Legislature(2013 - 2014)CAPITOL 106

04/15/2014 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 206 VEHICLE REGIS/LICENSING/ACCIDENT REPORTS TELECONFERENCED
Moved Out of Committee
+ HB 356 ADVISORY COMMITTEE ON WELLNESS TELECONFERENCED
Moved CSHB 356(STA) Out of Committee
+ SJR 26 PLEDGE OF ALLEGIANCE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
             HB 356-ADVISORY COMMITTEE ON WELLNESS                                                                          
                                                                                                                                
8:35:59 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next order of business  was HOUSE                                                               
BILL  NO. 356,  "An Act  establishing the  Advisory Committee  on                                                               
Wellness;  and  relating to  the  administration  of state  group                                                               
health insurance policies."                                                                                                     
                                                                                                                                
8:36:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, Alaska  State Legislature,  as prime                                                               
sponsor, presented HB  356.  He stated that HB  356 would require                                                               
the  commissioner of  the Department  of Administration  (DOA) to                                                               
implement procedures  for decreasing the incidence  of disease in                                                               
Alaska in  order to hold the  inflation of healthcare costs.   He                                                               
said the  proposed legislation focuses  on the prevention  of the                                                               
incidence of disease as opposed to  the treatment of disease.  It                                                               
would create  an Advisory Committee  on Wellness, which  would be                                                               
charged   with  making   recommendations  to   the  commissioner.                                                               
Representative  Seaton  relayed  that  HB  356  would  enforce  a                                                               
paradigm  shift for  DOA, and  it would  require the  agencies to                                                               
implement policies  in Alaska to  keep State of  Alaska employees                                                               
and their independents healthy by preventing disease.                                                                           
                                                                                                                                
8:37:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON offered  a PowerPoint  presentation, which                                                               
he explained would  outline a possible plan that  would come from                                                               
the  [Advisory Committee  on  Wellness] to  aid  in lowering  the                                                               
amount of money paid out by  the State of Alaska for health care.                                                               
He referred to a graph at  the beginning of the PowerPoint, which                                                               
shows  the   $3.8  billion  unfunded  liability   in  the  Public                                                               
Employees  Retirement  System   (PERS)  and  Teachers  Retirement                                                               
System  (TRS) directly  related to  the increase  of health  care                                                               
cost beyond what was originally  estimated in 2002.  The original                                                               
estimation was  for a long-term  escalation in health  care costs                                                               
of 2 percent, but now the  escalation is between 4 and 6 percent.                                                               
He showed the  "Why are we here?" slide, which  states that there                                                               
are approximately  17,000 members,  including dependents,  in the                                                               
active  plan, and  approximately  64,000 members  in the  retiree                                                               
plan,  with a  total  cost  to the  state  of approximately  $600                                                               
million [spent in fiscal year 2013  (FY 13)].  He noted that $1.6                                                               
million was [Medicaid]  related expenditure [in FY 13].   He said                                                               
these expenses are part of a contractual relationship.                                                                          
                                                                                                                                
REPRESENTATIVE  SEATON   directed  attention  to  the   "What  Do                                                               
Alaska's  Health-Care  Dollars  Buy?"  slide,  which  shows  that                                                               
[31.5]  percent of  those  dollars  go to  hospital  care and  28                                                               
percent to doctors  and clinical services.  He  said finding ways                                                               
to avoid  visits to hospitals,  doctors' offices, and  clinics by                                                               
means  of  disease  prevention  would address  the  crux  of  the                                                               
problem.  Referring to information  on the next slide, he relayed                                                               
that   currently  insurance   focuses  on   constraints  to   the                                                               
healthcare  providers,  including  limitations  on  coverage  and                                                               
limitations on compensation  to doctors.  He  said the Department                                                               
of  Labor  established  rules to  prevent  accidents  by  setting                                                               
limitations on the  length of a working day  and requirements for                                                               
safe working  conditions.  Representative Seaton  stated that the                                                               
Department  of  Health  and Social  Services  (DHSS)  focuses  on                                                               
childhood  vaccination, as  well as  voluntary lifestyle  changes                                                               
and prescription  drug safety.   The Department  of Environmental                                                               
Conservation  (DEC)  [and  the Department  of  Natural  Resources                                                               
(DNR)]  address  food  safety  requirements,  such  as  paralytic                                                               
shellfish   poisoning  (PSP)   testing,   requirements  for   the                                                               
pasteurization  of  milk,  and   restaurant  and  food  processor                                                               
inspections.   The Department  of Public  Safety (DPS),  he said,                                                               
enforces  laws  addressing illegal  drugs  and  smoking in  close                                                               
public places.                                                                                                                  
                                                                                                                                
