Legislature(2001 - 2002)

02/01/2001 01:30 AM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
         SB  38-MEDICAL ASSISTANCE:BREAST/CERVICAL CANCER                                                                   
                                                                                                                                
CHAIRMAN  RANDY   PHILLIPS  called  the  Senate  Labor   &  Commerce                                                          
Committee meeting  to order at 1:30  p.m. and announced SB  38 to be                                                            
up for consideration.                                                                                                           
                                                                                                                                
COMMISSIONER KAREN PERDUE,  Department of Health and Social Services                                                            
(DHSS), said  that Congress recently  passed legislation  to improve                                                            
health care for  women by extending Medicaid coverage  for treatment                                                            
of breast  and cervical  cancer.   This bill allows  Alaska  to take                                                            
advantage of  this option.  By opting  into this program,  uninsured                                                            
women who have  been diagnosed with breast or cervical  cancer under                                                            
the  federally financed  screening  program  would  be eligible  for                                                            
treatment of  those conditions.  Last  year in Alaska it  would have                                                            
meant  about  40  women  who  could  not  otherwise   afford  cancer                                                            
treatment would have received this care.                                                                                        
                                                                                                                                
COMMISSIONER PERDUE explained  that a large number of these women do                                                            
get care,  but they  are saddled with  a large  number or bills  and                                                            
there is evidence  that women delay care because they  are concerned                                                            
about  financing  the  care.    She  did  not  mean  to  imply  that                                                            
physicians are not treating these women.                                                                                        
                                                                                                                                
The screening program began  in 1990 when Congress passed the Breast                                                            
and Cervical Cancer Mortality  Prevention Act (BCCMPA), she said. It                                                            
was passed with  broad bi-partisan support. There  are four grantees                                                            
currently operating  under this program  for women who meet  certain                                                            
eligibility  guidelines, but the federal  money did not provide  the                                                            
follow-up treatment.                                                                                                            
                                                                                                                                
MS. CATHY FEASTER,  Alaska Nurses Association, supported  SB 38.  In                                                            
FY00,  the  Breast  and  Cervical  Cancer  Early  Detection  Program                                                            
provided  screening services  for more than  15,000 women.   Thirty-                                                            
nine  of  them  were  diagnosed  with  breast  cancer  and  33  were                                                            
diagnosed with cervical  cancer.  This legislation would allow those                                                            
women  with  no  other  resources  to  obtain  treatment  for  these                                                            
cancers.  "Early detection  and treatment can cure these conditions,                                                            
thereby  reducing the long-term  socio-economic  drain on the  state                                                            
and increasing  the woman's ability  to be a contributing  member of                                                            
her community," Ms. Feaster said.                                                                                               
                                                                                                                                
Number 437                                                                                                                      
                                                                                                                                
MS. SUE  CICCONE,  breast cancer  survivor,  said she  has had  many                                                            
financial problems  and she has not  completed treatment,  yet.  She                                                            
had insurance,  but  as of  October 1,  the company  decided not  to                                                            
carry the  State of Alaska  any longer.  This  is the middle  of her                                                            
reconstruction.   The cheapest  insurance she  could find is  $600 -                                                            
$800  per month  with a  minimum  of a  $3,000 deductible  which  is                                                            
completely unaffordable.                                                                                                        
                                                                                                                                
SENATOR  LEMAN asked  if she had  discussed her  situation with  the                                                            
Division of Insurance.                                                                                                          
                                                                                                                                
MS. CICCONE  answered that she had  and had also written  to Senator                                                            
Murkowski   who   turned   her  letter   over   to   the   Insurance                                                            
Commissioner's  office. She could buy a high risk  insurance policy,                                                            
but it would  cost $800 per month  which is totally unaffordable  to                                                            
her.                                                                                                                            
                                                                                                                                
SENATOR LEMAN  said that it  seemed to him  if she is terminated  in                                                            
the middle of coverage  of her treatment and her premiums were paid,                                                            
that she has a legitimate complaint which she should pursue.                                                                    
                                                                                                                                
MS. CICCONE  said she also  thinks she has  a legitimate  complaint,                                                            
but according  to the Division of Insurance, the company  met lawful                                                            
notification requirements.   She added that she was  insured through                                                            
her employer  and one month prior  to renewal of her policy,  August                                                            
1, 2000, the rate was increase by 135 percent.                                                                                  
                                                                                                                                
