH  AND                                                                    
SOCIAL SERVICES  discussed the  fiscal note,  $500 thousand.                                                                    
He  commented that  the federal  Medicaid claiming  required                                                                    
$165  thousand.  He  noted  that  the  money  will  fund  an                                                                    
executive  director, support  staff and  allow for  analysis                                                                    
needed to implement certain aspects of health care reform.                                                                      
                                                                                                                                
Co-Chair  Hawker recalled  that  the  first proposed  fiscal                                                                    
note was substantially  larger. Commissioner Hogan responded                                                                    
that  the  department  analyzed   various  methods  of  cost                                                                    
savings.                                                                                                                        
                                                                                                                                
Co-Chair Hawker  MOVED to  report HCS  CSSB 172(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB 172(FIN)  was REPORTED out of Committee  with a "do                                                                    
pass" recommendation  and with  attached new fiscal  note by                                                                    
the Department of Health and Social Services.                                                                                   
                                                                                                                                
Co-Chair Hawker thanked the aides of the department.