04/05/2001 03:02 PM House HES

HB 219-REPEAL SUNSET OF MENTAL HEALTH ASSISTANCE                                                                              
                                                                                                                                
CHAIR DYSON announced  that the first order of  business would be                                                               
HOUSE BILL NO.  219, "An Act relating to  mental health treatment                                                               
facilities; repealing  the termination date of  the mental health                                                               
treatment  assistance program;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
Number 0064                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUGH  FATE came forth  as sponsor  of HB 219.   He                                                               
stated  that [HB  219] was  requested  by Senator  Kelly, who  is                                                               
offering a companion bill [SB 154].   He explained that Section 1                                                               
of the  bill repeals the sunset  provisions in Sections 2,  4, 6,                                                               
and 9  of chapter 87  of SLA 1999.   Those current  sections that                                                               
would be  removed would  cover:   the clarification  of liability                                                               
for  expenses   of  placement  in   a  treatment   facility;  the                                                               
clarification   of  the   definition  of   "designated  treatment                                                               
facility"; and  the definition of the  eligibility and procedures                                                               
of  the   DET  (Designated  Evaluation  and   Treatment  program)                                                               
including   the   applicability,  eligibility   for   assistance,                                                               
application  for assistance,  decision  on eligibility,  eligible                                                               
services  rates, payment,  appeal, regulations,  and definitions.                                                               
And, he  said, it removes  an effective  date of sunset,  July 1,                                                               
2001.                                                                                                                           
                                                                                                                                
REPRESENTATIVE FATE read to the committee:                                                                                      
                                                                                                                                
     Those individuals  who are working for  people who have                                                                    
     no  insurance nor  do they  have any  Medicaid coverage                                                                    
     would still  be afforded  hospitalization if  they meet                                                                    
     certain eligibility requirements.                                                                                          
                                                                                                                                
He stated that these  are people who are in a  mental crisis.  He                                                               
added  that it  further goes  on to  describe how  these patients                                                               
would  have  to  be  removed  if  the  sunset  provision  is  not                                                               
repealed.    They  would  then   be  moved  to  API  (the  Alaska                                                               
Psychiatric  Institute),  which  is  already  crowded  and  would                                                               
entail movement costs.                                                                                                          
                                                                                                                                
Number 0322                                                                                                                     
                                                                                                                                
ELMER LINDSTROM,  Special Assistant, Office of  the Commissioner,                                                               
Department of  Health &  Social Services  (DHSS), came  forth and                                                               
stated that this  allows the DET program to  continue beyond July                                                               
1  in its  current configuration.   He  remarked that  it is  far                                                               
better,  therapeutically,  for people  to  remain  in their  home                                                               
communities and  receive these services.   He explained  that the                                                               
attached fiscal  note shows the  entire cost for the  DET program                                                               
in fiscal  year 2002 is $2.6  million.  Those funds  are included                                                               
in both  the House  and the  Senate versions  of the  fiscal year                                                               
2002 operating budget.  In the middle  of the form there is a box                                                               
[that is checked, which notes] that  this bill is included in the                                                               
governor's  budget, as  it was  and is  in the  House and  Senate                                                               
budgets.  He clarified that it  is actually a zero fiscal note in                                                               
the sense that [DHSS] is not looking for additional funds.                                                                      
                                                                                                                                
REPRESENTATIVE COGHILL asked what the source of the funding is.                                                                 
                                                                                                                                
MR.  LINDSTROM  answered that  there  are  a variety  of  funding                                                               
sources.   He  stated  that  two years  ago,  when Senator  Kelly                                                               
introduced a bill  that modified the program, one  of the primary                                                               
funding sources was  a federal grant [DHSS]  received courtesy of                                                               
the delegation,  which is not a  continuous source of funds.   He                                                               
said he believes the sunset was  put on the bill recognizing that                                                               
those funds  would not continue.   He added that [DHSS]  has been                                                               
able to  construct a mechanism  using other non-general  funds to                                                               
pick up  the slack from that  lost federal grant.   This involves                                                               
the disproportionate share payments  through the Medicaid program                                                               
and a  non-general fund source.   He  stated that while  there is                                                               
about $1.1 million in general  funds, the fiscal year 2002 budget                                                               
was only a $200,000 increase in  general fund and [DHSS] has been                                                               
able to pick  up the rest of the cost  with the other non-general                                                               
funds.                                                                                                                          
                                                                                                                                
KARL SANFORD testified via teleconference.   He stated, on behalf                                                               
of the hospital in Fairbanks, that he was in support of HB 219.                                                                 
                                                                                                                                
Number 0616                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL  made  a  motion  to  move  HB  219  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.   There being no  objection, HB  219 moved from  the House                                                               
Health, Education and Social Services Standing Committee.