CHAIRMAN PHILLIPS asked which insurance company she dealt with.                                                                 
                                                                                                                                
MS. CICCONE answered, "Humana."                                                                                                 
                                                                                                                                
Number 578                                                                                                                      
                                                                                                                                
MS. BERNICE  STARKEY, representing  herself, said that she  had been                                                            
screened and found to have  breast cancer and didn't have insurance.                                                            
The hospital  treated her  as an outpatient  giving her surgery  and                                                            
sending her  home the same day.  The  surgery cost $10,000.   If she                                                            
would  have had radiation,  that  would have  been another  $10,000.                                                            
Chemotherapy would have  been twice that much.  Ms. Starkey said she                                                            
is 62 years  old and self-employed.   She lost her home and  elected                                                            
not to  have radiation or  chemotherapy because  of the money.   She                                                            
has tried to rehabilitate  herself, but has declared  bankruptcy and                                                            
now lives on $1,200 per month.                                                                                                  
                                                                                                                                
SENATOR  LEMAN asked  if she  didn't carry  insurance  when she  was                                                            
self-employed by choice or was she identified as uninsurable.                                                                   
                                                                                                                                
MS.  STARKEY  replied  that  it  was a  choice  she  made,  but  the                                                            
insurance would have cost  $320 per month and she couldn't afford it                                                            
in  addition  to  all  her  other  responsibilities.    Now  she  is                                                            
uninsurable.                                                                                                                    
                                                                                                                                
SENATOR LEMAN said that  several years ago the legislature asked the                                                            
insurance industry to design  a plan for people like her so that the                                                            
permanent  fund  dividend   would  pay  for  it.    It  would  be  a                                                            
catastrophic  care  plan, but  they  came back  with  a design  that                                                            
worked.    He  asked  her if  she  would  have  been  interested  in                                                            
something like that in 1997.                                                                                                    
                                                                                                                                
MS. STARKEY replied, "Sure."                                                                                                    
                                                                                                                                
MS. SHELLEY COLLIDGE, Anchorage  resident, deferred her time so that                                                            
other women could speak.                                                                                                        
                                                                                                                                
MS. JANA  JOSEY related  how her mother-in-law  had cervical  cancer                                                            
that totally  used up  her savings  of $8,000.   All of the  doctors                                                            
have  dropped  her  because  she  could  no  longer  pay  for  their                                                            
services.   A year ago she could take  care of herself, but  now she                                                            
has to depend on the state to do it.                                                                                            
                                                                                                                                
MS. DONNA JOSEY,  the mother-in-law, added, "The State  really don't                                                            
give you a  lot.  I mean it helps.  Then I have my kids who  support                                                            
me." She  explained that  she didn't have  time to recover  from the                                                            
procedure or the radiation which takes two to three years.                                                                      
                                                                                                                                
MS.  MARIE LAVIGHE,  Executive  Director,  National  Association  of                                                            
Social Workers, Alaska  Chapter, said they strongly supported SB 38.                                                            
She said they, " …support  efforts to extend health care coverage to                                                            
the uninsured and underinsured,  including the expansion of Medicaid                                                            
coverage to women diagnosed  with breast and cervical cancer. It has                                                            
been  estimated  that 70  women annually  in  Alaska  who could  not                                                            
otherwise afford  treatment may be able to receive  payment for care                                                            
under this plan.                                                                                                                
                                                                                                                                
MS. ANNE  HARRISON, Planned  Parenthood, said  she is also  a friend                                                            
and relative  of too  many women who  have had  breast cancer.   She                                                            
said that passing SB 38  should be done without any second thoughts.                                                            
Not funding  it would  be like having  a fire  department come  to a                                                            
fire and sit there and watch the house burn.                                                                                    
                                                                                                                                
MS.  CHERYL  KILGORE,  Executive  Director,  Interior  Neighborhood                                                             
Health Clinic, said their  mission is to provide universal access to                                                            
primary  health care.   Out  of the  10,500 patients  they had  last                                                            
year, 50 percent  of those visits  were people who live at  or below                                                            
200 percent of  the federal poverty level of Alaska.   About half of                                                            
them had no health  insurance at all.  Two thirds  of their patients                                                            
are women and they are  one of the first sites to use the Breast and                                                            
Cervical Cancer  Early Detection Program.   Her clinic is  currently                                                            
one  of the  grantees to  provide  door-to-door outreach  for  women                                                            
between  ages 50 -  64. There  is a need  for women  to come  in for                                                            
early  screening,   particularly  for  breast  cancer,   because  if                                                            
detected early,  the outcome is much better than if  detected later.                                                            
                                                                                                                                
