Legislature(2007 - 2008)CAPITOL 106

11/02/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES


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03:14:00 PM Start
03:14:50 PM Substance Abuse and Mental Health Strategies
05:03:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Rescheduled from 11/01/07 --
+ Substance Abuse and Mental Health TELECONFERENCED
Strategies
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                        November 2, 2007                                                                                        
                           3:14 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Wes Keller                                                                                                       
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Paul Seaton                                                                                                      
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Andrea Doll                                                                                                      
                                                                                                                                
Senator Bettye Davis                                                                                                            
Senator Fred Dyson                                                                                                              
Senator Joe Thomas                                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SUBSTANCE ABUSE AND MENTAL HEALTH STRATEGIES                                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ANGELA SOLARNO, Advocacy Coordinator                                                                                            
Advisory Board on Alcoholism and Drug Abuse (ABADA)/Alaska                                                                      
Mental Health Board (AMHB)                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a report of behalf of the                                                                      
Advisory Board on Alcoholism and Drug Abuse/Alaska Mental Health                                                                
Board.                                                                                                                          
                                                                                                                                
LONNIE WALTERS, Member                                                                                                          
Advisory Board on Alcoholism and Drug Abuse (ABADA); Co-                                                                        
Executive Director, Communities Organized for Health Options                                                                    
(COHO)                                                                                                                          
Craig, Alaska                                                                                                                   
POSITION STATEMENT:  Answered questions during the ABADA/AMHB                                                                 
report.                                                                                                                         
                                                                                                                                
JEFF JESSEE, Chief Executive Officer                                                                                            
Alaska Mental Health Trust Authority (AMHTA)                                                                                    
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT  Participated in the roundtable discussion.                                                                
                                                                                                                                
KARLEEN JACKSON, Commissioner                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on the funding of                                                                   
behavioral health services.                                                                                                     
                                                                                                                                
DWAYNE PEEPLES, Deputy Commissioner                                                                                             
Office of the Commissioner                                                                                                      
Department of Corrections (DOC)                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
MELISSA STONE, Director                                                                                                         
Division of Behavioral Health                                                                                                   
Department of Health & Social Services (DHSS)                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
PATRICK HEFLEY, Director                                                                                                        
Behavioral Health Service                                                                                                       
SouthEast Alaska Regional Health Consortium (SEARHC)                                                                            
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
JERRY FULLER, Project Director                                                                                                  
Office of Program Review                                                                                                        
Office of the Commissioner                                                                                                      
Department of Health & Social Services (DHSS)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
BILL HOGAN, Deputy Commissioner                                                                                                 
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
COLLEEN PATRICK-RILEY, Mental Health Clinician                                                                                  
Department of Corrections (DOC)                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
SUSAN OHMER, Executive Director                                                                                                 
Petersburg Mental Health Services, Inc.                                                                                         
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:  Participated in the roundtable discussion.                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:14:00  PM.                                                             
Representatives Fairclough,  Keller, Cissna, Gardner,  Roses, and                                                               
Wilson were  present at  the call  to order.   Also  present were                                                               
Senators Davis, Dyson, and Thomas, and Representative Doll.                                                                     
                                                                                                                                
3:14:50 PM                                                                                                                    
                                                                                                                                
^Substance Abuse and Mental Health Strategies                                                                                 
                                                                                                                                
3:16:10 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  first order of business would be                                                               
a presentation by  the Alaska Mental Health Board  (AMHB) and the                                                               
Governor's Advisory Board on Alcohol and Drug Abuse (ABADA).                                                                    
                                                                                                                                
3:19:29 PM                                                                                                                    
                                                                                                                                
ANGELA   SOLARNO,  Advocacy   Coordinator,   Advisory  Board   on                                                               
Alcoholism  and Drug  Abuse  (ABADA)/Alaska  Mental Health  Board                                                               
(AMHB), informed  the committee  that the  joint boards  of ABADA                                                               
and AMHB share the goal of  a full continuum of behavioral health                                                               
services that  will help reduce Alaska's  future economic burden,                                                               
improve the quality  of life for Alaskans, and  ensure the health                                                               
and productivity  of our  citizens.   Ms. Solarno  explained that                                                               
funding the public behavioral health  system is a mix of Medicaid                                                               
and grants; in  fact, regulations direct that  there are priority                                                               
groups  including:    adults  with   a  serious  mental  illness;                                                               
children and  youth who have serious  emotional disturbances; and                                                               
persons  with a  maladaptive  pattern of  substance  abuse.   Ms.                                                               
Solarno stated that  the present system provides  good service to                                                               
the  priority   population  and  clients  show   improvement  and                                                               
satisfaction with  the services they  receive.  She  opined that,                                                               
by and  large, the system  is only serving these  priority groups                                                               
as neither grants  nor Medicaid serves the  following:  returning                                                               
veterans;  families,  children,  and  youth  who  don't  qualify;                                                               
Alaskans with moderate  illness; and those who  cycle through the                                                               
corrections system.                                                                                                             
                                                                                                                                
