02/12/2002 03:05 PM House HES
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                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                                                                         
                       STANDING COMMITTEE                                                                                     
                       February 12, 2002                                                                                        
                           3:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Fred Dyson, Chair                                                                                                
Representative Peggy Wilson, Vice Chair                                                                                         
Representative John Coghill                                                                                                     
Representative Gary Stevens                                                                                                     
Representative Vic Kohring                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Reggie Joule                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 252                                                                                                              
"An  Act  relating  to  the   construction  of  certain  statutes                                                               
relating to children; relating to  the scope of duty and standard                                                               
of care for persons who  provide services to certain children and                                                               
families; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 367                                                                                                              
"An Act relating to coverage of children and pregnant women                                                                     
under the medical assistance program; and providing for an                                                                      
effective date."                                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 309                                                                                                              
"An Act relating to the Interstate Compact on Placement of                                                                      
Children."                                                                                                                      
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                              
BILL: HB 252                                                                                                                  
SHORT TITLE:STANDARD OF CARE FOR CINA SERVICES                                                                                  
SPONSOR(S): REPRESENTATIVE(S)COGHILL                                                                                            
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/23/01     1136       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/23/01     1136       (H)        HES                                                                                          
01/17/02                (H)        MINUTE(HES)                                                                                  
01/17/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
01/17/02                (H)        Heard & Held                                                                                 
                                   MINUTE(HES)                                                                                  
02/07/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
02/07/02                (H)        <Bill Canceled>                                                                              
02/12/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
                                                                                                                                
BILL: HB 367                                                                                                                  
SHORT TITLE:MEDICAL ASSISTANCE PROGRAM COVERAGE                                                                                 
SPONSOR(S): REPRESENTATIVE(S)COGHILL                                                                                            
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
01/30/02     2098       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
01/30/02     2098       (H)        HES, FIN                                                                                     
01/30/02     2098       (H)        REFERRED TO HES                                                                              
02/04/02     2153       (H)        COSPONSOR(S): OGAN, DYSON                                                                    
02/12/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
to Representative John Coghill                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Answered questions on HB 252, Version J;                                                                   
during hearing on HB 367, explained calculations used to arrive                                                                 
at poverty-level figures.                                                                                                       
                                                                                                                                
THERESA TANOURY, Director                                                                                                       
Division of Family and Youth Service                                                                                            
Department of Health and Social Services                                                                                        
P.O. Box 110630                                                                                                                 
Juneau, Alaska  99811-0630                                                                                                      
POSITION STATEMENT:  Testified on HB 252, saying Version J is                                                                   
more acceptable than the original bill, but some concerns remain                                                                
about the construction section.                                                                                                 
                                                                                                                                
JAN RUTHERDALE, Assistant Attorney General                                                                                      
Human Services Section                                                                                                          
Civil Division (Juneau)                                                                                                         
Department of Law                                                                                                               
P.O. Box 110300                                                                                                                 
Juneau, Alaska  99811-0300                                                                                                      
POSITION  STATEMENT:   During hearing  on HB  252, explained  the                                                               
purpose of  the construction section  and noted that  language in                                                               
Version J creates a gridlock for the court.                                                                                     
                                                                                                                                
SUSAN COX, Chief Assistant Attorney General                                                                                     
Civil Division (Juneau)                                                                                                         
Department of Law                                                                                                               
P.O. Box 110300                                                                                                                 
Juneau, Alaska  99811-0300                                                                                                      
POSITION  STATEMENT:     During  hearing  on   HB  252,  provided                                                               
background  on  AS  47.10.960;   explained  the  reason  for  its                                                               
inclusion in statute and noted  that it does not immunize workers                                                               
or the state from liability.                                                                                                    
                                                                                                                                
NATE MOHATT, Staff                                                                                                              
to Representative Sharon Cissna                                                                                                 
Alaska State Legislature                                                                                                        
Capitol Building, Room 420                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION  STATEMENT:     During  hearing  on   HB  252,  provided                                                               
clarification on Amendment 1 and amendments to it.                                                                              
                                                                                                                                
TONY LOMBARDO                                                                                                                   
Alaska Association of Homes for Children;                                                                                       
Covenant House                                                                                                                  
609 F Street                                                                                                                    
Anchorage, Alaska  99501                                                                                                        
POSITION STATEMENT:   Testified  on HB  252; offered  support for                                                               
the original version,  but said changes in Version J  are in line                                                               
with  the  position  of  the  Alaska  Association  of  Homes  for                                                               
Children;  discussed various  provisions, specifying  support for                                                               
proposed changes [in Amendment 1] that incorporate HB 23.                                                                       
                                                                                                                                
LAUREE HUGONIN, Director                                                                                                        
Alaska Network on Domestic Violence and Sexual Assault                                                                          
130 Seward Street, Room 209                                                                                                     
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  During hearing  on HB 252, suggested changes                                                               
to language  in the bill;  advocated for early  intervention with                                                               
the use of family preservation services.                                                                                        
                                                                                                                                
JAY LIVEY, Commissioner                                                                                                         
Department of Health and Social Services                                                                                        
P.O. Box 110601                                                                                                                 
Juneau, Alaska  99811-0601                                                                                                      
POSITION STATEMENT:   Spoke  in opposition  to HB  367; explained                                                               
that while  it would save  the state  $5 million, $12  million in                                                               
federal funds to the state would be forfeited.                                                                                  
                                                                                                                                
BOB LABBE, Director                                                                                                             
Division of Medical Assistance                                                                                                  
Department of Health and Social Services                                                                                        
P.O. Box 110660                                                                                                                 
Juneau, Alaska  99811-0660                                                                                                      
POSITION STATEMENT:   During hearing  on HB 367, reported  on the                                                               
division's Denali KidCare application procedures.                                                                               
                                                                                                                                
KATHLEEN FITZGERALD                                                                                                             
Key Coalition of Alaska                                                                                                         
4521 Southpark Bluff                                                                                                            
Anchorage, Alaska  99516                                                                                                        
POSITION  STATEMENT:   Testified in  opposition to  HB 367;  said                                                               
Denali KidCare is  an important piece of health  care for Alaskan                                                               
families.                                                                                                                       
                                                                                                                                
THOMAS CONLEY, Pediatrician;                                                                                                    
Member, Sitka Borough School District School Board                                                                              
105 Cascade Street                                                                                                              
Sitka, Alaska  99835                                                                                                            
POSITION  STATEMENT:   During hearing  on HB  367, advocated  for                                                               
Denali KidCare  to remain  unchanged; noted  that people  who are                                                               
self-employed, business  owners, or entrepreneurs are  those most                                                               
often unable to obtain reasonable health care coverage.                                                                         
                                                                                                                                
MEG MITCHELL                                                                                                                    
P.O. Box 1842                                                                                                                   
Homer, Alaska  99603                                                                                                            
POSITION  STATEMENT:   During hearing  on HB  367, supported  the                                                               
existing income eligibility guidelines for Denali KidCare.                                                                      
                                                                                                                                
DANA LEE HALL, R.Ph.                                                                                                            
Village Operations Administrator                                                                                                
Yukon-Kuskokwim Health Corporation                                                                                              
P.O. Box 528                                                                                                                    
Bethel, Alaska  99559                                                                                                           
POSITION  STATEMENT:   During  hearing  on  HB 367,  reported  on                                                               
Denali KidCare's  contributions to  health in  the Y-K  Delta and                                                               
advocated for eligibility requirements to remain unchanged.                                                                     
                                                                                                                                
JIM KOHLER                                                                                                                      
Tanana Chiefs Conference (TCC)                                                                                                  
1408 Nineteenth Avenue                                                                                                          
Fairbanks, Alaska  99701                                                                                                        
POSITION STATEMENT:  Testified in  opposition to proposed changes                                                               
to  Denali  KidCare; explained  that  20  to  30 percent  of  TCC                                                               
beneficiaries would be cut from the program.                                                                                    
                                                                                                                                
DIANE CLARK                                                                                                                     
Group Home Daycare                                                                                                              
P.O. Box 351                                                                                                                    
Seward, Alaska  99664                                                                                                           
POSITION STATEMENT:  Testified in  opposition to HB 367; reported                                                               
that  health care  costs  are rising  and  predicted that  unpaid                                                               
bills would be borne by the state.                                                                                              
                                                                                                                                
TRUDY ANDERSON, Consumer Awareness Manager                                                                                      
Alaska Native Health Board                                                                                                      
No address provided                                                                                                             
POSITION  STATEMENT:     Testified  in  opposition   to  HB  367;                                                               
emphasized that  Children's Health  Insurance Plan funds  are 100                                                               
percent reimbursed by the federal government.                                                                                   
                                                                                                                                
GAY WELLMAN                                                                                                                     
Copper River Native Association                                                                                                 
HC 60, Box 227A                                                                                                                 
Copper Center, AK 99573                                                                                                         
POSITION STATEMENT:  During hearing  on HB 367, reported on Fetal                                                               
Alcohol  Syndrome  services  being supported  by  Denali  KidCare                                                               
funds and urged members to keep the program unchanged.                                                                          
                                                                                                                                
NANCY WELLER, Unit Manager                                                                                                      
State, Federal, and Tribal Relations                                                                                            
Division of Medical Assistance                                                                                                  
Department of Health and Social Services                                                                                        
P.O. Box 110660                                                                                                                 
Juneau, Alaska  99811-0660                                                                                                      
POSITION STATEMENT:   During  hearing on  HB 367,  clarified that                                                               
cuts to  Denali KidCare would  affect both Native  and non-Native                                                               
children.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-8, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIR FRED  DYSON called the  House Health, Education  and Social                                                               
Services  Standing  Committee  meeting  to  order  at  3:05  p.m.                                                               
Representatives  Dyson,  Wilson,  Coghill, Kohring,  Cissna,  and                                                               
Joule were present at the  call to order.  Representative Stevens                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
HB 252-STANDARD OF CARE FOR CINA SERVICES                                                                                     
                                                                                                                                
[Contains discussion  of HB  23, which  was used  as a  basis for                                                               
Amendment 1 (F.1)]                                                                                                              
                                                                                                                                
Number 0167                                                                                                                     
                                                                                                                                
CHAIR DYSON announced  that the first order of  business would be                                                               
HOUSE  BILL NO.  252, "An  Act  relating to  the construction  of                                                               
certain statutes relating  to children; relating to  the scope of                                                               
duty and  standard of  care for persons  who provide  services to                                                               
certain  children and  families; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
Number 0180                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to  adopt  the proposed  committee                                                               
substitute (CS)  for HB 252, Version  J, 22-LS0454\J, Lauterbach,                                                               
2/11/02, as the work draft.   There being no objection, Version J                                                               
was before the committee.                                                                                                       
                                                                                                                                
REPRESENTATIVE  COGHILL,  sponsor  of   HB  252,  explained  that                                                               
compelling testimony  was heard  in a House  Finance subcommittee                                                               
hearing  that  highlighted the  need  for  [higher standards  for                                                               
caseworkers].   He  offered that  the duty  and standard  of care                                                               
created puts a  greater pressure on [caseworkers].   He indicated                                                               
the  need for  balance in  approaching this  issue, to  raise the                                                               
standard [of  care] and  also meet [children's]  needs.   He said                                                               
his concerns  are met by  repealing the language in  statute that                                                               
says there is no standard.   He expressed his belief that parents                                                               
should  be included  in the  bill's language.   He  characterized                                                               
[Version  J]  as  having  fewer  "teeth"  while  still  providing                                                               
"positive  movement."   He stated  that his  aide was  present to                                                               
answer questions during the amendment process.                                                                                  
                                                                                                                                
Number 0340                                                                                                                     
                                                                                                                                
RYNNIEVA  MOSS,  Staff  to Representative  John  Coghill,  Alaska                                                               
State Legislature, explained the  changes from the original bill.                                                               
Version J  changes the  requirement for  the Division  of [Family                                                               
and Youth]  Services (DFYS) to  adopt regulations setting  a duty                                                               
and  standard  of  care.     Currently,  DFYS  has  policies  and                                                               
procedures similar to  the standards addressed in the  bill.  She                                                               
said Version  J takes the  pressure off  of DFYS to  do something                                                               
with  regulations right  away.   It does  repeal the  language in                                                               
statute that says there is no duty or standard of care.                                                                         
                                                                                                                                
Number 0442                                                                                                                     
                                                                                                                                
THERESA TANOURY, Director, Division  of Family and Youth Service,                                                               
Department  of  Health  and  Social  Services,  noted  that  DFYS                                                               
appreciates  the change  provided in  [Version J].   She  offered                                                               
that [DFYS] believes in and has  standards; workers are held to a                                                               
standard by a code  of ethics.  "I think this  is an easier draft                                                               
to swallow," she  said.  Some concern still  exists regarding the                                                               
construction,  she   pointed  out;   the  fiscal  note   will  be                                                               
readjusted and brought before the committee.                                                                                    
                                                                                                                                