She said  they have diagnosed  a small number  of women with  breast                                                            
and cervical  cancer  and all  of them  were uninsured.   They  were                                                            
working, but  in occupations that  provided a bare minimum  wage and                                                            
the employers  had no health  insurance coverage.   Those women  had                                                            
extreme difficulties and  required a lot of support from her site to                                                            
help them  get the resources  once their cancer  was detected  so it                                                            
could be treated.                                                                                                               
                                                                                                                                
MS. JOSEPHINE  RYAN testified that she is a breast  cancer survivor.                                                            
She had a lumpectomy  and radiation  which cost about $50,000.   The                                                            
radiation  alone was $40,000.   She has always  been a very  healthy                                                            
person, eating  well and exercising  every day. It was a  real shock                                                            
to have cancer.  The cost  was phenomenal and it was very stressful.                                                            
She thought that 60 - 70  percent of women don't get checked because                                                            
of  the  financial  situation   that  could  happen  [if  they  were                                                            
diagnosed] and said, "Something should be done about that."                                                                     
                                                                                                                                
Number 1787                                                                                                                     
                                                                                                                                
MS. POLLY HESSING said  she had been working seasonally and going to                                                            
school and  didn't have  health insurance,  because she didn't  have                                                            
quite enough  money to pay for it.   She put off getting  her annual                                                            
exams and dental  checkups and thought  that once she was  done with                                                            
school,  she would  work and  have insurance  again.   She was  very                                                            
healthy.    When  she got  married  several  years  later,  she  had                                                            
insurance  and  caught  up with  health  screening.   She  was  then                                                            
diagnosed  with breast  cancer.  If she  had not  had insurance,  it                                                            
would have  been very  difficult for  her to  become insured  again.                                                            
It's expected  that  one of  every two men  and one  of every  three                                                            
women  will have  some type  of cancer  in their  lifetime.   "Until                                                            
you're  the one  who is sick,  it's  impossible to  describe how  it                                                            
feels to fall through that safety net."                                                                                         
                                                                                                                                
MS. KATE COLEMAN testified  that when she left state service in 1998                                                            
an abnormality  was detected  on her mammogram  and the radiologist                                                             
said that  no additional  action was required,  but that she  should                                                            
continue  to get mammograms  every six  months.   When she left  the                                                            
state service, she took  a different insurance policy.  When the new                                                            
policy arrived,  it had a rider saying the policy  would never cover                                                            
any breast issues.   In the summer of 2000, under  the Alaska Breast                                                            
and Cervical Cancer Early  Detection Program, she was diagnosed with                                                            
breast cancer.   Without insurance,  she was not referred  anywhere.                                                            
                                                                                                                                
In  Juneau,  many  women with  breast  cancer  choose  a  mastectomy                                                            
whether or  not the severity of their  disease warrants it,  because                                                            
it's much less expensive and radiation therapy is not available.                                                                
                                                                                                                                
MS. COLEMAN  chose a lumpectomy and  six weeks of radiation  therapy                                                            
to  be   performed  in   Anchorage.    In   addition  to   financial                                                            
arrangements for  the hospital, she said, arrangements  needed to be                                                            
made for the surgeon, a  radiation oncologist, a medical oncologist,                                                            
x-ray, nuclear  medicine, pathologist, housing, and  transportation.                                                            
She finished her radiation  last Tuesday and believed this incidence                                                            
of cancer was  over for her.  While concentrating  on healing, it is                                                            
a heavy burden  to put on a patient.  "While the cancer is  over, it                                                            
will be many, many years before I have paid all these bills."                                                                   
                                                                                                                                
MS. JANIE WILSON  strongly supported  SB 38. She is a breast  cancer                                                            
survivor  and knows it  is an emotional  and lengthy  process  to go                                                            
through.  The federal government  has already agreed to support this                                                            
monetarily  if  the  state  will  agree  to spending  approximately                                                             
$175,000.  After  being diagnosed with breast cancer,  money was not                                                            
an issue, because  she had insurance.  She cannot imagine  having to                                                            
make a treatment  plan without money  with which to cover  the plan.                                                            
It would be  simple to just do nothing.   She said she is  here nine                                                            
years later as living proof that treatment helped.                                                                              
                                                                                                                                