3:22:46 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON asked  whether veterans  are  served by  the U.  S.                                                               
Department of Veteran's Affairs (VA).                                                                                           
                                                                                                                                
MS. SOLARNO answered  that VA services are  not helping returning                                                               
veterans  with mental  problems,  such  as post-traumatic  stress                                                               
disorder.                                                                                                                       
                                                                                                                                
3:23:56 PM                                                                                                                    
                                                                                                                                
MS.  SOLARNO spoke  of  the  obstacles to  the  access of  mental                                                               
health services  and said  that even  citizens that  have private                                                               
insurance  are not  guaranteed mental  health services;  there is                                                               
insurance  discrimination throughout  the  nation and  a lack  of                                                               
parity.   Furthermore,  there may  not  be a  provider nearby  or                                                               
there may be a restriction in coverage by a private insurer.                                                                    
                                                                                                                                
3:24:53 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  suggested  that  Ms.  Solarno  hold  part  of  her                                                               
presentation until the roundtable discussion.                                                                                   
                                                                                                                                
3:25:33 PM                                                                                                                    
                                                                                                                                
MS. SOLARNO  asked the  committee to  review the  handout titled,                                                               
"Mandatory   diversion  of   non-violent   drug  offenders:   The                                                               
California Experience" published by AMHB/ABADA.                                                                                 
                                                                                                                                
3:25:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  for further  information  on  the                                                               
Alcohol Treatment and Prevention Fund.                                                                                          
                                                                                                                                
MS. SOLARNO  answered that,  in 2002,  Representative Murkowski's                                                               
legislation,  known  as the  "Dime  a  Drink" bill,  created  the                                                               
Alcohol and Other Drug Treatment  and Prevention Fund.  She noted                                                               
that the fund  cannot be dedicated; however,  the original intent                                                               
was that half of  all alcohol taxes were to go  into this fund to                                                               
be  spent to  enhance drug  and alcohol  treatment in  the state.                                                               
The reality  is that the  money, which  is about $17  million per                                                               
year, is used  to supplant general funds.  Ms.  Solarno asked the                                                               
committee  to consider  how  this fund  could  be re-directed  to                                                               
behavioral health services.                                                                                                     
                                                                                                                                
3:28:32 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON inquired  as  to how  the ABADA  and  the AMHB  are                                                               
working together as a joint board.                                                                                              
                                                                                                                                
3:29:03 PM                                                                                                                    
                                                                                                                                
LONNIE  WALTERS, Member,  Advisory Board  on Alcoholism  and Drug                                                               
Abuse (ABADA);  Co-Executive Director, Communities  Organized for                                                               
Health  Options (COHO),  informed the  committee that  he retired                                                               
after 22  years in  the U.  S. Navy and  serves as  a beneficiary                                                               
member of the ABADA.  He is one  of four members of the board who                                                               
are  recovering  alcoholics  and  he credits  his  recovery  from                                                               
alcoholism with saving  his life and preserving his  family.  The                                                               
military  is motivated  to support  its members  through recovery                                                               
from addictions because  of the expense invested  in training its                                                               
personnel; in  addition, every Fortune 500  company has substance                                                               
abuse treatment  programs for employees because  alcohol and drug                                                               
abuse  cost them  money.   Mr.  Walters said  that alcoholism  is                                                               
impossible to  ignore in  a small  and rural  town.   Budget cuts                                                               
have cost his small facility $72,000  and on an island with 4,000                                                               
residents that meant  the loss of many services.   He opined that                                                               
alcohol and  drug abuse is  the number  one problem in  Alaska as                                                               
indicated  by   its  impact  on  the   courts,  law  enforcement,                                                               
emergency  services,  child  abuse,  spousal  abuse,  and  school                                                               
dysfunction.   However, it  is not the  number one  priority with                                                               
state services.   Mr. Walters said that he is  unable to continue                                                               
his  work at  the  treatment center  but will  continue  to be  a                                                               
member  of the  ABADA.   The  work is  too  hard considering  the                                                               
difficulty  with  recruiting  and  [in]adequate  pay.    Pay  has                                                               
declined, regulations are  more complex, and the  funding is cut.                                                               
He emphasized that  the state will not fund  programs even though                                                               
citizens are dying of alcoholism.                                                                                               
                                                                                                                                
3:33:45 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON asked  whether the  center is  able to  provide the                                                               
services that are necessary for his community.                                                                                  
                                                                                                                                
MR. WALTERS said no.                                                                                                            
                                                                                                                                
3:34:06 PM                                                                                                                    
                                                                                                                                
SENATOR  DAVIS asked  for  further information  on  how AMHB  and                                                               
ABADA connect together and whether  they have joint plans for the                                                               
future.                                                                                                                         
                                                                                                                                
