Legislature(2009 - 2010)CAPITOL 106

01/27/2009 03:00 PM House HEALTH & SOCIAL SERVICES


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03:02:33 PM Start
03:03:39 PM Overview: Department of Health & Social Services
04:43:21 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Dept. of Health & Social TELECONFERENCED
Services
Presentation by Commissioner Bill Hogan
& Asst. Commissioner for Finance
Management Services Alison Elgee
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                        January 27, 2009                                                                                        
                           3:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Herron, Co-Chair                                                                                             
Representative Wes Keller, Co-Chair                                                                                             
Representative John Coghill                                                                                                     
Representative Bob Lynn                                                                                                         
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEW: DEPARTMENT OF HEALTH & SOCIAL SERVICES                                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BILL HOGAN, Commissioner                                                                                                        
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHHS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented an overview of the Department of                                                               
Health and Social Services.                                                                                                     
                                                                                                                                
ALISON ELGEE, Assistant Commissioner                                                                                            
Central Office                                                                                                                  
Finance and Management Services                                                                                                 
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the department overview.                                                                
                                                                                                                                
JAY BUTLER, M.D.                                                                                                                
Chief Medical Officer                                                                                                           
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the department overview.                                                                
                                                                                                                                
STEVE McCOMB, Director                                                                                                          
Division of Juvenile Justice (DJJ)                                                                                              
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the department overview.                                                                
                                                                                                                                
ELLIE FITZJARRALD, Director                                                                                                     
Director's Office                                                                                                               
Division of Public Assistance                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the department overview.                                                                
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
3:02:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WES KELLER  called the House Health  and Social Services                                                             
Standing   Committee    meeting   to    order   at    3:02   p.m.                                                               
Representatives  Keller,  Herron,   Coghill,  Lynn,  Seaton,  and                                                               
Holmes were present at the  call to order.  Representative Cissna                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^Overview: Department of Health & Social Services                                                                             
                                                                                                                                
3:03:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER announced  that the only order  of business would                                                               
be an overview  of the Department of Health  and Social Services.                                                               
He  noted that  Representative Cissna  had  arrived.   He gave  a                                                               
quick overview  of the department,  stating that the  main intent                                                               
of the overview was to build dialogue with this department.                                                                     
                                                                                                                                
3:05:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   KELLER   offered   some  background   information   on                                                               
Commissioner Hogan.                                                                                                             
                                                                                                                                
3:05:39 PM                                                                                                                    
                                                                                                                                
BILL HOGAN, Commissioner, Office  of the Commissioner, Department                                                               
of  Health and  Social  Services (DHHS),  announced  that he  was                                                               
speaking via  teleconference and  apologized for not  being there                                                               
personally.  He  explained that this would be a  high level Power                                                               
Point  overview.   He  noted that  Assistant  Director Elgee  was                                                               
present  in Juneau  and was  also  available for  questions.   He                                                               
described some of his work background.                                                                                          
                                                                                                                                
3:09:14 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  said  that  he was  actively  involved  with                                                               
Health  Care providers  to help  determine the  best health  care                                                               
service  delivery  system  for  behavioral  and  physical  health                                                               
problems.                                                                                                                       
                                                                                                                                
3:09: 58 PM                                                                                                                   
                                                                                                                                
COMMISSIONER  HOGAN  introduced  his  Power  Point  presentation,                                                               
[Included in the members' packets  were copies of the Power Point                                                               
presentation  titled  "Alaska  Department of  Health  and  Social                                                               
Services,  Department Overview."]  and  commented  on the  second                                                               
slide, titled  "Alaska Department  of Health and  Social Services                                                               
Organization  Chart."   He noted  that the  department had  3,600                                                               
employees,  though  many  of  the  provided  services  were  made                                                               
available through  outside agencies.   He gave  brief backgrounds                                                               
for  Jay  Butler, Chief  Medical  Officer;  Bill Streuer,  Deputy                                                               
Commissioner  for  Medicaid  and  Health  Care  Policy;  and  Pat                                                               
Hefley,   Deputy   Commissioner   for  Family,   Community,   and                                                               
Integrated Services.                                                                                                            
                                                                                                                                
3:11:50 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   HOGAN    introduced   Alison    Elgee,   Assistant                                                               
Commissioner for  Finance Management Services, and  discussed her                                                               
background experience.                                                                                                          
                                                                                                                                