MS. RUTH LISTER  said she is a breast cancer survivor  and supported                                                            
SB 38. Over the years,  the cancer has come back several times.  She                                                            
has always  been fortunate enough  to work where there is  insurance                                                            
and has had her treatments  covered.  If she didn't, she wouldn't be                                                            
here  today.   Her daughter  was  10-years old  when  she was  first                                                            
diagnosed  and she wanted  to live long enough  to see her  grow up.                                                            
She now  has two grandchildren  and it's her  goal to see them  grow                                                            
up, also.   With treatment,  these women can  keep living and  being                                                            
part of their families and part of the community.                                                                               
                                                                                                                                
MS. CAREN  ROBINSON,  Alaska Women's  Lobby, supported  SB 38.   She                                                            
reiterated testimony saying  that it is important to diagnose cancer                                                            
early and  to get treatment  that is needed.   A person can  recover                                                            
and have a productive life  and spend the precious times with family                                                            
and  children.   She  said that  it's  a small  price  to pay,  only                                                            
$175,000.   She  asked them  to look  at each  individual woman  and                                                            
imagine the cost it would  be those families and to society if those                                                            
mothers were no longer here to care for their children.                                                                         
                                                                                                                                
MS. ROBINSON  said she is  also one of those  people who has  to get                                                            
mammograms  every  six months.    When she  was  no longer  a  state                                                            
legislator getting the  wonderful state insurance and went back into                                                            
the private  sector she got  Blue Cross/Blue  Shield and because  of                                                            
the  fact she  was  on the  six  months mammogram  system,  she  was                                                            
perceived as a person who  was high risk and was not able to get the                                                            
insurance she  needed.  She actually had a rider on  her policy that                                                            
any future  breast cancer would not  be covered.  She fought  it and                                                            
got the disclaimer removed,  but it cost her another $350 per month.                                                            
She  now pays  $650  per  month to  have  nothing  but catastrophic                                                             
insurance coverage.   She can't imagine what it would  be like to be                                                            
diagnosed and  have to make those kinds of decisions  on whether she                                                            
fed her children  or got treatment.  She has seven  friends who have                                                            
been diagnosed  with cancer  this year and  has lost two friends  in                                                            
the last five years.                                                                                                            
                                                                                                                                
SENATOR LEMAN asked what her definition of catastrophic is.                                                                     
                                                                                                                                
MS. ROBINSON explained  that she had to pretty much  be on her death                                                            
bed  before any  one  was going  to  assist her  on anything.    She                                                            
thought it was  $5,000 to $10,000 deductible and offered  to get him                                                            
that information.                                                                                                               
                                                                                                                                
SENATOR  LEMAN said  he was trying  to rationalize  the fiscal  note                                                            
with the  testimony.   If it cost  her $8,000 per  year to avoid  on                                                            
average of about $17,500 per treatment, "Something isn't right."                                                                
                                                                                                                                
MS. NANCY WELLER,  Division of Medical  Assistance, said  that SB 38                                                            
is a new  option that was  added by Congress  that allows women  who                                                            
are screened through  the BCCMPP to be eligible for  Medicaid except                                                            
for women who have creditable  coverage.  Anyone who has any kind of                                                            
coverage, including Alaska  Native and American Indian women who are                                                            
eligible  for IHS Services,  would not be  eligible.  She said  this                                                            
year it would affect about 40 women.                                                                                            
                                                                                                                                
TAPE 01-2, SIDE B                                                                                                             
Number 2400                                                                                                                     
                                                                                                                                
She explained that the  fiscal note was based on actual expenditures                                                            
for women with  breast and cervical cancer diagnoses  for last year.                                                            
Medicaid does  not pay the full cost of services.   Providers enroll                                                            
in the program and agree  to accept their payment as payment in full                                                            
except for the  cost sharing that is required under  state law.  Her                                                            
division  does not  pay  the full  cost for  people  who are  paying                                                            
privately.                                                                                                                      
                                                                                                                                
MS. MARY DIVEN, Division  of Public Health, said some women may have                                                            
been talking  about their total costs,  not their annual  costs.  It                                                            
may take more than one year to go through treatment.                                                                            
                                                                                                                                