3:34:35 PM                                                                                                                    
                                                                                                                                
MS. SOLARNO acknowledged that the  merger was a painful marriage,                                                               
although  members  now  meet together  regularly  as  one  board.                                                               
There  remain   differences  about   the  proper   treatment  for                                                               
substance  abuse and  mental illness,  but  members are  learning                                                               
about the  integration of treatments for  co-occurring disorders.                                                               
She  opined that  more  time  will go  by  before clinicians  are                                                               
trained  in both  disciplines; however,  the two  boards are  now                                                               
working together  well.  She  explained that the two  boards will                                                               
not  be combined  into one  due to  the potential  impact to  the                                                               
Alaska Mental Health Trust settlement.                                                                                          
                                                                                                                                
3:36:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER asked  for  the percentage  of funds,  for                                                               
each  board,  that comes  from  the  Alaska Mental  Health  Trust                                                               
Authority (AMHTA).                                                                                                              
                                                                                                                                
MS. SOLARNO said  that the exact percentages will  be provided to                                                               
the  committee.   She  further  explained  that the  boards  were                                                               
traditionally funded by  the general fund (GF);  since 2002, when                                                               
budgets were slashed  dramatically and the staff  was merged, the                                                               
boards  request GF  funds annually,  but  rely on  the AMHTA  for                                                               
funding.                                                                                                                        
                                                                                                                                
3:37:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  stated  that,   from  her  experience  in                                                               
behavioral  health  training,  she  has  seen  that  alcohol  and                                                               
substance abuse is  funded less and treated like  a step-child by                                                               
the  system.     She  asked   Mr.  Walters  to  comment   on  the                                                               
relationship and what pieces are missing.                                                                                       
                                                                                                                                
3:38:23 PM                                                                                                                    
                                                                                                                                
MR. WALTERS  responded that  many small  and rural  agencies have                                                               
been combined because  of a lack of space  and available dollars.                                                               
His facility  on Prince of Wales  Island is a combination  of the                                                               
mental  health  and  substance   abuse  agencies;  in  fact,  the                                                               
agencies worked well  together even before the  mandate to merge.                                                               
He  opined  that the  combination  has  been  at the  expense  of                                                               
substance  abuse and  substance abuse  programs receive  less and                                                               
less.    This  may  happen   because  most  mental  health  field                                                               
counselors  have a  higher degree  of education  and thus,  wield                                                               
more power.                                                                                                                     
                                                                                                                                
The committee took an at-ease from 3:41 p.m. to 3:42 p.m.                                                                       
                                                                                                                                
3:42:39 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that housing,  recruiting, and retaining a                                                               
workforce will be topics of the roundtable discussion.                                                                          
                                                                                                                                
3:43:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  asked whether the participants  were ready                                                               
to  speak  about  the  cost   of  each  solution  that  they  are                                                               
proposing.                                                                                                                      
                                                                                                                                
3:44:46 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  assured the committee that  any missing information                                                               
will be provided at  a later date.  She then  asked Mr. Jessee to                                                               
address  the  issue  of  creating   the  appropriate  balance  of                                                               
Medicaid and grant funding.                                                                                                     
                                                                                                                                
3:45:26 PM                                                                                                                    
                                                                                                                                
JEFF JESSEE, Chief Executive Officer,  Alaska Mental Health Trust                                                               
Authority  (AMHTA),  informed  the committee  that  Medicaid  has                                                               
limitations  regarding eligibility  and  covered  services.   The                                                               
present  system,  which  depends heavily  on  Medicaid,  requires                                                               
providers to wait  for people to get seriously  ill and destitute                                                               
before they qualify  for treatment; this is not  a cost effective                                                               
way to provide care.  The  AMHTA requests the legislature to give                                                               
thought  to  the appropriate  balance  between  grants that  fund                                                               
early intervention,  and Medicaid, in  order to prevent  costs at                                                               
the  higher  end of  system.    Notwithstanding the  outcome  for                                                               
individuals, the  state must consider  the financial cost  of not                                                               
providing preventive  services, and  instead seeing the  costs of                                                               
treatment  by the  Department of  Corrections (DOC)  and hospital                                                               
emergency  rooms.   He  pointed out  that  this committee  could,                                                               
during  this  legislative session,  adjust  upward  the rates  of                                                               
reimbursement  as  a  first step  toward  solving  workforce  and                                                               
capacity issues.   Rates have  not been adjusted, in  some cases,                                                               
for a  decade and programs  cannot continue to  provide services.                                                               
Mr. Jessee opined  that DHSS is doing an  excellent job reviewing                                                               
the  rates  for review  by  the  finance  committee.   The  House                                                               
Health, Education  and Social  Services Standing  Committee could                                                               
pass  legislation that  would place  rate  reviews for  community                                                               
programs on the  same footing and in the same  timeframe as those                                                               
for hospitals and nursing homes.   In the long run, rates must be                                                               
kept current  to prevent  degradation of  the system  and another                                                               
crisis.                                                                                                                         
                                                                                                                                
