Legislature(1999 - 2000)

01/27/2000 09:07 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       
01/27/00                                                                                                                        
                                                                                                                                
General Subject(s):                                                                                                             
                                                                                                                                
Review of Department's Accomplishments                                                                                          
For FY'99 and FY'00                                                                                                             
Department of Health and Social Services                                                                                        
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the Senate Finance Committee through the                                                          
21st Legislative Session, contact 465-4935.  After the 21st                                                                     
Legislative session they will be available through the Legislative                                                              
Library at 465-3808.                                                                                                            
                                                                                                                                
Time Meeting Convened: 9:07 a.m.                                                                                                
                                                                                                                                
Tape(s):  SFC-00 # 14, Side A & B                                                                                               
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
                                                                                                                                
Senator Parnell                                                                                                                 
Senator Adams                                                                                                                   
Senator Torgerson                                                                                                               
Senator P. Kelly                                                                                                                
Senator Donley                                                                                                                  
Senator Green                                                                                                                   
Senator Leman                                                                                                                   
Senator Phillips                                                                                                                
NOT PRESENT:                                                                                                                    
Senator Wilken                                                                                                                  
                                                                                                                                
                                                                                                                                
ALSO PRESENT:                                                                                                                   
                                                                                                                                
KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH & SOCIAL SERVICES                                                              
LOREN JONES, DIRECTOR, DIVISION OF ALCOHOLISM & DRUG ABUSE,                                                                     
DEPARTMENT OF HEALTH & SOCIAL SERVICES                                                                                          
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
43                                                                                                                              
KAREN PERDUE,                                                                                                                   
COMMISSIONER,                                                                                                                   
HEALTH & SOCIAL                                                                                                                 
SERVICES                                                                                                                        
Referred to a handout entitled, "Department                                                                                     
of Health & Social Services, Highlights."                                                                                       
She stated that the Department has                                                                                              
historically followed population-based                                                                                          
outcomes.  She gave a quick overview of                                                                                         
these.  Infant mortality in Alaska is down,                                                                                     
both post-neonatal and neonatal.  At one                                                                                        
time Alaska had the highest rate of post-                                                                                       
neonatal deaths in the nation.  Alaska's                                                                                        
teen pregnancy deaths are down by about 25                                                                                      
percent.                                                                                                                        
74                                                                                                                              
SENATOR DONLEY                                                                                                                  
Asked how the state was doing with pre-                                                                                         
natal as versus post-natal for all cases of                                                                                     
death.  Alaska now has state-of-the-art                                                                                         
technology to combat these two, but he was                                                                                      
concerned about post-natal issues.                                                                                              
86                                                                                                                              
COMMISSIONER PERDUE                                                                                                             
Noted that these infant mortality rates                                                                                         
account for those after a baby is born.                                                                                         
She added that these numbers are related to                                                                                     
public health care, community health care,                                                                                      
and etceteras.  These numbers are not                                                                                           
related to government programs.  She                                                                                            
explained how the department collects this                                                                                      
data.                                                                                                                           
                                                                                                                                
Continued to note that juvenile crime,                                                                                          
related to police referrals, is down                                                                                            
significantly.  Welfare dependency is down.                                                                                     
Per capita consumption of alcohol is down,                                                                                      
to almost a gallon per person in 20 years.                                                                                      
The number of people being hospitalized for                                                                                     
mental retardation is down to zero.  Alaska                                                                                     
has closed all of their institutions.                                                                                           
Hospitalization for mental illness has                                                                                          
diminished significantly.                                                                                                       
                                                                                                                                
Listed the following numbers related to                                                                                         
children in the State of Alaska, as up or                                                                                       
even.  Immunization rates for two-year-                                                                                         
olds, number of children who have health                                                                                        
insurance, health of babies being born                                                                                          
(higher birth rate) and number of child                                                                                         
abuse reports have leveled off within the                                                                                       
last calendar year.                                                                                                             
118                                                                                                                             
Senator P. Kelly                                                                                                                
                                                                                                                                
