Legislature(2013 - 2014)CAPITOL 106

01/22/2013 03:00 PM House HEALTH & SOCIAL SERVICES


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03:03:09 PM Start
03:04:49 PM Presentation: Department of Health and Social Services
03:48:32 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview Presentation TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                        January 22, 2013                                                                                        
                           3:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lora Reinbold                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lance Pruitt                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                          
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WILLIAM STREUR, Commissioner                                                                                                    
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a PowerPoint overview of the                                                                   
Department of Health and Social Services.                                                                                       
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:03:09 PM                                                                                                                    
                                                                                                                                
CHAIR PETE  HIGGINS called the  House Health and  Social Services                                                             
Standing   Committee    meeting   to    order   at    3:03   p.m.                                                               
Representatives  Higgins, Seaton,  Reinbold, Nageak,  Keller, and                                                               
Tarr were present at the call to order.                                                                                         
                                                                                                                                
^Presentation: Department of Health and Social Services                                                                       
    Presentation:  Department of Health and Social Services                                                                 
                                                                                                                                
3:04:49 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS announced that the  only order of business would be                                                               
a presentation by the Department of Health and Social Services.                                                                 
                                                                                                                                
3:06:10 PM                                                                                                                    
                                                                                                                                
WILLIAM  STREUR,   Commissioner,  Office  of   the  Commissioner,                                                               
Department  of  Health  and Social  Services  (DHSS),  introduced                                                               
members of the Department of  Health and Social Services who were                                                               
present, including  Wilda Laughlin,  Ree Sailors,  Melissa Stone,                                                               
Duane Mayes, Dave Cote, and Ron Kreher.                                                                                         
                                                                                                                                
3:07:33 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  introduced a PowerPoint,  titled "Innovation                                                               
& Change," and  directed attention to slide  1, an organizational                                                               
chart of  the Department  of Health  and Social  Services (DHSS).                                                               
He  reported that  there were  3600 employees,  with a  budget of                                                               
$2.6  billion.   He  pointed  out that  the  search  to fill  the                                                               
vacancies  of  both  the Deputy  Commissioner  for  Medicaid  and                                                               
Health Care  Policy, and the  Assistant Commissioner  for Finance                                                               
Management   Services  were   moving  along.     He   shared  his                                                               
philosophy:  "I'm  going to hire right, I'm not  going to hire to                                                               
fill the position and put a body in place."                                                                                     
                                                                                                                                
3:08:56 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR  moved  on  to slide  2,  "Priorities,"  and                                                               
commented that  this priority system  would be responsive  to the                                                               
needs and expectations of the  state residents.  Noting that each                                                               
priority  had  equal weighting,  he  listed  the first  of  three                                                               
priorities:  Health & Wellness  across the Lifespan, pointing out                                                               
that, although  there was an  aging population in Alaska,  it was                                                               
necessary  to provide  for  the  next generation,  as  well.   He                                                               
reported  that  80  percent  of   our  health  care  expenditures                                                               
occurred  in  the last  10  years  of  our  lives.   He  directed                                                               
attention to the  second priority:  Health  Care Access, Delivery                                                               
and Value.   He declared that it was necessary  to reach out, and                                                               
ensure that  quality, cost efficient  services were  available to                                                               
everyone in  the state.  He  noted that the third  priority, Safe                                                               
and  Responsible Individuals,  Families, &  Communities, included                                                               
Medicaid, children's services, and public health.                                                                               
                                                                                                                                
3:11:19 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR addressed  slide  3, "Priority  1: Health  &                                                               
Wellness Across  the Lifespan," and  noted that it  was necessary                                                               
to promote  and protect the  health of Alaskans,  while providing                                                               
quality of life in a safe living environment.                                                                                   
                                                                                                                                
COMMISSIONER STREUR, commenting on slide  4, "Priority 2:  Health                                                               
Care Access, Delivery  and Value," said that it  was necessary to                                                               
manage  health  care  coverage  for  Alaskans  in  need,  and  to                                                               
facilitate access to affordable health care for Alaskans.                                                                       
                                                                                                                                