3:13:00 PM                                                                                                                    
                                                                                                                                
ALISON  ELGEE, Assistant  Commissioner,  Central Office,  Finance                                                               
and  Management   Services,  Department  of  Health   and  Social                                                               
Services (DHSS),  introduced the  members of  the staff  who were                                                               
present,   including  Wilda   Laughlin,  Tammy   Sandoval,  Ellie                                                               
Fitzjarrald,  Melissa Witzler-Stone,  Steve  McComb, Pat  Hefley,                                                               
Dr. Jay Butler, Beverly Wooley, and Dave Cote.                                                                                  
                                                                                                                                
3:14:24 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN referred  to slide 3, titled  "Health & Social                                                               
Services," which was  the web home page for  Department of Health                                                               
and  Social Services  (DHSS).   He  pointed  out the  "Headlines"                                                               
banner,  which highlighted  current DHSS  programs including  the                                                               
Emmonak response, residents' survey  about healthy behaviors, the                                                               
FosterWear  clothing program,  and DHSS  temporary management  of                                                               
the Mary  Conrad Center.   He directed  attention to an  array of                                                               
DHSS services listed on the right side of the webpage.                                                                          
                                                                                                                                
3:16:37 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN  called attention  to slide 4,  titled "Alaska                                                               
Pioneer  Homes."   He informed  the  committee that  there are  6                                                               
pioneer homes, with  more than a 500 bed capacity,  and that only                                                               
about 35 beds  were still available.  He noted  that 120 veterans                                                               
were living  at the Pioneer  Homes, with the Palmer  Pioneer Home                                                               
now  a 23  bed Veterans  home.   He explained  that the  web page                                                               
offered information on each of the Pioneer Homes.                                                                               
                                                                                                                                
3:17:51 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  referred  to  slide  5,  titled  "Behavioral                                                               
Health," and  pointed out the program  list on the right  side of                                                               
the page,  which included the  Alaska Psychiatric Institute.   He                                                               
also brought  attention to the  "Current Events  & Announcements"                                                               
segment.                                                                                                                        
                                                                                                                                
3:19:06 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN continued  on to slide 6,  titled "Health Care                                                               
Services,"  and  confirmed  that  this was  primarily  the  state                                                               
Medicaid  program.   He explained  that a  lot of  the division's                                                               
work  was determined  by how  to  finance services,  particularly                                                               
through  Medicaid.   He pointed  to  the programs  listed on  the                                                               
right side  of the  page, noting that  more detail  was available                                                               
for each.                                                                                                                       
                                                                                                                                
3:19:44 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   HOGAN  summarized   slide   7,  titled   "Juvenile                                                               
Justice," and noted  that the division had used a  lot of data to                                                               
make management decisions.   He directed attention  to the center                                                               
of  the page,  which listed  programs on  which the  division was                                                               
focusing.                                                                                                                       
                                                                                                                                
3:20:49 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  referred  to  slide  8,  titled  "Office  of                                                               
Children's  Services," and  summed up  the mission  to be,  "safe                                                               
kids,  strong families."   He  pointed  out that  the front  line                                                               
social  workers  had to  make  tough  decisions and  offered  his                                                               
belief that these were the toughest jobs in the department.                                                                     
                                                                                                                                
3:22:05 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN   reported  that  slide  9,   titled  "Public                                                               
Assistance,"  described   a  broad   based  division   which  was                                                               
instrumental  in   determining  eligibility   for  an   array  of                                                               
services,  including cash  and heating  assistance, food  stamps,                                                               
and   senior   benefits.     He   stressed   that  an   important                                                               
responsibility for the  division was to help people  get jobs and                                                               
stay  employed.   He noted  that there  was a  strong partnership                                                               
with the Department of Labor.                                                                                                   
                                                                                                                                
3:23:28 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN  identified slide 10, titled  "Public Health,"                                                               
which    enumerated   a    very   broad    "laundry   list"    of                                                               
responsibilities.   He pointed to  the "Announcements  & Events,"                                                               
which listed current programs including the state Trauma System.                                                                
                                                                                                                                
3:24:45 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN   presented  slide   11,  titled   "Senior  &                                                               
Disabilities   Services,"    and   noted   that    the   division                                                               
responsibilities    included    working   with    seniors,    the                                                               
developmentally  disabled,   physically  disabled,  as   well  as                                                               
vulnerable adults,  in general.   He observed that  this division                                                               
had long-term care responsibilities.                                                                                            
                                                                                                                                
