Legislature(2001 - 2002)

02/14/2002 03:02 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 367-MEDICAL ASSISTANCE PROGRAM COVERAGE                                                                                    
                                                                                                                                
CHAIR DYSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 367, "An Act  relating to coverage of children and                                                               
pregnant  women   under  the  medical  assistance   program;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 1297                                                                                                                     
                                                                                                                                
CYNTHIA  EBELACKER,  Alaska  Nurse Practitioners;  Alaska  Nurses                                                               
Association,  testified via  teleconference in  opposition to  HB
367.   She is a nurse  practitioner, and she owns  a small clinic                                                               
in  Eagle  River.   She  referenced  written testimony  that  she                                                               
submitted pertaining to HB 367.   She acknowledged the importance                                                               
of fiscal  responsibility and offered to  clear up misconceptions                                                               
about  who qualifies  for Denali  KidCare.   She  noted that  her                                                               
experience has  been that  "people aren't flooding  in to  get on                                                               
Denali [Kid]Care."   Some who do  qualify are not aware  that the                                                               
program exists.   She furnished that parents who  qualify for the                                                               
program  are  not  white-collar  workers  with  access  to  other                                                               
insurance;  they  are   blue-collar  and  self-employed  workers.                                                               
Eagle River  is not an affluent  community, she noted.   At least                                                               
65 percent of her patients are  able to see her only because they                                                               
have Denali  KidCare insurance.   She  indicated that  her clinic                                                               
staff members are well aware  of their patients' economic status.                                                               
These patients usually do not have other insurance, she added.                                                                  
                                                                                                                                
MS. EBELACKER said:                                                                                                             
                                                                                                                                
     These  families  ... are  working  hard;  they are  the                                                                    
     builders, ... the plumbers,  ... the fast-food workers,                                                                    
     and the Wal-Mart  workers.  They do pay  taxes and they                                                                    
     do  vote.   The  difference is  that  three years  ago,                                                                    
     their  children would  almost never  have received  any                                                                    
     preventative care,  and they  would have  had to  go to                                                                    
     the  emergency room  when their  kids were  really ill.                                                                    
     If  their Denali  [KidCare  coverage]  goes away,  they                                                                    
     will  once again  be forced  to  utilize the  emergency                                                                    
     room and  their local "doc,"  and that's a  much bigger                                                                    
     financial burden to the state.                                                                                             
                                                                                                                                
MS. EBELACKER  stated that  she has spoken  with people  who work                                                               
with insurance and  Medicaid fraud, and they  have indicated that                                                               
evidence bears out the fact that  not many people are abusing the                                                               
system by concealing additional insurance coverage.                                                                             
                                                                                                                                
Number 1126                                                                                                                     
                                                                                                                                
JACKIE  SUNNYBOY,  Fairbanks   Community  Mental  Health  Center,                                                               
testified  via  teleconference in  opposition  to  HB 367.    She                                                               
reported  that  she works  with  the  children's program  at  the                                                               
center and  pointed out that 44  of the center's 205  clients are                                                               
covered  by Denali  KidCare; of  the  50 clients  on the  waiting                                                               
list, 11  have this coverage.   These families and  children, she                                                               
noted,  have  severe emotional  disturbances.    Clinic staff  is                                                               
concerned that  many of these  families will not  receive service                                                               
without  Denali KidCare  insurance.   These  clients suffer  from                                                               
severe  emotional,   physical,  and  sexual  abuse   issues,  she                                                               
offered.   The clinic also  sees many children affected  by fetal                                                               
alcohol  syndrome; they  need all  the assistance  they can  get,                                                               
because  these  disabilities  do  not  simply  go  away.    These                                                               
children have a  right to services [through  Denali KidCare] that                                                               
they would otherwise not qualify for.                                                                                           
                                                                                                                                
Number 1084                                                                                                                     
                                                                                                                                
CHAIR  DYSON  asked about  the  number  of clients  Ms.  Sunnyboy                                                               
referenced  that  would not  qualify  for  Denali KidCare  [under                                                               
provisions in HB 367].                                                                                                          
                                                                                                                                
MS.  SUNNYBOY said,  "It's not  that they  wouldn't qualify,  but                                                               
without  Denali  KidCare,  it  would be  very  difficult  to  get                                                               
services."                                                                                                                      
                                                                                                                                
Number 1084                                                                                                                     
                                                                                                                                
CHAIR DYSON asked,  "Does it mean that they  wouldn't qualify for                                                               
Denali KidCare if the threshold was lowered?"                                                                                   
                                                                                                                                
MS. SUNNYBOY replied  that she had not had time  to calculate the                                                               
number  of clients  [whose  income  is] 150  to  200 percent  [of                                                               
poverty level].                                                                                                                 
                                                                                                                                
Number 1043                                                                                                                     
                                                                                                                                
CHARLES QUARRE  testified via teleconference in  opposition to HB
367.    He  cited statistics indicating  that 3,821  children and                                                               
722 pregnant women  will lose health care coverage  should HB 367                                                               
be passed.  He  noted that if HB 367 passes,  the state will save                                                               
$5 million, but it will lose  $11.9 million in federal funds.  He                                                               
stated that he applauds the  effort to reduce state spending, but                                                               
he believes this cut would be near  the bottom of the list if the                                                               
cuts were prioritized.  Parents  might wait until the last minute                                                               
to  seek treatment  when the  problem is  serious and  requires a                                                               
trip  to  the emergency  room,  which  will  cost much  more,  he                                                               
concluded.                                                                                                                      
                                                                                                                                