8:40:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON turned  to  "The Question"  slide, and  he                                                               
indicated  that the  question to  ask  is how  to avoid  diseases                                                               
instead  of just  paying  for sick  care.   He  said the  ensuing                                                               
slides show ideas  for what can be done in  "one little category"                                                               
and what the  economic impact of that would be.   The first slide                                                               
he highlighted  shows a  list of [health]  issues of  active care                                                               
members,  and  [x's] at  the  far  right  indicate which  of  the                                                               
conditions could  be prevented by  taking vitamin  D supplements.                                                               
He said vitamin  D deficiency is prevalent in Alaska.   He showed                                                               
the next  slide, which is the  same chart for retirees.   He said                                                               
66 percent  of the total  diseases in  the active work  force are                                                               
directly  related to  vitamin  D status,  while  that number  for                                                               
retirees is 61 percent.                                                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON  directed  attention to  the  next  slide,                                                               
showing  "Meta-analysis of  breast  cancer risk."   He  explained                                                               
that the graph is set up in  quintiles.  It shows that those with                                                               
higher risk for  breast cancer are those with  lower serum levels                                                               
of vitamin D.   He said the average vitamin D  level for the U.S.                                                               
population  is  21  anagrams  per  milliliter  (ng/ml),  but  the                                                               
average for Alaskans  is generally much lower,  because vitamin D                                                               
is  made through  exposure to  sunshine on  the skin,  and during                                                               
Alaska winters, the angle  of the sun is so low,  that all of the                                                               
ultraviolet B  is absorbed coming  through the atmosphere.   That                                                               
means that for  seven months of the year in  Alaska, a person can                                                               
be out in the sun and not make  any vitamin D.  He explained that                                                               
the  graph shows  that  with  a 50  percent  reduction in  breast                                                               
cancer  [through  use  of  vitamin   D]  by  active  and  retired                                                               
employees and their  dependents, the state could  save $3 million                                                               
a year.                                                                                                                         
                                                                                                                                
8:43:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   directed  attention  to   another  meta-                                                               
analysis graph showing  the relation of vitamin  D and colorectal                                                               
cancer.  He  stated that breast cancer and  colorectal cancer are                                                               
two big  cost drivers  in Alaska.   The  graph shows  a projected                                                               
reduction  in incidence  with 34  ng/ml.   He said  currently the                                                               
state  has no  policy  to  encourage people  to  [take vitamin  D                                                               
supplements] to  lower the percentage who  get colorectal cancer,                                                               
but  doing  so could  save  the  state approximately  $2  million                                                               
annually.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON   directed  attention  to   another  slide                                                               
showing results of  a clinical trial related to  type 2 diabetes.                                                               
He said the slide shows that  the average U.S. population has 8.5                                                               
people  per 1,000  annually who  will  be diagnosed  with type  2                                                               
diabetes.   During  the clinical  trial, 2,200  people got  their                                                               
vitamin D  levels up to  48 ng/ml, and  the number of  people per                                                               
1,000 diagnosed annually  with type 2 diabetes  dropped to [0.9].                                                               
He  indicated  that  the  cost to  an  individual  to  supplement                                                               
vitamin D is  about $10 a year.  Representative  Seaton said this                                                               
kind of action could save  the state approximately $4.3 million a                                                               
year.                                                                                                                           
                                                                                                                                
8:45:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON turned  next to a slide  showing results of                                                               
vitamin  D supplementation  on pre-term  childbirth,  which is  a                                                               
focus of  the March of Dimes.   He explained that  pre-term birth                                                               
not only has negative effects on  health, but is also costly.  He                                                               
related that the March of Dimes  has been conducting a program in                                                               
South Carolina,  wherein by  raising the levels  of vitamin  D in                                                               
participants,  the number  of pre-term  births was  reduced to  7                                                               
percent -  2 percent  below the  national goal  for the  March of                                                               
Dimes  for  the  year  2020.   He  said,  "That's  a  32  percent                                                               
reduction  in the  number of  pre-term births,  and for  every 25                                                               
pre-terms births avoided, that saves about $1.3 million."                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  directed  attention to  a  slide  showing                                                               
results  from  a Canadian  study  on  the  effects of  vitamin  D                                                               
supplementation  on   the  frequency   of  occurrence   of  upper                                                               
respiratory tract  infections in children.   He indicated  that a                                                               
comparison  was made  between those  children who  were given  30                                                               
ng/ml and those  that were given 20 ng/ml, and  he said, "There's                                                               
a  70 percent  reduction in  upper respiratory  tract infections,                                                               
[such]  as tuberculosis,  pneumonia,  bronchitis, influenza,  and                                                               
colds."                                                                                                                         
                                                                                                                                