Number 2341                                                                                                                     
                                                                                                                                
SENATOR LEMAN  asked why Ms. Weller said this would  affect 40 women                                                            
per year and the Governor's letter said it affects 70.                                                                          
                                                                                                                                
MS. WELLER replied that  there were over 70 women who were diagnosed                                                            
under the Breast  and Cervical Cancer  Detection Program.   However,                                                            
this Medicaid  option  excludes American  Indian  and Alaska  Native                                                            
women.   Sixty-one  percent of  the women  who were  diagnosed  with                                                            
breast cancer  and 18 percent  diagnosed  with cervical cancer  were                                                            
Alaska  Natives.    She assumed  they  would  not  be  eligible  for                                                            
purposes of preparing the fiscal note.                                                                                          
                                                                                                                                
SENATOR LEMAN  said he assumed  they would  be adding new people  to                                                            
the group every  year and the cost is $15,000 per  person.  He asked                                                            
if they pay about 30 percent of the costs.                                                                                      
                                                                                                                                
MS. WELLER answered  that it depended on the facility  they went to.                                                            
                                                                                                                                
SENATOR LEMAN asked if 30 percent was a reasonable average.                                                                     
                                                                                                                                
MS. WELLER answered  that it's closer to 70 percent  for physicians'                                                            
services  and that  hospitals  would vary  depending  on their  cost                                                            
reports.                                                                                                                        
                                                                                                                                
SENATOR LEMAN asked how much they would vary.                                                                                   
                                                                                                                                
MS. WELLER answered that  the lowest percentage they were paying was                                                            
36 percent  and it  goes up  to 100 percent.   A  lot of  facilities                                                            
don't offer cancer treatment.                                                                                                   
                                                                                                                                
SENATOR LEMAN  said he wanted to know the exact costs.   He asked if                                                            
it  was reasonable  to  pay  $8,000 per  year  to avoid  $20,000  in                                                            
expenses (as he figured it).                                                                                                    
                                                                                                                                
MS.  WELLER said  it didn't  make  sense, but  that is  the cost  of                                                            
insurance.   Medicaid is different  than insurance in that  there is                                                            
no premium cost for the  people who are receiving it.  The estimates                                                            
are based on their actual expenditures in 2000.                                                                                 
                                                                                                                                
SENATOR TORGERSON added  that you couldn't get diagnosed and then go                                                            
and buy insurance.                                                                                                              
                                                                                                                                
SENATOR LEMAN agreed.  He asked what would a fair amount be.                                                                    
                                                                                                                                
MS. WELLER  responded  that she  thought the  Division of  Insurance                                                            
might be able  to address the cost  of the private insurance  market                                                            
in the state.                                                                                                                   
                                                                                                                                
SENATOR DAVIS  said she didn't think  Ms. Weller could answer  that,                                                            
because each  individual would require  a different amount  of money                                                            
for any treatment they  might have.  Most of the women SB 38 applies                                                            
to don't have  any insurance.  She  said, "They don't pay  anything,                                                            
because they don't have the money to pay."                                                                                      
                                                                                                                                
SENATOR LEMAN  said he was trying to get at the amount  people could                                                            
afford to  pay and come up  with a mechanism  so they can  afford to                                                            
have it.                                                                                                                        
                                                                                                                                
Number 2100                                                                                                                     
                                                                                                                                
SENATOR  TORGERSON  asked   if  any  part  of  the  legislation  was                                                            
retroactive.                                                                                                                    
                                                                                                                                
MS.   WELLER   replied   that  they   are   prohibited   under   the                                                            
Administrative  Procedures Act  from any action  in that regard.  If                                                            
the  legislation   passed,  the  Department  would   have  to  adopt                                                            
regulations and that would take a considerable amount of time.                                                                  
                                                                                                                                
SENATOR  TORGERSON asked  if having  four grantees  in Alaska  meant                                                            
that only  four areas in  Alaska have the  detection program  that's                                                            
funded by Disease Control.                                                                                                      
                                                                                                                                
MS. WELLER  answered that the State  of Alaska is a grantee  and the                                                            
other  three grantees  are  Native corporations  -  the North  Slope                                                            
Borough, SEARCH, and South  Central Foundation.  The State of Alaska                                                            
covers all the areas the others don't cover.                                                                                    
                                                                                                                                
SENATOR  TORGERSON  asked  what  the  chance  is  of  someone  being                                                            
diagnosed who  isn't covered under the Disease Control  regulations.                                                            
                                                                                                                                
