02/26/2007 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES

             SJR  1-MEDICAL ASSISTANCE FOR CHILDREN                                                                         
1:33:49 PM                                                                                                                    
CHAIR DAVIS announced SJR 1 to be up for consideration.                                                                         
                                                                                                                                
RICHARD  BENAVIDES,  aide to  Senator  Davis,  sponsor  of SJR  1,                                                              
explained that  the resolution urges the congressional  delegation                                                              
to  achieve  a timely  reauthorization  of  the  state  children's                                                              
health  insurance   program,  and  to  continue   federal  medical                                                              
assistance  percentages for  the Denali Kid  Care program.  Denali                                                              
Kid  Care is  Alaska's  version  of  the State  Children's  Health                                                              
Insurance  Program  (SCHIP)  which  was  created in  1997  and  is                                                              
slated for  reauthorization this year.  It has been  and continues                                                              
to  be a  successful  state  partnership  now covering  over  four                                                              
million  low-income  children,  and  enjoys  bi-partisan  support.                                                              
However, in the  upcoming fiscal year, 17 to  18 states, including                                                              
Alaska,  are predicted  to have  insufficient  federal funding  to                                                              
sustain  the   existing  SCHIP  programs.  According   to  various                                                              
estimates,  these  states will  face  an  estimated $800  to  $950                                                              
million shortfall  in 2007. In Alaska,  that could total  over $12                                                              
million.  Without  additional  federal   funding  to  avert  these                                                              
shortfalls,  Alaska may have  to reduce  SCHIP enrollment.  States                                                              
may also  be forced  to curtail  benefits, increase  cost-sharing,                                                              
or reduce  provider payments. Congress  has successfully  acted in                                                              
the  past to  address these  shortfalls and  can do  so again;  to                                                              
                            rd                                                                                                  
that  end,  on  February  23   a  bipartisan  group  of  lawmakers                                                              
announced  their  proposal  to   extend  health  insurance  to  an                                                              
additional nine  million children  in the US.   Backed by  a broad                                                              
consumer  and industry  coalition, the  Healthy Kids  Act of  2007                                                              
would authorize over  $50 billion over five years  to expand SCHIP                                                              
and  Medicaid  programs.  The  proposal  would  also  provide  $10                                                              
billion  to  help  families  with  annual incomes  of  up  to  350                                                              
percent  of   the  Federal  Poverty   Level  to   purchase  health                                                              
insurance  that  covers children  if  they  are not  eligible  for                                                              
their state's SCHIP program.                                                                                                    
                                                                                                                                
He asked for  the committee's support  of SJR 1 to add  the Alaska                                                              
State  Legislature   to  the  many   voices  urging   the  state's                                                              
congressional  delegation  and  the  rest  of  Congress  to  enact                                                              
legislation  immediately  that   provides  additional  funding  to                                                              
ensure  that  all  states  have   sufficient  federal  funding  to                                                              
sustain their existing SCHIP programs in fiscal year 2007.                                                                      
                                                                                                                                
He added  that the National  Governor's Association had  a meeting                                                              
the  previous day  on  the  same program,  and  that  there is  an                                                              
upcoming   roundtable  discussion   on   the   SCHIP  program   in                                                              
Washington DC.                                                                                                                  
                                                                                                                                
1:37:57 PM                                                                                                                    
                                                                                                                                
KARLEEN JACKSON,  Commissioner  for the Department  of Health  and                                                              
Social Services  (DHSS), said that  both the governor  and Senator                                                              
Murkowski support the resolution.                                                                                               
                                                                                                                                
SENATOR ELTON  said that  the problem  appears to be  two-pronged,                                                              
with  the 2007  shortfall  and  insufficient future  funding,  and                                                              
asked if the resolution should address this.                                                                                    
                                                                                                                                
MR. BENAVIDES replied  that these were separate issues  but that a                                                              
bipartisan bill would cover future funding shortfalls.                                                                          
                                                                                                                                
COMMISSIONER JACKSON  said that  the redistribution issue  is also                                                              
being discussed  in Congress  and Alaska  will not necessarily  be                                                              
penalized for a nationwide insufficient effort.                                                                                 
                                                                                                                                
SENATOR  ELTON  asked  if  any wording  should  be  added  to  the                                                              
resolution.                                                                                                                     
                                                                                                                                
1:40:37 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON said she could not speak to that issue.                                                                    
                                                                                                                                
CHAIR   DAVIS  said   that   the   resolution  deals   only   with                                                              
reauthorization and not funding.                                                                                                
                                                                                                                                
SENATOR  COWDERY asked  if funding  is expected  to be federal  or                                                              
state-based.                                                                                                                    
                                                                                                                                
MR. BENAVIDES  replied that the  money will come from  the general                                                              
fund.                                                                                                                           
                                                                                                                                
SENATOR COWDERY  commented  that there is  a lot  of money  in the                                                              
Permanent Fund account and this would be a worthy expenditure.                                                                  
                                                                                                                                
CHAIR DAVIS said that funding will be addressed at a later time.                                                                
                                                                                                                                
1:43:35 PM                                                                                                                    
                                                                                                                                
SENATOR DYSON said  that his family members have  received funding                                                              
from  this  act, and  he  didn't  believe  he  had a  conflict  of                                                              
interest with the bill.                                                                                                         
                                                                                                                                
CHAIR DAVIS agreed.                                                                                                             
                                                                                                                                
SENATOR  ELTON  moved   to  report  SJR  1  from   committee  with                                                              
individual  recommendations  and  attached fiscal  note(s).  There                                                              
being no objection, the motion carried.