Number 0977                                                                                                                     
                                                                                                                                
PATRICIA   BOILY,    Homer   Medical   Clinic,    testified   via                                                               
teleconference.  She stated that  she has been involved in health                                                               
care since 1980.  She said:                                                                                                     
                                                                                                                                
     My feeling  is that HB  367 is wrong-headed  and should                                                                    
     not  be  passed.   Its  target  is pregnant  women  and                                                                    
     children.   They are the  only direct  beneficiaries of                                                                    
     the  Denali  KidCare program.    I  was somewhat  taken                                                                    
     aback by  [Representative] Coghill's  sponsor statement                                                                    
     because there were  some errors in it.   Denali KidCare                                                                    
     does not base  anything on 250 percent.   Those figures                                                                    
     are 150  to 200 percent  of the federal  poverty level,                                                                    
     depending  on whether  or not  you have  primary health                                                                    
     care insurance.                                                                                                            
                                                                                                                                
MS. BOILY continued:                                                                                                            
                                                                                                                                
     The program  is supported  by more  than 70  percent in                                                                    
     federal dollars, and the state  picks up the remainder,                                                                    
     but we're  talking about our  children.  The  future of                                                                    
     this  state  is its  children.    Since the  state  has                                                                    
     failed   to  take   any   proactive  movement   towards                                                                    
     affordable health  insurance for its residents,  it has                                                                    
     an obligation to  make sure that at  least the children                                                                    
     are healthy.  Keep in  mind that Denali KidCare is only                                                                    
     for health-related coverage;  it doesn't provide money,                                                                    
     food,  household  expenses.   Its  purpose  is only  to                                                                    
     ensure  that pregnant  women and  children are  getting                                                                    
     whatever health-related needs they have attended to.                                                                       
                                                                                                                                
MS. BOILY added:                                                                                                                
                                                                                                                                
     [Representative] Coghill  stated that  our unemployment                                                                    
     rate is 5.8 percent; he  must realize that not everyone                                                                    
     employed  in Alaska  makes a  living wage.   There  are                                                                    
     many people  holding down  two or  more jobs  just make                                                                    
     ends meet.   And not all employers are  inclined or can                                                                    
     even  afford to  provide health  insurance coverage  to                                                                    
     its employees.  I  have what's considered a good-paying                                                                    
     job  in the  private sector.   Yet  my monthly  premium                                                                    
     [for] health  insurance for  me and  my husband  are in                                                                    
     excess  of $690  per month.    And we  have a  thousand                                                                    
     dollar  deductible each.   My  employer contributes  18                                                                    
     percent, and the  rest of it comes out  of my paycheck.                                                                    
     I pay more than $8,300 a  year just for premiums.  Then                                                                    
     I  have  a  thousand  dollar's  deductible  before  the                                                                    
     insurance  even takes  effect.   Then I  still have  20                                                                    
     percent.    If  I  still  had  dependent  children,  my                                                                    
     premiums would be over [$]900 per month.                                                                                   
                                                                                                                                
MS. BOILY concluded:                                                                                                            
                                                                                                                                
     It's  time  for  the   legislators  to  recognize  that                                                                    
     affordable health  insurance is  just not  available to                                                                    
     the  majority of  Alaskans.   Instead of  focusing your                                                                    
     energy on  our most vulnerable citizens,  you should be                                                                    
     looking  for   solutions  ...  for  the   uninsured  or                                                                    
     underinsured  working class.    Also,  if everyone  had                                                                    
     adequate health  insurance, there'd be far  fewer women                                                                    
     and children on Denali KidCare.  Thank you.                                                                                
                                                                                                                                
Number 0841                                                                                                                     
                                                                                                                                
CHAIR DYSON  suggested that  the 250 percent  figure is  based on                                                               
Alaska's poverty  rate, which begins  with a 25  percent cost-of-                                                               
living  adjustment  over  the  federal  standards.    The  Denali                                                               
KidCare qualifications  set the  income level  at 200  percent of                                                               
Alaska's poverty standard.   The result is 250  percent above the                                                               
national  poverty level.   He  said, "I  don't think  it was  the                                                               
intention of the sponsor to be deceptive."                                                                                      
                                                                                                                                
Number 0793                                                                                                                     
                                                                                                                                
DONNA  JORDAN, Governor's  Council  on  Disabilities and  Special                                                               
Education, testified via teleconference.   She read a letter from                                                               
a parent she has worked with.  She read as follows:                                                                             
                                                                                                                                
     We are raising six children,  four of which are adopted                                                                    
     and  prenatally  exposed to  alcohol  and  drugs.   Our                                                                    
     adopted  children all  receive Medicaid,  for which  we                                                                    
     are   extremely  thankful,   as  their   medical  [and]                                                                    
     psychological needs  are many.   Much to  our surprise,                                                                    
     our youngest  child, born to  us five years ago,  has a                                                                    
     speech  delay.   We thought,  "No problem,  the husband                                                                    
     works   for  the   school  district;   we  have   great                                                                    
     insurance."   What  a shock  to find  out that  private                                                                    
     insurance only  cover $400 maximum  for speech  for our                                                                    
     son.                                                                                                                       
                                                                                                                                