3:48:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER asked  for the  percentage of  AMHTA funds                                                               
that are dedicated to prevention and early intervention.                                                                        
                                                                                                                                
MR.  JESSEE estimated  about  15  percent would  go  to areas  of                                                               
prevention.                                                                                                                     
                                                                                                                                
3:49:18 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS pointed out that  the public is not educated about                                                               
putting money upfront to forward  fund services such as education                                                               
and mental health.  He asked  how to answer those who see funding                                                               
programs  in advance  as a  demand  for oil  industry revenue  to                                                               
support "more  big government."  He  opined that it is  a problem                                                               
to  convince  the  general  public that  forward  funding  is  an                                                               
opportunity to save money in the long run.                                                                                      
                                                                                                                                
MR. JESSEE suggested  that the public be informed  about how many                                                               
people in prison  have mental health and  substance abuse issues,                                                               
and the cost  to serve them through the DOC,  compared to serving                                                               
citizens  in the  community and  keeping them  out of  the prison                                                               
system.   Discussions of  health care  cost should  include proof                                                               
that  a  portion of  emergency  room  costs are  accrued  because                                                               
patients were not  treated for mental health  and substance abuse                                                               
disorders in  the community.  He  drew an analogy to  the cost of                                                               
the emergency  measures taken  by the  oil industry  when upfront                                                               
dollars are  not invested to  maintain facilities  and equipment.                                                               
This can be explained as a business decision like any other.                                                                    
                                                                                                                                
3:52:45 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  announced  that,  due  to  time  constraints,  the                                                               
committee  will   need  to  submit   written  questions   to  the                                                               
roundtable participants for responses at a later date.                                                                          
                                                                                                                                
3:53:31 PM                                                                                                                    
                                                                                                                                
MR.  WALTERS expressed  his belief  that,  over time,  prevention                                                               
measures are  effective.   For example,  dental health  and heart                                                               
health have improved  tremendously over the last 30  to 40 years.                                                               
He then  spoke of the  imbalance of Medicaid billing  and pointed                                                               
out that  he was only  able to  serve two Medicaid  patients last                                                               
year,  while his  mental  health counterpart  saw  much a  higher                                                               
percentage of patients because they qualified for Medicaid.                                                                     
                                                                                                                                
3:55:24 PM                                                                                                                    
                                                                                                                                
KARLEEN JACKSON,  Commissioner, Department  of Health  and Social                                                               
Services (DHSS),  reminded the committee  of the other  pieces of                                                               
the  health services  funding system  including:   Indian  Health                                                               
Service (IHS), Medicare, the state  retirement system, and the U.                                                               
S.  Department of  Veterans  Affairs (VA).    She encouraged  the                                                               
committee to consider  that the departments are  funded in stand-                                                               
alone chunks.   It is  important to  consider not only  where the                                                               
costs   are,  but   where  funds   can  be   leveraged  together.                                                               
Commissioner  Jackson suggested  that  the committee  see how  to                                                               
fund   differently  across   functional   areas   and  not   just                                                               
departments;  for   example,  funding   of  the   prevention  and                                                               
treatment  of  mental  illness and  substance  abuse  across  the                                                               
entire  state  system  and  not  within  individual  departments.                                                               
Similarly, how the legislature can  plan, and fund, for more than                                                               
one fiscal year at a time.                                                                                                      
                                                                                                                                
3:57:30 PM                                                                                                                    
                                                                                                                                
DWAYNE PEEPLES, Deputy Commissioner,  Office of the Commissioner,                                                               
Department of Corrections (DOC),  informed the committee that the                                                               
DOC has a  very limited role in direct community  services to the                                                               
mentally ill.  There are  about 5,500 individuals in institutions                                                               
and another  5,500 in probation,  parole, and  community service.                                                               
The DOC primarily  provides case management and  planning for the                                                               
chronically  mentally ill,  but  is very  dependent on  community                                                               
services to  provide substance abuse  treatment to  stabilize its                                                               
outgoing  population.    He  observed   that,  when  there  is  a                                                               
degradation of  community services the  prison census rises.   In                                                               
fact, at  this time there  is a  sharp rise in  population growth                                                               
that  is  only explained  by  the  increasing failure  of  former                                                               
inmates  to stabilize  in the  community.   He stated  that basic                                                               
case management will strengthen the  community and there needs to                                                               
be  a  strong, stable,  base  for  released mental  health  trust                                                               
beneficiaries to prevent recidivism.                                                                                            
                                                                                                                                