REPRESENTATIVE SEATON highlighted information  on the next slide,                                                               
which  showed   the  effect  of  vitamin   D  supplementation  on                                                               
inflammatory gum  disease.  He said  the study came out  of India                                                               
in 2013.   It shows that with  a placebo, there was  no change in                                                               
90 days;  with 2,000 IU of  vitamin D, people's vitamin  D levels                                                               
were  raised to  about 50  ng/ml, and  there was  a reduction  in                                                               
inflammation  of  more than  80  percent.    He stated  that  gum                                                               
disease not only results in tooth  loss, but when the body is not                                                               
able to fight inflammation, the result  can be a hardening of the                                                               
arteries.   He said that  is why gum  disease is also  related to                                                               
heart disease.                                                                                                                  
                                                                                                                                
8:48:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON indicated  that  the proposed  legislation                                                               
has  one main  purpose,  outlined  in Section  2,  which read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     *Sec.2.  AS 39.30.090(a)  is amended  by  adding a  new                                                                  
     paragraph to read:                                                                                                         
                    (13) To the greatest extent legally and                                                                     
     reasonably     practicable,    the     Department    of                                                                    
     Administration  shall work  to hold  the escalation  of                                                                    
     health care costs to less  than two percent annually by                                                                    
     administering  policies   of  group   health  insurance                                                                    
     obtained  under this  subsection  in a  manner that  is                                                                    
     likely  to  reduce  the incidence  of  disease  in  the                                                                    
     state's population and  that facilitates implementation                                                                    
     of  the recommendations  of the  Advisory Committee  on                                                                    
     Wellness established under AS 39.30.093.                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  said his goal  in presenting HB 356  is to                                                               
illustrate an example of what the  state could be doing.  He said                                                               
he presumes  the Committee  on Wellness would  look at  this data                                                               
and determine  whether the  State of Alaska  could hold  down the                                                               
incidence  of disease  and  save money.   He  said  the State  of                                                               
Alaska is self-insured; therefore, "every  dollar that we save is                                                               
a savings to the State of Alaska."  He continued as follows:                                                                    
                                                                                                                                
     The bill that  establishes this has a  minimum of seven                                                                    
     members.    The  Department of  Administration  selects                                                                    
     those  members.   When they  had  a voluntary  advisory                                                                    
     committee, which they do now,  previously what they did                                                                    
     was  they had  over 90  people to  apply to  be on  it.                                                                    
     This is  a non-paid position.   But people,  members of                                                                    
     our employment workforce, do want  to save health care,                                                                    
     do want to  save the issues of health and  the pain and                                                                    
     suffering that comes to families.                                                                                          
                                                                                                                                
REPRESENTATIVE SEATON said  HB 356 uses the model  of the citizen                                                               
advisory committee used in relation  to Alaska's Child in Need of                                                               
Aid  (CINA);  the department  would  have  to answer  within  six                                                               
months if and how it would  be implementing certain programs.  He                                                               
said the  proposed legislation  would give "more  of a  push" and                                                               
"more  authority"   for  the  recommendations  of   the  Advisory                                                               
Committee on  Wellness to be  heard.  It  is all within  DOA, and                                                               
there  are  three  positions.     Members  could  participate  in                                                               
meetings telephonically, so travel would not be required.                                                                       
                                                                                                                                
REPRESENTATIVE SEATON  opined that  attempting to move  the state                                                               
forward in  holding down the  escalation of [health  care] costs,                                                               
thereby removing  some of the  state's unfunded liability  in the                                                               
retirement  system is  a good  goal.   He said  some things  that                                                               
could cut  down on  health care  costs, such as  losing 30  or 40                                                               
pounds,  are difficult  to  do; however,  other  things that  the                                                               
Advisory Committee on Wellness could  consider are much easier to                                                               
accomplish.                                                                                                                     
                                                                                                                                
[Vice Chair Keller handed the gavel back to Chair Lynn.]                                                                        
                                                                                                                                
