Legislature(2001 - 2002)

02/21/2002 03:04 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 411-PHYSICIAN ASSISTANTS                                                                                                   
                                                                                                                                
Number 0186                                                                                                                     
                                                                                                                                
CHAIR DYSON announced  that the first order of  business would be                                                               
HOUSE BILL  NO. 411,  "An Act  relating to  physician assistants;                                                               
providing that  a physician assistant  is a health  care provider                                                               
covered by certain laws relating  to medical malpractice actions;                                                               
adding  physician assistants  to  the list  of providers  against                                                               
whom unfair  discrimination relating to health  care insurance is                                                               
prohibited and to the list of  providers who can provide proof of                                                               
disablement  or  handicap  for   the  purpose  of  motor  vehicle                                                               
registration or  for the purpose  of obtaining a  special license                                                               
plate  or  a  special  parking   permit;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 0190                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUGH FATE, Alaska  State Legislature, presented HB
411 as  its sponsor.   He  indicated HB  411 was  introduced upon                                                               
request of  the [Alaska  Academy of  Physician Assistants].   The                                                               
bill  provides  equity  to the  physician  assistants  (PAs);  he                                                               
stated  that  when  the  list of  medical  health  providers  was                                                               
established in statute, PAs were  not listed.  He attributed this                                                               
omission to the  small numbers of PAs in practice  when this list                                                               
was established;  he noted the  growing numbers of PAs  as health                                                               
providers in the state.                                                                                                         
                                                                                                                                
REPRESENTATIVE  FATE  offered that  HB  411  seeks to  accomplish                                                               
three things.   First, it places  PAs on the list  of health care                                                               
providers in statute.   Second, it gives PAs  equal footing under                                                               
insurance  programs  for  both payment  and  liability  purposes.                                                               
Third,  HB  411  allows  PAs  to  authorize  license  plates  for                                                               
disabled veterans or handicapped  persons.  Presently, physicians                                                               
and  nurses  can  authorize  these plates,  but  PAs  cannot,  he                                                               
explained.    In  both  urban  and  rural  Alaska,  PAs  fill  an                                                               
important role for disabled veterans and disabled persons.                                                                      
                                                                                                                                
REPRESENTATIVE  FATE  noted  that  the  [Division  of  Insurance,                                                               
Department of Community & Economic  Development] is neutral on HB
411.  He offered that the  Division of Insurance had made a point                                                               
about  which office  the  [insurance]  payment is  sent  to.   He                                                               
indicated he'd  responded to the  Division of Insurance  that the                                                               
receipt location is  determined by either the  office under which                                                               
the PA works  or by regulation of the Division  of Insurance.  He                                                               
also indicated Division of Insurance  personnel would concur with                                                               
this statement.                                                                                                                 
                                                                                                                                
Number 0380                                                                                                                     
                                                                                                                                
CHAIR DYSON  offered his  understanding that  PAs work  under the                                                               
supervision of a medical doctor (MD).                                                                                           
                                                                                                                                
REPRESENTATIVE  FATE   explained  that  this  supervision   by  a                                                               
physician  need  not  be  direct;  this  physician  needs  to  be                                                               
licensed  in Alaska.   In  response  to a  further question  from                                                               
Chair  Dyson,  he  indicated that  under  certain  circumstances,                                                               
insurance  payments   could  go  directly  [to   the  supervising                                                               
physician's office];  this is  determined by  the office  and the                                                               
insurance company, or by Division of Insurance regulations.                                                                     
                                                                                                                                
CHAIR  DYSON drew  attention to  a proposed  amendment to  HB 411                                                               
that  defines  "unfair discrimination"  in  existing  law.   [The                                                               
amendment had been provided by  Jerry Reinwand, Lobbyist for Blue                                                               
Cross  Blue Shield  of  Alaska.]   The  amendment read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page  2, Line  12,  replace current  language with  the                                                                    
     following:                                                                                                                 
                                                                                                                                