COMMISSIONER  STREUR  continued on  with  slide  5, "Priority  3:                                                               
Safe  and Responsible  Individuals,  Families, and  Communities,"                                                               
listing  these  core  services:    Strengthen  Alaskan  families,                                                               
protect vulnerable Alaskans,  and promote personal responsibility                                                               
and accountable decisions by Alaskans.   He clarified that it was                                                               
necessary  to include  the  residents of  Alaska  in health  care                                                               
discussions with the payers and the providers.                                                                                  
                                                                                                                                
3:12:22 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR emphasized  his "Service  Philosophy," slide                                                               
6, stating:  "Deliver the right care  to the right person  at the                                                               
right  time for  the  right price."   He  shared  an anecdote  of                                                               
hearing his philosophy stated at a national meeting.                                                                            
                                                                                                                                
3:12:59 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  moved on to  slide 7, "Chart in  millions of                                                               
dollars," and  reported that there  were health  expenditures not                                                               
only   for   Medicaid,   but  also   for   Corrections,   Workers                                                               
Compensation,  and  Alaska  Care.     He  declared  that  it  was                                                               
necessary to  maximize the more  than $2 billion spent  on health                                                               
care  by working  with  the providers  for  more efficient,  cost                                                               
effective care.   He reflected on  his aforementioned priorities,                                                               
stating that  these were  now measured  by the  effectiveness and                                                               
efficiency of  each division.   He revealed that  measurement had                                                               
previously been  reflected in "138  pages of  deliverables, where                                                               
we  report  a  whole  bunch  of  numbers  and  don't  really  say                                                               
anything."                                                                                                                      
                                                                                                                                
3:14:43 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  indicated slide  8, "Alaska  Pioneer Homes,"                                                               
and called them "one of  the greatest experiments that Alaska has                                                               
done."   He  noted the  services, the  home environment,  and the                                                               
protection for  its residents  and declared these  to be  a great                                                               
resource for  Alaskans.   He shared  that Alaskans  always voiced                                                               
support for the Pioneer Homes during budget discussions.                                                                        
                                                                                                                                
3:16:17 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  discussed slide  9, "Division  of Behavioral                                                               
Health,"   stating  that   behavioral   health  issues   affected                                                               
everyone,  whether   it  was   substance  abuse,   mental  health                                                               
services,  suicide, or  fetal alcohol  syndrome.   He noted  that                                                               
innovation  was going  to be  a major  aspect for  moving forward                                                               
with these issues.                                                                                                              
                                                                                                                                
3:17:21 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR moved  on to slide 10,  "Office of Children's                                                               
Services," declaring that its director,  Christy Lawton, had "the                                                               
toughest job  in the department  and that  includes my job."   He                                                               
shared  that  often almost  any  course  of action  the  division                                                               
pursued would be  called into question.  He allowed  that a major                                                               
challenge was to  protect the social workers, as  even the Alaska                                                               
State Troopers would  not go alone into homes  with the potential                                                               
situation for  domestic violence.   He declared that  there would                                                               
be a push  to better equip the social workers,  the children, and                                                               
the families for  their own protection and safety.   He announced                                                               
that "safe children, strong families" would be the theme.                                                                       
                                                                                                                                
3:19:03 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR directed attention  to slide 11, "Division of                                                               
Juvenile Justice,"  and established that the  juvenile facilities                                                               
throughout  Alaska  were treatment  centers  for  juveniles.   He                                                               
reported  that   the  centers   were  investigating   the  trauma                                                               
experiences of  the juveniles, in  order to better  address their                                                               
needs.   He  shared  that this  informed care  had  led to  major                                                               
reductions  in negative  incidences  within the  facilities.   He                                                               
endorsed the  two focuses:   rehabilitation and return to  a home                                                               
environment.                                                                                                                    
                                                                                                                                
3:20:49 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR introduced  slide  12,  "Division of  Health                                                               
Care  Services,"   reporting  that   the  majority   of  hospital                                                               
services,  physician services,  and  Medicaid  were paid  through                                                               
this division.   He noted the importance of work  with the tribal                                                               
partners and access from the communities.                                                                                       
                                                                                                                                