8:51:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER commended  Representative Seaton's focus on                                                               
prevention  and wellness.   He  explained that  he had  a problem                                                               
with the  intent language, beginning  on page 1, line  9, through                                                               
page 2, line 1.  He said  he would to like to delete [paragraphs]                                                               
(2), (3), and (4), which read as follows:                                                                                       
                                                                                                                                
               (2) the state has not adequately focused                                                                         
     state policy  on avoiding disease and  maintaining good                                                                    
     health in the state's population;                                                                                          
               (3) the state relies on federal one-size-                                                                        
     fits-all human health  policy recommendations, creating                                                                    
     federal  overreach into  the state's  administration of                                                                    
     health policy;                                                                                                             
               (4) the state's human health policies have                                                                       
     not incorporated peer-reviewed  scientific studies that                                                                    
     illustrate   health-related  differences   between  the                                                                    
     population of  the state and  the populations  of other                                                                    
     states;                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER, regarding paragraph  (2), said that may be                                                               
true, but  opined that it would  be better to say  that the state                                                               
should  focus more,  because the  state  has focused  on a  state                                                               
policy  on   avoiding  disease   and  maintaining   good  health.                                                               
Regarding [paragraph]  (3), he suggested saying  instead that the                                                               
state relies  "in part"  on federal  policy recommendations.   As                                                               
written,   he    said   the   language   sounds    like   federal                                                               
recommendations are  the only thing  on which the  state's policy                                                               
is based, which  he said he does not believe  is true.  Regarding                                                               
[paragraph] (4), he said he  would argue that the state certainly                                                               
has incorporated peer-reviewed studies,  at least to some degree.                                                               
He said  he knows this, because  he has reviewed the  studies and                                                               
has been involved  in the process of making  recommendations.  He                                                               
stated that he does not think  it would take away from the intent                                                               
of HB 356  to delete paragraphs (2), (3), and  (4), in Section 1.                                                               
He said he  supports the proposed legislation, but  would like to                                                               
hear what the prime sponsor  thinks about his recommendations for                                                               
changes.                                                                                                                        
                                                                                                                                
8:56:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON  recommended instead to  leave paragraphs                                                               
(2)-(4) in  the proposed legislation,  but to amend  the language                                                               
to reflect that:   state policy should focus  on avoiding disease                                                               
and  maintaining health,  the  state relies  in  part on  federal                                                               
recommendations,  and the  state's human  health policies  should                                                               
always  incorporate peer-reviewed  studies.    He emphasized  his                                                               
support of  peer reviewed  studies that  are made  transparent to                                                               
the public and  are opened for public comment.   He clarified, "I                                                               
wouldn't take those out; I would just make them affirmative."                                                                   
                                                                                                                                
8:57:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  responded that he had  considered that and                                                               
would be open to it.                                                                                                            
                                                                                                                                
8:57:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   said  he   fully  agrees.     He  echoed                                                               
Representative  Isaacson's  suggestion by  recommending  "should"                                                               
replace "has not adequately", on line 9.                                                                                        
                                                                                                                                
CHAIR  LYNN  suggested changing  the  language  to "should  focus                                                               
more".                                                                                                                          
                                                                                                                                
REPRESENTATIVE SEATON  suggested the language could  read "should                                                               
focus state policy more on  avoiding disease and maintaining good                                                               
health".   He  said he  thinks the  intent of  paragraph (4)  was                                                               
being  misread, possibly  because the  language in  paragraph (4)                                                               
begins on  one page and ends  on the next:   "differences between                                                               
the  population  of  the  state  and  the  populations  of  other                                                               
states".   He said  he did  not intend for  the language  to mean                                                               
that  "we"  have  not  looked   at  peer-reviewed  science.    He                                                               
suggested switching the order of  the words to emphasize that the                                                               
studies  that have  not been  incorporated in  the state's  human                                                               
health policies are those comparing states.                                                                                     
                                                                                                                                
8:59:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER asked the prime  sponsor what he thought of                                                               
Representative  Isaacson's suggestion  to strike  "have not"  and                                                               
replace it with "should".                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON said that would be fine.                                                                                  
                                                                                                                                
8:59:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER said  he would like the words  "in part" to                                                               
follow "relies",  on page 1,  line 11,  because one-size-fits-all                                                               
recommendations  from the  federal  government are  not the  only                                                               
thing on which the state relies.                                                                                                
                                                                                                                                
8:59:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to adopt Conceptual  Amendment 1, as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 1, line 9, between "the state" and "state":                                                                           
                                                                                                                                