Asked about the number of people being                                                                                          
hospitalized for mental illness, whether or                                                                                     
not this was different from the Designated                                                                                      
Evaluation and Treatment (DET.) The need                                                                                        
for more beds was quite evident and he                                                                                          
thought this was due to closing Alaska                                                                                          
Psychiatric Institute (API.)  He asked if                                                                                       
the long-term difference was due to this                                                                                        
situation.                                                                                                                      
128                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded affirmatively and noted that                                                                                          
people used to live at API indefinitely or                                                                                      
sometimes for ten years at a stretch.  This                                                                                     
was very expensive to the state.  Now,                                                                                          
clients live in the community and use the                                                                                       
hospital as backup for acute care.                                                                                              
145                                                                                                                             
SENATOR P. KELLY                                                                                                                
[Indiscernible.]                                                                                                                
147                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Noted that the state still had a high child                                                                                     
death rate, for those children one-year old                                                                                     
and older.  Many children die from                                                                                              
unintentional injuries, such as drowning,                                                                                       
firearms, fires, dog bites, etceteras.                                                                                          
Alaska's obesity levels are growing.  About                                                                                     
58 percent of Alaskans are overweight or                                                                                        
obese.  Added that tobacco has received                                                                                         
quite a lot of focus as well.                                                                                                   
173                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Remarked that the Department's mission was                                                                                      
to promote and protect the health and well                                                                                      
being of Alaskans.  This mission is                                                                                             
mandated by constitutional provisions, as                                                                                       
well as statutory ones.  She then outlined                                                                                      
some of the Department's key performance                                                                                        
measures.  One of these was the amount of                                                                                       
restitution being paid within the Division                                                                                      
of Juvenile Justice.  The Department also                                                                                       
looked at the amount of community work                                                                                          
service hours which, when ordered were,                                                                                         
actually fulfilled.  A benchmark for                                                                                            
restitution was set at 79 percent and                                                                                           
community work service at 83 percent.  She                                                                                      
noted that the actual numbers were a little                                                                                     
higher than these benchmarks.  With                                                                                             
Legislative support, the Department is                                                                                          
relieving facility overcrowding as well.                                                                                        
Originally the state was at 50 percent                                                                                          
overcrowding in juvenile facilities three                                                                                       
years ago; presently the state is at 30                                                                                         
percent overcrowding.  The Department has                                                                                       
added several beds and several more are due                                                                                     
to come on line in the near future.                                                                                             
                                                                                                                                
Noted that Alaska is one of six states in                                                                                       
the nation with a fully accredited juvenile                                                                                     
system, which is mandated by the American                                                                                       
Correctional Association.  Alaska received                                                                                      
this distinction in November.                                                                                                   
210                                                                                                                             
SENATOR DONLEY                                                                                                                  
Responded that the Legislature had tried to                                                                                     
deal with the Department's juvenile                                                                                             
overcrowding situation, but he felt that                                                                                        
the Department used this as a reason and                                                                                        
platform for vastly expanding the number of                                                                                     
other juvenile services presently offered                                                                                       
at these facilities.  Instead of maximizing                                                                                     
the utilization of these dollars, the                                                                                           
Department used this money as leverage to                                                                                       
vastly expand their number of employees,                                                                                        
rather than maximizing the number of                                                                                            
additional beds instituted.  He felt as                                                                                         
though the Legislature had not intended on                                                                                      
creating a state-of-the-art juvenile                                                                                            
system, they wanted to buy as many beds                                                                                         
possible to deal with the problem of                                                                                            
housing juveniles.                                                                                                              
229                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that the State has six facilities                                                                                     
and was not sure where the concern lies.                                                                                        
She disagreed with this assessment.  None                                                                                       
of the additional staff relates to a new                                                                                        
mission.  The Department opened a cottage                                                                                       
and they hope to expand their detention                                                                                         
units.  In the smaller communities, such as                                                                                     
Ketchikan, because the beds are so                                                                                              
expensive due to the limited number, the                                                                                        
Department has tried to find other ways to                                                                                      
bring additional community resources to                                                                                         
help spread the cost.  The Matsu community                                                                                      
group has also worked on this issue.  The                                                                                       
money spent so far has been on facility                                                                                         
construction and youth [indiscernible]                                                                                          
staff.                                                                                                                          
247                                                                                                                             
SENATOR GREEN                                                                                                                   
Recalled that there was a lot of discussion                                                                                     
about changing part of the facility as an                                                                                       
intake and evaluation, while moving                                                                                             
cooperative agencies into this agency as                                                                                        
well.                                                                                                                           
259                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that the Department intended to                                                                                       
move probation staff into the Matsu                                                                                             
facility for a 24-hour intake service.                                                                                          
This was a cost-effective measure.  The                                                                                         
accreditation process lowers the                                                                                                
Department's liability.  The Department met                                                                                     
over 400 mandatory standards by 100 percent                                                                                     
and in the voluntary standards by 94                                                                                            
percent.  These relate to such dynamics as                                                                                      
fiscal restraint, policies for training                                                                                         
staff, etceteras.  The Community Youth                                                                                          
Court has been very valuable in lowering                                                                                        
the number of juveniles coming into the                                                                                         
system or those re-offenders.  The "warning                                                                                     
letter" is rapidly disappearing as a way of                                                                                     
handling a juvenile.  She knew this was a                                                                                       
big concern for some individuals.  About                                                                                        
ten percent of their referrals are handled                                                                                      
by "youth courts."  She listed all the                                                                                          
communities around the State where these                                                                                        
courts exist.                                                                                                                   
                                                                                                                                