CHAIR DYSON  asked if she had  any objection to [page  1] line 8,                                                               
which addresses parental rights.                                                                                                
                                                                                                                                
MS. TANOURY replied  that she believes the Department  of Law has                                                               
some  opinion   on  this   matter.     However,  she   said  this                                                               
construction puts parents' interests  slightly above those of the                                                               
child  in question;  DFYS objects  to this.   She  indicated that                                                               
[current  statute] places  the child's  needs above  the parents'                                                               
needs.   She  referenced discussion  with Representative  Coghill                                                               
wherein  [DFYS]  had suggested  a  more  balanced statement  that                                                               
would equally promote children's and parents' best interests.                                                                   
                                                                                                                                
Number 0553                                                                                                                     
                                                                                                                                
JAN  RUTHERDALE,  Assistant   Attorney  General,  Human  Services                                                               
Section,  Civil Division  (Juneau),  Department  of Law,  offered                                                               
that she was  testifying only on Section 1, whereas  Susan Cox of                                                               
the Department of  Law could speak to Section 2.   Ms. Rutherdale                                                               
said AS 47.10.005 is a  statutory construction provision; it only                                                               
comes  up  when  a  statute   is  ambiguous  when  applied  to  a                                                               
particular  case.   The [existing  statutory] construction  calls                                                               
for a court  to interpret the statute in a  way that promotes the                                                               
child's  welfare.     [Version   J],  however,  calls   for  this                                                               
interpretation  to be  based on  parents' rights  to educate  and                                                               
bring  up  their children.    She  offered  that this  creates  a                                                               
gridlock for  the court:   Should the  court promote  the child's                                                               
welfare or recognize parents' inherent rights?                                                                                  
                                                                                                                                
Number 0663                                                                                                                     
                                                                                                                                
MS. RUTHERDALE told members this  language doesn't help the court                                                               
in these  situations.   However, she  provided suggestions.   She                                                               
referred  to AS  47.050.65, enacted  in 1998  when the  child-in-                                                               
need-of-aid (CINA)  laws were revised;  they are  the legislative                                                               
findings, she said.  She suggested  the wording in [Version J] is                                                               
found in  the legislative  findings.   For example,  parents have                                                               
the  following rights  and responsibilities:    to provide  food,                                                               
clothing,  shelter, education,  and medical  care; and  to train,                                                               
discipline,  protect,  nurture,  and determine  where  the  child                                                               
shall live.                                                                                                                     
                                                                                                                                
MS.  RUTHERDALE indicated  the  legislative  findings are  saying                                                               
that parents  possess those types of  rights and responsibilities                                                               
in  raising  their  children.   She  suggested  that  either  the                                                               
legislative findings  say what [Version  J] is attempting  to say                                                               
or  that they  warrant revision  if the  legislature's intent  is                                                               
unclear.   Placing those provisions  in the  construction statute                                                               
creates a  gridlock that hinders  the court.   She added  that if                                                               
problems exist, such as statutes  that are ambiguous or difficult                                                               
to understand,  then perhaps amendments  to those  provisions are                                                               
needed.                                                                                                                         
                                                                                                                                
Number 0783                                                                                                                     
                                                                                                                                
CHAIR  DYSON summarized  his  understanding  of Ms.  Rutherdale's                                                               
testimony by saying the Department of  Law does not object to the                                                               
content of the language; rather,  it objects to its placement [in                                                               
the construction section].                                                                                                      
                                                                                                                                
MS.  RUTHERDALE responded  that the  particular wording  "parents                                                               
possess  inherent, individual  rights to  direct and  control the                                                               
education"  concerns  her.    The  constitution  creates  certain                                                               
rights;  Alaska's constitution  has an  actual right  of privacy,                                                               
for   example.     She  explained   that  creating   a  statutory                                                               
pronouncement   of  inherent   rights  to   direct  and   control                                                               
education,  for  example,  might  cause  later  complications  in                                                               
education bills.   A parent might say, "I have  a right to direct                                                               
how ...  public funds are spent  to educate my child."   She said                                                               
she'd be happy  to draft other language to  target [the intended]                                                               
meaning.   She  again  offered that  the  language might  already                                                               
exist in the findings.                                                                                                          
                                                                                                                                
CHAIR DYSON asked  about the difference in the  importance of the                                                               
language, whether  it is in  the findings or in  the construction                                                               
section.                                                                                                                        
                                                                                                                                
MS. RUTHERDALE replied  that she was uncertain  about the answer.                                                               
She  pointed out  that when  she is  presenting [a  case] to  the                                                               
court,  however, she  often points  to the  legislative findings,                                                               
"Your Honor  ... this is what  the legislature found, ...  so you                                                               
should  find this  way because  this is  really important  to the                                                               
legislature."   The  construction  provides  a similar  argument.                                                               
Ms. Rutherdale explained that giving  clear guidance to the court                                                               
to err on a  particular side when it is in  doubt is an important                                                               
directive.   The  court may  consider  other things  such as  the                                                               
legislative  findings.     She  concluded  that   more  than  one                                                               
[directive]  in  the  construction  will  confuse  the  court  in                                                               
determining which way to lean.   She stated that this issue would                                                               
not come up often; most statutes are clear to judges.                                                                           
                                                                                                                                
CHAIR DYSON asked what "construction" means as a legal term.                                                                    
                                                                                                                                
MS. RUTHERDALE answered  that it means how a law  is construed or                                                               
interpreted.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COGHILL   asked   for  the   location   of   the                                                               
aforementioned statutory citation.                                                                                              
                                                                                                                                
MS.  RUTHERDALE responded  that it  is  in AS  47.05.[065].   She                                                               
noted  that  it   was  unusual  for  it  to  be   placed  in  the                                                               
administration  of  welfare,  social services,  and  institutions                                                               
section, rather  than in Chapter  10, which addresses CINA.   She                                                               
said it is clear, however,  that these legislative findings apply                                                               
to  Chapter  10; they  were  all  part  of the  same  legislative                                                               
package.                                                                                                                        
                                                                                                                                
Number 1020                                                                                                                     
                                                                                                                                
SUSAN  COX,  Chief  Assistant Attorney  General,  Civil  Division                                                               
(Juneau), Department  of Law, explained  that the language  to be                                                               
repealed by Section 2 of Version  J was part of the "Smart Start"                                                               
package enacted  by the legislature  in 1998.  The  rationale for                                                               
that  sentence's insertion  was  to avoid  new liabilities  being                                                               
created by the Smart Start legislation.                                                                                         
                                                                                                                                
MS. COX told members the "duty  and standard of care" section was                                                               
included in  the package to  make clear that the  legislature was                                                               
not  intending to  create  new civil  liabilities  or claims  for                                                               
damages  against the  state or  its employees  in the  event that                                                               
selective Smart Start provisions were  not met in their entirety.                                                               
The  section, she  offered, does  not immunize  the state  in any                                                               
way;  DFYS  and its  employees  can  be  sued for  negligence  if                                                               
children are  not properly protected.   The standard in  any case                                                               
is negligence in  the failure to take reasonable  care to protect                                                               
children.  She  noted that the rationale for AS  47.10.960 was to                                                               
ensure that  all the  goals in the  Smart Start  legislation were                                                               
not used  selectively to create  a new claim for  damages against                                                               
the department or its employees.  The statute reads as follows:                                                                 
                                                                                                                                
         Sec. 47.10.960.  Duty and standard of care not                                                                         
     created.                                                                                                                   
      Nothing in this title creates a duty or standard of                                                                       
     care for services to children and their families being                                                                     
     served under AS 47.10.                                                                                                     
                                                                                                                                
MS. COX offered  that she and [Chair Dyson],  among other people,                                                               
had discussed  this at the  time; it was  part and parcel  of the                                                               
package when it was enacted.                                                                                                    
                                                                                                                                
Number 1153                                                                                                                     
                                                                                                                                
MS. COX explained the concern of  the Department of Law.  Defense                                                               
attorneys, whose  job is to  respond to liability  claims against                                                               
the  state,  foresee  that  the  implication  of  repealing  this                                                               
sentence is that the legislature  intends to mean something.  The                                                               
question is, what  is the meaning?  Does  the legislature intend,                                                               
by repealing this language, for  the state to be held accountable                                                               
in  civil  claims for  damages  for  any  violation of  the  many                                                               
provisions of AS  47.10, for example?  If an  effort were made to                                                               
take  action in  a child  protection case,  for example,  and the                                                               
social workers and  the attorneys had presented the  best case to                                                               
terminate  parental rights  - and  yet the  court determined  not                                                               
enough  had been  done to  establish the  case for  termination -                                                               
does the legislature want to  impose potential liability that the                                                               
parents  could  bring  against   the  state?    Furthermore,  the                                                               
protection   case  may   continue  and   parental  rights   could                                                               
ultimately be terminated, but a claim could still be made.                                                                      
                                                                                                                                
Number 1222                                                                                                                     
                                                                                                                                
MS. COX  stated that the  Smart Start legislation had  many goals                                                               
and  a large  fiscal  note  to hire  more  caseworkers to  reduce                                                               
caseloads.  She  noted that she'd thought it  was understood from                                                               
the outset  that not  all of the  deadlines and  timeframes could                                                               
possibly be met initially with the available resources.                                                                         
                                                                                                                                
MS.  COX  noted  her  concern  regarding  new  liabilities  being                                                               
created by removing this language.   She said if the objection to                                                               
this language is based on concern  that Title 47 doesn't create a                                                               
standard  of care  for serving  children and  that some  wish the                                                               
statement to  be made that the  department must follow it,  it is                                                               
already clear to  the department that is must  follow [Title 47].                                                               
The department has policies and  procedures to implement the law,                                                               
and lawyers to help them accomplish that.  She said:                                                                            
                                                                                                                                
     If  that  language is  objectionable  and  needs to  be                                                                    
     removed, we would  certainly request that if  it is not                                                                    
     the legislature's intention  to create new liabilities,                                                                    
     that  we come  up  with some  substitute language  that                                                                    
     makes that point clear.                                                                                                    
                                                                                                                                
CHAIR DYSON asked Ms. Cox  if removing the language increases the                                                               
possibility  that  state employees  would  be  sued, and  whether                                                               
removing it creates [greater liability]  than if the language had                                                               
never been in statute.                                                                                                          
                                                                                                                                
MS. COX said  it certainly raises the possibility.   The language                                                               
had  been in  statute, and  it  is assumed  that the  legislature                                                               
means everything it says.  Taking  it out raises the questions of                                                               
what the  legislature intends to  mean and whether it  intends to                                                               
authorize new  claims.  She  said the argument will  certainly be                                                               
made; whether a plaintiff would prevail remains to be seen.                                                                     
                                                                                                                                
Number 1346                                                                                                                     
                                                                                                                                
MS. COX,  in response to  a question from  Representative Cissna,                                                               
explained that the plaintiff determines  which party to sue:  the                                                               
state,  the  Department  of  Health   and  Social  Services,  the                                                               
commissioner, or  the social  worker personally.   The  Office of                                                               
the Attorney General represents  whomever the defendant might be,                                                               
in  virtually  all  suits pertaining  to  carrying  out  official                                                               
duties as a state employee.   Most cases in a liability situation                                                               
are settled with a payment of state  money.  She added that it is                                                               
the  rare situation  in  which a  social  worker acts  completely                                                               
outside the scope of his/her  employment, which possibly can lead                                                               
to personal liability.                                                                                                          
                                                                                                                                
Number 1420                                                                                                                     
                                                                                                                                
CHAIR DYSON asked  if different wording could be  used that would                                                               
not preclude  a standard and  that would say the  department will                                                               
be  diligent  in  following its  own  policies,  procedures,  and                                                               
regulations.                                                                                                                    
                                                                                                                                
MS. COX offered  that she would be happy to  work on language, if                                                               
the bill  is held  over, that  hopefully would  not create  a new                                                               
liability, but would send the  message that the legislature wants                                                               
the department to follow the standard in the bill.                                                                              
                                                                                                                                
Number 1450                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL  responded  that  he'd  be  open  to  the                                                               
foregoing,  but  wants  it  clear  that  there  is  a  continuing                                                               
responsibility that creates the  liability; excusing [workers] is                                                               
unwise.   The CINA  statute is intended  to protect  children, he                                                               
noted.  He said:                                                                                                                
                                                                                                                                
