Legislature(2005 - 2006)BUTROVICH 205
02/27/2006 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB251 | |
| SB244 | |
| SJR19 | |
| SB242 | |
| HB357 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 251 | TELECONFERENCED | |
| + | SB 244 | TELECONFERENCED | |
| *+ | SJR 19 | TELECONFERENCED | |
| *+ | SB 242 | TELECONFERENCED | |
| + | HB 357 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 244-NO DISCRIMINATION AGAINST ACUPUNCTURIST
CHAIR FRED DYSON announced SB 244 to be up for consideration.
1:49:56 PM
AMY SEITZ, Staff to Senator Wagoner, said that SB 244 adds
acupuncturists to the list of licensed providers in the Unfair
Discrimination Statute. This would prohibit insurance companies
that offer group policies from unfairly discriminating against
them.
She added that the sponsor introduced the bill after reviewing
the results of several studies that demonstrate the positive
affects of acupuncture. She referenced a 1993 Swedish study on a
group of recovering stroke patients that were treated with
acupuncture. According to the study, the treatment of these
patients cost $26,000 less than patients without acupuncture and
required half the normal time for recovery.
She referenced another study on knee surgery patients who
underwent acupuncture therapy before surgery. According to the
study, the treatment of these patients cost $9,000 less per
patient than for patients without acupuncture. A Boston
University researcher recently claimed that acupuncture
treatment for stroke and Carpel Tunnel Syndrome could reduce the
nation's medical bill by 11 million.
She said, in addition to positive health benefits, acupuncture
has an extremely low rate of malpractice associated with
acupuncture. A bill was recently introduced at the federal level
to include acupuncturists into the Federal Insurance Act. She
continued to say that several insurance companies have
volunteered to cover acupuncturists.
1:53:12 PM
SENATOR OLSON asked how long the results of acupuncture
treatment lasted for patients in the stroke study.
MS. SEITZ believed that they were long-term results.
SENATOR OLSON asked how often acupuncture treatment causes a
major bleeding event.
MS. SEITZ said all the information she has read shows that it
happens very infrequently.
SENATOR OLSON asked the amount of education required for a
person to legally practice acupuncture.
MS. SEITZ replied that it requires a three-year graduate degree.
1:56:50 PM
MELANIE MILLHORN, Director, Division of Retirement and Benefits
(DRB), Department of Administration (DOA), provided information
on the state's health plans and discussed how SB 244 would
affect them. She said the Division administers two health
plans, one for the active population and one for the retired
population. She said that the commissioner of The Department of
Administration has the authority to make changes to the health
plans.
FREDA MILLER, Health Benefits Manager, DRB, DOA, reported that
the health plans only cover acupuncture if a physician performs
it in lieu of anesthetic during surgery. She said that passage
of SB 244 would allow acupuncturists to bill for office visits
related to the evaluation and management of a condition. Since
SB 244 only expands coverage options, the bill is cost neutral.
She remarked that acupuncture therapy itself would remain an
uncovered benefit unless there is a signed plan change
authorized by the commissioner of The Department of
Administration.
SENATOR ELTON asked if SB 244 would allow coverage for visits to
an acupuncturist that are related to evaluation and management,
but not to therapy.
MS. MILLER replied that SB 244 confers recognized provider
status upon acupuncturists thereby allowing them to bill for
visits related to evaluation and management. She added that SB
244 would not change any existing coverage for therapy since
that is determined by one's particular health plan.
SENATOR OLSON asked whether SB 244 would change the
impatient/outpatient status of acupuncture treatment.
MS. MILLER replied it would not do so.
SENATOR WILKEN asked whether the bill would open up a new level
of service for plan members and create additional costs for the
system.
MS. MILLER replied that it only allows members to see an
acupuncturist instead of a physician to evaluate and manage a
condition. She stressed that it does not increase the level of
coverage to which members are already entitled for evaluation
and management.
SENATOR WILKEN remarked that he would like Ms. Millhorn's
reassurance that the legislation would indeed be cost-neutral.
MS. MILLHORN said that according to Delloit Consulting, it costs
less to visit an acupuncturist than a physician, and
consequently, the cost-neutral designation is conservative.
SENATOR WILKEN said he was concerned that the bill would
generate additional costs because it would create coverage for
the alternative treatment of conditions for which some would not
otherwise see a physician.
SENATOR OLSON said he was concerned about the possibility of
additional costs from lawsuits arising from the inability of
acupuncturists to evaluate and manage certain conditions.
CHAIR DYSON asked Ms. DeLaune to explain how the bill would
benefit the people of Alaska.
VALERIE DeLAUNE, licensed acupuncturist, testified that she has
personally saved the state and its residents a lot of money by
providing an effective alternative to some conventional
procedures. She remarked that coverage for acupuncture is the
number one requested benefit among insurance consumers. She
added that many insurance companies voluntarily cover
acupuncture and suggested that they would not do so if it did
not save them money.