3:59:40 PM                                                                                                                    
                                                                                                                                
MELISSA   STONE,  Director,   Division   of  Behavioral   Health,                                                               
Department of Health  & Social Services, told  the committee that                                                               
they must first  consider the issues of  eligibility to determine                                                               
who is served.   Currently, the populations  served are seriously                                                               
emotionally  disturbed children,  seriously  mentally ill  adults                                                               
and substance  abusers.   The populations  that are  missing, and                                                               
that  the state  has to  pay for,  are at  the other  end of  the                                                               
continuum  and  are  early  intervention  and  prevention.    She                                                               
explained  that  for funding,  there  are  services that  can  be                                                               
selected relative  to the populations chosen,  such as outpatient                                                               
substance  abuse and  inpatient residential  services.   Services                                                               
not paid from  Medicaid and general funds are:   screening, grief                                                               
counseling,  early   intervention,  intensive   case  management,                                                               
housing,   and  transportation.      The   determination  of   an                                                               
appropriate balance between Medicaid  and grant funding goes back                                                               
to how much of  the population will be served and  how to pay for                                                               
groups of individuals  that are added to  the populations served.                                                               
The Pacific Health Consulting Group  study suggested an expansion                                                               
of substance abuse  services in the state; in  fact, the Division                                                               
of Behavioral  Health is developing a  scope of work in  order to                                                               
determine how  services can  include those  citizens, aged  22 to                                                               
64, who are not eligible for Medicaid.                                                                                          
                                                                                                                                
4:03:21 PM                                                                                                                    
                                                                                                                                
PATRICK  HEFLEY, Director,  Behavioral Health  Service, SouthEast                                                               
Alaska   Regional  Health   Consortium   (SEARHC),  related   his                                                               
observation that  the legislature  speaks about money  first; the                                                               
focus for the  SEARHC is on what  needs to be done,  and then how                                                               
to pay  for it.   He  informed the  committee that  tribal health                                                               
organization  facilities  are  frequently the  only  medical  and                                                               
behavioral health resource in rural  areas.  He further explained                                                               
that  the SEARHC  organizations are  a variation  on the  managed                                                               
care concept; they  have a budget that is defined  for a scope of                                                               
service and a  mission to improve health care status.   He opined                                                               
that policy setters  are regional consumers who  need to redirect                                                               
resources to  address the issues  specific to their region.   His                                                               
organization  also  provides  rehabilitative services  and  early                                                               
intervention.   Mr. Hefley shared  that there is a  group working                                                               
to deliver some recommendations for the  tribes as how to work in                                                               
partnership with the legislature.                                                                                               
                                                                                                                                
4:06:16 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY continued  to say that his group  has determined three                                                               
needs:   treat  people closer  to where  they live;  treat people                                                               
lower in  acuity; and find  a mechanism  to have a  continuity of                                                               
care using  various systems.   In addition, the group  has broken                                                               
down  three  variables:    the  type of  services;  the  type  of                                                               
provider;  and the  location of  the  provider.   He stated  that                                                               
recommendations  from the  working  group are  forthcoming.   Mr.                                                               
Hefley pointed out that over 90  percent of the money that SEARHC                                                               
receives does  not come  through state  as it  costs too  much to                                                               
process  state money.    He suggested  an  all-inclusive rate  to                                                               
bundle the costs  of services for behavioral  health and simplify                                                               
the billing  system.  He stated  that the SEARHC is  building its                                                               
capacity  but  needs  the  states  help.   As  SEARHC  has  1,000                                                               
employees  and  must  work  together,  he  suggested  that  state                                                               
agencies should work  together as a policy.   For example, SEARHC                                                               
and Juneau  Youth Services (JYS)  spent almost two  years working                                                               
on the Bring  the Kids Home Initiative,  a successful partnership                                                               
with the state to reduce costs  and allow the state to divert its                                                               
resources to other capacities.                                                                                                  
                                                                                                                                
4:10:35 PM                                                                                                                    
                                                                                                                                
JERRY FULLER, Project Director,  Office of Program Review, Office                                                               
of  the  Commissioner, Department  of  Health  & Social  Services                                                               
(DHSS)  stated  that the  DHSS  is  quite  aware of  the  current                                                               
issues;   further  explanation   and  development   of  the   new                                                               
opportunities is needed.  There  is some amount of flexibility to                                                               
change  the  system and  the  process  to  obtain a  waiver  from                                                               
Medicaid, provide substance abuse  services for all Alaskans, and                                                               
to devise  a best practices  treatment delivery system,  has just                                                               
begun.                                                                                                                          
                                                                                                                                
4:11:39 PM                                                                                                                    
                                                                                                                                
BILL  HOGAN, Deputy  Commissioner,  Office  of the  Commissioner,                                                               
Department of Health and Social  Services, emphasized the need to                                                               
focus on positive outcomes for the people receiving services.                                                                   
                                                                                                                                
4:12:18 PM                                                                                                                    
                                                                                                                                
COLLEEN  PATRICK-RILEY, Mental  Health  Clinician, Department  of                                                               
Corrections (DOC),  pointed out that  the DOC is working  on best                                                               
practice  initiatives with  Social Security.   Additionally,  the                                                               
DOC  is partnering  with the  DHSS to  increase applications  for                                                               
Medicaid  eligibility;  is  participating  in  the  state  mental                                                               
health  court,   and  is  participating  in   the  Assess,  Plan,                                                               
Identify, Coordinate  (APIC) best practices program.   She opined                                                               
that, while  DOC is  willing to expand  its current  services, it                                                               
also  strongly supports  the  need for  improving  the nature  of                                                               
services in the community that are  funded through the DHSS.  She                                                               
reiterated  her impression  and  belief in  the real  correlation                                                               
between  the  number  of  effective  services  available  in  the                                                               
community and the numbers entering corrections.                                                                                 
                                                                                                                                
