Legislature(2015 - 2016)BARNES 124

04/08/2015 03:15 PM LABOR & COMMERCE

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Audio Topic
04:16:46 PM Start
04:17:13 PM Confirmation Hearing(s)
04:21:22 PM HB178
04:31:58 PM HB66
04:59:06 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:45 p.m. Today --
+ Confirmation Hearings: TELECONFERENCED
- Board of Massage Therapists
- Board of Examiners in Optometry
- Board of Certified Real Estate Appraisers
- Alaska Workers' Compensation Board
*+ HB 66 INS. FOR DEPENDENTS OF DECEASED TEACHERS TELECONFERENCED
Heard & Held
*+ HB 178 WORKERS' COMP MEDICAL FEES; DELAY TELECONFERENCED
Moved HB 178 Out of Committee
            HB 178-WORKERS' COMP MEDICAL FEES; DELAY                                                                        
                                                                                                                                
4:21:22 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL  NO. 178,  "An Act  relating to  workers' compensation                                                               
fees  for  medical  treatment  and  services;  providing  for  an                                                               
effective date by amending the effective  date of sec. 5, ch. 63,                                                               
SLA 2014; and providing for an effective date."                                                                                 
                                                                                                                                
CHAIR  OLSON reported  that the  initial  bill last  legislature,                                                               
House   Bill  316,   passed   the   Twenty-Eighth  Alaska   State                                                               
Legislature unanimously, except for those absent.                                                                               
                                                                                                                                
4:21:52 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  Staff, Representative  Kurt Olson,  Alaska State                                                               
Legislature,  stated  that  HB   178  would  offer  a  five-month                                                               
extension to the time constraints  set by House Bill 316 [Twenty-                                                               
eighth  legislature]   for  the   creation  of  a   new  Workers'                                                               
Compensation  Medical  Services  Review Committee  (MSRC)  tasked                                                               
with   establishing   a    conversion   factor   and   geographic                                                               
differential to be used in  conjunction with a basic fee schedule                                                               
and  a  relative  value  unit   methodology  and  implemented  by                                                               
regulation.   He  said this  bill could  be likened  to a  simple                                                               
board  extension  with  a  zero  fiscal  note.    Last  year  the                                                               
legislature  passed  House  Bill  316, which  asked  the  Medical                                                               
Services Review Committee  (MSRC) to create a  fee schedule based                                                               
on Medicaid rates  with a multiplier for various  services.  Once                                                               
a conversion factor  was set, the bill  required the commissioner                                                               
of  Department  of  Labor &  Workforce  Development  approve  the                                                               
multiplier   and   draft    regulations,   which   the   workers'                                                               
compensation  board would  implement.   The bill  envisioned this                                                               
work would  be completed by July  1, 2015.  The  Medical Services                                                               
Review Committee (MSRC) has met  numerous times and is very close                                                               
to completing  its work, but  does not anticipate  completing its                                                               
work by July 1, 2015.                                                                                                           
                                                                                                                                
4:23:08 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  asked  for  the  current  Medical  Services  Review                                                               
Committee (MSRC) membership.                                                                                                    
                                                                                                                                
MR. JACKSON  replied that the  Medical Services  Review Committee                                                               
(MSRC) consists of nine members, as  follows:  (1) one member who                                                               
is  a member  of the  Alaska State  Medical Association;  (2) one                                                               
member who  is a member  of the Alaska Chiropractic  Society; (3)                                                               
one  member who  is a  member of  the Alaska  State Hospital  and                                                               
Nursing Home  Association; (4)  one member who  is a  health care                                                               
provider, as  defined in  AS 09.55.560;  (5) four  public members                                                               
who are  not within the  definition of "health care  provider" in                                                               
AS  09.55.560; and  (6) one  member who  is the  designee of  the                                                               
commissioner and  who shall serve as  chair.  He stated  that all                                                               
of the  stakeholders have a seat  at the table in  the discussion                                                               
to set the  conversion factors.  He reported  that the department                                                               
requested  the  extension  since   the  Medical  Services  Review                                                               
Committee (MSRC) was  very close to completing its  work, but the                                                               
July 1, 2015  completion date would not likely  allow enough time                                                               
to complete the  regulatory process.  The bill has  a zero fiscal                                                               
note  since the  costs were  previously addressed  in House  Bill                                                               
316, which passed the legislature last year.                                                                                    
                                                                                                                                
CHAIR  OLSON said  that  he  has not  attended  any  of the  MSRC                                                               
meetings,  choosing to  leave it  to  the Department  of Labor  &                                                               
Workforce Development.                                                                                                          
                                                                                                                                
