05/06/1997 04:08 PM House HES

 SB 149 - HEALTH CARE FACILITY AUDITS & REPORTS                              
                                                                               
 Number 0749                                                                   
                                                                               
 CHAIRMAN BUNDE announced the next item on the agenda was SB 149,              
 "An Act relating to reports and audits concerning health care                 
 facilities; and providing for an effective date."                             
                                                                               
 Number 0771                                                                   
                                                                               
 GARREY PESKA, Lobbyist, Alaska State Hospital/Nursing Homes                   
 (ASHNHA), said that several proposed decisions by hearing officers            
 have called into question whether or not Medicaid audits may be               
 used to set hospital rates for Medicaid reimbursement.  Federal law           
 requires that the state perform audits of hospitals for Medicaid              
 purposes.  They believe SB 149 is necessary to allow this process             
 to work properly and they support the bill.                                   
                                                                               
 Number 0811                                                                   
                                                                               
 JAY LIVEY, Deputy Commissioner, Office of the Commissioner,                   
 Department of Health and Social Services, stated that the                     
 Administration has worked with ASHNHA on this bill and also support           
 SB 149.                                                                       
                                                                               
 Number 0833                                                                   
                                                                               
 MARTIN SCHULTZ, Assistant Attorney General, Government Affairs                
 Section, Civil Division, Department of Law, testified next via                
 teleconference from Anchorage.  He represents the Department of               
 Health and Social Services (DHSS) in some of the litigation                   
 referred to by Mr. Peska.                                                     
                                                                               
 Number 0824                                                                   
                                                                               
 CHAIRMAN BUNDE asked him if he saw any problems with SB 149 and its           
 aims.                                                                         
                                                                               
 MR. SCHULTZ answered that SB 149 was a good bill.  Medicaid is a              
 federal/state matching fund program which means that the state                
 needs to conform to federal law.  Federal law requires Medicaid               
 audits.  Audits produce accurate and useful information based on              
 the historical costs of the facility.  Medicaid rates are based on            
 these historic rates.                                                         
                                                                               
 Number 0900                                                                   
                                                                               
 GLENN GUSTAFSON, Assistant Attorney General, Government Affairs               
 Section, Civil Division, Department of Law, testified next via                
 teleconference from Anchorage.  He represents Medicaid agency staff           
 in the administrative proceedings where subject rulings are issued            
 by the hearing examiner.                                                      
                                                                               
 Number 0935                                                                   
                                                                               
 REPRESENTATIVE DYSON made a motion to move SB 149 out of committee            
 with individual recommendations and zero fiscal note.  Hearing no             
 objection SB 149 was moved from the House Health, Education and               
 Social Services Standing Committee.