3:25:32 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN  explained that slide 12,  titled "Finance and                                                               
Management  Services," described  the array  of support  services                                                               
for the  department.   He pointed out  the "Sections"  heading on                                                               
the right side of the  page, which included audit, budget, grants                                                               
and contracts,  and revenue and  finance.  He  directed attention                                                               
to  the  middle of  the  page,  which  focused on  the  Long-term                                                               
Forecast of Medicaid.                                                                                                           
                                                                                                                                
3:26:40 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   HOGAN  concluded   the  broad   overview  of   the                                                               
department and each of the divisions.                                                                                           
                                                                                                                                
3:27:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER noted that there  was still a budget overview and                                                               
department  priorities  to  be   discussed  and  he  thanked  the                                                               
directors for coming to the presentation.                                                                                       
                                                                                                                                
3:27:44 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN remarked  on slide  14, titled  "Priorities,"                                                               
which included a  focus on substance abuse,  health and wellness,                                                               
health-care reform, long-term care, and vulnerable Alaskans.                                                                    
                                                                                                                                
3:29:09 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  then reviewed  slide  13,  which stated  the                                                               
theme  for  the future  direction  of  the  DHSS to  be  "helping                                                               
individuals and  families create  safe and  healthy communities."                                                               
He  said the  department could  provide resources  and facilitate                                                               
solutions,  but the  real solutions  would come  from individuals                                                               
and  families.   He referred  to  the handout  [contained in  the                                                               
members' packets],  "2009 Priorities," which highlighted  each of                                                               
the  priorities mentioned  on slide  14,  and he  began with  the                                                               
major   strategies  for   Substance   Abuse:  Prevention,   Early                                                               
Intervention,  Treatment, and  Recovery.   He offered  his belief                                                               
that  Alaska does  not have  a  comprehensive, behavioral  health                                                               
plan.  He  discussed working with other partners  to develop this                                                               
plan over the next year.                                                                                                        
                                                                                                                                
3:31:50 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN addressed  health and  wellness.   He pointed                                                               
out  the  economic  impact  of  reducing  obesity,  tobacco  use,                                                               
diabetes,  cancer,   heart  disease,  and   sexually  transmitted                                                               
diseases.   He  allowed that  the focus  would be  on prevention,                                                               
access  to  the  health  care   workforce,  expansion  of  health                                                               
insurance  coverage, development  of a  trauma system,  emergency                                                               
preparedness, and a better  understanding of environmental health                                                               
impacts from large development projects.                                                                                        
                                                                                                                                
3:34:06 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN continued and  spoke about health care reform.                                                               
He commented  on the Obama  administration concern  for reforming                                                               
the health  care system.   He pointed out that  Alaska strategies                                                               
included  care management,  Medicaid reform,  establishment of  a                                                               
Health Care  Commission, and partnership with  others to increase                                                               
the health care workforce.                                                                                                      
                                                                                                                                
3:35:06 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN reported  on long-term  care, and  noted that                                                               
seniors  represented the  fastest growing  population in  Alaska.                                                               
He remarked that  DHSS wanted elders to be able  to stay at home,                                                               
if at all  possible.  He revealed that a  long-term care plan had                                                               
been developed.                                                                                                                 
                                                                                                                                
3:36:17 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  acknowledged   the  concern  for  vulnerable                                                               
Alaskans:  kids in  child protective  services  and the  juvenile                                                               
justice   system,  as   well  as   kids  and   adults  who   were                                                               
developmentally disabled.   He promoted a safety  net for out-of-                                                               
work Alaskans who needed temporary  assistance.  He mentioned the                                                               
Families First  program, designed to  help those who  were losing                                                               
their temporary assistance.                                                                                                     
                                                                                                                                
3:38:28 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  concluded  that  these  priorities  captured                                                               
everything that  DHSS was doing or  would like to do  as it moves                                                               
forward.                                                                                                                        
                                                                                                                                
3:39:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA said  that she  had noticed  a problem  of                                                               
state  relationships   with  partner  providers  and   that  good                                                               
communications would be a factor toward good services.                                                                          
                                                                                                                                
COMMISSIONER HOGAN  responded that  communication was  an ongoing                                                               
challenge  for  departments  and  for providers.    He  mentioned                                                               
efforts which  had shown some progress.   He noted that  DHSS did                                                               
have  a regulatory  role, and  that  it was  sometimes not  clear                                                               
whether DHSS was there to help or to check on the providers.                                                                    
                                                                                                                                
3:42:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  noted the 2009  priorities and asked  what grade                                                               
DHSS would give itself.                                                                                                         
                                                                                                                                