4:14:01 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  inquired as  to whether the  DOC is  informed about                                                               
the mental health background of inmates at intake.                                                                              
                                                                                                                                
MS.  PATRICK-RILEY answered  that  when an  individual is  booked                                                               
there is  a medical  and mental health  screening.   However, the                                                               
questions and  observations are  for very  overt things  and will                                                               
not  capture  everyone  with  a mental  health  disability.    In                                                               
addition,  not all  facilities have  an on-site  clinician.   She                                                               
opined that Fetal Alcohol Spectrum  Disorder (FASD) and traumatic                                                               
brain injuries (TBI) are vastly under identified.                                                                               
                                                                                                                                
4:17:19 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  informed the roundtable participants  that the next                                                               
question  involves  Medicaid  reimbursement  and  parity  between                                                               
mental health and substance abuse.                                                                                              
                                                                                                                                
4:17:42 PM                                                                                                                    
                                                                                                                                
MR. JESSEE pointed  out that the Pacific  Health Consulting Group                                                               
report  recommends  obtaining a  substance  abuse  waiver to  get                                                               
better Medicaid funding and the DHSS  is working on a Request for                                                               
Proposal (RFP)  for this  endeavor.   He questioned  allowing the                                                               
private insurance  industry to continue to  cost-shift behavioral                                                               
health services to the state.   As long as private insurance does                                                               
not  cover  behavioral health  on  parity  with physical  health,                                                               
moderate and low  income patients are forced to  use the publicly                                                               
funded  system.   Mr. Jessee  encouraged the  committee to  write                                                               
legislation that will solve this problem.                                                                                       
                                                                                                                                
4:19:13 PM                                                                                                                    
                                                                                                                                
MS. STONE  informed the committee  that the DHSS is  developing a                                                               
project   to   integrate   the  current   Medicaid   regulations.                                                               
Currently, there  are two different sets  of Medicaid regulations                                                               
for  mental  health and  substance  abuse;  integration of  these                                                               
regulations will create parity and  allow an integrated agency to                                                               
serve,  treat, and  bill services  for both  substance abuse  and                                                               
mental health disorders.                                                                                                        
                                                                                                                                
4:20:35 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked for clarification on the regulations.                                                                        
                                                                                                                                
MS.  STONE explained  that state  Medicaid regulations  are being                                                               
developed, by regulation writers,  from concepts submitted by the                                                               
Division of Behavioral Health.                                                                                                  
                                                                                                                                
4:21:06 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  informed the roundtable participants  that the next                                                               
question  is   about  building  Native  behavioral   health  care                                                               
capacity.                                                                                                                       
                                                                                                                                
4:21:28 PM                                                                                                                    
                                                                                                                                
MR.   HEFLEY  reported   that   his   organization  will   submit                                                               
recommendations on this topic within six months.                                                                                
                                                                                                                                
4:21:44 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON said  that  the next  question  is about  increased                                                               
capacity of  residential substance abuse treatment  (RSAT) within                                                               
the DOC.                                                                                                                        
                                                                                                                                
4:21:56 PM                                                                                                                    
                                                                                                                                
MR.  PEEPLES  explained that  the  DOC  currently operates  three                                                               
residential substance  abuse treatment (RSAT) programs.   The DOC                                                               
is trying to  strengthen current operations and  is also pursuing                                                               
intensive   outpatient  services   for  those   in  the   general                                                               
population.   In addition, DOC is  considering linking outpatient                                                               
services   to   community   services  and   expanding   community                                                               
outpatient follow-up.                                                                                                           
                                                                                                                                
4:23:37 PM                                                                                                                    
                                                                                                                                
MR. WALTERS  stated that  many Prince  of Wales  Island residents                                                               
have  come  out  of  prison;  furthermore,  100  percent  of  his                                                               
referrals from  the probation officer are  addicted or alcoholic.                                                               
He explained that  time in prison does not cure  alcoholism.  His                                                               
experience  is  that  parolees  that have  been  through  a  RSAT                                                               
program  are emotionally  ready  to begin  living outside;  those                                                               
that have  not, are not.   He said  that he  has not had  an RSAT                                                               
parolee violate parole.                                                                                                         
                                                                                                                                
4:26:59 PM                                                                                                                    
                                                                                                                                
MS. PATRICK-RILEY  pointed out that  RSAT programs are  for those                                                               
who are  sentenced to  prison for  over one  year.   Inmates also                                                               
must  volunteer for  the program  and there  are very  few spaces                                                               
available.   Additional  facilities  must be  built  in order  to                                                               
assist in this treatment effort.                                                                                                
                                                                                                                                