     We give  ... some  judicial and  some police  powers to                                                                    
     people,  and  we  have excused  them  [by]  this  exact                                                                    
     language  from certain  responsibilities;  I ...  don't                                                                    
     think that's wise.  And so,  I think this is upping the                                                                    
     limit.   I  think  that it's  going to  help  us to  do                                                                    
     things  better.    I  was willing  to  drop  the  exact                                                                    
     language for how  they should do it, but  I still think                                                                    
     we need to have the  upward pressure of saying there is                                                                    
     responsibility for the actions that we take.                                                                               
                                                                                                                                
REPRESENTATIVE COGHILL  indicated he thinks  it wise to  keep the                                                               
lines of  the limited  scope of government  clearly defined.   He                                                               
agreed the  responsibility level  is elevated here.   He  said he                                                               
isn't sure  he's interested  in language  that will  excuse that.                                                               
He said  he is  open to  language that  will more  clearly define                                                               
these responsibilities.                                                                                                         
                                                                                                                                
Number 1505                                                                                                                     
                                                                                                                                
CHAIR DYSON added, "And not  necessarily appear to be authorizing                                                               
lawsuits."  He asked Ms. Cox  whether this is her concern, should                                                               
the language be removed.                                                                                                        
                                                                                                                                
MS. COX replied that this is  precisely her concern.  She offered                                                               
that she is definitely concerned  about increasing the likelihood                                                               
of lawsuits.   She clarified that  language in the bill  does not                                                               
immunize social  workers in any  way; workers and  the department                                                               
are still  subject to  litigation under the  current law  if they                                                               
are negligent in  the provision of services to  children they are                                                               
supposed to protect.                                                                                                            
                                                                                                                                
REPRESENTATIVE COGHILL said, "It is  also true that you said that                                                               
by taking this language out, the liability elevates."                                                                           
                                                                                                                                
MS. COX explained that this  provision just says that no specific                                                               
line or sentence in the Smart  Start legislation can be taken out                                                               
and  construed  to  create  a   claim  for  damages  against  the                                                               
department  or a  social  worker.   The  legislation passed  that                                                               
established timelines  for children's  cases doesn't,  in itself,                                                               
create a  liability.  At  the same  time, this does  not immunize                                                               
the  department,  which  can  be  sued   -  and  is  sued  -  for                                                               
negligence.  The  language in question simply  means that nothing                                                               
in  the bill  creates  a new  cause  of action,  she  said.   The                                                               
possibility  of a  suit based  on  failure to  act reasonably  in                                                               
providing  services does  exist.   However, taking  this language                                                               
out is  an invitation to some  to whom it might  appear that they                                                               
can sue  [for failure  to meet specific  provisions in  the Smart                                                               
Start legislation].                                                                                                             
                                                                                                                                
Number 1600                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  offered that  cases exist wherein  a lack                                                               
of timeliness has  caused harm, and some of those  issues need to                                                               
be  addressed.   He added  that  [the state]  requires others  to                                                               
follow  timelines   but  allows  interpretation  for   one's  own                                                               
benefit.  He stated that he  finds this problematic.  He said, "I                                                               
agree that it  does do that, but we have  given police powers and                                                               
judicial powers  to people who  are overseeing ...  the child-in-                                                               
need-of-aid  cases.    And  I  think ...  the  tension  there  is                                                               
important."                                                                                                                     
                                                                                                                                
CHAIR DYSON announced that he would entertain amendments.                                                                       
                                                                                                                                
Number 1647                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA moved to  adopt Amendment 1, 22-LS0454\F.1,                                                               
Lauterbach, 2/5/02, which read:                                                                                                 
                                                                                                                                
     Page 1, line 3, following "families;":                                                                                   
          Insert "relating to intensive family preservation                                                                   
     services;"                                                                                                               
                                                                                                                                
     Page 1, following line 13:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 2.  AS 47.10.086(a) is amended to read:                                                                       
          (a)  Except as provided in (b) and (c) of this                                                                        
     section, the  department shall make  timely, reasonable                                                                    
     efforts  to  provide  family support  services  to  the                                                                    
     child and to the parents  or guardian of the child that                                                                    
     are designed  to prevent  out-of-home placement  of the                                                                    
     child or to enable the safe  return of the child to the                                                                    
     family home,  when appropriate, if  the child is  in an                                                                    
     out-of-home    placement.       Within   appropriations                                                                
     available for  the purpose,  the department  shall also                                                                
     offer  intensive  family   preservation  services  when                                                                
     those services are available and  the child's safety in                                                                
     the  home  can  be   maintained  during  the  time  the                                                                
     services are  provided.  The department's  duty to make                                                                
     reasonable  efforts under  this  subsection to  provide                                                                
     family support services includes the duty to                                                                           
               (1)  identify family support services that                                                                       
     will  assist the  parent or  guardian in  remedying the                                                                    
     conduct or conditions  in the home that  made the child                                                                    
     a child in need of aid;                                                                                                    
               (2)  actively offer the parent or guardian,                                                                      
     and  refer  the  parent  or  guardian  to,  the  family                                                                
     support   services  identified   under   (1)  of   this                                                                
     subsection; the  department shall  refer the  parent or                                                                    
     guardian  to  community-based family  support  services                                                                    
     whenever  community-based  services are  available  and                                                                    
     desired by the parent or guardian; and                                                                                     
               (3)  document the department's actions that                                                                      
     are  taken  under [(1)  AND  (2)  OF] this  subsection,                                                                
     including   whether   intensive   family   preservation                                                                
     services   were   appropriate,    offered,   used,   or                                                                
     available.                                                                                                             
        * Sec. 3.  AS 47.10.086(b) is amended to read:                                                                        
          (b)  If the court makes a finding at a hearing                                                                        
     conducted  under  AS 47.10.080(l)   that  a  parent  or                                                                    
     guardian has not sufficiently  remedied the parent's or                                                                    
     guardian's  conduct  or  the  conditions  in  the  home                                                                    
     despite reasonable  efforts made  by the  department in                                                                    
     accordance with  this section,  the court  may conclude                                                                    
     that  continuation of  reasonable efforts  of the  type                                                                    
     described in  (a) of this  section are not in  the best                                                                    
     interests  of the  child.   The  department shall  then                                                                    
     make reasonable efforts to place  the child in a timely                                                                    
     manner  in accordance  with the  permanent plan  and to                                                                    
     complete whatever  steps are necessary to  finalize the                                                                    
     permanent  placement  of  the  child.    If  the  court                                                                
     concludes  that continuation  of reasonable  efforts of                                                                
     the type  described in (a)  of this section are  not in                                                                
     the best  interests of the  child and  intensive family                                                                
     preservation services  were not  provided in  the case,                                                                
     the  court shall  enumerate in  the record  the reasons                                                                
     the services were not provided.                                                                                        
        * Sec. 4.  AS 47.10.142(b) is amended to read:                                                                        
          (b)  The department shall offer available                                                                             
     counseling services  and intensive  family preservation                                                                
     services to the person having  legal custody of a minor                                                                
     described  in AS 47.10.141  and to  the members  of the                                                                    
     minor's  household  if  it determines  that  counseling                                                                    
     services  or  intensive  family  preservation  services                                                                
     would  be  appropriate  in  the  situation.  If,  after                                                                    
     assessing    the    situation,    offering    available                                                                    
     [COUNSELING] services  to the  legal custodian  and the                                                                    
     minor's  household, and  furnishing appropriate  social                                                                    
     services  to the  minor,  the  department considers  it                                                                    
     necessary,  the department  may take  emergency custody                                                                    
     of the minor.                                                                                                              
        *  Sec.  5.    AS 47.10 is  amended  by  adding  new                                                                  
     sections to read:                                                                                                          
      Article 3A.  Intensive Family Preservation Services.                                                                    
          Sec. 47.10.500.  Statewide program.  Subject to                                                                     
     AS 47.10.510  and  47.10.520,   the  department  shall,                                                                    
     within  appropriations   available  for   the  purpose,                                                                    
     provide  intensive family  preservation  services on  a                                                                    
     statewide  basis.    The  department  may  provide  the                                                                    
     services  directly or  through  contracts with  private                                                                    
     nonprofit providers.                                                                                                       
          Sec. 47.10.510.  Effectiveness required.  (a)                                                                       
     The department shall  develop measurable standards that                                                                    
     must  be met  by a  provider before  a contract  may be                                                                    
     awarded to the provider under AS 47.10.500.                                                                                
          (b)  The department may not renew a contract with                                                                     
     a  provider   of  services  unless  the   provider  can                                                                    
     demonstrate  that provision  of the  services prevented                                                                    
     or  terminated out-of-home  placement  in  at least  70                                                                    
     percent of  the cases served  by the provider  and that                                                                    
     out-of-home placement  was avoided  for a period  of at                                                                    
     least six months after termination of the services.                                                                        
          (c)  The department may not continue direct                                                                           
     provision  of   services  unless  the   department  can                                                                    
     demonstrate  that provision  of the  services prevented                                                                    
     or  terminated out-of-home  placement  in  at least  70                                                                    
     percent  of  the  cases  served  and  that  out-of-home                                                                    
     placement  was avoided  for a  period of  at least  six                                                                    
     months after termination of the services.                                                                                  
          Sec. 47.10.520.  Eligibility for services.  (a)                                                                     
     The   department    may   provide    intensive   family                                                                    
     preservation services  to a child, the  child's family,                                                                    
     and other appropriate nonfamily members only if                                                                            
               (1)  there are no other available means that                                                                     
     will  prevent out-of-home  placement  of  the child  or                                                                    
     make  it possible  to immediately  return the  child to                                                                    
     the child's home; and                                                                                                      
               (2)  the child has been placed in out-of-                                                                        
     home care  or is  at actual,  imminent risk  of out-of-                                                                    
     home placement due to                                                                                                      
               (A)  child abuse or neglect;                                                                                     
               (B)  a serious threat  of substantial harm to                                                                    
     the child's health, safety, or welfare; or                                                                                 
               (C)  family conflict.                                                                                            
          (b)  The department need not provide services to                                                                      
     an otherwise eligible family if                                                                                            
               (1)    services  are  not  available  in  the                                                                    
     community in which the family resides;                                                                                     
               (2)  services cannot  be provided because the                                                                    
     program is filled to capacity;                                                                                             
               (3)  the family refuses the services;                                                                            
               (4)   the child's case plan  does not include                                                                    
     reunification of the child and family; or                                                                                  
               (5)  the safety of  a child, a family member,                                                                    
     or  a person  providing  the services  would be  unduly                                                                    
     threatened.                                                                                                                
          Sec. 47.10 530.  Solicitation of funding sources.                                                                   
     The  department  shall   solicit  federal  and  private                                                                    
     resources  that  may  be available  to  fund  intensive                                                                    
     family preservation services.                                                                                              
          Sec. 47.10.590.  Definition.  In AS 47.10.500 -                                                                     
     47.10.590,  "intensive  family  preservation  services"                                                                    
     and  "services"  mean   intensive  family  preservation                                                                    
     services, as defined in AS 47.10.990."                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 6:                                                                                                  
          Insert new bill sections to read:                                                                                     
        "* Sec. 7.  AS 47.10.990  is amended by adding a new                                                                  
     paragraph to read:                                                                                                         
               (28)       "intensive   family   preservation                                                                    
     services" means  services provided  to a family  with a                                                                    
     child  who is  in  an out-of-home  placement  or is  at                                                                    
     imminent risk of out-of-home placement that                                                                                
               (A)     are  designed  to   address  problems                                                                    
     creating   the  need   for  out-of-home   placement  by                                                                    
     assisting the family to  improve parental and household                                                                    
     management   competence   and  by   solving   practical                                                                    
     problems  that contribute  to family  stress  so as  to                                                                    
     improve  parental performance  and enhance  functioning                                                                    
     of the family unit;  and                                                                                                   
               (B)  have the following characteristics:                                                                         
               (i)   are  persistently offered  but provided                                                                    
     at the family's option;                                                                                                    
               (ii)  are provided in the family's home;                                                                         
               (iii)    are available  24  hours  a day  and                                                                    
     seven days a week;                                                                                                         
               (iv)    are  provided   within  24  hours  of                                                                    
     initial contact for assistance;                                                                                            
               (v)   are provided for  a maximum of  40 days                                                                    
     by  a single  case worker  whose caseload  is not  more                                                                    
     than two families at any one time; and                                                                                     
               (vi)    may,  in  appropriate  instances  and                                                                    
     subject to  available appropriations,  include monetary                                                                    
     assistance for special needs of  the family, such as to                                                                    
     obtain food, shelter, or clothing  or to purchase other                                                                    
     goods or  services that will enhance  the effectiveness                                                                    
     of other services offered to help preserve the family.                                                                     
        * Sec. 8.  AS 47.17.030(d) is amended to read:                                                                        
          (d)  Before the department or a local government                                                                      
     health  or   social  services   agency  may   seek  the                                                                    
     termination  of  parental  rights  under  AS 47.10,  it                                                                    
     shall offer  protective social services and  pursue all                                                                    
     other reasonable  means of protecting  the child.   The                                                                
     department   or   agency   shall  also   consider   the                                                                
     eligibility  of  the  child and  family  for  intensive                                                                
     family  preservation  services   under  AS 47.10.500  -                                                                
     47.10.590."                                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 7:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "*  Sec. 10.   The  uncodified law  of the  State of                                                                  
     Alaska is amended by adding a new section to read:                                                                         
          STUDY.  (a)  The Department of Health and Social                                                                      
     Services shall conduct  a study in at  least one region                                                                    
     of the state in order to                                                                                                   
               (1)   develop  a valid  and reliable  process                                                                    
     for  accurately identifying  clients  who are  eligible                                                                    
     for intensive family preservation services;                                                                                
               (2)     collect   data  on   which  to   base                                                                    
     projections  of  service  needs, budget  requests,  and                                                                    
     long-range   planning  related   to  intensive   family                                                                    
     preservation services;                                                                                                     
               (3)      develop   regional   and   statewide                                                                    
     projections of needs  for intensive family preservation                                                                    
     services;                                                                                                                  
               (4)      develop    a   cost   estimate   for                                                                    
     implementation  and   expansion  of   intensive  family                                                                    
     preservation services on a statewide basis;                                                                                
               (5)  develop a long-range plan and time                                                                          
     frame   for   ultimately    making   intensive   family                                                                    
     preservation   services  available   to  all   eligible                                                                    
     families; and                                                                                                              
               (6)  collect data regarding the number of                                                                        
     children  in  foster  care, group  care,  institutional                                                                    
     care, and other out-of-home  care due to medical needs,                                                                    
     mental  health needs,  developmental disabilities,  and                                                                    
     juvenile  offenses and  to  assess  the feasibility  of                                                                    
     expanding   intensive   family  preservation   services                                                                    
     eligibility to include all of these children.                                                                              
          (b)  By November 30, 2004, the Department of                                                                          
     Health  and Social  Services shall  submit a  report to                                                                    
     the governor  describing the study required  under this                                                                    
     section and including  the department's conclusions and                                                                    
     recommendations  that  are based  on  the  study.   The                                                                    
     department  shall  notify   the  legislature  that  the                                                                    
     report is available.                                                                                                       
          (c)  In this section, "intensive family                                                                               
     preservation  services"   has  the  meaning   given  in                                                                    
     AS 47.10.990."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, line 8:                                                                                                            
          Delete "2"                                                                                                            
          Insert "6"                                                                                                            
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "Section 3"                                                                                                    
          Insert "Section 9"                                                                                                    
          Delete "sec. 2"                                                                                                       
          Insert "sec. 6"                                                                                                       
                                                                                                                                