3:21:40 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR directed attention  to slide 13, "Division of                                                               
Public Assistance,"  and explained  that this division  managed a                                                               
wide range of programs, including  Adult Public Assistance, Child                                                               
Care, Chronic and Acute Medical  Assistance, Denali Kid Care, and                                                               
Food Stamps.                                                                                                                    
                                                                                                                                
3:22:27 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR, addressing  slide 14,  "Division of  Public                                                               
Health," stated that Chief Medical  Officer Dr. Ward Hurlburt and                                                               
Acting  Director Kerre  Fisher were  administering the  division.                                                               
He  noted  that this  division  ensured  that immunizations  were                                                               
being provided.                                                                                                                 
                                                                                                                                
3:24:18 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  reviewed slide 15, "Senior  and Disabilities                                                               
Services,"  and   stated  that  this  was   the  fastest  growing                                                               
population  in  Alaska, having  grown  by  more than  70  percent                                                               
according to  the most  recent census,  compared to  the national                                                               
increase  of 15  percent.   He declared  that this  significantly                                                               
aging  population   contributed  to   the  cost   increases,  the                                                               
complexities,  and the  challenges  encountered  in dealing  with                                                               
seniors, disabled,  and personal  care attendant  operations, and                                                               
that it could eclipse the Medicaid budget.                                                                                      
                                                                                                                                
3:25:44 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR  affirmed that  the vision of  the Department                                                               
of  Health  and  Social  Services was  for  Alaskan  individuals,                                                               
families and communities to be safe and healthy (slide 16).                                                                     
                                                                                                                                
3:26:22 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR, in  response to  Representative Tarr,  said                                                               
that  DHSS  was unclear  as  to  the  direction of  many  federal                                                               
programs.   He  stated that  indications  in some  areas such  as                                                               
adoption, children's services, and  foster care were that funding                                                               
was decreasing.                                                                                                                 
                                                                                                                                
3:27:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NAGEAK, referring to  the Pioneer Homes, suggested                                                               
that there  needed to be  a partnership for senior  support among                                                               
areas  of  the state,  as  space  to  care  for the  elderly  was                                                               
limited.   He declared  that there  were not  enough beds  in his                                                               
district  to  care  for  all  the  elders,  and  that  it  became                                                               
necessary  to send  them  to other  areas.   He  shared that  his                                                               
personal  platform was  to encourage  intervention for  potential                                                               
suicides.  He urged people to  "butt in," "be rude," and "talk to                                                               
them"  if  they  encountered  someone who  was  despondent.    He                                                               
emphasized  the necessity  to talk  and to  confront this  issue,                                                               
especially  with the  young people,  and to  tell them  "they are                                                               
wanted; they are needed; especially in Bush Alaska."                                                                            
                                                                                                                                
3:31:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked about  any effects of  the Patient                                                               
Protection and  Affordable Care Act  on the Department  of Health                                                               
and Social Services.                                                                                                            
                                                                                                                                
3:31:56 PM                                                                                                                    
                                                                                                                                
COMMISSIONER STREUR,  in response,  said that  Medicaid expansion                                                               
in Alaska would  add at least 40,000 people to  the program, and,                                                               
although the federal  government would pick up the  cost of care,                                                               
the  State of  Alaska would  incur the  associated infrastructure                                                               
cost.   He noted  that a new  eligibility information  system was                                                               
being implemented  for enrollment.   He expressed his  desire for                                                               
more time to  allow completion of the new enrollment  system.  He                                                               
reported  that  the  current  system  would  continue  to  enroll                                                               
individuals, but  this 30 percent increase  to Medicaid enrollees                                                               
would  add  significant costs.    He  estimated annual  operating                                                               
costs  of $5-$8  million  with an  increased  expense to  $33-$40                                                               
million in 2019,  when the state would  assume responsibility for                                                               
10  percent of  the cost  of care.   Directing  attention to  the                                                               
federal  health care  exchange, he  confirmed that  the State  of                                                               
Alaska had  decided to  pursue the federal  option, as  the state                                                               
option would  have included $5-$8  million in  operating expenses                                                               
for "a relatively small number  of lives to enroll;" whereas, the                                                               
federal  option would  be paid  by  the federal  government.   He                                                               
declared that  DHSS was presently evaluating  Medicaid expansion.                                                               
He affirmed  that although federal  support would be  100 percent                                                               
in  2014-15, and  would decline  to 90  percent in  2019, it  was                                                               
unclear  what  the  payments  would  be beyond  this  date.    He                                                               
compared this to the current  federal Medicaid expense support of                                                               
50 percent.                                                                                                                     
                                                                                                                                
