Legislature(2015 - 2016)BILL RAY CENTER 230
06/02/2016 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB374 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 374 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
FOURTH SPECIAL SESSION
June 2, 2016
1:36 p.m.
1:36:27 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:36 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
Senator Pete Kelly, Co-Chair
ALSO PRESENT
Laura Cramer, Staff, Senator Anna MacKinnon; Fred Parady,
Deputy Commissioner, Department of Commerce, Community, and
Economic Development; Lori Wing-Heier, Director, Division
of Insurance, Department of Commerce, Community and
Economic Development; Senator Mia Costello; Senator Cathy
Giessel.
SUMMARY
HB 374 REINSURANCE PROGRAM; HEALTH INS. WAIVERS
SCS CSHB 374(FIN) was REPORTED out of committee
with "no recommendation" and with one previously
published fiscal impact note: FN 3(CED).
CS FOR HOUSE BILL NO. 374(FIN)
"An Act relating to coverage under a state plan
provided by the Comprehensive Health Insurance
Association; establishing the Alaska comprehensive
health insurance fund; relating to a reinsurance
program; relating to the definition of 'residents who
are high risks'; relating to an application for a
waiver for state innovation for health care insurance;
and providing for an effective date."
1:37:00 PM
Vice-Chair Micciche MOVED to ADOPT proposed Senate
committee substitute for CSHB 374(FIN), Work Draft 29-
GH2126\I (Glover/Wallace, 6/2/16).
Co-Chair MacKinnon OBJECTED for discussion.
1:37:44 PM
AT EASE
1:37:59 PM
RECONVENED
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON,
communicated that there were two changes to consider in the
committee substitute. She looked at page 3, line 29,
Section 6, which was a sunset for the Alaska Comprehensive
Health Insurance Fund. She pointed to page 2, lines 11 and
12, Section 2, which originally read, "and specified
covered conditions eligible for payment through
appropriations from the Alaska Comprehensive Health
Insurance Fund", and cited the statute establishing the
fund. She explained that by repealing the fund, there were
complications in the specification. She looked at line 12,
which stated that it would be payment through the
reinsurance program.
Vice-Chair Micciche queried the repeal date. Ms. Cramer
specified that the repeal would be on June 30, 2018.
Senator Dunleavy surmised that the diverted stream would go
to the general fund. Ms. Cramer agreed.
Vice-Chair Micciche wondered if the committee could discuss
the logic of the sunset provision for the public.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
Co-Chair MacKinnon shared that the intention of the
committee substitute was to provide an opportunity to
establish a finance working group to bring in health care
providers within the legislative body to examine how to
sustain the fund and program in the long term. She believed
that the $55 million would require the administration to
cut $55 million before the beginning of the following
legislative session. She queried comments related to the
two-year sunset.
FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY, AND ECONOMIC DEVELOPMENT, agreed that the work
during the interim was valuable to determine the financing
mechanisms in support of the sunset.
Co-Chair MacKinnon shared that there had been discussions
about a 5-year sunset. She noted that there were multiple
committee members who had expressed concern, because 5
years was too much time. She felt that the legislation
provided an opportunity to ensure care for Alaskans.
1:44:11 PM
Mr. Parady shared that he had conversed with the
commissioner about the collaborative approach without
imbedding the task force, and shared that it was also an
attractive approach.
Co-Chair MacKinnon queried comments on the committee
substitute.
LORI WING-HEIER, DIRECTOR, DIVISION OF INSURANCE,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
concurred with Mr. Parady, and welcomed the opportunity to
sunset after two year.
Co-Chair MacKinnon asked about participation in the working
group, to utilize the expertise from the administration.
She hoped to for a representative from the Department of
Health and Social Services (DHSS). She remarked that the
state did not want to get in the way of a medical practice,
but wanted to manage emergency room costs. Ms. Wing-Heier
replied that she would welcome the opportunity to
participate in the working group.
Vice-Chair Micciche felt that the CS was an unintended
impact of the Affordable Care Act. He felt that the two
years provided the potential for some congressional action
to improve the outcome of the regional or national high
risk pool. He also felt that the two year provided for
other potential state solutions, for considering a regional
or national state insurance co-op option. He felt that the
state must find an appropriate role in providing incentives
to reduce the costs, or the state would continue to add
dollars for other health care coverage.
Mr. Parady echoed Vice-Chair Micciche's comments. He stated
that the two-year timeline was an intense pressured
timeline, because of the slowness of the 1332 waiver.
Co-Chair MacKinnon hoped to make an accomplishment in the
first year. She noted that year two would not provide
enough notice for the health care providers to be part of
the solution. Therefore, there would be nearly $170 million
in year three.
Mr. Parady acknowledged that the two year deadline, and the
interior deadline was the following legislative session.
Co-Chair MacKinnon relayed that the committee had received
information about the Medicaid (copies on file). She stated
that the department was not the holder of the demographic
information of the high risk pool. She remarked that the CS
did not go further in detail, because there was no data to
shape a conversation about the waiver in the bill, rather
it was up to the "department's good judgment."
1:49:39 PM
AT EASE
1:52:26 PM
RECONVENED
Vice-Chair Micciche MOVED to REPORT SCS CSHB 374 out of
committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
SCS CSHB 374(FIN) was REPORTED out of committee with "no
recommendation" and with one previously published fiscal
impact note: FN 3(CED).
1:53:30 PM
AT EASE
1:56:41 PM
RECONVENED
Co-Chair MacKinnon discussed housekeeping.
ADJOURNMENT
1:57:08 PM
The meeting was adjourned at 1:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 374 Follow up Senate Finance 6 2 16.pdf |
SFIN 6/2/2016 1:30:00 PM |
HB 374 |
| HB 374 Provider Tax Fact Sheet May 2016.pdf |
SFIN 6/2/2016 1:30:00 PM |
HB 374 |
| HB 374 SCS CSHB 374 work draft version I.pdf |
SFIN 6/2/2016 1:30:00 PM |
HB 374 |