     Page 2, following line 10:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 13.   Except as provided in secs.  11 and 12                                                                  
     of this Act, this Act takes effect July 1, 2002."                                                                          
                                                                                                                                
[End of Amendment 1; please note that it amends Version F, the                                                                  
original bill, whereas the committee was now working from                                                                       
Version J.]                                                                                                                     
                                                                                                                                
CHAIR DYSON asked whether there was any objection to putting                                                                    
Amendment 1 before the committee.  There being no objection,                                                                    
Amendment 1 was before the committee.                                                                                           
                                                                                                                                
Number 1690                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA offered  an amendment  to Amendment  1, to                                                               
delete lines 1 and 2 [of the amendment], which read:                                                                            
                                                                                                                                
     Page 1, line 3, following "families;"                                                                                    
                                                                                                                                
       Insert "relating to intensive family preservation                                                                      
     services;"                                                                                                               
                                                                                                                                
CHAIR  DYSON  asked  whether  there  was  any  objection.    [The                                                               
foregoing amendment to Amendment 1 was treated as adopted.]                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA noted that  a second amendment to Amendment                                                               
1 would  change line 4 [page  1 of the amendment]  to read, "Page                                                               
2, following line 1:".  This  change is to reflect Version J, she                                                               
explained.    [The original  amendment  language  read, "Page  1,                                                               
following line 13:".]                                                                                                           
                                                                                                                                
CHAIR DYSON  asked if there  was any  objection.  There  being no                                                               
objection, [the second amendment to Amendment 1] was adopted.                                                                   
                                                                                                                                
Number 1751                                                                                                                     
                                                                                                                                
CHAIR DYSON asked whether the dates had been straightened out.                                                                  
                                                                                                                                
REPRESENTATIVE CISSNA replied yes.                                                                                              
                                                                                                                                
CHAIR DYSON  announced that Amendment  1 has  pen-and-ink changes                                                               
that are part  of the official amendment.   [The only pen-and-ink                                                               
change  on members'  copies  was  a date  change  in Section  10,                                                               
subsection (b):   following "By  November 30," delete  "2003" and                                                               
insert "2004".   Therefore,  that change was  treated as  part of                                                               
Amendment 1.]                                                                                                                   
                                                                                                                                
Number 1790                                                                                                                     
                                                                                                                                
CHAIR  DYSON called  an  at-ease  at 3:37  p.m.    He called  the                                                               
meeting back to order at 3:40 p.m.                                                                                              
                                                                                                                                
[Attention  would  return  to  Amendment   1  after  adoption  of                                                               
Amendment 2.]                                                                                                                   
                                                                                                                                
Number 1811                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA  began  discussion of  what  would  become                                                               
[Amendment 2].  She indicated Section  3 in Version J should have                                                               
been deleted.  She noted that Amendment 1 has a new Section 3.                                                                  
                                                                                                                                
CHAIR  DYSON suggested  moving  an amendment  to  Version J  that                                                               
deletes the language  in Section 3 on  page 2, line 1.   [Page 2,                                                               
line 1,  read:  "Section 1  of this Act takes  effect immediately                                                               
under AS 01.10.070(c)."]                                                                                                        
                                                                                                                                
CHAIR  DYSON  announced  that  the  foregoing  was  the  proposed                                                               
amendment  [Amendment  2].    He  asked  whether  there  was  any                                                               
objection.  There being no objection, [Amendment 2] was adopted.                                                                
                                                                                                                                
Number 1882                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA returned  attention to  Amendment 1.   She                                                               
explained that [Section 2 of  the amendment] gives the department                                                               
an  additional resource,  in order  to meet  the new  standard of                                                               
care required in [Version J].   The language had originated in HB
23 [sponsored  by Representative Cissna], which  proposed a pilot                                                               
study  for   intensive  family  preservation  services.     These                                                               
services provide  that a standard of  care be in place  through a                                                               
program that the courts can use as a new tool.                                                                                  
                                                                                                                                
Number 1939                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA explained that  this tool could be utilized                                                               
by the department now, but  isn't currently being chosen as such.                                                               
This allows the  courts to allow families to  choose an intensive                                                               
family  preservation program  as an  alternative to  having their                                                               
children removed from  the home.  This puts workers  in the home,                                                               
working  with the  family  while  keeping the  child  safe.   She                                                               
emphasized that  the first consideration  in this program  is the                                                               
safety  of the  child.   More  than 30  states have  successfully                                                               
adopted this model;  it originated over 20 years ago  and has had                                                               
very  successful  outcomes.   She  offered  that her  aide  would                                                               
explain the more  technical adaptations in [Amendment  1] that he                                                               
has worked out with Representative Coghill's aide.                                                                              
                                                                                                                                
Number 2000                                                                                                                     
                                                                                                                                
CHAIR DYSON  asked Representative Cissna  if she had  intended to                                                               
imply  that  intensive  family preservation  services  cannot  be                                                               
provided if the child has been removed from the family.                                                                         
                                                                                                                                
REPRESENTATIVE CISSNA answered,  "Yes, they can and  they are, in                                                               
other states  that have adopted  them."  She said  these services                                                               
are most  effective when  provided before  the child  is removed,                                                               
but  are still  a  reasonable alternative  after  removal if  the                                                               
courts decide  it is appropriate.   It  is a court  decision, she                                                               
emphasized.                                                                                                                     
                                                                                                                                
Number 2027                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON asked  if  her  understanding was  correct                                                               
that the  services are most  effective right before the  child is                                                               
removed;  at this  point, the  family is  in crisis  and is  more                                                               
likely to do anything to retain custody.                                                                                        
                                                                                                                                
REPRESENTATIVE CISSNA  concurred, adding  that after a  child has                                                               
been removed, a crisis dynamic  can exist.  The [intensive family                                                               
preservation  model]  is  a  crisis model.    Another  reason  to                                                               
provide  services before  the child  is removed  is because  many                                                               
studies have shown  damage to children due to  absence from their                                                               
parents, during which bonds can be  broken.  She offered that the                                                               
better situation avoids damage to the child.                                                                                    
                                                                                                                                
Number 2074                                                                                                                     
                                                                                                                                
NATE MOHATT, Staff to Representative  Sharon Cissna, Alaska State                                                               
Legislature, offered  to clear up  questions regarding  the "pen-                                                               
and-ink  changes" made  to  Amendment  1.   [The  only change  on                                                               
members' copies  was the date-change  specified earlier,  but Mr.                                                               
Mohatt's copy  of Amendment  1 had changes  that brought  it into                                                               
alignment with Version J.]                                                                                                      
                                                                                                                                
MR.  MOHATT  indicated  [the third  amendment  to  Amendment  1],                                                               
therefore, would be to delete lines  12-15 on page 4 of Amendment                                                               
1, which read:                                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 6:                                                                                                  
          Insert new bill sections to read:                                                                                     
                                                                                                                                
CHAIR DYSON  restated the foregoing  and asked whether  there was                                                               
any objection.  There being  no objection, the third amendment to                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
Number 2144                                                                                                                     
                                                                                                                                
MR.  MOHATT stated  that [the  fourth amendment  to Amendment  1]                                                               
would be  to delete lines 18-21  on page 5 of  Amendment 1, which                                                               
read:                                                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 7:                                                                                                  
          Insert a new bill section to read:                                                                                    
                                                                                                                                
CHAIR DYSON  restated the foregoing  and asked whether  there was                                                               
any objection.   There being  no objection, the  fourth amendment                                                               
to Amendment 1 was adopted.                                                                                                     
                                                                                                                                
Number 2160                                                                                                                     
                                                                                                                                
MR.  MOHATT offered  that [the  fifth amendment  to Amendment  1]                                                               
would be  to delete lines 16-29  on page 6 of  Amendment 1, which                                                               
read:                                                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, line 8:                                                                                                            
          Delete "2"                                                                                                            
          Insert "6"                                                                                                            
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "Section 3"                                                                                                    
          Insert "Section 9"                                                                                                    
          Delete "sec. 2"                                                                                                       
          Insert "sec. 6"                                                                                                       
                                                                                                                                
     Page 2, following line 10:                                                                                                 
          Insert a new bill section to read:                                                                                    
                                                                                                                                
CHAIR DYSON  restated the foregoing  and asked whether  there was                                                               
any objection.  There being  no objection, the fifth amendment to                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
CHAIR  DYSON requested  that  a  clean copy  be  provided to  the                                                               
committee  before start  of business  on Thursday  [February 14].                                                               
He noted that  the Department of Law would be  encouraged to make                                                               
suggestions as well,  and to talk to  [Representative Coghill and                                                               
Representative Cissna] before coming to the meeting.                                                                            
                                                                                                                                
Number 2189                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA told  members that  one significant  piece                                                               
that presumably  will affect [DFYS's]  financial view of  this is                                                               
the cost.  Foster care in  Alaska costs $8,000 to $17,000 a child                                                               
each year.  Other states incur  costs between $2,000 and $8,000 a                                                               
family each year for intensive  family preservation services, she                                                               
explained - substantially less.                                                                                                 
                                                                                                                                
Number 2233                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE said  he was interested in  having an answer                                                               
at  the  following meeting  regarding  the  availability of  this                                                               
service throughout the state.                                                                                                   
                                                                                                                                
Number 2267                                                                                                                     
                                                                                                                                
CHAIR  DYSON  asked   Ms.  Tanoury  if  she'd   been  aware  that                                                               
[Amendment 1] was going to be offered.                                                                                          
                                                                                                                                
MS. TANOURY replied yes.                                                                                                        
                                                                                                                                
CHAIR  DYSON   recounted  that  Ms.  Tanoury   had  indicated  in                                                               
discussion with himself a year ago  that it is DFYS's goal now to                                                               
provide whatever  services a  troubled family  needs in  order to                                                               
function.  He asked what [Amendment 1] would change for DFYS.                                                                   
                                                                                                                                