3:36:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  how  many  people were  currently                                                               
enrolled in Medicaid in Alaska.                                                                                                 
                                                                                                                                
COMMISSIONER STREUR,  in response, said that  135,000 individuals                                                               
were  currently enrolled  in Medicaid,  with an  estimated 40,000                                                               
more to be added.  He  assessed that the "woodwork effect," those                                                               
individuals who  were eligible  for Medicaid  but had  not signed                                                               
up, included an estimated 7700 individuals.                                                                                     
                                                                                                                                
REPRESENTATIVE REINBOLD asked if this included Denali KidCare.                                                                  
                                                                                                                                
COMMISSIONER STREUR explained  that Denali KidCare was  a part of                                                               
the Medicaid program.                                                                                                           
                                                                                                                                
3:37:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON reflected on  a State of Alaska resolution,                                                               
House  Concurrent  Resolution  5, unanimously  adopted  in  2011,                                                               
which  had  declared that  prevention  of  disease would  be  the                                                               
primary  model  for  health  care.   He  pointed  out  that  this                                                               
resolution also recognized  the potential of Vitamin D  as an aid                                                               
in the prevention  of disease.  He announced  that the Department                                                               
of  Administration  had  recognized  the  cost  savings  and  now                                                               
offered free Vitamin D testing.   He asked what the Department of                                                               
Health and Social Services had  done to promote the prevention of                                                               
disease model  for health  care, as well  as to  create awareness                                                               
for the  value of  Vitamin D, as  determined in  House Concurrent                                                               
Resolution 5.                                                                                                                   
                                                                                                                                
COMMISSIONER  STREUR  offered  his  belief  that  this  had  been                                                               
previously discussed with  Dr. Hurlburt, who, as  the Director of                                                               
the Division  of Public Health,  would be  in charge.   He stated                                                               
that  awareness  bulletins  had  been  issued  immediately  after                                                               
passage of  the resolution, and he  opined that there had  been a                                                               
subsequent  follow   up.    He   reported  that   neither  active                                                               
promotion, prescription, nor testing had occurred.                                                                              
                                                                                                                                
3:39:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON,  referring to  a recent US  military study                                                               
on suicide  of veterans, reported  that veterans with  the lowest                                                               
levels of  vitamin D were  twice as  likely as those  with higher                                                               
levels to successfully  commit suicide.  He asked  if the suicide                                                               
prevention methods in Alaska included reviews of Vitamin D.                                                                     
                                                                                                                                
3:40:46 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR  replied  that  he was  not  aware  of  this                                                               
military study.  He offered to  get back to the committee with an                                                               
answer.                                                                                                                         
                                                                                                                                
3:41:06 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS,   referring  to  the  Division   of  Seniors  and                                                               
Disabilities  Services,  asked if  the  increase  in cost  was  a                                                               
result of the cost of service, or the number of people served.                                                                  
                                                                                                                                
COMMISSIONER STREUR,  in response,  said that  there had  been an                                                               
increase to  both the  cost of services  and those  accessing the                                                               
services.  He offered his belief  that this upward trend had been                                                               
occurring for the past five years.                                                                                              
                                                                                                                                
3:42:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  to compare  the  difficulty  for                                                               
enrollment  between the  State of  Alaska programs  and those  of                                                               
other  states.   She  also asked  who was  the  director for  the                                                               
Medicaid programs.                                                                                                              
                                                                                                                                