MS. JORDAN continued to read:                                                                                                   
                                                                                                                                
     Basically, $400  covers the  evaluation and  two speech                                                                    
     sessions.    We  applied  for Denali  KidCare  for  our                                                                    
     child, ... [and]  within a few weeks  received the card                                                                    
     and  immediately were  able to  get the  speech therapy                                                                    
     our  child needed.   Denali  KidCare  had an  extremely                                                                    
     positive impact  on this family  by providing  what our                                                                    
     private insurance would  not provide.  I  am pleased to                                                                    
     say that our son's speech  has greatly improved.  He is                                                                    
     not,  at this  time,  requiring speech  [therapy].   We                                                                    
     feel  that   the  early  ...  intervention   of  speech                                                                    
     services at  age four years  has saved us in  many ways                                                                    
     for a  long run,  and our family  is very  thankful for                                                                    
     Denali  KidCare.   In closing,  let  me share:   If  it                                                                    
     works,  do  not fix  it.    For  families who  may  not                                                                    
     otherwise have coverage, Denali KidCare does work.                                                                         
                                                                                                                                
MS. JORDAN added  that she works with families  in the Matanuska-                                                               
Susitna area.   There are  many seasonal workers for  whom Denali                                                               
KidCare  has  been  extremely  beneficial.     Several  of  these                                                               
families  have   children  with   disabilities,  and   the  costs                                                               
associated  with these  disabilities  are numerous.   She  stated                                                               
that cutting  the Denali KidCare  program would create  a problem                                                               
by  discouraging  families   from  using  preventative  services;                                                               
emergency  medical  bills  would  increase  as  a  result.    She                                                               
expressed her  opinion that bringing the  permanent fund dividend                                                               
(PFD)  into  the   discussion  is  unfair;  the  PFD   is  not  a                                                               
consideration for Denali KidCare eligibility.                                                                                   
                                                                                                                                
Number 0616                                                                                                                     
                                                                                                                                
SALLY  BELTZ, MSN,  RN,  ARNP-C,  Advanced Training  Coordinator,                                                               
Yukon-Kuskokwim     Health     Corporation,     testified     via                                                               
teleconference.     She  paraphrased  from  a   prepared  written                                                               
statement that reads as follows:                                                                                                
                                                                                                                                
     My name is  Sally Beltz, and I live in  Bethel.  I work                                                                    
     for  the  women  and children  in  the  Yukon-Kuskokwim                                                                    
     Delta.   I work  to ensure that,  no matter  what their                                                                    
     income,  they   receive  the  best   health  screenings                                                                    
     available  in  their  home  villages.   I  do  this  by                                                                    
     training  the health  aides in  48  tribal villages  to                                                                    
     provide women's  preventive health screenings  and well                                                                    
     child periodic examinations  through the Denali KidCare                                                                    
     Program.   As  I am  sure  you know,  this program  was                                                                    
     created to  provide health care insurance  to uninsured                                                                    
     children and pregnant women  in working and non-working                                                                    
     families.                                                                                                                  
                                                                                                                                
MS. BELTZ said:                                                                                                                 
                                                                                                                                
     The  price of  ensuring that  our children  have health                                                                    
     insurance coverage is relatively  cheap - only $552 per                                                                    
     year, per child  in state funds.   This program ensures                                                                    
     that  the children  of  Alaska can  have  a health  and                                                                    
     developmental  screening  and  a  head-to-toe  physical                                                                    
     examination.  It also provides  for a dental and vision                                                                    
     screening;  a  hearing  screen done  by  audiometer;  a                                                                    
     developmental  assessment  for  gross  and  fine  motor                                                                    
     development; and  an evaluation of self-help  and self-                                                                    
     care skills.   They  are also  screened for  social and                                                                    
     emotional  development and  receive a  determination of                                                                    
     immunization  and  nutritional  status.    Their  vital                                                                    
     signs  are   checked  and  a   hemoglobin,  hematocrit,                                                                    
     urinalysis and  PPD are done.   A pap smear  and pelvic                                                                    
     and  breast  exam are  also  performed  if needed.  All                                                                    
     children  are  also   screened  for  behavioral  health                                                                    
     issues  such  as tobacco,  drug,  or  inhalant use  and                                                                    
     child  abuse.    All  of these  screens  are  performed                                                                    
     during the examination that  is provided through Denali                                                                    
     KidCare.                                                                                                                   
                                                                                                                                
MS. BELTZ continued as follows:                                                                                                 
                                                                                                                                
     This program also ensures that  pregnant women have the                                                                    
     opportunity to  have prenatal care.   It  is well-known                                                                    
     that prenatal  care is one  of the  most cost-effective                                                                    
     health  care   dollar  expenditures.     Prenatal  care                                                                    
     increases  the  chance  of   a  healthy  pregnancy  and                                                                    
     ensures the best chances for  the delivery of a healthy                                                                    
     baby.    Prenatal  care  is also  the  best  method  of                                                                    
     assuring  that the  children of  Alaska have  a healthy                                                                    
     start in life.                                                                                                             
                                                                                                                                