Number 2290                                                                                                                     
                                                                                                                                
MS.  TANOURY  offered  her  assumption   that  [Amendment  1]  is                                                               
identical to HB 23, which calls  for DFYS to use existing funding                                                               
to provide  [intensive family preservation  services].   She said                                                               
this is  a specific model in  which caseloads are reduced  to two                                                               
cases per  worker; it is a  six-week service model.   She pointed                                                               
out  the importance  of having  the right  families receive  this                                                               
service;  it might  not be  the right  service for  every family.                                                               
She indicated DFYS  would have to work with  existing grantees to                                                               
determine how to  implement this model; she surmised  it would be                                                               
a grant model rather than through state employees.                                                                              
                                                                                                                                
MS. TANOURY  explained that  some funding  would be  required for                                                               
the study;  she estimated an  $80,000 fiscal note, which  was the                                                               
amount for  HB 23.   She concluded  that [Amendment 1]  calls for                                                               
DFYS to use  existing funding, which means  working with existing                                                               
grantees   that   provide   family   support   services,   family                                                               
preservation  services, and  a time-limited  family reunification                                                               
service  model.   [Amendment 1]  would provide  a specific  model                                                               
under that grant  program.  She remarked, "It  would impact those                                                               
grantees  to the  extent we  don't know  how we  would work  with                                                               
those grantees on this model."                                                                                                  
                                                                                                                                
TAPE 02-8, SIDE B                                                                                                               
Number 2342                                                                                                                     
                                                                                                                                
CHAIR DYSON asked Ms. Tanoury if  HB 252, as amended, forces DFYS                                                               
to do a pilot.                                                                                                                  
                                                                                                                                
MS.  TANOURY said  that is  her  understanding.   In response  to                                                               
further  questions, she  said the  amendments will  significantly                                                               
alter  the fiscal  note,  and that  a new  fiscal  note would  be                                                               
prepared before the [February 14] meeting.                                                                                      
                                                                                                                                
[Elmer Lindstrom,  Deputy Commissioner, Department of  Health and                                                               
Social   Services,  declined   to  testify   but  suggested   the                                                               
Department of Law might have a fiscal concern.]                                                                                 
                                                                                                                                
Number 2286                                                                                                                     
                                                                                                                                
TONY  LOMBARDO,   Alaska  Association  of  Homes   for  Children;                                                               
Covenant House Alaska, testified  via teleconference.  The Alaska                                                               
Association  of  Homes  for   Children  represents  450  licensed                                                               
residential  beds  for  the  provision  of  services  to  Alaskan                                                               
children, he noted.  He  offered support for the original version                                                               
of the bill.  He observed  that significant changes had been made                                                               
today,  but he  indicated that  these changes  are still  in line                                                               
with  the  position  of  the  Alaska  Association  of  Homes  for                                                               
Children.                                                                                                                       
                                                                                                                                
MR.  LOMBARDO turned  attention  to Section  1, the  construction                                                               
section of  the bill itself.   He said  this section is  "read by                                                               
the court  like a  headline to  each section  that follows."   He                                                               
expressed  his  opinion  that  any  change  to  the  construction                                                               
section  will  be  perceived  as  a  clear  enunciation  of  best                                                               
practices  in  every aspect  of  CINA  proceedings.   The  social                                                               
workers in the  Alaska Association of Homes  for Children believe                                                               
that such an  enunciation of best practices is  positive, he told                                                               
members.                                                                                                                        
                                                                                                                                
MR.  LOMBARDO   referenced  Department  of  Law   testimony  that                                                               
indicated this section  could be confusing to the  court; he said                                                               
guiding legal principles  exist such as "in  pari materia," which                                                               
means  the  court  will  have the  opportunity  to  read  related                                                               
sections  along  with the  construction  section.   Mr.  Lombardo                                                               
said,  "We continue  to  support  that; we  think  that's a  good                                                               
section."    He  offered  that  this  could  just  as  easily  be                                                               
expressed  in policies  or regulations.    He surmised,  however,                                                               
that this  might be more  work for  the department than  what was                                                               
accomplished today.                                                                                                             
                                                                                                                                
MR. LOMBARDO turned to Section 2  of the bill.  He suggested that                                                               
repealing AS 47.10.960  may or may not result in  changes for the                                                               
state.   Changing the liability  can create the perception  of an                                                               
opportunity, and this is always a  risk, he said.  He said people                                                               
sue the  state all the time  if they feel they  have been wronged                                                               
by a  state agency.   He  continued, "The bottom  line for  us is                                                               
that we  champion accountability  for all state  agencies working                                                               
with children."   He added that  any step in that  direction is a                                                               
good one.                                                                                                                       
                                                                                                                                
Number 2170                                                                                                                     
                                                                                                                                
MR. LOMBARDO  told members,  "The potentiality  ... in  the first                                                               
bill  for  creating kind  of  an  onerous series  of  regulations                                                               
through the  state was  a problem.   We didn't  want to  see them                                                               
have to do a  lot of expensive work that took  time away from the                                                               
kids.  So  we're glad that you're dropping that."   He stated his                                                               
continued support  for [the  provisions from  HB 23];  the family                                                               
reunification services  championed by Representative  Cissna have                                                               
always been an excellent idea, he added.                                                                                        
                                                                                                                                
Number 2125                                                                                                                     
                                                                                                                                
LAUREE  HUGONIN, Director,  Alaska Network  on Domestic  Violence                                                               
and Sexual Assault, noted that  she was just now seeing Amendment                                                               
1  for  the  first  time.     She  expressed  concern  about  the                                                               
implementation of family preservation  services.  It is important                                                               
to have safeguards  in place when working with  families in which                                                               
there are  adult victims, she offered.   It is also  important to                                                               
think through how "family" is  defined when attempting to reunify                                                               
a family; this  applies to both domestic  violence situations and                                                               
sexual-abuse-of-a-minor  situations   when  the  offender   is  a                                                               
parent.    She  stated  that this  requires  special  skills  and                                                               
thought, and it is not something to be entered into lightly.                                                                    
                                                                                                                                
MS. HUGONIN turned  attention to page 4, line 4,  of Amendment 1,                                                               
which read [beginning on line 3]:                                                                                               
                                                                                                                                
               (5)  the safety of a child, a family member,                                                                     
       or a person providing the services would be unduly                                                                       
     threatened.                                                                                                                
                                                                                                                                
She suggested this  indicates there is some level  of threat that                                                               
is acceptable.   Therefore, she  asked the committee  to consider                                                               
removing the word "unduly".                                                                                                     
                                                                                                                                
Number 2040                                                                                                                     
                                                                                                                                
MS. HUGONIN brought  attention to page 3, line  25 [Amendment 1],                                                               
which read:                                                                                                                     
                                                                                                                                
          (C) family conflict.                                                                                                  
                                                                                                                                
She requested  that it be  changed.   She asked, "What  is family                                                               
conflict?   What does  that concept entail?"   She  asked whether                                                               
this  means that  people just  can't  work things  out, or  means                                                               
domestic violence.   She noted that  family preservation services                                                               
in  other  states have  been  tried  in  some of  the  worst-case                                                               
scenarios.   She said, "I  think there  may be some  examples out                                                               
there  where these  services  are  at the  front  - they're  with                                                               
neglected families."                                                                                                            
                                                                                                                                
MS.  HUGONIN indicated  it  might be  a better  use  of funds  to                                                               
target families with problems earlier;  this could prevent later,                                                               
more  serious problems.    She noted  her  impression that  these                                                               
services are  focused on families with  serious problems, instead                                                               
of  earlier intervention  in  families in  which  neglect is  the                                                               
problem.    "It's probably  pretty  late  in  the process  to  be                                                               
thinking about a  new model of doing that, but  maybe for further                                                               
dialogue you could look at trying  to help those families who are                                                               
still in the neglect stage," she added.                                                                                         
                                                                                                                                
Number 1994                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA  agreed with  Ms. Hugonin.   She  said this                                                               
model  has been  used  very successfully  with domestic  violence                                                               
situations  in which  there has  been a  restraining order.   She                                                               
remarked:                                                                                                                       
                                                                                                                                
     As  we know,  that's the  most crucial  time sometimes,                                                                    
     [and]  some of  the  most dangerous  times [are]  right                                                                    
     after you have  a worker in the home that  can be there                                                                    
     for  long  periods of  time.    And sometimes  ...  the                                                                    
     worker goes and stays with  the person who has made the                                                                    
     ...  restraint  order  to make  sure  that  the  family                                                                    
     member is safe.                                                                                                            
                                                                                                                                
REPRESENTATIVE  CISSNA said  the [intensive  family preservation]                                                               
model  has worked  very  well in  this type  of  situation.   She                                                               
agreed  the  money should  be  spent  on [earlier  intervention],                                                               
noting that this [model] has  been proposed because it offers one                                                               
last chance  at the "teachable  moment."  She concurred  with Ms.                                                               
Hugonin's suggestion to define "family conflict."                                                                               
                                                                                                                                
Number 1919                                                                                                                     
                                                                                                                                
CHAIR  DYSON announced  that  HB  252 would  be  held over  until                                                               
[February 14].                                                                                                                
                                                                                                                                
CHAIR  DYSON called  an  at-ease  at 4:07  p.m.    He called  the                                                               
meeting back to order at 4:10 p.m.                                                                                              
                                                                                                                                
HB 367-MEDICAL ASSISTANCE PROGRAM COVERAGE                                                                                    
                                                                                                                                
CHAIR DYSON announced the next  order of business, HOUSE BILL NO.                                                               
367, "An Act relating to  coverage of children and pregnant women                                                               
under  the  medical  assistance program;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 1880                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL, sponsor, explained  that HB 367 addresses                                                               
the  [income eligibility  level] of  the Denali  KidCare program.                                                               
Right  now, the  program's level  is 200  percent of  the poverty                                                               
level; HB 367 seeks to bring this  down to 150 percent.  The bill                                                               
also contains  "housekeeping" measures addressing such  issues as                                                               
removing the  hyphen from  "child-care".   He explained  that the                                                               
drafter had taken this opportunity to clean up some language.                                                                   
                                                                                                                                
REPRESENTATIVE COGHILL  pointed out that  the real [intent  of HB
367] is on  page 4, lines 5 and 9,  wherein the [household income                                                               
threshold]  is changed  from 200  percent to  150 percent  of the                                                               
federal poverty guideline.   He posed questions:   What does this                                                               
translate into  for a  family of  three to five?   How  does this                                                               
relate to  child health  care?  He  explained that  he'd broached                                                               
this issue  two years ago, proposing  a change to 100  percent of                                                               
the  [federal poverty  guideline].   "I  barely got  out of  here                                                               
alive," he said.  Representative Coghill continued:                                                                             
                                                                                                                                
     It  was just  asking the  question, was  that expansion                                                                    
     really  what  we wanted  to  do?   And  the  resounding                                                                    
     answer was yes,  that is something that  they wanted to                                                                    
     do.   And  it was  under the  Smart Start  program that                                                                    
     passed  some  years ago.    But  once again,  I'm  here                                                                    
     asking us the  question:  Is this  really the direction                                                                    
     we want to go?                                                                                                             
                                                                                                                                
     There [are] two  sides to it - there's  the dollar side                                                                    
     and there's a  policy side.  To me, the  policy side of                                                                    
     an  expanding   subsidy  level   for  health   care  is                                                                    
     something that ... I'm not  willing to go for.  There's                                                                    
     a  dollar  side  that  right   now,  under  the  fiscal                                                                    
     condition we're  in, can  we really  afford to  go down                                                                    
     this road further?                                                                                                         
                                                                                                                                
     But what I'm  not saying, and I want  everybody to hear                                                                    
     this real clear ..., is there  is not a need out there.                                                                    
     The need for  child health care is there,  just as sure                                                                    
     as we're  sitting here.   So,  I understand  that there                                                                    
     are going to  be some people who are going  to say, "We                                                                    
     can't afford  to do  that anymore."   But I  think that                                                                    
     has to  be part of  the legitimate discussion  of "what                                                                    
     are we  going to do  to fill  the $800 million  hole in                                                                    
     Alaska."                                                                                                                   
                                                                                                                                