4:28:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA commented  that the  RSAT programs,  which                                                               
sound  like they  are cost  effective and  successful, should  be                                                               
vigorously supported by the committee.                                                                                          
                                                                                                                                
4:29:43 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  stated that  the next  question is  about increased                                                               
release and  how the community  can support  released individuals                                                               
through reintegration planning.                                                                                                 
                                                                                                                                
4:30:09 PM                                                                                                                    
                                                                                                                                
MR. PEEPLES  observed that the DOC  is working with the  AMHTA to                                                               
expand  its prerelease  and discharge  case management  capacity.                                                               
Additionally,  the number  of individuals  eligible for  Medicaid                                                               
and social security  can be increased; however, the  DOC looks to                                                               
community providers  for services  when individuals  are returned                                                               
to communities.  He stressed that  the DOC is charged with public                                                               
safety and  is only responsible  to treat those  incarcerated, on                                                               
parole, or on probation.                                                                                                        
                                                                                                                                
4:32:07 PM                                                                                                                    
                                                                                                                                
MS. PATRICK-RILEY  recalled that there are  about 200 individuals                                                               
in  the  closely  coordinated   mental  health  release  program;                                                               
consistently  there is  a lower  recidivism  rate when  community                                                               
services are provided, even at a less than ideal level.                                                                         
                                                                                                                                
4:33:01 PM                                                                                                                    
                                                                                                                                
SUSAN  OHMER,   Executive  Director,  Petersburg   Mental  Health                                                               
Services,  Inc., expressed  her support  of community  behavioral                                                               
health centers.  She noted  that, in Petersburg, there is support                                                               
for accountability,  but there  is also  concern for  the changes                                                               
the state is  making that have seriously impacted  the ability of                                                               
a small and rural center to  survive.  She said that the increase                                                               
in administrative  requirements have  cost her center  a clinical                                                               
position and have  reduced the center's capacity  by 100 patients                                                               
per year.  Furthermore, the  addition of substance abuse services                                                               
to her  center's caseload has  tripled the number of  cases while                                                               
reducing its income by $30,000 per year.                                                                                        
                                                                                                                                
4:35:42 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON said  that the next question is  about safe, stable,                                                               
and affordable, housing.                                                                                                        
                                                                                                                                
4:36:14 PM                                                                                                                    
                                                                                                                                
MR. JESSEE shared  that the AMHTA has learned  that without safe,                                                               
secure,  reliable, housing  individuals become  homeless and  all                                                               
the  other services  are for  naught.   A  study of  homelessness                                                               
revealed that  most of the  federal low income housing  funds are                                                               
provided to  those who have  70 percent  and above of  the median                                                               
income.   In fact, the homeless  earn 30 to 40  percent and below                                                               
of the median income.  He  explained that low income projects are                                                               
subsidized  but  still  must  make  some  money.    In  addition,                                                               
individuals  with  problems  such   as  substance  abuse,  mental                                                               
health,  and domestic  violence,  are not  as  successful in  low                                                               
income  housing  unless they  receive  support  services.   AMHTA                                                               
further discovered that  the Housing First model,  supported by a                                                               
housing trust,  is successful  in over 30  states nationwide.   A                                                               
housing trust  adds additional  capital to reduce  the cost  of a                                                               
project, thereby  reducing the amount of  the rent.  It  can also                                                               
provide support service funding  for case management, alcohol and                                                               
mental health treatment, landlord  support, and tenant education.                                                               
Finally,  it  can  provide  a  rental  subsidy  from  the  U.  S.                                                               
Department of Housing and Urban  Development (HUD) Housing Choice                                                               
Voucher Program,  Section 8(housing) vouchers.   For example, the                                                               
Gates  Foundation   funded  a   $40  million   homeless  families                                                               
initiative,  that  resulted  in   dramatic  results  in  reducing                                                               
homelessness,  by  supplying capital  to  projects,  five to  ten                                                               
years  of   social  support   funding,  and   Section  8(housing)                                                               
vouchers.    Alaska's Council  on  the  Homeless recommended  the                                                               
creation of a housing trust in  Alaska and has the support of the                                                               
governor.   He  suggested  that excess  revenue  from the  Alaska                                                               
Housing  Finance Corporation  (AHFC) should  be used  to build  a                                                               
housing  trust and  address the  problem of  homelessness in  the                                                               
state.                                                                                                                          
                                                                                                                                
4:43:04 PM                                                                                                                    
                                                                                                                                
MR.  WALTERS noted  that  rural  areas do  not  report  a lot  of                                                               
homelessness;    however,    individuals   are    returning    to                                                               
dysfunctional homes and still need a  safer and a better place to                                                               
live.                                                                                                                           
                                                                                                                                