     If this  bill is  adopted by  the legislature,  it will                                                                    
     cause  approximately 3,821  children  and 722  pregnant                                                                    
     women to lose  their health care coverage.   That means                                                                    
     3,821 children  will not be offered  the opportunity to                                                                    
     live their  best lives.   It means  that 722  women and                                                                    
     722 unborn  babies will not be  offered the opportunity                                                                    
     to have the best health outcomes possible.                                                                                 
                                                                                                                                
     I  ask  that  the legislature  seriously  consider  the                                                                    
     potential negative  health outcomes  for the  women and                                                                    
     children of Alaska if they  are denied access to health                                                                    
     care.   Aren't our  women and  children worth  $552 per                                                                    
     year?  I  respectfully ask you to  consider if Alaskans                                                                    
     are really  willing to  be guilty  of leaving  3,821 of                                                                    
     our children behind?                                                                                                       
                                                                                                                                
Number 0470                                                                                                                     
                                                                                                                                
CHAIR DYSON said, "Many of those children in your area would ...                                                                
still be covered under Indian Health Service, would they not?"                                                                  
                                                                                                                                
MS. BELTZ replied, "Yes, some would."                                                                                           
                                                                                                                                
Number 0404                                                                                                                     
                                                                                                                                
JONALYN NAJERA testified via teleconference.  She is a parent on                                                                
Denali KidCare.  She offered a statistic from the National                                                                      
Alliance  for the  Mentally Ill:   between  375 and  400 children                                                               
will  lose  care if  HB  367  passes.    She indicated  that  her                                                               
daughter, who  suffers from  early-onset bipolar  disorder, would                                                               
be among these.  The cost  for her daughter's mental health care,                                                               
excluding hospitalization, was about $25,000  a year.  Ms. Najera                                                               
stated that she would not know  how to help her daughter [without                                                               
Denali  KidCare  insurance].   She  offered  that 25  percent  of                                                               
bipolar children  commit suicide  each year.   Denali  KidCare is                                                               
very helpful,  she said.  She  would be unable to  get insurance,                                                               
and  if she  did have  insurance, she  could not  afford the  co-                                                               
payments.                                                                                                                       
                                                                                                                                
Number 0333                                                                                                                     
                                                                                                                                
CHAIR DYSON asked about Ms. Najera's income.                                                                                    
                                                                                                                                
MS.  NAJERA replied  that her  family of  four's income  is about                                                               
$42,000 a year.   Her husband has insurance through  work, but to                                                               
add herself  and their children, the  cost would be $800  a month                                                               
in addition  to the co-payments  and deductibles, she said.   The                                                               
insurance, however, does not have much mental health coverage.                                                                  
                                                                                                                                
Number 0273                                                                                                                     
                                                                                                                                
JAN LYNDES  testified via  teleconference.   She stated  that she                                                               
works with people covered by Denali  KidCare.  She was covered by                                                               
the program  for her  pregnancy.  She  received ongoing  care and                                                               
education  throughout   her  pregnancy   due  to   the  coverage.                                                               
Delivery    complications   necessitated    a   Caesarian-section                                                               
delivery; she offered  that the decision to have  a C-section may                                                               
have  been  delayed  due  to  expenses  incurred  without  Denali                                                               
KidCare  coverage.   This  delay  could  have meant  a  long-term                                                               
disability or death  for her son.  She said,  "I feel like Denali                                                               
KidCare allowed  me to  have a birth  complication not  affect my                                                               
physical or mental  health [or] my son without  causing my family                                                               
to  live under  the poverty  level while  paying for  the birth."                                                               
She stated  that she  is now  a full-time  mother, which  pays no                                                               
money  and  offers  no  health insurance;  she  is  dependent  on                                                               
[Denali KidCare]  for the health of  her son.  She  urged members                                                               
to reject HB 367.                                                                                                               
                                                                                                                                
CHAIR DYSON asked,  "Is it true, then, that  you wouldn't qualify                                                               
if this bill passed?"                                                                                                           
                                                                                                                                
MS. LYNDES replied that this was correct.                                                                                       
                                                                                                                                
TAPE 02-11, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
DANA LEE  HALL, R.Ph.,  Village Operations  Administrator, Yukon-                                                               
Kuskokwim Health Corporation, testified via teleconference.                                                                     
                                                                                                                                
CHAIR DYSON  noted that the  committee had received the  fax sent                                                               
by Ms. Hall.                                                                                                                    
                                                                                                                                
MS. HALL  stated that she  wished to  follow up her  testimony of                                                               
February 12  by clarifying information  on Indian  Health Service                                                               
(IHS) funds  used by YKHC  in Bethel.   These funds  are minority                                                               
funding, she  said, adding,  "Last year they  were 49  percent of                                                               
our funding.  This year they're  actually 43 percent."  She noted                                                               
that  this  was less  than  the  60  percent indicated  by  Nancy                                                               
Wheeler,  Unit Manager,  State,  Federal,  and Tribal  Relations,                                                               
Division of  Medical Insurance, Department  of Health  and Social                                                               
Services.   This money  is leveraged with  other money,  Ms. Hall                                                               
stated.   This has  enabled YKHC to  double its  operating budget                                                               
and, in  turn, double its services.   She offered that  with only                                                               
IHS dollars,  staff would be  forced to choose which  services to                                                               
provide; this  choice would  limit services  to those  giving the                                                               
most immediate  health benefit  such as  emergency-room services.                                                               
Essentially, YKHC  would provide acute care  services exclusively                                                               
and discontinue preventative care services.                                                                                     
                                                                                                                                