Moved onto discussing the Division of                                                                                           
Family and Youth Services (DYFS.)  The                                                                                          
mission for this Division is to "protect                                                                                        
children who are abused and neglected or at                                                                                     
risk of abuse and neglect."  She stated                                                                                         
that the Division set a goal of 90 percent                                                                                      
response rate for legitimate calls.  Some                                                                                       
months they meet this goal.  In some areas,                                                                                     
the Division was doing much worse,                                                                                              
especially in the Matsu.  There the                                                                                             
Division responded to about half the calls.                                                                                     
Since then, the Division has contracted                                                                                         
with a local community group, which has                                                                                         
enabled them to respond to almost all the                                                                                       
calls there.  This community group responds                                                                                     
to the lower level reports.                                                                                                     
303                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Asked what the Division's heaviest month                                                                                        
was for the year.                                                                                                               
305                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded October and November.                                                                                                 
306                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Noted that this was "dividend time."  After                                                                                     
discussing this issue with DYFS, it was                                                                                         
determined that during the month of August                                                                                      
the Division responded to ten cases, as                                                                                         
versus the month of October when this                                                                                           
number rose to 71 for child abuse.                                                                                              
313                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that this is also when school                                                                                         
starts, children who are in dangerous                                                                                           
situations, come to the attention of many                                                                                       
adults.  Most of these cases are due                                                                                            
alcohol and drug use.                                                                                                           
326                                                                                                                             
SENATOR P. KELLY                                                                                                                
Referred to the Department's detail books                                                                                       
regarding a million-dollar figure to reduce                                                                                     
their social worker vacancy factor to two.                                                                                      
336                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Stated that this figure was related to                                                                                          
about 20 people.  She then discussed                                                                                            
workforce issues, such as a problem with                                                                                        
turnover, training and morale.  The                                                                                             
Department now trains their employees                                                                                           
before they take on a caseload.  The                                                                                            
training academy in Anchorage has been very                                                                                     
successful.  The Department is down to                                                                                          
their budgeted vacancy.  If a direct line                                                                                       
social worker quit, the Department could                                                                                        
not hire another person because they are at                                                                                     
their budgeted vacancy, which is seven                                                                                          
percent.                                                                                                                        
                                                                                                                                
Noted that safety is still an issue with                                                                                        
the Department's workers.  They have been                                                                                       
required to install a metal detector in the                                                                                     
office due to several death threats.  These                                                                                     
issues are escalating and the Commissioner                                                                                      
gave examples as such.  Noted those safety                                                                                      
measures, which she would like to put in                                                                                        
place.                                                                                                                          
358                                                                                                                             
SENATOR P. KELLY                                                                                                                
Noted that one of the problems the                                                                                              
Department had last year was not providing                                                                                      
adequate training.  He asked if she had                                                                                         
seen an impact in the Department's turn                                                                                         
over rate.                                                                                                                      
362                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that this turnover has                                                                                                
dramatically lowered.  One of other points                                                                                      
that the new law covered, specifically in                                                                                       
regards to audits, children in custody for                                                                                      
the longest period of time needed to be                                                                                         
moved into permanent homes.  The Department                                                                                     
put a lot of effort into their adoption                                                                                         
services.  The Department found that six                                                                                        
hundred Alaskan children had been in                                                                                            
custody for long periods of time, on                                                                                            
average, over three years.  Two-thirds of                                                                                       
this population have either been adopted or                                                                                     
placed in guardianships, as well as back                                                                                        
into their homes.                                                                                                               
                                                                                                                                