MS. DIVEN answered  that she thought  there would be some  women who                                                            
would  not be  diagnosed  under  the program.    The intent  of  the                                                            
program  is  to  reach  high-risk  women   who  are  delaying  early                                                            
screening  to catch  cancers early,  because they  either have  high                                                            
deductibles or no insurance.                                                                                                    
                                                                                                                                
SENATOR TORGERSON  asked if  most of our  hospitals were covered  by                                                            
the Center for Disease Control funding.                                                                                         
                                                                                                                                
MS. DIVEN  replied that  that is  the trigger.  There are  screening                                                            
providers in 12 communities  and many hospitals in those communities                                                            
are diagnostic  providers under the  program.  Not all hospitals  in                                                            
the state are diagnostic providers.                                                                                             
                                                                                                                                
SENATOR TORGERSON  asked what  happens if some  one is diagnosed  in                                                            
some area where there isn't a provider.                                                                                         
                                                                                                                                
MS. DIVEN  replied that that  person is in  the position that  women                                                            
everywhere  in the  state are  now.  They  are working  on having  a                                                            
broad screening  program and  having referrals  into the program  as                                                            
early as possible at the screening level.                                                                                       
                                                                                                                                
SENATOR TORGERSON  asked if this would be funded through  the Center                                                            
for Disease Control.                                                                                                            
                                                                                                                                
MS. DIVEN answered that was correct.                                                                                            
                                                                                                                                
CHAIRMAN PHILLIPS asked  how many states were participating in this.                                                            
                                                                                                                                
MS. DIVEN  answered that  all fifty states  and the territories  are                                                            
participating  in the screening and diagnosis program.   The federal                                                            
program just  passed this fall and  several states have legislation                                                             
pending.                                                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS asked  if the other states have basically the same                                                            
structure that this bill entails.                                                                                               
                                                                                                                                
MS.  DIVEN  replied   yes,  because  that's  the  way   the  federal                                                            
legislation was written.  The federal law was very specific.                                                                    
                                                                                                                                
CHAIRMAN PHILLIPS asked  her to provide the committee with a list of                                                            
costs and hospital payment structures.                                                                                          
                                                                                                                                
CHAIRMAN  PHILLIPS asked if  the state is  currently funding  the 14                                                            
programs under AS 47.07.                                                                                                        
                                                                                                                                
MS. WELLER  explained  that AS  47.07.035 addresses  what should  be                                                            
eliminated from the program  if the funding is insufficient to cover                                                            
the program.   It starts with services and goes to  optional groups.                                                            
                                                                                                                                
CHAIRMAN PHILLIPS  asked if there's a shortage of  money, what other                                                            
factors are thrown in.                                                                                                          
                                                                                                                                
MS. WELLER  answered that the legislature  instructed them  only one                                                            
time in  1994 to go through  the list and  eliminate services.   The                                                            
first  10 services  on the  list were  eliminated  for adults  only.                                                            
(They are mandatory for  children.)  They were not available for two                                                            
years 1994 - 1996 when  the legislature instructed them to reinstate                                                            
the services without funding.                                                                                                   
                                                                                                                                
MS. DIVEN  explained that  the services  are such  that a lot  would                                                            
have to be  done before they started  to eliminate the groups.    If                                                            
the  Medicaid  program were  cut  in half,  they  might  get to  the                                                            
groups.                                                                                                                         
                                                                                                                                
COMMISSIONER  PERDUE said  that the  nation doesn't  have a  perfect                                                            
health care  system and absent  our ability  to figure out  coverage                                                            
systems, this is the way  she thought it would happen.  Congress has                                                            
given the  states this  opportunity.   It is a  disease that  can be                                                            
dealt with early on and there are good recovery rates for it.                                                                   
                                                                                                                                
CHAIRMAN PHILLIPS  asked if Congress was mandating  coverage for any                                                            
other diseases.                                                                                                                 
                                                                                                                                
MS. DIVEN answered this is the only one.                                                                                        
                                                                                                                                