COMMISSIONER  HOGAN said  that  DHSS deserved  a C+  or  B-.   He                                                               
questioned the  impact DHSS  had made and  noted that  there were                                                               
areas for improvement.                                                                                                          
                                                                                                                                
3:44:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  asked what would  be the most prominent  role of                                                               
DHSS to the new health care commission.                                                                                         
                                                                                                                                
COMMISSIONER HOGAN  advised that the  greatest need was  a health                                                               
plan, with  a focus  on access  for the  uninsured and  a quality                                                               
workforce.                                                                                                                      
                                                                                                                                
3:45:45 PM                                                                                                                    
                                                                                                                                
JAY  BUTLER,   M.D.,  Chief  Medical   Officer,  Office   of  the                                                               
Commissioner, Department  of Health  and Social  Services (DHSS),                                                               
offered his  belief that there  were four pillars to  health care                                                               
reform: cost, quality, access, and  prevention.  He said that the                                                               
first three  addressed the demand  side of health care,  but that                                                               
prevention  could  not be  separated.    He identified  that  the                                                               
primary problem  was to  prioritize what  to do  first.   He also                                                               
observed the need for an overall health care strategy.                                                                          
                                                                                                                                
3:47:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON commented  on the  first listed  priority,                                                               
substance  abuse, but  that he  noticed a  lack of  co-ordination                                                               
with other  departments and divisions.   He pointed out  the high                                                               
recidivism rate.                                                                                                                
                                                                                                                                
COMMISSIONER HOGAN  replied that  DHSS was  part of  the criminal                                                               
justice working  group, which was  working to prevent  the return                                                               
of people  to corrections  and the justice  system.   He reported                                                               
the need  for an  array of  community based  programs.   He spoke                                                               
about a  pilot program that  entailed visits with  inmates before                                                               
their release.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  SEATON offered  his  belief that  this should  be                                                               
identified in the priorities.                                                                                                   
                                                                                                                                
3:51:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  asked  how   the  health  care  planning                                                               
process might dovetail with the conclusion of the budget.                                                                       
                                                                                                                                
COMMISSIONER  HOGAN expressed  hope  that  the legislature  would                                                               
support  the  budget,  especially understanding  that  the  world                                                               
economy continued  to change.   He revealed that the  DHSS budget                                                               
increase was only  .2 percent.  He allowed that  it would be hard                                                               
to predict  until after the  health care commission  meeting, but                                                               
that he  envisioned opportunities  after the  legislative session                                                               
to provide updates to the legislature.                                                                                          
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL   asked  if  a  policy   or  an  economic                                                               
direction could be "made on the run."                                                                                           
                                                                                                                                
3:55:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN commented  that juvenile  justice was  under                                                               
DHSS, and asked  if that was a standard  organizational set-up in                                                               
other states.                                                                                                                   
                                                                                                                                
3:56:37 PM                                                                                                                    
                                                                                                                                
STEVE  McCOMB,  Director,  Division of  Juvenile  Justice  (DJJ),                                                               
Department of Health and Social  Services (DHSS), replied that it                                                               
was common  for juvenile justice to  be within the DHSS  as these                                                               
were often  the same  families as from  the Office  of Children's                                                               
Services (OCS).                                                                                                                 
                                                                                                                                
3:57:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  asked that  DHSS  listen  and work  as  a                                                               
partner with the public and the  providers, all of whom wanted to                                                               
be a part of the solution.                                                                                                      
                                                                                                                                
COMMISSIONER  HOGAN  noted  that  the  solutions  did  come  from                                                               
individuals and families, not from state government.                                                                            
                                                                                                                                
4:00:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON commented  that about  50 senior  citizens                                                               
were  being  kicked  off  Medicaid  because  of  social  security                                                               
adjustments  and he  asked if  the Office  of Legal  Services was                                                               
working  with  these  seniors to  retain  their  eligibility  for                                                               
Medicaid.                                                                                                                       
                                                                                                                                
COMMISSIONER  HOGAN deferred  this question  to Ms.  Fitzjarrald,                                                               
and commented  that this was  most likely the "law  of unintended                                                               
consequences."                                                                                                                  
                                                                                                                                
4:02:21 PM                                                                                                                    
                                                                                                                                
ELLIE  FITZJARRALD,  Director,  Director's  Office,  Division  of                                                               
Public  Assistance,  Department  of Health  and  Social  Services                                                               
(DHSS),  agreed that  this was  an  important issue  that no  one                                                               
anticipated.   She allowed that there  was an option to  create a                                                               
Medicaid Qualifying Trust.   She explained that  DHSS was working                                                               
with  the  Alaska Legal  Services  Corporation  (ALCS) and  other                                                               
legal groups  on an outreach  program for seniors to  ensure they                                                               
knew of the legal services available to regain eligibility.                                                                     
                                                                                                                                
