Legislature(2009 - 2010)BUTROVICH 205

02/25/2009 01:30 PM Senate HEALTH & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 35 EXTEND SUICIDE PREVENTION COUNCIL TELECONFERENCED
Moved CSSB 35(HSS) Out of Committee
*+ SB 96 CHILD SUPPORT/ CASH MEDICAL SUPPORT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 32 MEDICAID:HOME/COMMUNITY BASED SERVICES
Moved CSSB 32(HSS) Out of Committee
           SB  96-CHILD SUPPORT/ CASH MEDICAL SUPPORT                                                                       
                                                                                                                                
1:32:13 PM                                                                                                                    
CHAIR DAVIS announced consideration of SB 96.                                                                                   
                                                                                                                                
LINDA ZAUGG, staff to Senator Davis, read the sponsor statement                                                                 
for SB 96 as follows:                                                                                                           
                                                                                                                                
     In  July   2008,  the  federal  government   issued  new                                                                   
     medical  support  regulations  that  require  states  to                                                                   
     have guidelines  addressing how  either or both  parents                                                                   
     will  provide for  a  child's healthcare  needs  through                                                                   
     accessible  health  insurance   coverage,  cash  medical                                                                   
     support,  or   both.  Under  the  federal   regulations,                                                                   
     states  must order either  or both  parents to  purchase                                                                   
     reasonably-priced,    accessible     health    insurance                                                                   
     coverage,  provide cash  medical support  or both.  Cash                                                                   
     medical support  may be required  in those states  where                                                                   
     no  reasonably-priced   health  insurance   coverage  is                                                                   
     accessible to  the child. If a parent is  ordered to pay                                                                   
     cash  medical   support,  the  Child   Support  Services                                                                   
     Division must  enforce the ongoing cash  medical support                                                                   
     obligation as  well as collect any cash  medical support                                                                   
     arrears. Failure  to satisfy these mandates  jeopardizes                                                                   
     $17  million in federal  funding for  the state's  child                                                                   
     support  program.  Alaska's  request  for a  waiver  was                                                                   
     denied by the federal government in January 2009.                                                                          
                                                                                                                                
     This  bill adds  to  existing law  the  authority for  a                                                                   
     tribunal  to order either  or both  parents to pay  cash                                                                   
     medical  support, if  warranted. In  addition, the  bill                                                                   
     directs  CSSD   to  review  child  support   orders  for                                                                   
     modification on  a federally mandated  three-year cycle.                                                                   
     The  bill adds cash  medical support  to the  definition                                                                   
     of  arrearage  and  the  definition  of  support  order,                                                                   
     thereby enabling  CSSD to  use its existing  enforcement                                                                   
     tools to  collect a cash  medical support obligation  on                                                                   
     behalf of the child.                                                                                                       
                                                                                                                                
1:34:44 PM                                                                                                                    
     Finally,  the bill  removes  the language  limiting  who                                                                   
     may request  the correction of a clerical  mistake in an                                                                   
     administrative  order  or  request the  vacation  of  an                                                                   
     administrative order based upon a default outcome.                                                                         
                                                                                                                                
     This  bill puts Alaska  in compliance  with the  federal                                                                   
     requirements.  As   explained  above,  this   bill  will                                                                   
     assure  that  Alaska's  children   receive  the  medical                                                                   
     support to which they are entitled.                                                                                        
                                                                                                                                
1:35:14 PM                                                                                                                    
GINGER BLAISDELL, Legislative Liaison, Department of Revenue,                                                                   
introduced department staff on teleconference that would be                                                                     
providing information on SB 96.                                                                                                 
                                                                                                                                
1:36:33 PM                                                                                                                    
JOHN  MALLONEE,   Director,  Child   Support  Services   Division,                                                              
Department  of  Revenue  (DOR),  said that  this  is  a  federally                                                              
mandated   program,   and  this   bill   allows   the  state   its                                                              
requirements for child support.                                                                                                 
                                                                                                                                
MR.  MALLONEE explained  that under  the  new federal  regulations                                                              
either or  both parents must  provide cash medical  support. While                                                              
insurance  coverage is  preferred,  cash support  may be  required                                                              
where it  is not reasonably available.  This adds to  existing law                                                              
and further assures  that children receive the  medical support to                                                              
which they are entitled.                                                                                                        
                                                                                                                                
The  bill says  that  CSSD clients  can request  a  review at  any                                                              
time. Federal  regulations  require the state  to have  procedures                                                              
under  which  child  support  orders   must  be  reviewed  and  be                                                              
appropriately modified  every three years. This bill  requires the                                                              
agency to perform  the reviews with the review  cycle. However, it                                                              
doesn't limit  clients' ability to  request a review at  any time.                                                              
CSSD has  an automated system that  collects income data  from the                                                              
parties  in each  case  once a  year  to perform  calculations  to                                                              
determine  if the case  meets the  criteria. A  notice is  sent to                                                              
both parties when modification criterion is met.                                                                                
                                                                                                                                
In addition  to these federal  requirements, the bill  removes the                                                              
language limiting  who can  request the  correction of  a clerical                                                              
mistake  in  an administrative  child  support  order  or who  may                                                              
request  vacation  of  an  administrative  order  based  on  false                                                              
income.  Currently  in those  situations  only the  [indisc.]  can                                                              
request these actions.                                                                                                          
                                                                                                                                