The Department's partnership with Catholic                                                                                      
Social Services to do home studies and for                                                                                      
recruiting Foster parents and adoptive                                                                                          
parents has been very successful.                                                                                               
Adoptions are increasing.  The Department                                                                                       
launched a "future campaign" to recruit                                                                                         
Foster parents and has signed up about 200                                                                                      
families.  Safety is still an issue in                                                                                          
Foster care.  More than one thousand                                                                                            
Alaskan children are in Foster care.  The                                                                                       
Department is supposed to check on these                                                                                        
children once a month.  Ninety-five to                                                                                          
ninety-nine percent of the Foster parents                                                                                       
are wonderful, but there is a small                                                                                             
percentage that is not.  There was another                                                                                      
death in Foster care this year.                                                                                                 
                                                                                                                                
Outlined an example of a Foster parent who                                                                                      
is ready to adopt, but then they are                                                                                            
arrested for a felony, not related to a                                                                                         
child safety issue.  Alaskan law does not                                                                                       
allow a felon to become a Foster parent.                                                                                        
407                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked how many Foster parents there were in                                                                                     
Alaska.                                                                                                                         
412                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded 1,200.                                                                                                                
416                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked if the incident of domestic violence                                                                                      
and felony indictments was higher in this                                                                                       
population than the general population.                                                                                         
418                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Stated that she doubted this was the case.                                                                                      
425                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked if it cost $31 a day for Foster care.                                                                                     
427                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that $34 a day was the average.                                                                                       
439                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Noted that the state's subsidized adoption                                                                                      
program has been very effective in                                                                                              
recruiting adoptive parents and that it was                                                                                     
a much cheaper program to support.  The                                                                                         
Department has been working to improve                                                                                          
residential care, both the quality and                                                                                          
availability.  This system is essential to                                                                                      
support those Foster children that are                                                                                          
unruly for a period of time.  In response                                                                                       
to a question posed by Senator P. Kelly                                                                                         
regarding whether the Department had taken                                                                                      
a $2.36 rollback for Foster parents,                                                                                            
Commissioner Perdue stated that the                                                                                             
Department had not, but that a supplemental                                                                                     
was in place.  The Department meets with                                                                                        
the public defender and OPA to help                                                                                             
streamline adoption cases.  She then                                                                                            
referred to an audit suggestion regarding a                                                                                     
risk assessment tool, which the Department                                                                                      
was asked to fix.                                                                                                               
                                                                                                                                
Stated that the Department's public health                                                                                      
mission was to "preserve and promote the                                                                                        
state's public health."  She noted that the                                                                                     
Division has been working very hard on                                                                                          
immunization rates for two-year-olds since                                                                                      
in the past their related performance was                                                                                       
very poor.  Alaska is now twenty-second in                                                                                      
the nation from forty-eight.  Their full                                                                                        
goal for this project is ninety percent.                                                                                        
                                                                                                                                
Noted that the Department's goal regarding                                                                                      
smokeless tobacco was to decrease youth                                                                                         
smoking by ten percent.  The Department is                                                                                      
having a hard time compiling this data to                                                                                       
see how well their efforts are being                                                                                            
received.  Their data shows a decline in                                                                                        
middle school use, which probably means                                                                                         
that these children have never smoked                                                                                           
before.                                                                                                                         
                                                                                                                                