CHAIR DYSON said that he is struck by the fact that an
acupuncturist can mitigate the pain of surgery, but cannot seek
reimbursement for evaluating a condition.
MS. DeLAUNE said, with regard to Senator Olson's concern about
malpractice, that the incidence of malpractice among
acupuncturists is very low.
2:21:03 PM
SENATOR OLSON asked the number of licensed and unlicensed
acupuncturists practice in the state.
MS. DeLAUNE replied that about 65 acupuncturists are licensed in
the state.
MS. MILLER added it is illegal to practice acupuncture without a
license in the state.
SENATOR ELTON asked whether an acupuncture license could be
revoked in the case of malpractice.
MS. DeLAUNE replied that is correct, but the state has yet to
revoke an acupuncture license.
SENATOR OLSON asked how an acupuncturist is licensed.
MS. DeLAUNE replied the state requires at least three years of
graduate level education for licensure.
SENATOR OLSON asked whether the state requires a written exam
for licensure.
MS. DeLAUNE replied the state requires that a prospective
licensee take certain courses on AIDS, CPR, pass a written and
practical exam, and complete 15 hours of continuing education
every two years.
SENATOR OLSON asked how this bill compares to similar bills in
other states.
MS. DeLAUNE replied the State of Washington has similar
legislation.
MS. SEITZ said that as of 1991, ten states covered acupuncture.
SENATOR WILKEN asked whether acupuncture treatment would be
covered for small businesses under this bill.
MS. SEITZ replied that it would.
SENATOR WILKEN asked if the legislation would require managers
of private insurance plans to cover acupuncture treatments that
they do not cover at the present time.
MS. SEITZ replied that the bill does not affect the coverage
plans of any insurance provider; it only allows members to
choose acupuncture for services already provided under their
plans.
2:39:25 PM
SENATOR WILKEN asked if private plan managers would have to make
a plan modification before covering acupuncturists for
evaluation and management and therapy services.
MS. MILLER answered that adding acupuncturists to the recognized
provider list allows them to submit charges for evaluation and
management for any plan that covers it. The managers would have
to decide whether or not to cover acupuncture therapy in their
benefit plans.
SENATOR WILKEN cited Alaska Sales and Service as an example of a
small private company and asked whether its plan covers
acupuncturists for providing evaluation and management services.
MS. DeLAUNE did not know.
SENATOR WILKEN asked if the state and private providers would be
able to decide whether or not to cover acupuncture therapy and
evaluation and management services if the bill is passed.
MS. MILLER replied that is the case and added it is important to
remember that typically the evaluation and management services
are already covered in all insurance plans.
SENATOR WILKEN asked if conferring recognized provider status
upon acupuncturists would allow them to receive coverage under
the state plan since it currently covers evaluation and
management services.
MS. MILLER replied that is correct.
SENATOR WILKEN asked if acupuncture therapy would not be covered
under the state plan until the commissioner of administration
amends the design of the benefit plan.
MS. MILLER replied that is correct.
SENATOR WILKEN asked if the commissioner or private plan
managers could decide to cover acupuncture therapy without the
passage of SB 244.
MS. SEITZ replied that they could do so.
SENATOR WILKEN asked why the bill is needed.
MS. MILLER replied the bill would ensure that insurance
companies could not refuse plan managers who decide to cover
acupuncture.
SENATOR ELTON said it is important to note that the bill only
prevents insurance companies from discriminating against
acupuncturists; it does not preclude them from charging for the
added service.
CHAIR DYSON remarked it is not a pro-choice bill, but an anti-
discrimination bill for a profession that is widely recognized.
SENATOR WILKEN expressed concern over costs that the bill would
generate for both the state and private insurance companies.
CHAIR DYSON asked Ms. Seitz if she heard anything from the
insurance industry when the bill was heard in the Labor and
Commerce Committee.
MS. SEITZ said she has not heard any opposition from the
insurance industry. She remarked that many insurance companies
already voluntarily cover acupuncture.
CHAIR DYSON asked whether insurance companies have been notified
about the bill.
MS. SEITZ said she has been trying to solicit comments from the
insurance companies, but it doesn't seem to be a big issue for
them.
SENATOR WILKEN remarked that while no one wants to discriminate,
the bill might be less benign than it seems.
MS. SEITZ remarked that it might actually save money.
Acupuncture is the only licensed profession in the state that is
not on the recognized providers list.
SENATOR ELTON said it would be important to determine whether
the amount of money saved by visits to acupuncturists instead of
physicians would offset the cost of visits to acupuncturists by
people who would not otherwise see a physician.
SENATOR OLSON said a study done five years ago showed that
people saved money when they underwent effective acupuncture
therapy as opposed to drug therapy because there are no side
effects associated with acupuncture.
2:54:46 PM
CHAIR DYSON held SB 244 in committee.
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