04/16/2010 10:47 AM House FIN

CS FOR SENATE BILL NO. 258(L&C)                                                                                               
                                                                                                                                
     "An Act  prohibiting health care insurers  that provide                                                                    
     dental care  coverage from setting fees  that a dentist                                                                    
     may  charge under  a  preferred  provider contract  for                                                                    
     dental  services   not  covered  under   the  insurer's                                                                    
     policy,  and relating  to preferred  provider contracts                                                                    
     between insurers and dentists."                                                                                            
                                                                                                                                
4:31:56 PM                                                                                                                    
                                                                                                                                
SENATOR CHARLIE  HUGGINS, SPONSOR,  explained that  the bill                                                                    
would protect  the patient, as  well as provide  a mechanism                                                                    
for  controlling  cost  issues for  dentists  and  insurance                                                                    
companies.                                                                                                                      
                                                                                                                                
SHARON  LONG, STAFF,  SENATOR CHARLIE  HUGGINS, stated  that                                                                    
the  provisions  in  the legislation  had  been  crafted  by                                                                    
dental  professionals,  the  insurance  industry  and  small                                                                    
business  owners.   Insurers  would  be  allowed   to  offer                                                                    
alternative contracts  to providers; one that  would dictate                                                                    
discounted  fee schedules  for services  on which  a benefit                                                                    
was paid,  as well  as services on  which benefits  were not                                                                    
paid,  and another  which  would cap  fees  on services  for                                                                    
which  an  insurer paid  a  benefit.  Dentist would  have  2                                                                    
options  when   participating  in  preferred   provider  and                                                                    
managed  care  programs,   which  would  protect  consumer's                                                                    
access  to  dental  care  because  it  would  minimize  cost                                                                    
shifting that occurred when fee capping was introduced.                                                                         
                                                                                                                                
4:36:11 PM                                                                                                                    
                                                                                                                                
Ms.  Long pointed  out to  the committee  the letter  in the                                                                    
bill  packet from  The  National  Federation of  Independent                                                                    
Business (copy on file) urging support for the legislation.                                                                     
                                                                                                                                
Representative  Gara   asked  if  insurance   companies  and                                                                    
dentist could to  sign up to be preferred  providers, with a                                                                    
cap, on  services are already  covered, but no cap  could be                                                                    
placed on services  that were not covered.  Ms. Long replied                                                                    
that there would be an  option of 2 different contracts. One                                                                    
which would cap  the fees which were covered  in the policy,                                                                    
or  another where  the  retail fee  schedule  would go  into                                                                    
effect after  the covered services were  met. Representative                                                                    
Gara clarified that insurance companies  would still be able                                                                    
to negotiate with  dentists on prices. Ms.  Long relied yes.                                                                    
Representative Gara expressed support for the bill.                                                                             
                                                                                                                                
Co-Chair Stoltze opened public testimony.                                                                                       
                                                                                                                                
DR. DAVID LOGAN, ALASKA DENTAL  SOCIETY, spoke in support of                                                                    
the legislation.                                                                                                                
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
Co-Chair Hawker highlighted the zero fiscal note.                                                                               
                                                                                                                                
Vice-Chair  Thomas  MOVED to  report  CSSB  258(L&C) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being no OBJECTION it was so ordered.                                                                                     
                                                                                                                                
CSSB  258(L&C) was  REPORTED  out of  Committee  with a  "do                                                                    
pass"  recommendation and  with  previously attached  fiscal                                                                    
note: FN1 (DEC).