          *Sec. 2. AS 21.36.090(d) is amended to read:                                                                          
          "(d) Except to the extent necessary to comply                                                                         
     with  AS  21.42.365 and  AS  21.56,  a person  may  not                                                                    
     practice  or  permit  unfair discrimination  against  a                                                                    
     person  who provides  a service  covered under  a group                                                                    
     health  insurance policy  that extends  coverage on  an                                                                    
     expense  incurred basis,  or under  a group  service or                                                                    
     indemnity   type  contract   issued   by  a   nonprofit                                                                    
     corporation, if the service is  within the scope of the                                                                    
     provider's occupational license.  In this subsection,                                                                      
          (1) "provider" means a state licensed physician,                                                                  
     physician  assistant, dentist,  osteopath, optometrist,                                                                
     chiropractor,    nurse    midwife,    advanced    nurse                                                                    
     practitioner,    naturopath,     physical    therapist,                                                                    
     psychologist,  psychological   associate,  or  licensed                                                                    
     clinical social worker, or direct-entry midwife.                                                                           
          (2) "unfair discrimination" does not include                                                                      
     requirements imposed  by a health insurer  for purposes                                                                
     of utilization  review, cost containment  and medically                                                                
     recognized standards  of clinically  appropriate health                                                                
     care services."                                                                                                        
                                                                                                                                
REPRESENTATIVE FATE  declared that he hadn't  read the amendment.                                                               
He said he  didn't object to cleaning up  language in legislation                                                               
by using a  "rider" attached to HB  411.  He pointed  out that an                                                               
opportunity for  a committee substitute  will exist in  the House                                                               
Labor and  Commerce Standing Committee  hearing on the  bill, and                                                               
he said  he'd like  time to  review the  proposed amendment.   He                                                               
offered that  his first impression  of the amendment was  that he                                                               
didn't anticipate objecting to it.                                                                                              
                                                                                                                                
CHAIR DYSON indicated  his wish to receive  input from Department                                                               
of Law personnel.                                                                                                               
                                                                                                                                
Number 0559                                                                                                                     
                                                                                                                                
ED  HALL,  Physician  Assistant,   Alaska  Academy  of  Physician                                                               
Assistants,  testified via  teleconference.   He stated  that his                                                               
goal in testifying was threefold.   First, he wanted to elaborate                                                               
on the  academy's resolution[s], but he  said Representative Fate                                                               
had  sufficiently spoken  to the  issues.   Second, he  wanted to                                                               
respond to members'  questions.  And third,  he offered assurance                                                               
that  it  isn't the  goal  of  the  Alaska Academy  of  Physician                                                               
Assistants to seek independence [from physicians].                                                                              
                                                                                                                                
MR. HALL noted that by definition,  PAs are required to work with                                                               
a  collaborative physician.   The  State of  Alaska upholds  laws                                                               
pertaining to  this.  This  physician is usually  responsible for                                                               
billing issues  when the PA and  supervising MD work in  the same                                                               
office,  he offered.   If  a PA  establishes a  clinic under  the                                                               
direction  of a  collaborating MD,  however, billing  becomes the                                                               
responsibility of the PA.  That  may give the appearance that PAs                                                               
are independent, Mr. Hall noted, but this is not the case.                                                                      
                                                                                                                                
MR. HALL referred to Section 1 of the bill and said:                                                                            
                                                                                                                                
     This was  brought to  our attention  a couple  of years                                                                    
     ago  by an  attorney who  indicated that  they had  had                                                                    
     problems in  the past whenever they  were involved with                                                                    
     any  litigation  with  a physician  assistant.  ...  An                                                                    
     arbitration  board  can   appoint  an  expert  advisory                                                                    
     panel,  ...   [which]  usually  consists  of   ...  the                                                                    
     [providers] that are defined in this section.                                                                              
                                                                                                                                