Number 1763                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL said this  does affect policy, although he                                                               
doesn't  expect [savings  in HB  367]  to fill  the $800  million                                                               
[fiscal gap].   He  remarked, "The  argument that  the investment                                                               
into children's  health care is going  to be cheaper at  this end                                                               
than  at the  other end,  I agree  with."   He offered  that this                                                               
argument is  an important part of  the discussion.  On  the other                                                               
hand, he  added his  belief that there  are families  between the                                                               
150  percent  and 200  percent  levels  that can  afford  [health                                                               
care].   He  said,  "Before  I'm willing  to  take  money out  of                                                               
somebody  else's pocket  to pay  for  this, I'm  willing to  say,                                                               
'You've  got to  be a  part of  that discussion  too.'"   He told                                                               
members  that his  aide would  explain the  family income  levels                                                               
associated  with   the  aforementioned  percentages.     He  drew                                                               
members' attention  to a  chart in  the committee  packet showing                                                               
income  levels  and  the   different,  adjusted  federal  poverty                                                               
levels.                                                                                                                         
                                                                                                                                
Number 1694                                                                                                                     
                                                                                                                                
RYNNIEVA  MOSS,  Staff  to Representative  John  Coghill,  Alaska                                                               
State  Legislature, explained  that Alaska's  [poverty level]  is                                                               
set at 125 percent of the federal poverty level.                                                                                
                                                                                                                                
CHAIR DYSON asked for clarification.                                                                                            
                                                                                                                                
MS. MOSS replied  that the federal poverty level for  a family of                                                               
four is  a monthly income of  $1,472.  Alaska's poverty  level is                                                               
set  25  percent higher  by  the  federal government;  therefore,                                                               
Alaska's  poverty level  is set  at a  monthly income  of $1,840.                                                               
Exemptions   such  as   the  permanent   fund  dividend,   Native                                                               
corporation  dividends  up  to  $200  per  recipient,  income  of                                                               
nonbiological  or  nonadoptive parents,  and  income  of a  step-                                                               
parent are not considered as  income for eligibility purposes for                                                               
Denali KidCare.                                                                                                                 
                                                                                                                                
MS. MOSS explained  that a family of four, under  the 200 percent                                                               
of the federal poverty level -  which is based on the 125 percent                                                               
initial  adjustment  - can  have  an  annual income  of  $44,160.                                                               
Adding  [last  year's  amount] of  the  permanent  fund  dividend                                                               
[times four]  to this income, the  result is $51,561.   This is a                                                               
monthly  income for  a  family  of four  of  $3,680, without  the                                                               
dividend.   By contrast, the  150 percent  level to which  HB 367                                                               
proposes to lower  the 200-percent figure would  change the [pre-                                                               
dividend] monthly income to $2,760;  this translates to an annual                                                               
income  of $33,120.   A  family of  four would  add approximately                                                               
$5,400 [of permanent fund dividends]  to that figure to arrive at                                                               
nearly $40,000, Ms. Moss explained.                                                                                             
                                                                                                                                
Number 1568                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  commented   that  [the  foregoing  income                                                               
levels] would include teachers who  are single parents; she noted                                                               
that  many  teachers earn  less  than  that, although  they  have                                                               
insurance.                                                                                                                      
                                                                                                                                
MS. MOSS  clarified that  the Denali KidCare  program is  not for                                                               
people who already have insurance through their employer.                                                                       
                                                                                                                                
Number 1543                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON recounted  that an  upset mother  recently                                                               
had informed Representative Wilson  that the mother's health care                                                               
provider had  told her to drop  her health insurance and  sign up                                                               
for Denali  KidCare; this switch  would result in  less paperwork                                                               
and  more  ease for  the  provider,  the  mother had  been  told.                                                               
Representative Wilson  explained that this provider  was one that                                                               
receives state  funds.  Representative Wilson  reported that more                                                               
than one parent  had told her this.   She noted that  she did not                                                               
know  how prevalent  this  problem actually  was,  but said  this                                                               
parent was aggravated by the incident.                                                                                          
                                                                                                                                
Number 1475                                                                                                                     
                                                                                                                                
REPRESENTATIVE   COGHILL  explained   that   a  discrepancy   was                                                               
discovered in some  of the numbers; he noted that  he'd asked the                                                               
[Department of  Health and  Social Services]  to present  some of                                                               
the  monthly  costs  [for clarification  purposes].    He  added,                                                               
however,  that  he  was  "content to  let  the  people  [testify]                                                               
because it  really is a policy  call, no matter what  the numbers                                                               
shake out at."                                                                                                                  
                                                                                                                                
Number 1448                                                                                                                     
                                                                                                                                
CHAIR DYSON expressed interest in  hearing a brief statement from                                                               
the department.                                                                                                                 
                                                                                                                                
REPRESENTATIVE JOULE  asked whether Chair Dyson  intended to move                                                               
HB 367 out of committee at this hearing.                                                                                        
                                                                                                                                
CHAIR DYSON replied  that he did not believe  the committee would                                                               
hear  all  the testimony  at  this  hearing.   He  confirmed  for                                                               
Representative Joule  that the  bill would not  be moved  at this                                                               
hearing.                                                                                                                        
                                                                                                                                
Number 1425                                                                                                                     
                                                                                                                                
JAY  LIVEY,   Commissioner,  Department  of  Health   and  Social                                                               
Services, spoke  in opposition to HB  367.  He noted  that should                                                               
this  bill  be  enacted,  approximately 3,800  children  and  722                                                               
pregnant women would lose coverage.   He concurred that this bill                                                               
reduces [income]  eligibility levels from  200 to 150  percent of                                                               
[the federal] poverty level.                                                                                                    
                                                                                                                                
COMMISSIONER  LIVEY pointed  out that  the fiscal  note indicates                                                               
the proposed  reduction would  save about  $5 million  in general                                                               
funds; however, it  means the state would  lose approximately $12                                                               
million in  federal funds.   Denali KidCare funding is  such that                                                               
for every  dollar spent,  about 71 cents  comes from  the federal                                                               
government, he explained.   In addition to  providing health care                                                               
for children and pregnant women,  Denali KidCare allows the state                                                               
to leverage federal funds into the state's health care system.                                                                  
                                                                                                                                
COMMISSIONER LIVEY  turned attention  to savings  associated with                                                               
[the diminution of coverage].   He pointed out that these savings                                                               
will be shifted  to other payers because these  children who lose                                                               
coverage will  go somewhere  to receive care  - most  likely, the                                                               
emergency room.   Unpaid emergency  room bills will  generally be                                                               
paid by  the state; other payers  in the system will  pay some of                                                               
that bill.   When that  happens, that  bill will probably  not be                                                               
paid  at the  70/30  federal-share rate;  he  suggested that  the                                                               
state will pay a larger share [than 30 percent].                                                                                
                                                                                                                                
Number 1334                                                                                                                     
                                                                                                                                
COMMISSIONER  LIVEY  turned  to Representative  Wilson's  concern                                                               
about  people being  told  to sign  up for  Denali  KidCare.   He                                                               
explained  that   there  is  a   12-month  waiting   period  [for                                                               
coverage].   When a person  applies for Denali  KidCare coverage,                                                               
he/she is  asked about  other insurance coverage.   A  person who                                                               
has  insurance  is not  eligible  to  sign  up for  the  program.                                                               
Consequently, the aforementioned parent who  was told to drop her                                                               
coverage and  sign up for Denali  KidCare would be unable  to get                                                               
coverage in that manner.  He  noted that there would be a waiting                                                               
period;  the children  would have  to go  without coverage  for a                                                               
period of time.                                                                                                                 
                                                                                                                                
Number 1303                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON asked  how  this issue  of an  applicant's                                                               
insurance coverage is policed.                                                                                                  
                                                                                                                                
COMMISSIONER  LIVEY  replied  that  quality checks  are  done  on                                                               
applications.                                                                                                                   
                                                                                                                                
Number 1276                                                                                                                     
                                                                                                                                
BOB LABBE,  Director, Division of Medical  Assistance, Department                                                               
of  Health  and  Social  Services,  explained  that  through  the                                                               
Division  of Public  Assistance, quality  control reviewers  have                                                               
found  this  is not  occurring  to  the  extent one  might  think                                                               
because  of anecdotes.   He  reported that  some applicants  have                                                               
dropped insurance  and applied for  coverage; he  indicated there                                                               
was good cause to do so in some  cases.  "For the most part, it's                                                               
not occurring to that extent," he added.                                                                                        
                                                                                                                                
MR. LABBE said [the division]  has advised grantees not to advise                                                               
people   in   that  manner;   some   were   not  aware   of   the                                                               
disqualification  and the  fact that  some people  would be  left                                                               
[without coverage].   He  added, "I can't  say there  aren't some                                                               
instances where  things happen or  get by,  but ... we've  done a                                                               
quality  review on  that, and  it  was not  ... going  on to  any                                                               
extent."  He offered to obtain the related report for members.                                                                  
                                                                                                                                
Number 1216                                                                                                                     
                                                                                                                                
MR. LABBE, in response to  a question from Chair Dyson, explained                                                               
that a "spot  check" is done on people who  have applied and been                                                               
approved,  to view  the  circumstances [present  at  the time  of                                                               
application]; he noted that this is an intensive review.                                                                        
                                                                                                                                
CHAIR DYSON  asked whether an  individual's personal  records can                                                               
be "invaded" to find out whether he/she has insurance elsewhere.                                                                
                                                                                                                                
Number 1175                                                                                                                     
                                                                                                                                
MR. LABBE  replied, "I'm  not sure  that we  can, the  way you're                                                               
saying it.   We  do have,  though, if a  person has  applied, ...                                                               
access to  information that comes  through ... them and  from the                                                               
providers that submit claims, as  well as from other 'data-match'                                                               
sources."  He indicated most  of the information is gathered when                                                               
asking  the applicant  questions such  as:   Where  do you  work?                                                               
Does that employer offer health  insurance coverage?  He said the                                                               
application  process is  fairly simple,  but the  quality-control                                                               
review process is much more detailed.                                                                                           
                                                                                                                                
CHAIR  DYSON  said,  "My  question  is, do  you  have  access  to                                                               
peoples'  records,  whether  or  not they  have  entered  into  a                                                               
private relationship with an insurance carrier?"                                                                                
                                                                                                                                
Number 1131                                                                                                                     
                                                                                                                                
MR.  LABBE  answered,  "Not  generally."   He  stated  that  [the                                                               
division]  has access  to the  applicant's employer  to determine                                                               
whether the employer  provides coverage.  He  explained that this                                                               
is generally where this is addressed.                                                                                           
                                                                                                                                
REPRESENTATIVE COGHILL  inquired what it  takes to waive  the 12-                                                               
month [waiting period].                                                                                                         
                                                                                                                                
Number 1112                                                                                                                     
                                                                                                                                
MR. LABBE  replied that the  division has [created] a  formula to                                                               
look at household circumstances.  He  stated that he did not know                                                               
the numbers exactly,  but offered that the  division has approved                                                               
about  half-a-dozen  requests  for  waivers.   He  indicated  the                                                               
waivers   have  been   granted   based  on   income  and   family                                                               
circumstances;  this [waiver-request  review] is  handled in  his                                                               
office in  Juneau.   He stated that  approximately 95  percent of                                                               
the waiver requests  have been denied.  He added  that the number                                                               
of waivers was not large.                                                                                                       
                                                                                                                                
COMMISSIONER LIVEY, in  response to a question  from Chair Dyson,                                                               
clarified that  the qualifying  threshold is  200 percent  of the                                                               
Alaska income level, which is  the federal poverty level adjusted                                                               
[upward] 25 percent to account for Alaska's cost of living.                                                                     
                                                                                                                                
CHAIR DYSON surmised  that it is close to the  250 percent level,                                                               
as compared to the Lower 48 [poverty] level.                                                                                    
                                                                                                                                
COMMISSIONER LIVEY replied,  "I don't think that's  the math, but                                                               
I'd have to think about it for a minute."                                                                                       
                                                                                                                                
CHAIR DYSON queried about the  process the department had used to                                                               
decide that a multiplier of two  was the correct threshold to set                                                               
for Alaskans.                                                                                                                   
                                                                                                                                
Number 1005                                                                                                                     
                                                                                                                                
COMMISSIONER  LIVEY explained  that this  decision was  made when                                                               
the federal CHIP [Children's Health  Insurance Plan] proposal was                                                               
first made.   He noted that  Alaska had several choices  to make,                                                               
such  as whether  to have  a  Medicaid program  or a  stand-alone                                                               
program.  He offered that the  state chose a Medicaid program for                                                               
several  reasons.   For one,  a stand-alone  program, by  federal                                                               
law, must cover individuals who  are also eligible for the Indian                                                               
Health Service (IHS).   In a stand-alone  program, Alaska's costs                                                               
for covering IHS-eligible Alaska  Natives would not be reimbursed                                                               
at 100 percent.  On the other  hand, if the state covers the cost                                                               
of IHS-eligible individuals through  Medicaid, the state receives                                                               
100  percent  of the  cost  of  that  care, reimbursed  from  the                                                               
federal government.   He  explained that  Alaska has  the highest                                                               
percentage of  IHS beneficiaries  anywhere in  the country.   For                                                               
that reason alone, it made sense to [choose a Medicaid system].                                                                 
                                                                                                                                