          Delete "has not adequately focused"                                                                                   
          Insert "should focus"                                                                                                 
                                                                                                                                
     Page 1, line 9, between "policy" and "on":                                                                                 
                                                                                                                                
          Insert "more"                                                                                                         
                                                                                                                                
     Page 1, line 11, between "relies" and "on":                                                                                
                                                                                                                                
          Insert "in part"                                                                                                      
                                                                                                                                
    Page    1,   line    13,    between   "policies"    and                                                                     
     "incorporated":                                                                                                            
                                                                                                                                
          Delete "have not"                                                                                                     
          Insert "should"                                                                                                       
                                                                                                                                
9:01:38 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 9:02 a.m.                                                                                 
                                                                                                                                
9:02:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER [moved to  adopt an amendment to Conceptual                                                               
Amendment 1], so that the language  on page 1, line 9, would read                                                               
as  follows:   "the state  policy should  focus more  on avoiding                                                               
disease  and".   [There  being  no  objection, the  amendment  to                                                               
Conceptual Amendment 1 was treated as adopted.]                                                                                 
                                                                                                                                
9:03:06 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that there  being no  objection, Conceptual                                                               
Amendment 1, [as amended], was adopted.                                                                                         
                                                                                                                                
9:03:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON imparted  that he had begun  a regimen of                                                               
taking  vitamin D,  and has  seen  improvement in  a former  pre-                                                               
diabetes  diagnosis;  he  expressed  his hope  that  the  use  of                                                               
vitamin would further  improve his test results.   He said, "This                                                               
is not  a vitamin D  commission, this is a  wellness commission."                                                               
He  acknowledged that  the prime  sponsor  had shown  one way  to                                                               
improve  the health  of Alaskans  through the  use of  vitamin D;                                                               
many  more  methods  exist,  including  exercising,  cutting  out                                                               
certain  substances, and  moderating  smoking and  drinking.   He                                                               
asked Representative  Seaton if  his intent  was to  instigate an                                                               
Advisory Committee  on Wellness, in  order to bring  the national                                                               
discussion on wellness to the administration.                                                                                   
                                                                                                                                
9:04:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON confirmed that was  his intent exactly.  He                                                               
clarified that the  proposed legislation would not  take over the                                                               
Health Care Commission,  which is a broad,  statewide entity that                                                               
considers  the entire  population of  the state.   The  committee                                                               
proposed under  HB 356 would  focus on individuals with  whom the                                                               
State of Alaska  has a contractual relationship as  a provider of                                                               
health insurance.   He said the  result could be not  only a cost                                                               
savings to the  state, but also a relief from  pain and suffering                                                               
by many.   He  reiterated that  the vitamin D  aspect was  one of                                                               
many the Advisory Committee on Wellness might consider.                                                                         
                                                                                                                                
9:06:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  said a  positive approach  is a  good one,                                                               
and  he  does  not  know  anyone who  is  against  vitamin  D  or                                                               
wellness.                                                                                                                       
                                                                                                                                
9:06:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER moved to report  HB 356, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  356(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     

Document Name Date/Time Subjects
01 SJR 26 Resolution.pdf HSTA 4/15/2014 8:00:00 AM
SJR 26
02 SJR 26 - Sponsor Statement.pdf HSTA 4/15/2014 8:00:00 AM
SJR 26
03 SJR 26 - Supporting Document.pdf HSTA 4/15/2014 8:00:00 AM
SJR 26
04 SJR 26 - Fiscal Note.pdf HSTA 4/15/2014 8:00:00 AM
SJR 26
01 HB0356A.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
02 HB356 sponsor statement.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
03 HB356 Background Materials.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
04 HB356 Mayo Clinic vitamin D for health a global perspective.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
05 HB356 Cost Savings per year with vitamin D.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
06 HB356 Support KPBSD.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
07 HB356-DOA-DRB-03-14-14.pdf HSTA 4/15/2014 8:00:00 AM
HB 356
01 SB 206 STA CS Version C.pdf HSTA 4/15/2014 8:00:00 AM
SB 206
02 SB 206 Sponsor Statement.pdf HSTA 4/15/2014 8:00:00 AM
SB 206
03 CS SB 206 Sectional.pdf HSTA 4/15/2014 8:00:00 AM
SB 206
04 CS SB 206 explanation of amendments.pdf HSTA 4/15/2014 8:00:00 AM
SB 206
05 Fiscal Note CSSB206.pdf HSTA 4/15/2014 8:00:00 AM
SB 206