1:40:58 PM                                                                                                                    
STACY STEINBERG,  Department of Law (DOL), said  she was available                                                              
to answer questions.                                                                                                            
                                                                                                                                
1:41:21 PM                                                                                                                    
DANA L. OLSON,  representing herself, said, "For the  record, I am                                                              
opting out  of your proceedings,  and I  have a number  of reasons                                                              
why."  She gave  them notice  that  this issue  is not  reviewable                                                              
under claim  of privilege  under National Defense  Law.   She said                                                              
the state  is subject to the  13th amendment of  dictating slavery                                                              
and  that issue  is already  in  federal courts.  She also  stated                                                              
that  HB 645  allows each  state  to adopt  sovereignty, and  that                                                              
this  bill  seems  to  be part  of  the  dictate  of  the  federal                                                              
government that gives children more rights than their parents.                                                                  
                                                                                                                                
CHAIR DAVIS asked  Ms. Olson if she understood what  bill is being                                                              
considered.                                                                                                                     
                                                                                                                                
MS. OLSON said she does understand.                                                                                             
                                                                                                                                
MR.  MALLONEE said  he does  not  see how  the previous  testimony                                                              
applies to this bill at all.                                                                                                    
                                                                                                                                
1:50:21 PM                                                                                                                    
SENATOR PASKVAN  moved to adopt work  draft CS for SB  96, labeled                                                              
26-LS0485\E, as the working document.                                                                                           
                                                                                                                                
SENATOR THOMAS objected for discussion.                                                                                         
                                                                                                                                
SENATOR DYSON  asked if it's  true that federal  regulation states                                                              
that either or both parents must provide health care insurance.                                                                 
                                                                                                                                
MR.  MALLONEE answered  that  is  correct; 42  US  Code says  that                                                              
also.                                                                                                                           
                                                                                                                                
SENATOR DYSON  asked if  a financially  capable parent  who wanted                                                              
to pay his own bills and not have health insurance could do so.                                                                 
                                                                                                                                
MR.  MALLONEE replied  yes. Parents  have  to purchase  reasonably                                                              
priced insurance; if  no insurance is available, they  have to put                                                              
up cash support.                                                                                                                
                                                                                                                                
1:53:16 PM                                                                                                                    
SENATOR DYSON  said wanted  to verify  that he  meant "yes"  - the                                                              
regulation says a person can't be self-insured.                                                                                 
                                                                                                                                
MR. MALLONEE  responded if  the question is  whether a  person can                                                              
elect  not  to  buy  health  insurance  and  rather  provide  cash                                                              
medical support that would not be okay.                                                                                         
                                                                                                                                
1:54:10 PM                                                                                                                    
CHAIR DAVIS  clarified if a parent  has the cash and wants  to pay                                                              
for the insurance they can.                                                                                                     
                                                                                                                                
MR. MALLONEE agreed.                                                                                                            
                                                                                                                                
SENATOR DYSON asked  if the sentence that says  "states must order                                                              
either or  both parents to  purchase reasonably priced  accessible                                                              
health  insurance"  should  have  said "or  provide  cash  medical                                                              
support".                                                                                                                       
                                                                                                                                
CHAIR  DAVIS said he  was probably  correct.  She asked that  they                                                              
take  this  issue up  at  a  later  time rather  than  during  the                                                              
committee meeting.                                                                                                              
                                                                                                                                
1:57:53 PM                                                                                                                    
MR. MALLONEE  said the purpose  of the federal Uniform  Interstate                                                              
Family Support Act  (UIFSA) is to provide efficient  procedures to                                                              
collect  child   support  inter-state   cases  and   to  eliminate                                                              
multiple support  orders that were permitted under  previous child                                                              
support law.  In 1995, Alaska adopted  its version of  UIFSA using                                                              
a  different  definition  of "state."  In  1996,  Congress  passed                                                              
legislation  that  mandated  the  states  adopt the  UIFSA  to  be                                                              
eligible  to continue receiving  federal  funding for their  child                                                              
support  programs.   Alaska's  definition  of  "state"   does  not                                                              
currently include  two entities that  are included in UIFSA  - the                                                              
U.S.  Virgin  Islands  and  an   Indian  Tribe.  This  bill  would                                                              
incorporate these two into the Alaska UIFSA statute.                                                                            
                                                                                                                                
SENATOR DYSON  said that,  having gotten  pretty involved  in this                                                              
child  support issue  over the years,  he is  concerned that  they                                                              
might  be  doing  something that  would  frustrate  some  advocacy                                                              
group, and  he wanted to  know if anything  in this bill  could be                                                              
perceived to  be against  the interests of  any of the  interested                                                              
parties.                                                                                                                        
                                                                                                                                
CHAIR DAVIS remarked  that there were concerns  about the original                                                              
bill, but the CS addressed them.                                                                                                
                                                                                                                                
2:01:29 PM                                                                                                                    
MS. BLAISDELL responded  that the Department of  Revenue (DOR) has                                                              
not received any negative comment on it.                                                                                        
                                                                                                                                
SENATOR DYSON  said he thought that  all of the  custodial parents                                                              
out there know that this is naïve.                                                                                              
                                                                                                                                
CHAIR DAVIS set SB 96 aside.                                                                                                    
                                                                                                                                

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