MS. HALL  turned attention  to the fax  sent to  members entitled                                                               
"Price comparison  between Anchorage  and Shageluk."   This chart                                                               
shows  the  higher  costs  of   grocery  items  and  gasoline  in                                                               
Shageluk.   Each grocery  item identified is  at least  2.4 times                                                               
more  costly in  Shageluk than  in Anchorage.   She  said that  a                                                               
household salary  of $32,000  for a  family of  four does  not go                                                               
very far when these are the prices paid.                                                                                        
                                                                                                                                
CHAIR DYSON thanked Ms. Hall for the information.                                                                               
                                                                                                                                
Number 0201                                                                                                                     
                                                                                                                                
MARIE  DARLIN, AARP,  referred to  a  February 14  fax from  AARP                                                               
addressing  HB  367.    She  stated  that  she  was  speaking  in                                                               
opposition to HB 367 on  behalf of Alaska's 112,000 AARP members.                                                               
She  noted  that  AARP  understands  the  legislature's  need  to                                                               
address  fiscal problems,  but it  believes that  HB 367  is poor                                                               
health  policy  and  poor  public   policy.    Most  of  Alaska's                                                               
uninsured, she said,  are in working families  whose employers do                                                               
not provide health insurance.   "Denali KidCare is the only thing                                                               
that they  can rely on," she  said.  "It  ... is one of  the best                                                               
preventative health programs that you can find."                                                                                
                                                                                                                                
CHAIR DYSON asked  Ms. Darlin if many AARP  members were pregnant                                                               
or had small children.                                                                                                          
                                                                                                                                
MS. DARLIN replied, "Not that many.  ... However, we have a great                                                               
many grandparents  and people who  are taking care  of children."                                                               
She indicated that some of these  were using Denali KidCare.  She                                                               
offered that  the program increases  the chances for  good health                                                               
in families.   She  said, "We support  any fiscal  decisions that                                                               
the  legislature  might  make  that  are  fair  and  make  sense.                                                               
However, we do  not feel it makes sense to  take these people off                                                               
of Denali KidCare.  So we are recommending a nay vote."                                                                         
                                                                                                                                
Number 0402                                                                                                                     
                                                                                                                                
TONY LOMBARDO,  Director of  Advocacy, Covenant  House, testified                                                               
via teleconference.   He noted that his remarks are  based on the                                                               
statistics that he  has received from Denali  KidCare on Covenant                                                               
House's specific  client population, teens  13-19 years old.   He                                                               
noted that  this information indicates that  3,319 teenagers will                                                               
lose coverage  if this "rollback"  of Denali KidCare occurs.   He                                                               
said, "Covenant  House always champions better  health and living                                                               
conditions for  all teens,  but especially  for homeless  and at-                                                               
risk  kids."   The loss  of  this coverage  will harm  uninsured,                                                               
working families in Alaska; it  will worsen the situation for the                                                               
children in Covenant House.   Covenant House opposes the rollback                                                               
for this reason alone.                                                                                                          
                                                                                                                                
Number 0474                                                                                                                     
                                                                                                                                
MR.  LOMBARDO  stated  his  understanding  that  Alaska  pays  $5                                                               
million in state  funds to receive $12 million  in federal funds.                                                               
He added his  understanding that when the  Native percentages are                                                               
factored in,  40 percent  of that  $5 million  comes back  to the                                                               
state.   As  a  result, he  offered that  Alaska  is spending  $3                                                               
million to  get $12 million  of federal funding.   Denali KidCare                                                               
is not a wasteful program,  and Covenant House encourages members                                                               
to not cut this successful program.                                                                                             
                                                                                                                                
Number 0565                                                                                                                     
                                                                                                                                
SUSAN WOHGLEMUTH  testified via teleconference.   She pointed out                                                               
that   even  moderate-income   families  with   health  insurance                                                               
benefits have  insurance that provides only  limited benefits for                                                               
residential care for children  with psychiatric disorders, eating                                                               
disorders, or  behavioral health  problems.   She noted  that she                                                               
knows  a number  of families  aided by  Denali KidCare  who would                                                               
have  been destroyed  by catastrophic  expense.   "Denali KidCare                                                               
helped save  my daughter's life,  and it's a necessary  and vital                                                               
institution," she concluded.                                                                                                    
                                                                                                                                
Number 0597                                                                                                                     
                                                                                                                                
LYNDA THOMASSEN  testified that her family  commercial fishes and                                                               
Denali KidCare  has been  a "lifesaver" to  their children.   She                                                               
said, "I would hate to see us  fall off the Denali KidCare if ...                                                               
the guidelines are lowered."   She noted that her family's income                                                               
would  put them  "on  the  edge" of  eligibility.    Her son  has                                                               
asthma; the preventative  care has saved money, and  it has saved                                                               
her son  from more  serious problems  in the  future.   She noted                                                               
that  she formerly  had employment  with insurance  but has  been                                                               
unable  to work  since  the birth  of her  second  son.   "Denali                                                               
KidCare has been great for me," she concluded.                                                                                  
                                                                                                                                