4:03:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  noted that seniors  needed to know  who to                                                               
call for help.                                                                                                                  
                                                                                                                                
MS. FITZJARRALD  agreed that  seniors should  call her  office at                                                               
DHSS.                                                                                                                           
                                                                                                                                
4:04:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES expressed  her pleasure  that access  is a                                                               
priority issue under health and wellness.                                                                                       
                                                                                                                                
COMMISSIONER HOGAN  pointed out that currently  there was funding                                                               
for  health   care  providers  throughout  the   municipality  of                                                               
Anchorage to  work with  individuals who did  not have  access to                                                               
health care, Medicaid,  or Medicare.  He offered  his belief that                                                               
unfortunately this  was not included in  the FY 2010 budget.   He                                                               
offered  his  support  for  the   program  and  acknowledged  the                                                               
challenge for funding.                                                                                                          
                                                                                                                                
4:07:56 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  discussed  slide  15,  "Budget  Highlights,"                                                               
which detailed the  actual expenditures by division  for FY 2008.                                                               
He  referred to  the  high percentage  of  funds depicted  within                                                               
Health Care  Services, and explained  that this was  for Medicaid                                                               
to hospitals, nursing  homes, and pharmacies.  He  noted that the                                                               
pie  graph was  a good  illustration of  the distribution  of the                                                               
funds.                                                                                                                          
                                                                                                                                
4:09:36 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN referred  to  slide 16,  also titled  "Budget                                                               
Highlights,"  which  listed  some  of  the  DHSS  programs.    He                                                               
summarized "Medicaid,"  and noted that  although there was  a $46                                                               
million  FY  2009 budget  reduction,  there  were reasons  for  a                                                               
projected   budget  excess.     These   included  more   accurate                                                               
expenditure projections through a  new DHSS budget methodology; a                                                               
five  percent reduction  in Medicaid  enrollment;  and some  cost                                                               
containment initiatives, among them preferred drug lists.                                                                       
                                                                                                                                
4:12:19 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN   discussed  technical  assistance   for  the                                                               
Medicaid  providers  to  reduce  the  compliance  problems  often                                                               
revealed during audits.                                                                                                         
                                                                                                                                
4:13:31 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN talked about FY 2010.   He noted a $14 million                                                               
net increase in the Medicaid budget.   He offered his belief that                                                               
the federal  stimulus package could bring  substantial benefit to                                                               
Alaska.                                                                                                                         
                                                                                                                                
4:15:12 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN referred to slide  16 and talked about "Denali                                                               
KidCare."   He disclosed that  the governor proposed  to increase                                                               
the qualifying poverty level percentage.   He observed that there                                                               
were  competing bills  and he  offered  to work  with the  Alaska                                                               
State  Legislature  to  ensure  legislation  that  was  best  for                                                               
Alaskan  families.   He  offered his  belief  that people  valued                                                               
something  more when  they  paid something,  and  hence he  would                                                               
support  a co-pay  program, with  exceptions  for those  families                                                               
which could not afford it.                                                                                                      
                                                                                                                                
COMMISSIONER HOGAN  continued with slide 16  and discussed "Child                                                               
Care."   He observed that there  was an increase in  the funding.                                                               
He advised that  there was no longer a pool  of bonus money which                                                               
had  helped  fund  child  care.    He  asked  the  committee  for                                                               
suggestions of ways to pay for child care.                                                                                      
                                                                                                                                
4:19:29 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN directed attention  to "Heating Assistance" on                                                               
slide 16.   He  announced that the  Alaska State  Legislature had                                                               
funded  the  program  with  $10  million  for  FY  2009  and  had                                                               
projected $5  million for  FY 2010.   He  reported that  DHSS had                                                               
staff in  the rural villages  to help with applications  for both                                                               
the federal and state program.                                                                                                  
                                                                                                                                
4:21:16 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN referenced  the "Governor's Health Initiative"                                                               
on slide  16, which focused  on, among others,  reducing obesity,                                                               
tobacco prevention, and screening for autism.                                                                                   
                                                                                                                                