Number 0803                                                                                                                     
                                                                                                                                
MR. HALL  pointed out that the  list of health care  providers in                                                               
AS 09.55.560 doesn't include PAs;  therefore, they don't have the                                                               
ability to  serve on the advisory  panel or be assessed  by their                                                               
peers.   He referenced the second  resolution, titled "Resolution                                                               
to  Amend AS  21.36.090(d) to  Protect Physician  Assistants From                                                               
Unfair Discrimination."   He offered  that a clinic in  Healy has                                                               
several examples of  cases for which it was not  reimbursed by an                                                               
insurance  company.   While this  doesn't happen  frequently, one                                                               
instance of nonpayment because a  PA is not a recognized provider                                                               
in the state is too often, he offered.                                                                                          
                                                                                                                                
MR.  HALL  noted  that  the  third  resolution  pertains  to  the                                                               
[Division] of  Motor Vehicles; because  PAs are not  specified in                                                               
statute,  patients  have  been   denied  temporary  or  permanent                                                               
disability parking  permits due to the  signature of a PA  on the                                                               
application.  He  offered his opinion that these  state laws were                                                               
not created to exclude PAs;  rather, the laws were written before                                                               
PAs were  numerous in the  state.  Noting that  he had a  copy of                                                               
the  aforementioned amendment,  he said,  "Because it's  going to                                                               
probably change the language in the  law, ... it may very well be                                                               
that this  ... would  not pass.   And  I would  hate for  that to                                                               
hinder what seems ... to be  a straightforward parity."  He noted                                                               
his preference for the amendment to be part of a separate bill.                                                                 
                                                                                                                                
Number 0898                                                                                                                     
                                                                                                                                
CHAIR  DYSON inquired  how PAs  practicing in  a remote  location                                                               
know  when  they  are  getting beyond  the  procedures  they  are                                                               
authorized by law to perform.   He asked, "Do you have a spelled-                                                               
out protocol for what you can do and what you can't?"                                                                           
                                                                                                                                
MR.  HALL  replied  that  PAs  are  trained  to  recognize  their                                                               
limitations.     In  the  collaborative  agreement   between  the                                                               
physician  and the  PA, the  law allows  PAs to  do whatever  the                                                               
supervising  physician  feels  comfortable  with,  based  on  the                                                               
skills the PA has developed.   For example, a family-practitioner                                                               
PA  is not  typically  skilled  in surgery;  PAs  are trained  in                                                               
surgical  procedures,  but  most  do not  practice  these  skills                                                               
frequently enough.   Whereas minor  procedures can be done  in an                                                               
office, general  surgery cannot  be performed  unless the  PA has                                                               
been trained by a general surgeon  up to a level of competence to                                                               
which the PA would  be authorized.  This is not to  say that a PA                                                               
is performing surgeries in rural  areas, Mr. Hall added; most PAs                                                               
in rural areas are in a family-practice setting.                                                                                
                                                                                                                                
Number 0999                                                                                                                     
                                                                                                                                
CHAIR DYSON  queried, if a medical  emergency occurs and a  PA is                                                               
the only medical practitioner in town,  whether a PA can give the                                                               
situation his/her best effort.                                                                                                  
                                                                                                                                
MR.  HALL  answered,  "Absolutely."     Physician  assistants  go                                                               
through  extensive training  programs,  so they  are prepared  to                                                               
handle  acute emergencies.   Like  physicians, PAs  practice with                                                               
the intent to do no harm.                                                                                                       
                                                                                                                                
Number 1054                                                                                                                     
                                                                                                                                
MARY  MARSHBURN,  Director,  Division of  Motor  Vehicles  (DMV),                                                               
Department of Administration, testified  via teleconference.  She                                                               
pointed out  that Section 3  affects the division; it  will allow                                                               
PAs to sign  the certificates of disability.   She concluded that                                                               
this is a good addition.                                                                                                        
                                                                                                                                