4:24:46 PM                                                                                                                    
                                                                                                                                
MICHAEL MONAGLE,  Director, Central Office, Division  of Workers'                                                               
Compensation,  Department   of  Labor  &   Workforce  Development                                                               
(DLWD),  provided  some  background information  on  the  Medical                                                               
Services  Review Committee  (MSRC), which  began meeting  in July                                                               
2014.  The  committee was established by statute in  2005 and met                                                               
for  several years,  making some  recommendations in  2009.   The                                                               
MSRC somewhat faded  from activity so when House  Bill 316 passed                                                               
last year,  the committee was resurrected,  including finding new                                                               
committee members  to develop  a request  for proposal  (RFP) for                                                               
subject matter  expert contractor, obtain data  from several data                                                               
sources,   including  the   National   Council  on   Compensation                                                               
Insurance  and  Fair Health,  as  well  as  to get  approval  for                                                               
contracts and  develop non-disclosure agreements.   It took until                                                               
November  2014  before  the  committee  started  its  work.    He                                                               
described the committee's work thus  far, including that the MSRC                                                               
has held  good discussions, but  are still one  conversion factor                                                               
away from  completing its work,  with the next  meeting scheduled                                                               
for April 20,  2015.  He anticipated that the  last decision will                                                               
be made soon. As previously  mentioned, the MSRC must provide the                                                               
commissioner with  a written report, followed  by public comment,                                                               
and  recommendations  would then  be  forwarded  to the  workers'                                                               
compensation  board, who  would notice  a public  meeting for  30                                                               
days.   The  Workers'  Compensation Board  would  likely meet  in                                                               
June,  propose  regulations and  allow  30  days for  the  public                                                               
comment period.   The board would adopt  the regulations project,                                                               
send  it to  the  Department of  Law  for review  and  on to  the                                                               
Lieutenant   Governor's  office.     He   anticipated  that   the                                                               
regulations will  be in place  by the  end of summer,  which will                                                               
allow billers  and payers three  months to program  their systems                                                               
with the  new conversion factors  ready for the new  CMS [Centers                                                               
for Medicare  & Medicaid Services]  rates that will  be published                                                               
on January 1,  2016.  He expressed concern that  the fee schedule                                                               
will  not be  ready by  July  1, 2015,  which he  described as  a                                                               
disastrous outcome.                                                                                                             
                                                                                                                                
4:28:06 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  said one  member  of  the Medical  Services  Review                                                               
Committee (MSRC)  remarked that  he had initially  been skeptical                                                               
about the committee,  but after first meetings he  began to enjoy                                                               
the  process.     He   told  members   that  he   previously  had                                                               
contemplated that  the Medical  Services Review  Committee (MSRC)                                                               
could be on a tight schedule.                                                                                                   
                                                                                                                                
CHAIR OLSON,  after first determining  no one wished  to testify,                                                               
closed public testimony on HB 178.                                                                                              
                                                                                                                                
4:29:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  moved to  report HB  178 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.   There being no  objection, HB  178 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
4:30:00 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:30 p.m. to 4:32 p.m.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HB66 ver A.PDF HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Sponsor Statement.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Sectional Analysis.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Article ADN 5-02-14.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Article Juneau Empire 4-01-13.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Assorted Emails to Rep Millett.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Email Cheryl Berrong 03-09-15.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Email Windy Johnson 2-20-2015.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Letter Daniel Hoffman 3-03-2015.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Letter PSEA.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Written Testimony Brandy Johnson.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Draft Proposed Blank CS ver N.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Summary of Changes ver A to ver N.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB178 ver H.PDF HL&C 4/8/2015 3:15:00 PM
HB 178
HB178 Sponsor Statement.pdf HL&C 4/8/2015 3:15:00 PM
HB 178
HB178 Supporting Documents-HB316 enacted in 2014.PDF HL&C 4/8/2015 3:15:00 PM
HB 178
HB 316
HB178 Supporting Documents-CSHB316(FIN) Sectional Analysis ver R.pdf HL&C 4/8/2015 3:15:00 PM
HB 178
HB 316
Cert Real Estate Appraisers - Piszczek #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Massage Therapists - Edwards-Smith #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Massage Therapists - Gibbs #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Massage Therapists - Gilmour #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Massage Therapists - Nelson #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Massage Therapists - Unser #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Optometry - Stralka #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
Worker's Comp Brd - Williams #1.pdf HL&C 4/8/2015 3:15:00 PM
Governor's Appointee
HB66 Supporting Documents-Letter Nikki Toll 3-05-15.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB66 Supporting Documents-Written Testimony Nikki Toll 4-08-15.pdf HL&C 4/8/2015 3:15:00 PM
HB 66
HB178 Fiscal Note-DOLWD-WC-04-02-15.pdf HL&C 4/8/2015 3:15:00 PM
HB 178