Outlined highlights in public health.                                                                                           
Child deaths are a very large concern for                                                                                       
the Department.  The medical examiner now                                                                                       
autopsies every suspicious child death in                                                                                       
the state.  The Department wants to verify                                                                                      
the causes of a child's death, whether by                                                                                       
SIDS or otherwise.  The Department's "Back                                                                                      
to Sleep," campaign (promoting that infants                                                                                     
sleep on their backs) for the prevention of                                                                                     
SIDS is a direct outgrowth of this work.                                                                                        
477                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked how many children comprised the five                                                                                      
hundred numbers of deaths investigated by                                                                                       
the Crime each year.                                                                                                            
481                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Estimated 80 to 90 of these are children.                                                                                       
These numbers have held steady over the                                                                                         
years.  What the Department has learned                                                                                         
through their work with the Troopers, the                                                                                       
District Attorney and the medical                                                                                               
professionals, is that their analyzation of                                                                                     
children's death are improving.  The                                                                                            
Department has determined that fewer,                                                                                           
younger children are dying of natural                                                                                           
causes and more are dying of suspicious                                                                                         
causes.                                                                                                                         
488                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked what percent of the 80 child deaths                                                                                       
are suspicious.                                                                                                                 
489                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Estimated that probably 20 to 30 of these                                                                                       
children die of suspicious causes.  Child                                                                                       
death's are very labor intensive for                                                                                            
criminal prosecution since there are no                                                                                         
witnesses and a special sensitivity must be                                                                                     
fostered with parents.  This is a very                                                                                          
rough time.  She also noted that suicide                                                                                        
was a very serious issue for the                                                                                                
Department.  She noted one young man that                                                                                       
died by unknown causes and as a result of                                                                                       
toxicology testing, it was determined that                                                                                      
he overdosed on a prescribed medication for                                                                                     
seasickness.  Through research it was                                                                                           
discovered that there had been a "run" on                                                                                       
this drug in the state and hence,                                                                                               
pharmacists were able to control the amount                                                                                     
of its circulation.                                                                                                             
502                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked how many of the 80 children that die,                                                                                     
do so as a result of suicide.                                                                                                   
503                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that she did not presently have                                                                                       
these figures, but would provide them to                                                                                        
the Committee.  Continued that Denali Kid                                                                                       
Care was doing well.  The parents are happy                                                                                     
with the streamlining of the Department's                                                                                       
application process.  The Department is                                                                                         
finding that as claims come in, the per                                                                                         
unit state cost of yearly coverage is                                                                                           
somewhere between $500 to $700.                                                                                                 
510                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Inquired as to whether any studies have                                                                                         
been conducted to see if individuals have                                                                                       
dropped their private sector insurance                                                                                          
[indiscernible] that time period when they                                                                                      
could come on with Denali Kid Care.                                                                                             
512                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded affirmatively and added that the                                                                                      
Department was still analyzing the results.                                                                                     
The Commissioner's preliminary impression                                                                                       
of these results is that 1.5 percent of the                                                                                     
individuals who had coverage within the                                                                                         
last year, prior to signing up for Denali                                                                                       
Kid Care, (something which their                                                                                                
regulations prohibit) were either engaged                                                                                       
in fraud or that there was some errors in                                                                                       
their sampling.                                                                                                                 
518                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked if they checked the labor rolls to                                                                                        
see if any individual had been paid any                                                                                         
wages within the last year.                                                                                                     
519                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Noted that the Department did have some                                                                                         
processes in place within eligibility.                                                                                          
521                                                                                                                             
SENATOR GREEN                                                                                                                   
Asked about the role that the federal                                                                                           
government played in this program during                                                                                        
the first, second and third year.  She                                                                                          
wondered if their participation would                                                                                           
eventually decline.                                                                                                             
524                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that the program was authorized                                                                                       
for five years at the same participation                                                                                        
level.  It is due to be re-authorized in                                                                                        
Congress.  This program was a joint                                                                                             
bipartisan arrangement initiated by                                                                                             
Senators Kennedy and Hatch.  The                                                                                                
Commissioner assessed that the states would                                                                                     
not be able to pick up the 75 percent,                                                                                          
which the federal government presently                                                                                          
pays.                                                                                                                           
532                                                                                                                             
SENATOR GREEN                                                                                                                   
Asked if someone in the Department                                                                                              
developed the language included in their                                                                                        
brochure, or was it language that the                                                                                           
federal government created.  More                                                                                               
specifically, she asked if the Department                                                                                       
had changed its view regarding the                                                                                              
definition of life.  In regards to a family                                                                                     
head count, according to this brochure, the                                                                                     
unborn child of a pregnant mother is                                                                                            
included.                                                                                                                       
538                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that this was federal language                                                                                        