MS. RUTH  LISTER, speaking  as the Grant  Administrator for  a grant                                                            
from  the Department  of  Labor  held  by the  Alaska  Hospital  and                                                            
Nursing  Home Association  (ASHNHA),  said  that two  consortia  had                                                            
applied for the grant and  the two groups are Williams Alaska Energy                                                            
Corporation and the Alaska  Process Industry Career Consortium.  The                                                            
two consortia have been  working together since November.  They both                                                            
have  a very  clear and  critical  problem which  is  a shortage  of                                                            
people with  the skills needed to  fill the job openings  in Alaska.                                                            
This is a critical  issue for a lot  of industries in Alaska.   Jobs                                                            
should go to Alaskans,  but they need to receive the  training, too.                                                            
                                                                                                                                
MS. LISTER said  the industry got involved because  it wanted a more                                                            
skilled labor pool and  by working with government and the education                                                            
system, they  are able to impact the  training that happens  to make                                                            
sure it  meets industry  standards.   They are  involved with  post-                                                            
secondary and  with k-12 education  levels and work with  the Alaska                                                            
Human Resource  Investment Center  (AHRIC) within the Department  of                                                            
Labor.  They  also work with the job  centers and the Alaska  Native                                                            
Centers for Employment and Training.                                                                                            
                                                                                                                                
When they have brought  in people from the National Skills Standards                                                            
Board to  work with them  in Alaska, they  have found that  Alaskans                                                            
are  in the  lead among  the  states in  terms of  industry  getting                                                            
involved with work force development.                                                                                           
                                                                                                                                
MS. LISTER focused specifically  on the health industry and nursing,                                                            
the area with  the highest need.   Currently, the UAA is  graduating                                                            
60 registered  nurses  (RN) per  year and  they  just expanded  into                                                            
Fairbanks and Kodiak.   This will add another 24.  At the same time,                                                            
according  to a recent snapshot  survey they  did for ASHNHA,  there                                                            
were 276 nursing vacancies,  extrapolated that means about 400.  The                                                            
Department of  Labor shows over the next 10 years  there will be 150                                                            
new nursing jobs a year  opening up.  This doesn't include jobs that                                                            
people  will be  leaving  because of  the aging  work  force.   They                                                            
figure there  are at least a couple  of hundred job openings  a year                                                            
in nursing  and less than  100 graduates being  produced. This  is a                                                            
good example  of where that  skill need is  not being met in  Alaska                                                            
and  where  the  training  possibilities   need  to  be  expanded  -                                                            
particularly  into  smaller  regional  areas  where they  are  often                                                            
hiring as many as 60 percent  of their work force from out of state.                                                            
 Right now,  Providence Hospital goes  to the Philippines  and other                                                            
countries to recruit nurses. Ms. Lister explained:                                                                              
                                                                                                                                
     There  are a number of different  areas the University  is                                                                 
     looking  at funding which they  hope the legislature  will                                                                 
     consider funding such as  radiography tech where there's a                                                                 
     strong  demand, but  there's  no training  in this state.                                                                  
     There  are enough  positions coming  up in  areas such  as                                                                 
     mammography  to CT scans where  we could very well do  the                                                                 
     training. This is one of  their big pushes - that you will                                                                 
     support   post-secondary    budgets,   particularly    the                                                                 
     University, where they are  putting in new initiatives for                                                                 
     both the health and process industries.                                                                                    
                                                                                                                                
MR. FRED VILLA, Alaska  Process Industry Careers Consortium (APICC),                                                            
said that he works  for Williams Alaska Petroleum  Inc. at the North                                                            
Pole  refinery.   He explained  that APICC  is a  newly formed  non-                                                            
profit  organization involved  in  workforce development  and  is an                                                            
industry  led consortium.    He explained  that  process  industries                                                            
include   oil  and  gas   from  production   and  wellhead   through                                                            
transportation  and  pipeline  systems  through   petrochemical  and                                                            
refineries,  mining,   power  generation,  waste   water  and  water                                                            
treatment  systems,  and  large  industrial  scale  food  processing                                                            
(Alaska  seafood).    "It  is  turning  resources   for  items  into                                                            
something else that you  monitor or control," he said. In the past a                                                            
lot of  these industries  have  relied on,  at times,  going out  of                                                            
state to bring the workforce in.                                                                                                
                                                                                                                                
In August  of 1999,  APICC did a  snapshot of  some of the  industry                                                            
partners  and  recognized   an  attrition  level  of   the  employee                                                            
population  due  to retirement  in  excess  of about  500  employees                                                            
within the next 10 years.   Those are jobs that are required now and                                                            
in the future  to maintain those industries  at those levels.   That                                                            
wasn't  projecting the  gas pipeline  or future  projects, he  said.                                                            
These are jobs where people  will have to be replaced.  The state is                                                            
losing the experience, the safe workers and safe work practices.                                                                
                                                                                                                                