COMMISSIONER LIVEY recalled that  when the [department] looked at                                                               
the income threshold, it had  a policy discussion similar to what                                                               
Representative Coghill is  suggesting:  At what  point should the                                                               
state  stop subsidizing  health  care and  a  private citizen  be                                                               
[responsible] for his/her own coverage?   He said the 200 percent                                                               
level was chosen  because it appeared to be a  level of income at                                                               
which individuals  and families had trouble  purchasing their own                                                               
insurance.   The insurance market was  not sufficiently developed                                                               
for a parent to purchase a policy for a child, he offered.                                                                      
                                                                                                                                
COMMISSIONER  LIVEY  indicated  these   types  of  policies  were                                                               
difficult  to obtain  and expensive.   This  issue was  discussed                                                               
with  executives  from  some of  the  state's  largest  insurance                                                               
companies;  these  executives  told [the  department]  that  low-                                                               
income insurance is  not necessarily one of  the companies' prime                                                               
focus  markets.   Commissioner  Livey  explained  that this  low-                                                               
income-insurance  market has  high  administrative costs  because                                                               
people enter and  leave this coverage frequently.   He concluded,                                                               
"It seemed to us that 200  percent ... was a reasonable cutoff in                                                               
terms of  what a  family could  afford or  what was  available to                                                               
them out in the market."                                                                                                        
                                                                                                                                
Number 0878                                                                                                                     
                                                                                                                                
CHAIR  DYSON   asked  if  Representative  Coghill   was  "in  the                                                               
ballpark"  when  saying that  a  family  of  four has  an  income                                                               
eligibility  of  about $44,000  plus  whatever  is added  by  the                                                               
dividend.                                                                                                                       
                                                                                                                                
COMMISSIONER LIVEY replied, "Correct."                                                                                          
                                                                                                                                
CHAIR DYSON  added, "And it  would be reduced down  to [$]33,000-                                                               
and-change, plus the dividend?"                                                                                                 
                                                                                                                                
COMMISSIONER  LIVEY  answered  that  he had  not  done  the  math                                                               
himself, but presumed that number was correct.                                                                                  
                                                                                                                                
Number 0843                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON stated that when  a woman visits the doctor                                                               
and finds  out she is  pregnant, right  away [she is  advised] to                                                               
sign  up  for WIC  [Special  Supplemental  Nutrition Program  for                                                               
Women,  Infants,  and  Children]  because it  is  retroactive  to                                                               
before  she became  pregnant.   Representative  Wilson asked  how                                                               
much  overlap [of  benefits]  there is  between  WIC and  [Denali                                                               
KidCare].                                                                                                                       
                                                                                                                                
COMMISSIONER LIVEY  pointed out  that these programs  provide two                                                               
different  services.   Whereas WIC  provides services  related to                                                               
nutrition,  Medicaid is  more medically  oriented.   The services                                                               
would not necessarily overlap.                                                                                                  
                                                                                                                                
REPRESENTATIVE WILSON asked what  other [coverage] pregnant women                                                               
apply for.  She also asked [which entity] pays for doctor bills.                                                                
                                                                                                                                
MR. LABBE  offered his assumption  that it  would have to  be the                                                               
Medicaid program.   Noting his belief  that WIC does not  pay for                                                               
any kind of  medical services, he offered to check  on this for a                                                               
certainty.   He said there  are "linkages," however;  when people                                                               
apply for WIC,  they can pick up applications  for Denali KidCare                                                               
at those offices.                                                                                                               
                                                                                                                                
REPRESENTATIVE  WILSON  indicated  this   is  the  focus  of  her                                                               
question -  what program  "kicks in"  - because  she has  been to                                                               
clinics  that [offer  multiple applications  for programs].   She                                                               
said, "That  makes sure that the  clinic or the doctor  gets paid                                                               
for  maternity care  throughout that  pregnancy."   She expressed                                                               
interest in  knowing whether  the 722  pregnant women  alluded to                                                               
earlier  who  wouldn't  receive  Denali  KidCare  coverage  might                                                               
qualify under some other program.                                                                                               
                                                                                                                                
Number 0726                                                                                                                     
                                                                                                                                
COMMISSIONER LIVEY  offered his belief  that there is  no overlap                                                               
of coverage for prenatal care; he  said he'd make certain that is                                                               
the case.                                                                                                                       
                                                                                                                                
CHAIR  DYSON indicated  his desire  to ensure  that witnesses  be                                                               
able to testify who would be unable to testify on February 14.                                                                  
                                                                                                                                
REPRESENTATIVE  STEVENS   expressed  concern  about   the  salary                                                               
levels; he  indicated this can  be misleading.  Many  teachers do                                                               
not earn  $44,000; when benefits  are added, however,  the result                                                               
far  exceeds $44,000.    He asked  whether  many professional  or                                                               
fully employed people use [Denali KidCare].                                                                                     
                                                                                                                                
Number 0676                                                                                                                     
                                                                                                                                
COMMISSIONER  LIVEY  observed  that many  families  with  incomes                                                               
between  the  150 percent  and  200  percent poverty  levels  are                                                               
working families.  Generally, these  are families who do not have                                                               
an option to purchase health care through their employer.                                                                       
                                                                                                                                
REPRESENTATIVE STEVENS noted that  he was specifically interested                                                               
in  discovering  whether  families with  insurance  were  seeking                                                               
coverage.   "Are there  a lot  of teachers  in your  program?" he                                                               
queried.                                                                                                                        
                                                                                                                                
MR. LABBE stated  that he wouldn't necessarily know.   He offered                                                               
his impression  that most  of the  people [using  Denali KidCare]                                                               
are self-employed, such  as people in the building  trades.  Some                                                               
may  qualify  on  the  income  level,  but  they  typically  have                                                               
coverage through the district, the state, or some other entity.                                                                 
                                                                                                                                
Number 0520                                                                                                                     
                                                                                                                                
KATHLEEN  FITZGERALD,  Key  Coalition of  Alaska,  testified  via                                                               
teleconference in opposition  to HB 367.  She  stated that Denali                                                               
KidCare  is  an  important  piece  of  health  care  for  Alaskan                                                               
families.  She stated that  the coalition believes Denali KidCare                                                               
promotes the best  outcomes for children; when  they are healthy,                                                               
they can  learn.   Pregnant women who  receive prenatal  care are                                                               
less  likely to  deliver children  with health  care problems  or                                                               
disabilities.    She  added  that  the  coalition  believes  that                                                               
families  with  children  with   disabilities  [between  the  150                                                               
percent  and] 200  percent range  have  a difficult  time due  to                                                               
increased   costs   associated   with  raising   a   child   with                                                               
disabilities.  The  coalition supports the 200  percent level for                                                               
this reason, she indicated.                                                                                                     
                                                                                                                                
Number 0412                                                                                                                     
                                                                                                                                
MS.  FITZGERALD  added,  "We  also  think  that  it's  just  good                                                               
business  to provide  that coverage;  even though  it costs  us 5                                                               
million  in Medicaid  dollars, what  it saves  us in  the federal                                                               
dollars and  provides for the  medical community and  for healthy                                                               
families is really important to  us."  She concluded, saying that                                                               
the  Key Coalition  is strongly  opposed to  reducing the  income                                                               
level for Denali KidCare.                                                                                                       
                                                                                                                                
Number 0348                                                                                                                     
                                                                                                                                
MS. FITZGERALD  read a letter  from someone unable to  attend the                                                               
hearing, as follows:                                                                                                            
                                                                                                                                
     I am  a single parent  with four children,  three still                                                                    
     at home.   I work  full-time and attend  the University                                                                    
     of Alaska half-time in order  to secure a future for my                                                                    
     children and  myself.  Even with  full-time employment,                                                                    
     I still  struggle financially  and need  some temporary                                                                    
     support until I have completed my education.                                                                               
                                                                                                                                
     Denali  KidCare ...  has been  a wonderful  benefit for                                                                    
     our family.   I no  longer have  to decide if  they can                                                                    
     make it  until Monday  because I  can't afford  to take                                                                    
     them  to  the doctor,  gambling  on  their health  over                                                                    
     money.   It  has made  access to  medical treatment  by                                                                    
     reducing  the  financial  burden   that  is  ...  often                                                                    
     expected  at the  time of  treatment.   My children  no                                                                    
     longer  have   to  ask,  "Can  we   afford  glasses  or                                                                    
     medicine?"   Denali  KidCare has  decreased the  stress                                                                    
     level  in  our  home  by  affording  access  to  needed                                                                    
     medical care for my children.                                                                                              
                                                                                                                                
CHAIR DYSON announced that witnesses  may send written testimony,                                                               
which would be distributed to members.                                                                                          
                                                                                                                                
Number 0250                                                                                                                     
                                                                                                                                
THOMAS  CONLEY,   Pediatrician;  Member,  Sitka   Borough  School                                                               
District School  Board, testified via teleconference  and thanked                                                               
members for the  opportunity to testify.  He offered  that he has                                                               
been  in practice  in  Alaska  for 27  years.   He  characterized                                                               
patients  as  falling   into  three  [medical-coverage]  classes:                                                               
patients who are poor and  covered by Medicaid; patients who have                                                               
considerable  resources or  insurance and  can afford  self-care;                                                               
and  patients  such  as fishermen,  small  business  owners,  and                                                               
entrepreneurs  who  do not  have  access  to insurance  and  must                                                               
obtain care on  a "self-pay" basis.  Dr. Conley  stated that this                                                               
latter group  of people is  the group  "left behind" in  terms of                                                               
medical  care.   These  patients would  frequently  wait until  a                                                               
[health  concern]  was  severe  before  seeking  treatment;  they                                                               
skimped on prenatal  care and child [health] care.   He suggested                                                               
that the price  to this population to secure  care was frequently                                                               
quite high; this was often eventually paid by the state.                                                                        
                                                                                                                                
Number 0148                                                                                                                     
                                                                                                                                
DR.  CONLEY offered  that  should these  people  be dropped  from                                                               
coverage, the state  would wind up paying  considerably more down                                                               
the road.  He added that he  serves on the school board in Sitka;                                                               
as a  member, he  observes that problems  not addressed  early in                                                               
life  frequently  become problems  for  the  school system.    He                                                               
concluded  by  expressing his  opinion  that  the program  should                                                               
continue as  it is;  it is  covering something  that needs  to be                                                               
covered.                                                                                                                        
                                                                                                                                
CHAIR DYSON reminded participants that  there has been no talk of                                                               
discontinuing the program.                                                                                                      
                                                                                                                                
TAPE 02-9, SIDE A                                                                                                               
Number 0043                                                                                                                     
                                                                                                                                
MEG  MITCHELL   testified  via   teleconference  in   support  of                                                               
retaining  Denali KidCare  [eligibility]  at  the current  level.                                                               
She clarified that she is not  a parent; therefore, this is not a                                                               
program from  which she  can benefit.   She  stated that  she has                                                               
worked  with   families  administering   a  child-care-assistance                                                               
program in  Homer; in  this role,  she was  able to  tell parents                                                               
about  this "incredible  program" that  the state  offered.   She                                                               
indicated  the  best impact  of  the  program  is that  it  helps                                                               
working families.   She mentioned  that the Denali  KidCare motto                                                               
is insuring Alaska's  children and our future;  she urged members                                                               
to pay attention  to the need for providing  children with health                                                               
care insurance.                                                                                                                 
                                                                                                                                
Number 0127                                                                                                                     
                                                                                                                                
MS. MITCHELL  offered her  belief, based  on the  state's current                                                               
economy, that there is no  reasonable option for obtaining health                                                               
care  coverage for  one's children.   Alaska  does not  have many                                                               
jobs that offer  such coverage, she said.  There  is nothing else                                                               
for parents to do if they are  not fortunate enough to have a job                                                               
that  does so.    "This is  the program  that  is benefiting  our                                                               
working  families, and  I  would  really like  to  see the  state                                                               
continue to  support ...  the working families,"  she said.   She                                                               
noted that the  economy is "not looking good," and  that it isn't                                                               
easy  for  families  to  meet  all its  needs  in  Alaska.    She                                                               
indicated Alaska's [poverty rate] is  set higher than the rest of                                                               
the nation due to the high cost  of living.  She urged members to                                                               
not change the current Denali KidCare program.                                                                                  
                                                                                                                                