and reminded the Committee that the Denali                                                                                      
Kid Care expands to cover pregnant mothers                                                                                      
as well.                                                                                                                        
540                                                                                                                             
SENATOR GREEN                                                                                                                   
Stated that she wished to know why an                                                                                           
unborn child would be included in a family                                                                                      
head count, when this same unborn child is                                                                                      
not recognized as "a life" for other                                                                                            
purposes.                                                                                                                       
543                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked that if someone is on Medicaid,                                                                                           
whether or not this person's child would                                                                                        
simultaneously be on Denali Kid Care.                                                                                           
548                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Answered that Denali Kid Care is a subgroup                                                                                     
of Medicaid kids.  The reason why it is                                                                                         
called something different is because the                                                                                       
application process is streamlined.  The                                                                                        
Department assumes that these individuals                                                                                       
are not getting public assistance, but just                                                                                     
taking part in health insurance for their                                                                                       
children.                                                                                                                       
552                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked if the population of children signed                                                                                      
up for Kid Care does not necessarily                                                                                            
represent an increase of persons receiving                                                                                      
funds for medical care.  He wondered if                                                                                         
these numbers of children could be                                                                                              
considered new clients instead.                                                                                                 
557                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded affirmatively.  She stated that                                                                                       
there are roughly 12,000 new children, some                                                                                     
of them are above the eligibility that the                                                                                      
state signed them up for and some of them                                                                                       
simply are outreach children who have been                                                                                      
signed up as new clients.  This program is                                                                                      
dependent on the income level of the                                                                                            
family.                                                                                                                         
560                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked how the Department was designating                                                                                        
these children before if their parent was                                                                                       
on Medicaid and the family was receiving                                                                                        
services under this latter program.  These                                                                                      
children would have essentially moved off                                                                                       
of Medicaid to Kid Care.                                                                                                        
565                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Noted that the Department has signed up an                                                                                      
additional 12,000 children in excess of                                                                                         
those numbers previously outlined by                                                                                            
Senator P. Kelly.  She added that if the                                                                                        
state was to change the Denali Kid Care                                                                                         
Program, they would lose about half of                                                                                          
these children, because of the eligibility                                                                                      
numbers.  As more people get off of                                                                                             
welfare, the state has lost 4,000 families.                                                                                     
The state is not paying medical coverage                                                                                        
for the adults anymore, but only for the                                                                                        
children.  Right now there are about six or                                                                                     
seven thousand children that are above the                                                                                      
new income levels, along with 800 pregnant                                                                                      
women, with an additional 6,000 children in                                                                                     
the zero to 125% range of eligibility.                                                                                          
577                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Continued that Alaska has one of the best                                                                                       
Emergency Medical Services (EMS) in the                                                                                         
nation.  There are about 4,000 both                                                                                             
Emergency Medical Technicians (EMT) and EMS                                                                                     
workers around the state, 75 percent of                                                                                         
them who are volunteers.  The National                                                                                          
Highway Traffic Safety conducted a review                                                                                       
of Alaska's EMS system.  Feedback was                                                                                           
excellent, but Ms. Perdue stated that the                                                                                       
system is a little frayed around the edges                                                                                      
with making sure volunteers and equipment                                                                                       
is supported.  The Department is trying to                                                                                      
mitigate a high rate of turnover for                                                                                            
volunteers.  She then outlined the ways in                                                                                      
which the state is segregated in regions                                                                                        
for administrative purposes related to the                                                                                      
EMS system.                                                                                                                     
590                                                                                                                             
SENATOR P. KELLY                                                                                                                
Asked if the Department researched other                                                                                        
ways in which volunteers could be                                                                                               
compensated instead of money, such as                                                                                           
issuing hunting licenses for free.                                                                                              
595                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that they had not researched                                                                                          
this, but thought it would be a welcome                                                                                         
recognition.                                                                                                                    
598                                                                                                                             
SENATOR LEMAN                                                                                                                   
Asked about the Traffic Safety Review, and                                                                                      
wondered if it made any mention of changes                                                                                      
in statutes that they originally thought                                                                                        
were archaic.                                                                                                                   
603                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Responded that she did not have this in her                                                                                     
notes, but would provide the report to                                                                                          
Senator Leman.  She then shared numbers and                                                                                     
anecdotes about run-down ambulances and                                                                                         
equipment that exists statewide.                                                                                                
621                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Outlined that the new public health lab in                                                                                      
Anchorage will be opening next December.                                                                                        
The Kenai Health Center is in design as a                                                                                       
partnership between the local community and                                                                                     
the Department.  She then offered some                                                                                          
information about cervical and breast                                                                                           
cancer screenings.                                                                                                              
625                                                                                                                             
SIDE B, 9:55 AM                                                                                                                 
                                                                                                                                