Number 0689                                                                                                                     
                                                                                                                                
SUSAN DRATHMAN  testified via teleconference.   She urged members                                                               
to leave  Denali KidCare eligibility  guidelines untouched.   She                                                               
said that  she concurred  with other  witnesses' testimony.   She                                                               
said, "Healthy  children are the  foundation of a  ... successful                                                               
society, and it's  about $500 per year per child.   I can't think                                                               
of  a better  investment.   It's incredibly  ... cost-effective."                                                               
The  program  offers  medical, dental,  and  mental  health  care                                                               
coverage; mental  health care coverage  is not available  to many                                                               
families without  Denali KidCare.   Most insurance  companies cap                                                               
mental health care at a low  rate.  She cautioned against looking                                                               
only at  the eligibility income levels  for families of 9  or 10;                                                               
she ventured  that most Alaskan  families are smaller  than this.                                                               
Health insurance is  out of reach for most people;  a trip to the                                                               
emergency room  is expensive -  an appendectomy costs  $15,000 to                                                               
$20,000  without   complications,  she   stated.     Health  care                                                               
providers  or  the  state  will  eventually  incur  these  costs,                                                               
because people are unable to pay these large bills.                                                                             
                                                                                                                                
MS. DRATHMAN pointed out three  inaccuracies she had heard at the                                                               
previous  hearing on  HB 367.    She clarified  that the  Special                                                               
Supplemental Nutrition  Program for Women, Infants,  and Children                                                               
(WIC)  does  not offer  medical  care;  it offers  nutrition  for                                                               
pregnant  women.   Second, Alaska  Natives are  not automatically                                                               
eligible for Medicaid; they must  meet the same income guidelines                                                               
as  others.   And third,  all Alaska  Natives do  not have  ready                                                               
access to Native health centers:   Homer Natives seeking services                                                               
must travel to Anchorage, where they must wait in line for care.                                                                
                                                                                                                                
Number 0850                                                                                                                     
                                                                                                                                
VALERIE   DAVIDSON,  Executive   Vice-President,  Yukon-Kuskokwim                                                               
Health  Corporation, testified  via teleconference  in opposition                                                               
to HB 367.   She said she would like members  to remember as they                                                               
deliberate  that   "the  need  for   medical  care   ...  doesn't                                                               
distinguish whether  a woman  or a child  is eligible  for Denali                                                               
KidCare."   This means  that the population  in greatest  need of                                                               
medical care - low-income women and  children - will be forced to                                                               
pay for their own care with dollars they do not have, she said.                                                                 
                                                                                                                                
MS. DAVIDSON pointed out the  irony in the legislature's proposal                                                               
to reduce  eligibility when  our nation as  a whole  is expanding                                                               
services to  women and  children.  She  explained that  38 states                                                               
and  the   District  of  Columbia  now   have  Children's  Health                                                               
Insurance  Plan  (CHIP)  coverage  available  to  families  whose                                                               
income is 200  percent or higher than the  federal poverty level.                                                               
Before  the  CHIP  program's inception,  only  6  states  offered                                                               
coverage for infants at this income  level.  She said that states                                                               
report  that more  than 75  percent of  the children  enrolled in                                                               
CHIP in 2001 were between the ages  of 6 and 18.  California sets                                                               
eligibility  at 300  percent  of the  federal  poverty level  for                                                               
children under  2 and at 250  percent for children ages  2 to 19.                                                               
She noted  that Minnesota sets  the eligibility level at  280 and                                                               
275  percent, respectively.    New York  and  Washington have  an                                                               
income eligibility at  250 percent of the  federal poverty level.                                                               
She added  that other states that  have the poverty level  set at                                                               
200 percent offer other benefits;  New Jersey covers both parents                                                               
of  CHIP-eligible children.   Studies  indicate  that racial  and                                                               
ethnic  minority  groups  are  more  likely  than  whites  to  be                                                               
uninsured  and   are  less  likely   to  have   job-based  health                                                               
insurance.                                                                                                                      
                                                                                                                                
MS. DAVIDSON concluded by pointing  out that President Bush's FY-                                                               
03 budget makes  available $3.2 billion to states  in unused CHIP                                                               
funds  that  would  otherwise return  to  the  federal  treasury.                                                               
Alaska  stands to  benefit from  these underutilized  CHIP funds.                                                               
If  Alaska  underutilizes  CHIP funds  by  reducing  eligibility,                                                               
Alaska  CHIP funds  will  be  redirected to  other  states.   She                                                               
requested that the  Denali KidCare eligibility remain  at the 200                                                               
percent of federal poverty level.                                                                                               
                                                                                                                                
Number 1037                                                                                                                     
                                                                                                                                
SUE ZAHND,  Member, AARP; National Association  for the Education                                                               
of  Young Children  (NAEYC),  read from  a  written statement  as                                                               
follows:                                                                                                                        
                                                                                                                                
     It is important  to note that the  people most affected                                                                    
     by  the  reduction of  Denali  KidCare  would be  those                                                                    
     families   who    provide   stability    and   positive                                                                    
     contributions  to our  community.    As often  happens,                                                                    
     those with  little, we  care for,  and those  with much                                                                    
     are not  in need.   It  is the  parents who  don't make                                                                    
     much money,  who don't have access  to group insurance,                                                                    
     who  do not  have large  savings accounts,  who suffer.                                                                    
     They   work  hard   each  day,   keep  this   community                                                                    
     functioning,  furthering their  education, striving  to                                                                    
     provide for their families as best they can.                                                                               
                                                                                                                                