4:43:53 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON confirmed that  safe, stable, and affordable                                                               
housing is  important in rural  and urban  areas.  There  must be                                                               
efforts  across   all  departments   to  address  the   core  and                                                               
underlying issues of this problem.                                                                                              
                                                                                                                                
4:44:53 PM                                                                                                                    
                                                                                                                                
MS. SOLARNO agreed  that serving the entire family,  and doing so                                                               
early,  are priorities  as important  as  serving severely  acute                                                               
people.                                                                                                                         
                                                                                                                                
4:45:24 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON announced  that the  discussion will  now focus  on                                                               
recruiting  and workforce  development, competitive  wages, grant                                                               
funding, loan repayment, and housing stipend programs.                                                                          
                                                                                                                                
4:45:48 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY informed  the committee that one  in fourteen Alaskans                                                               
works  in the  health  care  industry; of  this  pool, the  third                                                               
largest group is behavioral health  workers.  Of all occupational                                                               
health  areas, 29  percent  of the  vacancies  are of  behavioral                                                               
health  positions; this  is a  total of  1,033 vacant  positions.                                                               
The number one  reason that positions are unfilled  is that there                                                               
were  no   qualified  applicants.     Moreover,  there   are  the                                                               
additional problems of inadequate pay and high turnover.                                                                        
                                                                                                                                
4:47:35 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON   observed  that  Alaska   no  longer   offers  the                                                               
enticement of higher pay when compared to the Lower 48.                                                                         
                                                                                                                                
4:48:28 PM                                                                                                                    
                                                                                                                                
MR. WALTERS stated that he  has resigned his position; there have                                                               
been no  qualified applicants  to replace him  in the  last eight                                                               
months.   He  opined  that working  conditions  are important  to                                                               
retaining employees  and the  emotional load  of putting  up with                                                               
the present system is too difficult.   The working place needs to                                                               
be less bureaucratic in order to keep workers on the job.                                                                       
                                                                                                                                
CHAIR  WILSON re-stated  that employee  working conditions  are a                                                               
factor.                                                                                                                         
                                                                                                                                
MR. WALTERS said that constant change keeps morale low.                                                                         
                                                                                                                                
4:51:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  opined that  peer counselors  are probably                                                               
most  effective, yet  they do  not receive  the status  that they                                                               
deserve.                                                                                                                        
                                                                                                                                
4:52:23 PM                                                                                                                    
                                                                                                                                
MR.  WALTERS agreed.   He  added  that counselors  are judged  by                                                               
their titles instead of by their competence.                                                                                    
                                                                                                                                
4:53:19 PM                                                                                                                    
                                                                                                                                
MS. SALERNO  pointed out that  there is a problem  of reciprocity                                                               
for professional  licensing from state  to state.   She suggested                                                               
that  the committee  study  how  Alaska's professional  licensing                                                               
statutes compare with other states.                                                                                             
                                                                                                                                
4:54:28 PM                                                                                                                    
                                                                                                                                
MR. HEFLEY  recalled that psychiatrists and  physicians recognize                                                               
the  work that  counselors  do.   He pointed  out  that the  last                                                               
increase  in state  grants was  in 1990;  furthermore, the  lower                                                               
percentage  of Medicare  eligible  patients requiring  behavioral                                                               
health services  limits what SEARHC  can pay staff.   Residential                                                               
programs must  turn away business  when shifts cannot  be staffed                                                               
at a safe level.  Potential  rate increases may help but the real                                                               
help will come with a fair balance of eligibility.                                                                              
                                                                                                                                
4:58:22 PM                                                                                                                    
                                                                                                                                
MS. STONE  reemphasized the impact of  vacancies, particularly in                                                               
small agencies  in rural  areas, where the  loss of  one position                                                               
may shut down  a program.  Furthermore, Medicaid  has changed the                                                               
nature of our  provider agencies such that  clinical agencies are                                                               
forced to  be business-oriented,  thus have  added administrative                                                               
employees,   human   resources   personnel,   quality   assurance                                                               
personnel,  and   additional  levels  of  practitioners   at  the                                                               
detriment of services.                                                                                                          
                                                                                                                                
5:00:55 PM                                                                                                                    
                                                                                                                                
MR. JESSEE stated  that workforce is one of the  five focus areas                                                               
of AMHTA.   Nevertheless,  he encouraged  the committee  to first                                                               
study the rate  review issue.  As a matter  of public policy, the                                                               
legislature provides  for regular rate reviews  for hospitals and                                                               
nursing  homes.   A conscience  decision, he  said, must  be made                                                               
whether to  continue the  state policy  of not  providing similar                                                               
rate reviews for community programs  simply because they have not                                                               
been provided before.                                                                                                           
                                                                                                                                
5:02:47 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  stated that the  roundtable will be continued  at a                                                               
later date.                                                                                                                     
                                                                                                                                
5:03:26 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health, Education and Social  Services Standing Committee meeting                                                               
was adjourned at 5:03:29 PM.                                                                                                  
                                                                                                                                

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