620                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Added that the Department has made sure to                                                                                      
procure federal money to ensure that women                                                                                      
over fifty, without access to insurance,                                                                                        
can get mammograms. She then made mention                                                                                       
of "Healthy Alaskans."  The Surgeon General                                                                                     
establishes specific outcomes and targets                                                                                       
regarding health issues.  She referred to a                                                                                     
map in a handout entitled, "Prevalence of                                                                                       
Obesity among U.S. Adults," and gave a                                                                                          
synopsis of how Alaska rates nationwide for                                                                                     
obesity.                                                                                                                        
                                                                                                                                
Stated that one of the measures of the                                                                                          
Division of Mental Health and Developmental                                                                                     
Disabilities was to look at the number of                                                                                       
publicly funded psychiatric days.  The                                                                                          
Department set a benchmark of 13 days, use                                                                                      
per person, which are publicly funded.  The                                                                                     
Department has seen a decline in the first                                                                                      
half of 1999 by one full day.  This relates                                                                                     
to the amount of time people spend in a                                                                                         
hospital, such as API.  For this particular                                                                                     
hospital, there are 28 percent more                                                                                             
admissions for this facility, but the                                                                                           
length of stay is much lower.  She then                                                                                         
gave a run down of more specific                                                                                                
departmental mental health issues for                                                                                           
consideration, including a comprehensive                                                                                        
integrated mental health plan.  About                                                                                           
developmental disabilities, the Department                                                                                      
was able to serve everyone on the waiting                                                                                       
list, those, which had some need to attend                                                                                      
to.  The Department was able to take 400                                                                                        
people off this list.                                                                                                           
                                                                                                                                
Noted that although Alaska still has a very                                                                                     
serious alcohol problem, the state is                                                                                           
making progress in consumption patterns.                                                                                        
The Department has spent quite a lot of                                                                                         
time on federally funded research designed                                                                                      
to determine the prevalence, severity and                                                                                       
need for alcohol treatment, including the                                                                                       
state's effectiveness of treatment.                                                                                             
560                                                                                                                             
LOREN JONES,                                                                                                                    
COMMUNITY MENTAL                                                                                                                
HEALTH SERVICES                                                                                                                 
API 2000 PROJECT                                                                                                                
DIRECTOR,                                                                                                                       
DEPARTMENT OF                                                                                                                   
HEALTH & SOCIAL                                                                                                                 
SERVICES                                                                                                                        
Stated that the Department has conducted a                                                                                      
lot of research regarding prevalence and                                                                                        
outcomes.  The Department conducted a                                                                                           
survey of thirteen of their programs and                                                                                        
followed up on about 1500 clients who had                                                                                       
been in treatment.  The clients were                                                                                            
interviewed after six and 12 months of                                                                                          
finishing treatment.  About 56 percent of                                                                                       
these clients in outpatient care, abstained                                                                                     
for a full year after treatment.  For                                                                                           
residential programs, this was true for                                                                                         
about 42 percent.  He noted that there was                                                                                      
some improvement with hospitalization.  36                                                                                      
percent of residential clients were                                                                                             
hospitalized one year prior to treatment                                                                                        
and only 15 percent were hospitalized a                                                                                         
year after treatment.  The same type of                                                                                         
decrease for outpatient clients took place                                                                                      
as well.  The Department saw general                                                                                            
improvement with employment, legal, health,                                                                                     
and social issues that substance abuse can                                                                                      
raise in a year prior to and after                                                                                              
treatment.  These research results were in                                                                                      
line with national, state and private                                                                                           
sector programs.                                                                                                                
                                                                                                                                