     These are  the people who  end up without the  means to                                                                    
     care adequately  for their family's health  care needs.                                                                    
     Insurance is  either not available  for them,  does not                                                                    
     provide  for  [preexisting]   conditions,  or  is  only                                                                    
     available at  costs far  and above  what they  can pay.                                                                    
     Individual doctor  bills are problematic in  the weekly                                                                    
     budget,  and catastrophic  illness, prohibitive.   They                                                                    
     have the dilemma  of whether to buy food,  pay rent and                                                                    
     child care, or  go to the doctor.  They  wait until the                                                                    
     need  is  severe,  meaning that  a  minor  illness  may                                                                    
     become a  serious one, and untreated  conditions become                                                                    
     chronic ones  with repercussions for the  person in the                                                                    
     community.                                                                                                                 
                                                                                                                                
MS. ZAHND continued:                                                                                                            
                                                                                                                                
     These same children attend schools  and child care with                                                                    
     other children,  where they  share play,  learning, and                                                                    
     germs, thus  further jeopardizing  [the] health  of the                                                                    
     community.    Most  importantly, when  children  aren't                                                                    
     well and safe, we  risk their positive development that                                                                    
     could  mean so  much  to the  well-being  of our  whole                                                                    
     community.                                                                                                                 
                                                                                                                                
     At the present time we  are quite conscious of the need                                                                    
     for safety  and talk about  it in expansive terms.   We                                                                    
     need to  be conscious that communal  safety begins with                                                                    
     how we  protect our  children - all  of them,  not just                                                                    
     the  very  poor  and  not   just  the  affluent.    The                                                                    
     contribution  of  Denali  KidCare   to  the  health  of                                                                    
     children  in our  community, and  thus to  the communal                                                                    
     safety, has  been significant.   It is my  opinion that                                                                    
     families  and  their  children will  suffer  if  it  is                                                                    
     reduced,  and the  negative  effects  on the  community                                                                    
       will be long-term.  Please keep your commitment to                                                                       
      children [and] families, and focus as you make this                                                                       
     decision and support Denali KidCare fully.                                                                                 
                                                                                                                                
Number 1178                                                                                                                     
                                                                                                                                
FAYE NIETO testified via teleconference.   She encouraged members                                                               
to make  a decision  with their  hearts as  well as  their heads.                                                               
She  serves   parents  with   children  who   have  developmental                                                               
disabilities  through Parents,  Inc.   As  a nonprofit  employer,                                                               
Parents, Inc. is  unable to provide full benefits  to its 25-plus                                                               
employees.    Therefore,  employees  are needing  to  enroll  [in                                                               
Denali KidCare to  offset insurance costs].   These employees are                                                               
not making competitive wages in  the nonprofit sector.  She noted                                                               
the  importance of  considering employers  and working  families.                                                               
This proposed cut is a  disincentive to former welfare recipients                                                               
who are  working hard to provide  for their families.   She noted                                                               
her  confidence  that  the House  Health,  Education  and  Social                                                               
Services  Standing  Committee will  make  the  best decision  for                                                               
Alaska's children.                                                                                                              
                                                                                                                                
Number 1350                                                                                                                     
                                                                                                                                
JOY  LYON,   Alaska  Association  for  the   Education  of  Young                                                               
Children, noted the general agreement  that health is critical to                                                               
a  child's  learning.   Denali  KidCare  has been  successful  in                                                               
promoting  children's learning  through  good health  care.   She                                                               
commended members on  their efforts to save  money; however, this                                                               
will not save  the state money, she noted.   She pointed out that                                                               
reducing the  income eligibility  for Denali KidCare  will result                                                               
in  a  reduction  of  state expenditures  only  if  the  families                                                               
affected  by the  reduction purchase  health insurance  for their                                                               
children.   If these families  do not purchase  insurance, higher                                                               
costs will result  from the greater number  of uninsured families                                                               
unable to pay hospital bills, she said.                                                                                         
                                                                                                                                
MS.  LYON  stated that  the  722  pregnant  women who  [will  not                                                               
receive  Denali  KidCare coverage  under  provisions  in HB  367]                                                               
could  incur $8,300  to $9,600  for a  basic C-section  delivery.                                                               
[If  these bills  are unpaid]  the costs  will be  transferred to                                                               
future  patients,  she offered.    Children  who do  not  receive                                                               
medical  care  eventually cost  the  state  more through  special                                                               
education  and other  services.   She  reiterated  that the  real                                                               
question  at hand  is whether  the  aforementioned families  will                                                               
obtain private medical insurance.                                                                                               
                                                                                                                                
Number 1400                                                                                                                     
                                                                                                                                
MS.  LYON indicated  her first  impression was  that the  $44,000                                                               
[income threshold  for a family  of four]  sounded like a  lot to                                                               
her, so  she conducted some research.   She pointed out  that the                                                               
missing  [expense] is  the  cost of  child care.    All of  these                                                               
families are  working families;  this means  that they  have very                                                               
high  child  care  costs,  but  are  ineligible  for  child  care                                                               
assistance.   To  be eligible  for  assistance at  25 percent  of                                                               
child care costs, a family must  be at 185 percent of the poverty                                                               
level.   She expressed  her belief that  this threshold  would be                                                               
reduced in the summer of 2002.                                                                                                  
                                                                                                                                