Number 0200                                                                                                                     
                                                                                                                                
DANA LEE  HALL, R.Ph.,  Village Operations  Administrator, Yukon-                                                               
Kuskokwim    Health    Corporation    (YKHC),    testified    via                                                               
teleconference,  noting  that   the  village  operations  program                                                               
includes the health  aide program, home care  worker program, and                                                               
an advanced-training  program.   She explained that  [YKHC] began                                                               
its  well-child  program  in  the  Yukon-Kuskokwim  (Y-K)  Delta;                                                               
health  aides were  trained  to provide  services  such as  EPSDT                                                               
[Early and Periodic Screening, Diagnosis, and Treatment] well-                                                                  
child exams in  villages.  The mission at YKHC  is to ensure that                                                               
health care is delivered as  close as possible to people's homes,                                                               
she said;  Denali KidCare has allowed  them to do so.   She noted                                                               
that another priority of YKHC is  to enroll all pregnant women in                                                               
Medicaid in order for them to receive appropriate care.                                                                         
                                                                                                                                
Number 0328                                                                                                                     
                                                                                                                                
MS.  HALL  offered  that  many   village  residents  qualify  for                                                               
Medicaid, but  many other residents have  low-paying jobs without                                                               
insurance.  These low-paid residents  are not teachers.  They may                                                               
work  for the  village corporations  or the  tribal councils,  or                                                               
they may work as ancillary staff  in the school.  She pointed out                                                               
that  [YKHC] is  witnessing increased  Medicaid enrollment  under                                                               
the  Denali  KidCare  program; this  includes  a  4-to-5  percent                                                               
increase over the past year.                                                                                                    
                                                                                                                                
MS.  HALL said  the lack  of adequate  prenatal care  is [YKHC's]                                                               
most serious  concern, however.   She offered that  prenatal care                                                               
is  the single  most cost-effective  health care  expenditure and                                                               
ensures  the  best  outcomes  for babies.    Denali  KidCare  was                                                               
created  to meet  the needs  of uninsured  children and  pregnant                                                               
women   with  incomes   too   great   for  traditional   Medicaid                                                               
eligibility and too  low to obtain insurance or  pay directly for                                                               
health care,  she reported.  The  cost of delivering care  in the                                                               
Bush is "astronomical", she noted.   A trip from Kotlik to Bethel                                                               
to  obtain care  is  $400 a  person.   Although  she offered  her                                                               
understanding  of  the  state's  financial  situation,  she  said                                                               
providing preventative  services for children and  pregnant women                                                               
is  money well  spent.    She urged  that  Denali KidCare  income                                                               
requirements remain unchanged.                                                                                                  
                                                                                                                                
Number 0453                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS asked  for  clarification  about the  100                                                               
percent federal  health care  coverage for  Native children.   He                                                               
also  asked whether  this proposed  reduction  would affect  only                                                               
non-Native children.                                                                                                            
                                                                                                                                
Number 0486                                                                                                                     
                                                                                                                                
COMMISSIONER  LIVEY  replied  that   IHS  beneficiaries  who  are                                                               
Medicaid-eligible can sign  up for Medicaid.  The  state pays the                                                               
Medicaid bill and is fully reimbursed by the federal government.                                                                
                                                                                                                                
REPRESENTATIVE  STEVENS  expressed  his  understanding  that  all                                                               
[Native]  children would  continue  to be  fully  covered by  the                                                               
federal  government; only  non-Native children  would fall  under                                                               
the provision [in HB 367], should it pass.                                                                                      
                                                                                                                                
COMMISSIONER LIVEY  replied that  this is true  in 98  percent of                                                               
the cases.                                                                                                                      
                                                                                                                                
Number 0550                                                                                                                     
                                                                                                                                
JIM  KOHLER,  Tanana  Chiefs   Conference  (TCC),  testified  via                                                               
teleconference  in  opposition  to  the proposed  change  to  the                                                               
Denali  KidCare program.    He  said, "We  believe  that the  200                                                               
percent of  poverty is an  accurate level of poverty  of patients                                                               
who can  afford insurance."   He noted  that should this  go into                                                               
effect, 20  to 30 percent of  TCC beneficiaries would be  cut off                                                               
of Denali  KidCare.  In  addition, he  said, "We would  also lose                                                               
the  federal  funding  for  this   program,  [because]  it's  our                                                               
understanding that if  [an] Alaska Native is  served under Denali                                                               
KidCare,  100  percent  of  the  money  comes  from  the  federal                                                               
government  and not  the state.   We  believe this  to be  a good                                                               
investment of the federal funds for Alaska Natives."                                                                            
                                                                                                                                
CHAIR DYSON queried, "Would you say  that you're serving a lot of                                                               
folks who don't qualify as Natives?"                                                                                            
                                                                                                                                
MR.  KOHLER  replied,  "No.    Tanana  Chiefs  just  sees  Alaska                                                               
Natives."                                                                                                                       
                                                                                                                                
CHAIR DYSON  expressed his understanding that  all Alaska Natives                                                               
would be fully qualified [under IHS].                                                                                           
                                                                                                                                
Number 0624                                                                                                                     
                                                                                                                                
DIANE CLARK,  Group Home  Daycare, testified  via teleconference,                                                               
noting that  she is  representing herself,  a single  parent with                                                               
two children,  as well as  Group Home  Daycare.  She  stated that                                                               
she does  not support HB  367, and that  she is thankful  she has                                                               
Denali  KidCare for  her  children for  preventative  care.   She                                                               
offered that  the program  has been  beneficial to  her children.                                                               
As a  daycare provider, she  is witness  to the needs  of parents                                                               
for health  care [for their children].   The cost of  health care                                                               
is  rising, she  explained;  it has  doubled in  her  area.   She                                                               
indicated  that  if HB  367  passes,  health care  expenses  that                                                               
parents are  unable to  pay will  be borne by  the state;  if the                                                               
state  is  unable to  pay,  the  federal  government pays.    She                                                               
characterized this as a vicious cycle.                                                                                          
                                                                                                                                
MS. CLARK  added that lower  self-esteem and a higher  crime rate                                                               
would result  from the bill's  passage.  Denali  KidCare coverage                                                               
now provides a greater chance  for families to receive well-child                                                               
care and  to detect health problems  early on.  She  noted that a                                                               
higher self-esteem  is the result of  greater stability [provided                                                               
by Denali KidCare coverage].   She thanked members for their time                                                               
and expressed her hope that this bill would not pass.                                                                           
                                                                                                                                
Number 0760                                                                                                                     
                                                                                                                                
TRUDY ANDERSON, Consumer Awareness  Manager, Alaska Native Health                                                               
Board,  testified via  teleconference.   She  explained that  the                                                               
Alaska Native  Health Board is a  statewide nonprofit corporation                                                               
established  more  than  30  years   ago  to  promote  spiritual,                                                               
physical, mental,  social, and cultural  well-being and  pride of                                                               
Alaska  Native  people.    The   board  of  directors  represents                                                               
regional and village health providers  from across the state.  In                                                               
most cases,  she noted, these  organizations are the  only health                                                               
care providers  for their  region, serving  both Native  and non-                                                               
Native patients who  would otherwise have virtually  no access to                                                               
health care  services.   She emphasized that  the CHIP  funds are                                                               
100  percent  reimbursed by  the  federal  government for  Alaska                                                               
Natives  and  IHS  beneficiaries   who  use  Denali  KidCare  and                                                               
Medicaid.   She  said,  "We  are opposing  HB  367  and urge  the                                                               
legislature not to pass this bill."                                                                                             
                                                                                                                                
Number 0859                                                                                                                     
                                                                                                                                
GAY  WELLMAN,  Copper  River Native  Association,  testified  via                                                               
teleconference and explained  that she wished to  speak on behalf                                                               
of  the association  as well  as herself.   She  stated that  the                                                               
Copper River Native Association  provides services to both Native                                                               
and  non-Native  residents.    One service  it  provides  is  for                                                               
treatment for Fetal Alcohol Syndrome  (FAS); Denali KidCare is an                                                               
integral part  of enabling  the association  to provide  that FAS                                                               
service.    Denali KidCare  assists  in  paying the  out-of-state                                                               
doctor for diagnosis and services.   She stated that this service                                                               
would be difficult to provide, were HB 367 to pass.                                                                             
                                                                                                                                
MS.  WELLMAN  explained  that  several years  ago,  she  and  her                                                               
husband were  earning more than the  $44,000 [eligibility] limit;                                                               
her husband was  working in the private [sector] and  she for the                                                               
federal  government.    She reported  that  they  had  difficulty                                                               
finding coverage  for their  children; she  was unable  to afford                                                               
coverage through  her job for  more than herself.   Although they                                                               
found a policy  that was initially affordable,  rates were raised                                                               
within several months'  time and continued to  rise.  Eventually,                                                               
her family was unable to afford this policy, she said.                                                                          
                                                                                                                                
Number 0945                                                                                                                     
                                                                                                                                
MS.  WELLMAN summarized  by stating  that the  insurance that  is                                                               
available for  families is  really not  affordable.   Often these                                                               
companies do not pay what they  should when a claim is filed, she                                                               
said.   She indicated that her  family was reimbursed $200  for a                                                               
$3,000 medical  bill for  one of  their children.   She  said, "I                                                               
hope that  you will  keep it  the way it  is; it  would certainly                                                               
help us out here greatly."                                                                                                      
                                                                                                                                
Number 0978                                                                                                                     
                                                                                                                                
COMMISSIONER LIVEY  asked department  personnel to assist  him in                                                               
responding.                                                                                                                     
                                                                                                                                
NANCY   WELLER;  Unit   Manager;  State,   Federal,  and   Tribal                                                               
Relations; Division  of Medical Assistance; Department  of Health                                                               
and  Social Services,  clarified that  if the  income level  [for                                                               
program eligibility] is lowered, it  would affect all children of                                                               
all races.  She said, "Medicaid  would not be getting the hundred                                                               
percent  pass-through  funds  for Native  children  because  they                                                               
would no longer be covered at that income level."                                                                               
                                                                                                                                
CHAIR  DYSON  queried whether  there  wasn't  other medical  care                                                               
available for Native Alaskan children.                                                                                          
                                                                                                                                
MS.  WELLER  replied  that  Native   health  coverage  is  funded                                                               
directly through Indian Health Service  funds at approximately 60                                                               
percent of  the need.  This  funding level is documented  in many                                                               
studies, Ms. Weller said.  She  stated that the U.S. Congress had                                                               
allowed [IHS]  to bill Medicaid  for services to assist  [IHS] in                                                               
covering the cost of health care for beneficiaries.                                                                             
                                                                                                                                
CHAIR DYSON asked for further  clarification [in the future].  He                                                               
expressed his  understanding that children who  would not qualify                                                               
under Denali  KidCare would still  qualify to have 60  percent of                                                               
their medical bills paid by IHS.                                                                                                
                                                                                                                                
MS.  WELLER  responded that  the  IHS  system  is funded  for  60                                                               
percent of the need of Alaska Native people.                                                                                    
                                                                                                                                
CHAIR DYSON  queried, "Does 60 percent  of the need ...  not mean                                                               
paying 60 percent of the bills?"                                                                                                
                                                                                                                              
COMMISSIONER LIVEY noted  that it probably means  that the health                                                               
corporations  do not  have enough  money to  pay for  all of  the                                                               
medical  services  for  their   beneficiaries.    Therefore,  the                                                               
corporations  have to  choose what  is  covered and  what is  not                                                               
covered.  He explained that 60  percent of the need is covered by                                                               
the federal  government; 40 percent  is not covered.   Whether or                                                               
not  a  corporation  would  choose  to  cover  prenatal  care  or                                                               
children is up to the corporation.                                                                                              
                                                                                                                                
Number 1102                                                                                                                     
                                                                                                                                
CHAIR  DYSON said,  "So we're  talking  about 60  percent of  the                                                               
aggregate need,  not of a  particular individual."   [He received                                                               
confirmation  from both  Commissioner Livey  and Ms.  Weller that                                                               
this is correct.]                                                                                                               
                                                                                                                                
REPRESENTATIVE COGHILL referenced a  study indicating $63 million                                                               
comes directly  to Alaska  through IHS.   He  said, "So  there is                                                               
money going  to health care  in Alaska."   He indicated  [HB 367]                                                               
would  not  destroy  that;  it  still allows  60  percent  to  be                                                               
[covered].  He expressed his  opinion that this should be debated                                                               
in the House Finance Standing Committee.                                                                                        
                                                                                                                                
CHAIR DYSON announced that HB 367 would again be heard by the                                                                   
committee on February 14.  [HB 367 was held over.]                                                                              
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health, Education and Social Services Standing Committee meeting                                                                
was adjourned at 5:03 p.m.                                                                                                      
                                                                                                                                
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