Reviewed the Alaska Safety Action Program                                                                                       
(ASAP), which serves misdemeanant DWI                                                                                           
offenders and misdemeanant alcohol                                                                                              
offenders.  66 percent of the misdemeanants                                                                                     
that entered ASAP, did not commit a re-                                                                                         
offense three years subsequent to this                                                                                          
program.  Gave an overview of how the                                                                                           
Department conducted their research.  About                                                                                     
35 percent of clients do re-offend and the                                                                                      
Department was given good recommendations                                                                                       
on how to improve their services.  Other                                                                                        
research was conducted on prevalence and                                                                                        
need, but noted that the Committee could                                                                                        
review this information in the report                                                                                           
entitled, "A Summary of Recent Findings                                                                                         
Regarding Substance Abuse in Alaska."                                                                                           
547                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked about minimum outcomes from the                                                                                           
grantees as being part of the Department's                                                                                      
contract.                                                                                                                       
545                                                                                                                             
MR. JONES                                                                                                                       
Responded that an audit was completed in                                                                                        
December of last year.  The Department                                                                                          
included in their RFP minimum outcomes as                                                                                       
the required reporting for all the                                                                                              
providers.  He then went into greater                                                                                           
detail about how they conducted the                                                                                             
procedures for making the recommended audit                                                                                     
suggestions.                                                                                                                    
512                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Asked how many internal employees helped to                                                                                     
oversee the necessary changes to Department                                                                                     
procedure.                                                                                                                      
511                                                                                                                             
MR. JONES                                                                                                                       
Responded that a staff of four in Anchorage                                                                                     
dealt primarily with the treatment                                                                                              
programs.  There is one staff in Juneau who                                                                                     
deals primarily with the prevention                                                                                             
programs.  He noted that they have over 120                                                                                     
grantees.  Responded to a question posed by                                                                                     
Senator Green about tracking the number of                                                                                      
clients, which the Department serves, what                                                                                      
the funding was during a period of time,                                                                                        
and how this has changed to help account                                                                                        
for how money is ultimately spent.  Senator                                                                                     
Green referred to a particular letter                                                                                           
drafted by a grantee in regards to funding                                                                                      
cuts for alcohol programs.  Mr. Jones                                                                                           
responded that the client caseload from                                                                                         
1992 to 1998 had grown by 90 percent.  But,                                                                                     
in these same years, the cost per client                                                                                        
decreased by 46 percent, from a high of                                                                                         
$4300 per client to a low in 1998, at $2300                                                                                     
per client.  He then went into specific                                                                                         
detail of how these dollars were spent.                                                                                         
500                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Noted that he would like to follow up on                                                                                        
the grantees to make sure that there are                                                                                        
consequences for not meeting minimum                                                                                            
outcomes.                                                                                                                       
454                                                                                                                             
COMMISSIONER PERDUE                                                                                                             
Referred to two other documents provided to                                                                                     
the Committee.  The first is entitled,                                                                                          
"Results Within Our Reach, Alaska State                                                                                         
Plan for Alcohol and Drug Abuse Services,                                                                                       
1999-2003" and the second, "Fetal Alcohol                                                                                       
Syndrome, Alaska's #1 Preventable Birth                                                                                         
Defect."  The Department intends to begin                                                                                       
work in the classroom for the teachers                                                                                          
regarding Fetal Alcohol Syndrome as a                                                                                           
preventative measure.  She noted that there                                                                                     
is a lot of debate about prognosis of Fetal                                                                                     
Alcohol Syndrome.  She went into detail                                                                                         
about why this is so.  The Department                                                                                           
intends to work with high-risk women more                                                                                       
readily, as part of their full-scale effort                                                                                     
to work on this issue.                                                                                                          
                                                                                                                                
Noted medical assistance and the outcome                                                                                        
measure agreed upon, which is the percent                                                                                       
of providers enrolled and participating in                                                                                      
the Department's program.  Over time the                                                                                        
Department will look for a possible trend                                                                                       
of providers leaving the program and what                                                                                       
that would mean in terms of                                                                                                     
[indiscernible.]  She noted that dental was                                                                                     
a big issue.  The state has many providers                                                                                      
who refuse to take Medicaid patients.  She                                                                                      
then explained why this was so.                                                                                                 
414                                                                                                                             
CO-CHAIR PARNELL                                                                                                                
Adjourned the meeting at 10:30 am.                                                                                              
                                                                                                                                
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       

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