4:22:02 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN directed  attention  to the  "Bring the  Kids                                                               
Home" initiative.  He summarized  that in four years this program                                                               
had reduced the  number of Alaskan kids  residing at out-of-state                                                               
residential  treatment centers  from more  than 500  to only  168                                                               
kids.  He  applauded the help of the Alaska  State Legislature to                                                               
develop in-state facilities.                                                                                                    
                                                                                                                                
4:23:37 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN conveyed that  there had been incremental rate                                                               
increases for many  providers.  He mentioned that  DHSS had hired                                                               
a contractor  to develop  a methodology  to determine  the actual                                                               
costs of providers.   He offered his belief  that the methodology                                                               
was  too sophisticated  and  posed a  challenge  for the  smaller                                                               
providers.    He  suggested further  study  to  determine  actual                                                               
costs, before he would recommend  incremental rate increases that                                                               
would help small providers to stay in business.                                                                                 
                                                                                                                                
4:25:30 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN   continued  with  slide  16   and  addressed                                                               
"Capital Projects."  He mentioned  the renovations at the Johnson                                                               
Youth Center in Juneau.   He conveyed that the "Capital Projects"                                                               
budget was $21 million.                                                                                                         
                                                                                                                                
4:26:27 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  indicated  slide  17,  titled  "Other,"  and                                                               
referred  to  the  three  items   listed.    He  first  addressed                                                               
"Measuring   Performance,"   and  listed   provider   performance                                                               
expectation  and quality  client outcomes  as the  most important                                                               
criteria.  He  referred to the Alaska Scorecard  [included in the                                                               
members' packets]  which presented  a succinct review  of Health,                                                               
Safety,  Living   with  Dignity,  and  Economic   Security.    He                                                               
instructed that even greater detail was available online.                                                                       
                                                                                                                                
4:29:18 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN  directed attention  to the areas  that needed                                                               
improvement  on  the  Alaska  Scorecard.   He  allowed  that  the                                                               
scorecard showed  some progress,  but more  important, it  gave a                                                               
solid baseline to measure future performance.                                                                                   
                                                                                                                                
4:30:34 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HOGAN  spoke about community partners.   He referred                                                               
to the Alaska Native Tribal  Health Consortium (ANTHC), Rasmussen                                                               
Foundation,  Alaska   Mental  Health  Trust   Authority  (AMHTA),                                                               
providers,  grantees,  boards,  the  courts,  other  departments,                                                               
Alaska native partners,  and the Alaska State  Legislature as all                                                               
very  important partners  both for  funding and  for policy.   He                                                               
emphasized the need for DHSS to work with all of these partners.                                                                
                                                                                                                                
4:31:59 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOGAN  referred  to   money  contained  within  the                                                               
economic  stimulus package,  which could  support women,  infant,                                                               
and children  programs; expand  food stamp  eligibility; increase                                                               
the  low  income  energy  assistance  program;  and  fund  senior                                                               
nutrition  and community  health centers,  along with  many other                                                               
health and  social programs.   He declared that DHSS  often asked                                                               
the faith based partners for support.                                                                                           
                                                                                                                                
4:34:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON asked  if Medicaid audits were  possible when not                                                               
enough money was requested.                                                                                                     
                                                                                                                                
COMMISSIONER  HOGAN said  that he  believed an  audit review  was                                                               
possible,  especially  with  regard   to  under  billing  or  not                                                               
requesting services that were allowed.                                                                                          
                                                                                                                                
4:36:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  asked whether  there was  a formula  for general                                                               
fund reductions relative to federal receipt reductions.                                                                         
                                                                                                                                
MS. ELGEE  replied that  there was  not a  single answer,  as the                                                               
federal programs had different match requirements.                                                                              
                                                                                                                                
4:38:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON  asked  that  if   there  were  a  general  fund                                                               
decrease, would there be a federal receipt decrease.                                                                            
                                                                                                                                
MS. ELGEE replied that this was program dependent.                                                                              
                                                                                                                                
4:39:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN asked for an update of the heating oil                                                                      
assistance program from Venezuela.                                                                                              
                                                                                                                                
COMMISSIONER HOGAN offered his belief that Venezuela was going                                                                  
to begin the program in Alaska in early February.                                                                               
                                                                                                                                
4:41:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN questioned whether the federal stimulus                                                                     
package was for capital projects or operating budgets.                                                                          
                                                                                                                                
COMMISSIONER HOGAN noted that both were included.                                                                               
                                                                                                                                
4:43:21 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health and Social Services Standing Committee meeting was                                                                       
adjourned at 4:43 p.m.                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
DHSS_Overview_1-27-2009.ppt HHSS 1/27/2009 3:00:00 PM