COMMISSIONER STREUR asked for clarification for what to compare.                                                                
                                                                                                                                
REPRESENTATIVE REINBOLD asked to  compare the eligibility and the                                                               
length of the  programs.  She opined that the  number of Medicaid                                                               
enrollees  seemed  excessive  given   the  size  of  the  general                                                               
population.  She asked if  the Medicaid enrollment was the result                                                               
of lack of jobs, or lack of employee health insurance.                                                                          
                                                                                                                                
COMMISSIONER  STREUR clarified  that the  Medicaid enrollment  in                                                               
Alaska  was "about  average."   He  stated  that Alaska  Medicaid                                                               
enrollment ranged  from 18-20 percent of  the population, whereas                                                               
the  national average  was 16-24  percent.   He pointed  out that                                                               
enrollment in Alaska  had "a bit of an uptick  the last couple of                                                               
years," which he  attributed to "the recession in  the Lower 48."                                                               
He reported  that enrollment had  "flattened out now  again," and                                                               
he  expressed   his  hope  that   the  enrollment   would  remain                                                               
"flattened out."   He offered to provide the  statistics over the                                                               
previous five years.                                                                                                            
                                                                                                                                
3:44:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NAGEAK,  referring   to  the  earlier  discussion                                                               
regarding  the effectiveness  and  efficiency  of each  division,                                                               
asked if  there had been  an assessment for each  division within                                                               
DHSS.                                                                                                                           
                                                                                                                                
COMMISSIONER STREUR  reported that there had  been an assessment,                                                               
stating  "that's a  continuing, unfolding  thing."   He explained                                                               
that the  aforementioned 138 pages  of performance  measures were                                                               
now  used  in  conjunction  with   the  earlier  discussed  three                                                               
priorities for evaluation of each division.                                                                                     
                                                                                                                                
REPRESENTATIVE  NAGEAK  asked  if  these  studies  had  reflected                                                               
effectiveness,  and  were  there  any resulting  changes  to  the                                                               
programs.                                                                                                                       
                                                                                                                                
COMMISSIONER  STREUR  replied  that  "the intent  of  the  entire                                                               
program is  to do just that;  to begin to  take a look at,  is it                                                               
effective  and is  it efficient."    He expressed  the desire  to                                                               
review  all the  DHSS  programs  for value  and  quality, and  to                                                               
measure each for effectiveness.   He opined that it was necessary                                                               
for the division directors to embrace and support these studies.                                                                
                                                                                                                                
3:46:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked to clarify  that the federal government                                                               
reimbursement for  Medicaid was 50  percent.  She also  asked for                                                               
the income guidelines for Medicaid.                                                                                             
                                                                                                                                
COMMISSIONER  STREUR offered  to provide  the guidelines,  noting                                                               
that it was based on a variety of factors.                                                                                      
                                                                                                                                
REPRESENTATIVE  TARR asked  if the  Medicaid rate  in Alaska  was                                                               
based on the federal poverty rate.                                                                                              
                                                                                                                                
COMMISSIONER STREUR replied that he did not know.                                                                               
                                                                                                                                
3:47:44 PM                                                                                                                    
                                                                                                                                
CHAIR   HIGGINS,   recounting  his   work   as   a  health   care                                                               
professional, expressed  his appreciation for the  efforts of the                                                               
Department of  Health and Social  Services.  He opined  that this                                                               
department "was  one of the best  in the nation, and  I'd like to                                                               
see  it kept  that  way."   He  suggested  that  there were  some                                                               
bureaucracy issues to be addressed.                                                                                             
                                                                                                                                
3:48:32 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health and Social Services Standing Committee meeting was                                                                       
adjourned at 3:48 p.m.                                                                                                          

Document Name Date/Time Subjects
House HSS 1-22 follow up - A.pdf HHSS 1/22/2013 3:00:00 PM
HSS Overview
House HSS 1-22 follow up B.pdf HHSS 1/22/2013 3:00:00 PM
HSS Overview