MS. LYON stated that her  research indicates that average monthly                                                               
costs  for a  family  of four  are  as follows:    $424 for  food                                                               
[according  to  the  Alaska Cooperative  Extension];  $1,464  for                                                               
rent, according  to the Alaska  Housing Finance  Corporation; and                                                               
$1,100 for child  care.  She concluded that  with these expenses,                                                               
there just  isn't enough [money].   She offered her  opinion that                                                               
[Denali KidCare]  is a bargain for  the state.  On  behalf of the                                                               
Alaska  Association  for the  Education  of  Young Children,  she                                                               
urged  members to  maintain  the eligibility  level  at the  200-                                                               
percent-of-poverty level.                                                                                                       
                                                                                                                                
Number 1482                                                                                                                     
                                                                                                                                
NANCY KOON testified via teleconference  in opposition to HB 367.                                                               
She is the  single mother of four children;  her children receive                                                               
Denali KidCare  benefits.  She  has a 10-year-old daughter  in an                                                               
out-of-state  placement.   If HB  367 passes,  Ms. Koon  said her                                                               
children would be ineligible for  coverage, her daughter would be                                                               
returned home,  and she might  need to quit  her job to  care for                                                               
her  daughter.    She  speculated that  this  would  counter  the                                                               
state's goals.  She offered  her opinion that children around the                                                               
state deserve  these benefits,  and it saves  the state  money in                                                               
the long  run.   Her daughter's health  care costs  have exceeded                                                               
$100,000 in the  last two years.   She would be unable  to meet a                                                               
co-payment of  20 percent;  she would need  food stamps  [to make                                                               
ends meet].  Ms. Koon  explained that her 11-year-old child needs                                                               
extensive back surgery  in Seattle.  She noted that  she would be                                                               
unable to pay these "devastating" medical  bills on her own.  She                                                               
asked members to reject HB 367.                                                                                                 
                                                                                                                                
Number 1577                                                                                                                     
                                                                                                                                
CAREN  ROBINSON, Lobbyist  for  Alaska  Women's Lobby,  requested                                                               
members  to reconsider  the direction  of HB  367.   She reminded                                                               
members that  Denali KidCare  is not a  long-term program.   Most                                                               
women  enroll  in the  program  when  they become  pregnant;  the                                                               
coverage lasts for  one month after the birth.   The children are                                                               
eligible for  one year.   She said, "Philosophically,  we believe                                                               
very  strongly that  we need  to do  everything in  our power  to                                                               
assist  pregnant  women and  children  in  getting the  kinds  of                                                               
medical care that they need."                                                                                                   
                                                                                                                                
Number 1624                                                                                                                     
                                                                                                                                
SHAWNEE HART testified via teleconference,  stating that she is a                                                               
single mother of  two biological children and  one adopted child.                                                               
She  offered  that  she  suspects   that  her  adopted  child  is                                                               
emotionally  disturbed.    One of  her  biological  children  has                                                               
Aspbergers' Syndrome  and the other  is severely asthmatic.   She                                                               
noted that  their medical  bills are beyond  her ability  to pay.                                                               
She  has worked  for four  years since  getting off  welfare, she                                                               
indicated.   Her income  level disqualifies  her for  food stamps                                                               
and housing  assistance.   If she  became ineligible  for medical                                                               
assistance, she stated,  she would most likely be  forced to quit                                                               
her job  or ask for reduced  hours to keep her  children covered.                                                               
She noted  her concern for  pregnant women who would  not qualify                                                               
for Denali  KidCare and would  therefore lack  necessary prenatal                                                               
care.  She said, "I know that  raising a child alone is very hard                                                               
work.   I  fear for  the  families that  would ...  be forced  to                                                               
separate or  divorce in order  to ensure that their  children can                                                               
receive medical coverage."  She urged members to oppose HB 367.                                                                 
                                                                                                                                
Number 1684                                                                                                                     
                                                                                                                                
CATHERINE BURGESS  testified via teleconference, noting  that she                                                               
is the  single mother of four  children; she is an  Alaska Native                                                               
and her children  do receive IHS care.  Denali  KidCare serves as                                                               
her  secondary  insurance.   One  of  her children  will  require                                                               
surgery Outside  this year.   If  this bill  passes, she  will be                                                               
unable to pay  for insurance, she said.  She  opposes the passage                                                               
of HB 367.                                                                                                                      
                                                                                                                                
Number 1730                                                                                                                     
                                                                                                                                
ELMER LINDSTROM,  Deputy Commissioner,  Department of  Health and                                                               
Social Services, pointed out that a  memo dated February 14 is in                                                               
the committee  packet.  Attached  to this  memo is a  matrix that                                                               
outlines income levels, disposable  income, and the out-of-pocket                                                               
expenses  for  health  insurance  costs;  these  figures  do  not                                                               
include child  care, rent,  and other expenses.   He  stated that                                                               
Nancy  Cornwell   in  the  Anchorage  office   could  answer  any                                                               
questions pertaining  to the matrix.   Also attached to  the memo                                                               
is a table showing the number of eligible children [whose family                                                                
income is] 150 to 200 percent of the federal poverty level, by                                                                  
community.                                                                                                                      
                                                                                                                                
CHAIR DYSON suspended the hearing on HB 367.                                                                                    

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