"When  APICC formed,  they  brought  together  education  providers,                                                            
industries,  unions, and government  people to form a consortium  to                                                            
develop a fast track system  to replace those workers or get workers                                                            
in those  fields," Mr. Villa  said. Since  August of 1999 they  have                                                            
developed curriculum  to the standards of the front  line workers in                                                            
the field and overfilled  classes at three campuses at UAF, UAA, and                                                            
Kenai Peninsula  College  (KPC). One  of the criteria  they have  in                                                            
developing  this  program is  that credits  are  fully transferable                                                             
among the campuses in the UA system.                                                                                            
                                                                                                                                
MR.  VILLA  said that  they  view  this as  a  program, not  just  a                                                            
project, and are looking  at 20 additional job classes that directly                                                            
support   process  industries.   These   will   be  prioritized   by                                                            
criticality  to the  industry, the  numbers, and  the salaries.   As                                                            
they do that they  are going to look at adopting national  standards                                                            
for each  job and  survey the current  training  programs to  see if                                                            
they meet the standards.                                                                                                        
                                                                                                                                
MR. VILLA said  that the labor unions  are involved and are  opening                                                            
their  doors to  best practices  and  best results  in establishing                                                             
training programs  to put people into  the work force. He  asked for                                                            
the  legislature's  support  in vesting  occupational  education  as                                                            
things  come across  the table and  investing in  those things  that                                                            
meet industry based skill  standards, especially those incorporating                                                            
statewide delivery  systems.  He also asked them for  support of the                                                            
career pathways  system including  ARIC, the  one-stop system,  ABC,                                                            
and others that are providing  career opportunities to Alaskans.  He                                                            
asked  for support  for vocational  education funding,  UA and  tech                                                            
positions for  new and expanded programs,  especially in  the health                                                            
and process industries.                                                                                                         
                                                                                                                                
MR. VILLA concluded  that the legislature should encourage  emphasis                                                            
on  employability  standards as  well  as the  academic performance                                                             
standards  for the  high  school exit  exams.   He  said, "APICC  is                                                            
really here as a model  for consortium building and how industry can                                                            
be involved  in everything  from k-12  efforts to  industry to  work                                                            
force  development.    APICC   can  work  with  you  in  work  force                                                            
development and  we're willing to share our best practices  for best                                                            
results…."   He said they  want to raise the  level of awareness  of                                                            
what  opportunities  are  here  in  the state  and  help  guide  the                                                            
pathways that make education  applicable to those areas of interest.                                                            
                                                                                                                                
SENATOR DAVIS asked him to explain the grant.                                                                                   
                                                                                                                                
MS. LISTER  answered that  the two consortia  have a grant  from the                                                            
federal Department  of Labor for doing work force  development, like                                                            
needs assessment  and creation  of a confidential  web-based  survey                                                            
tool that businesses can use for their job openings.                                                                            
                                                                                                                                
SENATOR DAVIS asked how long the grant is for.                                                                                  
                                                                                                                                
MS. LISTER answered 18 months.                                                                                                  
                                                                                                                                
CHAIRMAN  PHILLIPS  asked if  they were  working  with institutions                                                             
other than the ones she had listed, like private schools.                                                                       
                                                                                                                                
MS. ANN SPOHNHOLZ,  Executive Director,  APICC, answered,  "Not yet,                                                            
but we would be absolutely open to it."                                                                                         
                                                                                                                                
CHAIRMAN PHILLIPS asked if they were waiting to be contacted.                                                                   
                                                                                                                                
MS. SPOHNHOLZ  replied, "There's only one of me and  I just started.                                                            
So I'm running as fast as I can."                                                                                               
                                                                                                                                
MR. DENNIS MURRAY, ASHNHA,  said they have had some initial meetings                                                            
with Alaska  Pacific University (APU),  which has more of  a liberal                                                            
arts  focus  and other  schools.  He  said they  have  just  started                                                            
assessing  who in  the  education  community can  fit  the needs  of                                                            
either industry, either APICC or ASHNHA.                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS  thanked everyone for their testimony  and said he                                                            
would hold the bill for  a further hearing and adjourned the meeting                                                            
at 2:25 p.m.                                                                                                                    

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