Number 1080                                                                                                                     
                                                                                                                                
SUSAN  MASON-BOUTERSE,   Executive  Director,   Sunshine  Clinic,                                                               
testified  via  teleconference.    She  explained  that  Sunshine                                                               
Clinic is  a midlevel  clinic with four  PAs who  provide primary                                                               
care.   These  PAs work  under a  collaborative agreement  with a                                                               
physician in Wasilla.  She said:                                                                                                
                                                                                                                                
     These  providers are  critical  to  the ongoing  health                                                                    
     care of  residents in the  community we serve,  as well                                                                    
     as to  the ongoing  functioning of this  health center.                                                                    
     Because our  current state statutes ...  do not include                                                                    
     [physician] assistants  in the  listing of  health care                                                                    
     providers,  we   periodically  have  our   billing  for                                                                    
     medical services denied by third-party payers ....                                                                         
                                                                                                                                
MS.  MASON-BOUTERSE stated  that  anytime this  happens to  rural                                                               
clinics that  are struggling to  maximize revenues, it  becomes a                                                               
problem.   She added that  it also becomes a  significant barrier                                                               
to health care  for individuals with health  insurance; they have                                                               
to drive  somewhere else  to receive health  care.   Small, rural                                                               
health  clinics  need  to  be able  to  explore  every  potential                                                               
revenue source to  support clinic operations.   She urged members                                                               
to support HB 411.                                                                                                              
                                                                                                                                
Number 1177                                                                                                                     
                                                                                                                                
JESSICA STEVENS, Medical  Director, Physician Assistant, Sunshine                                                               
Clinic,  testified  via  teleconference.     She  emphasized  her                                                               
support for HB  411.  She pointed  out that this is  a huge issue                                                               
for  rural communities  that  struggle  to provide  comprehensive                                                               
health  care.   Often  PAs  are providing  this  care instead  of                                                               
physicians; the compensation and  living situations are often not                                                               
conducive to physicians moving into rural Alaska.                                                                               
                                                                                                                                
MS. STEVENS  mentioned the  importance of  having health  care in                                                               
rural  areas in  emergencies.   She offered  her belief  that the                                                               
exclusion of PAs  was not deliberate, but an  oversight that does                                                               
great  damage to  the PA-patient  relationship in  the community.                                                               
She noted that  the many disabled veterans in her  area have full                                                               
faith in  PAs' ability to  provide health care; they  expect that                                                               
PAs will  be able  to sign disabled  parking permits.   Sometimes                                                               
these patients have  to drive two hours to repeat  an exam to get                                                               
someone to  sign the forms.   She added that  insurance companies                                                               
have,  relatively   frequently,  denied  [payment   for  services                                                               
provided by PAs].  She urged members to pass HB 411.                                                                            
                                                                                                                                
Number 1297                                                                                                                     
                                                                                                                                
[Chair Dyson asked  Jerry Reinwand, Lobbyist for  Blue Cross Blue                                                               
Shield  of  Alaska,  if  he  was  comfortable  dealing  with  the                                                               
amendment in the House Labor  and Commerce Standing Committee; he                                                               
received confirmation from  Mr. Reinwand that he  was amenable to                                                               
this proposal.]                                                                                                                 
                                                                                                                                
REPRESENTATIVE WILSON  commented that  having worked in  a small,                                                               
rural clinic,  she has  experienced the  difficulties encountered                                                               
in  recruiting  and  retaining   a  physician.    Advanced  nurse                                                               
practitioners  and  PAs  worked  in this  clinic;  without  these                                                               
practitioners,  people  would have  been  required  to drive  250                                                               
miles  to  Fairbanks  for  health   care.    She  emphasized  the                                                               
importance of  [mid-level care  providers] in  rural areas.   She                                                               
added that  she is a registered  nurse (RN); if RNs  can sign the                                                               
handicapped parking permits, then surely PAs should be able to.                                                                 
                                                                                                                                
REPRESENTATIVE WILSON  moved to  report HB  411 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There  being no objection, HB 411 was  reported out of the                                                               
House Health, Education and Social Services Standing Committee.                                                                 
                                                                                                                                

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