03/26/2007 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES

                SJR  3-MEDICARE RATES IN ALASKA                                                                             
                                                                                                                              
CHAIR DAVIS announced SJR 3 to be under consideration.                                                                          
                                                                                                                                
SENATOR  WIELECHOWSKI,  sponsor  of  SJR  3,  explained  that  it                                                               
regards  Medicare reimbursement  rates; 55,000  Alaskans rely  on                                                               
the federal program, which is  the largest health-care program in                                                               
the  country. The  resolution addresses  the  many Alaskans  with                                                               
inadequate coverage;  Medicare is  letting down many  citizens in                                                               
paying  less  than 50  percent  of  the  costs of  their  medical                                                               
treatment.  Seniors  must often  call  dozens  of doctors  before                                                               
finding one that  will treat them under Medicare.  The problem is                                                               
projected to only  get worse; the number of  Alaskans on Medicare                                                               
will  double in  future years.  If reimbursement  rates drop  any                                                               
further, doctors  will have to stop  accepting Medicare patients.                                                               
Military beneficiaries are being  adversely affected as well. The                                                               
Congressional Budget  Office projects a  loss of $240  million in                                                               
Medicare funding  Alaska between  2008 and  2015; the  problem in                                                               
Alaska is particularly bad because  the state has higher costs of                                                               
providing  medical  care  and  fewer  doctors,  and  the  funding                                                               
formula doesn't  take these factors  into account. Alaska  is the                                                               
only state in  which Medicare reimbursement rates  are even lower                                                               
than those  of Medicaid. The  joint resolution calls  on Congress                                                               
and the United States Department  of Health and Human Services to                                                               
address  this  crisis  by  rewriting  the  funding  formulas  for                                                               
Alaska; he urged the committee to join him in supporting SJR 3.                                                                 
                                                                                                                                
1:38:59 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON asked  if the  same funding  situation applies  to                                                               
Medicaid.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI said that there  is a problem with Medicaid,                                                               
but  it  isn't  quite  as  extensive.  Medicare  is  particularly                                                               
troubled because  the funding rate  is 25 percent less  than that                                                               
of Medicaid; also the number of seniors is growing quickly.                                                                     
                                                                                                                                
SENATOR DYSON asked why both  issues couldn't be addressed in one                                                               
resolution.                                                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI said  that  the  committee could  certainly                                                               
decide to do so.                                                                                                                
                                                                                                                                
SENATOR COWDERY  said that  the problem  with Medicaid  is mostly                                                               
the cost of drugs, and the  average wholesale prices are too high                                                               
and need to be brought to a reasonable level.                                                                                   
                                                                                                                                
1:42:38 PM                                                                                                                    
                                                                                                                                
KARLEEN JACKSON,  Commissioner for  the Department of  Health and                                                               
Social  Services (DHSS),  thanked Senator  Wielechowski and  said                                                               
that  the only  way  to fix  this  problem is  to  work with  the                                                               
congressional delegation and the  federal government. She gave an                                                               
example  to  show  the  importance   of  improving  the  Medicare                                                               
program.                                                                                                                        
                                                                                                                                
1:44:00 PM                                                                                                                    
                                                                                                                                
SENATOR  THOMAS  said   that  he  hopes  to   see  insurance  and                                                               
pharmaceutical companies participate in finding a solution.                                                                     
                                                                                                                                
SENATOR  COWDERY  moved  to  report SJR  3  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, the motion carried.