Legislature(2003 - 2004)
01/21/2004 09:01 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
January 21, 2004
9:01 AM
TAPES
SFC-04 # 1, Side A
SFC 04 # 1, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:01 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: JOEL GIBERTSON, Commissioner, Department of Health
and Social Services; SHERRY HILL, Special Assistant, Office of the
Commissioner, Department of Health and Social Services; JON
SHERWOOD, Unit Manager, Beneficiary Eligibility Policy, Division of
Medical Assistance, Department of Health and Social Services; MARIE
DARLIN, Coordinator, Capitol Task Force, AARP; BOB GRIGGS, Staff
Attorney, Disability Law Center
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 259-SENIORCARE
The Committee heard from the Department of Health and Social
Services and took public testimony. A committee substitute was
adopted, one amendment was discussed, but not formally introduced,
and the bill was held in Committee.
SENATE BILL NO. 259
"An Act establishing the SeniorCare program and relating to
that program; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken explained that this legislation would establish a
senior care program within the Department of Health and Social
Services to provide either "cash assistance or prescription drug
benefits to eligible Alaskan seniors 65 years of age or older." He
stated that the program would provide these benefits until such
time as the forthcoming federal Medicare drug benefit program is
operational in the State. He pointed out that a memorandum [copy on
file] from Jean Mischel, Legislative Counsel, Division of Legal and
Research Services, Legislative Affairs Agency, dated January 15,
2004 has been provided to explain the committee substitute that has
been provided to the Committee.
Co-Chair Green moved to adopt the aforementioned committee
substitute, CS SB 259,Version 23-GS2123\D, as the working document.
There being no objection, the Version "D" committee substitute was
adopted.
JOEL GILBERTSON, Commissioner, Department of Health and Social
Services, stated that, in December 2003, Governor Frank Murkowski
introduced "a three-pronged SeniorCare" program "to make
prescription drugs more affordable; to assist in the purchasing of
prescription drugs for seniors; and to make the social service
programs and health programs more available to seniors in the State
more available to seniors through the establishment of a Senior
Information Office." He explained that this bill, which presents
the only portion of the SeniorCare program that would require
Legislative approval, would establish "the cash or drug subsidy
assistance for low-income seniors in the State to assist them in
purchasing prescription drugs."
Commissioner Gilbertson expounded, for the benefit of the
Committee, that another of the three SeniorCare components is the
establishment of a Senior Information Office within the Department
to provide "a single, one-stop shop" through which seniors, who
might previously have had difficulty in accessing "the myriad of
services" the Department provides, could access senior programs via
the telephone or Internet or in person. He avowed that the Senior
Information Office would be staffed by individuals knowledgeable
with the entirely of local, State and federal assistance programs
that would be available to them. He calculated that, in FY 04, the
Department would be providing in excess of $220 million in program
services to seniors in the form of such things as food assistance,
assisted living, long-term care assistance, cash assistance,
heating assistance and other services.
Commissioner Gilbertson informed the Committee that the third
component of the SeniorCare program would be the development of a
Medicaid Preferred Drug List "to make Alaska pharmaceutical
products more accessible and more affordable" for Alaskans.
Commissioner Gilbertson reiterated that the goal of this
legislation is to establish "comprehensive health care coverage to
low-income seniors and general universal health care coverage for
prescription drugs to all seniors" by serving as a bridge to the
federal Medicare prescription drug benefit program proposed to
begin January 1, 2006. However, he warned that the federal program,
while scheduled to begin in January 2006, might be delayed due to
the complexity of the issue. In the meantime, he explained, the
federal government would provide an annual $600 Medicare subsidy to
low-income seniors living at or below 135 percent of the federal
poverty level (FPL) and in addition would provide all seniors with
a Medicare prescription drug discount card.
Commissioner Gilbertson stated even though the interim $600 federal
assistance subsidy would be available to seniors living at or below
135 percent of FPL, "a gap still exists." He reminded Members that
currently the Department is providing $120 per month to seniors
living at or below 135 percent of the FPL, via the State's Senior
Assistance Program that was established in the fall of 2003 to
assist these seniors "during the phase out of the Longevity Bonus
Program." He further explained that this bill would provide State
seniors living at or below the 135 percent of FPL with their choice
of either continuing to receive the $120 per month cash assistance
or to receive a $1,600 annual prescription drug subsidy to augment
the federal subsidy until the federal drug assistance program is
implemented.
Commissioner Gilbertson pointed out that, in addition, to this
category of recipients, the legislation would expand State
assistance to seniors living between 135 and 150 percent of the
FPL. He reviewed the details of the proposal as specified in the
"SeniorCare Comparison of Qualifications and Benefits" chart [copy
on file] as follows.
SeniorCare SeniorCare Senior
Prescription Cash Assistance Prescription
Drug Subsidy Subsidy Drug Subsidy
Qualifications *135% of *135% of *135% to 150%
Poverty Level Poverty Level Poverty Level
*Annual Income *Annual Income *Annual Income
below below below
$15,135 single $15,135 single $16,815 single
$20,439 Couple $20,439 Couple $22,710 Couple
*Liquid Assets *Liquid Assets *Liquid Assets
below below below
$4,000 Single $4,000 Single $4,000 Single
$6,000 Couple $6,000 Couple $6,000 Couple
SeniorCare *$1,600 Annual *$120 a month *$1,000 Annual
Benefit Prescription cash assistance Prescription
April 2004 - Drug Subsidy (up to $1,440 Drug Subsidy
December 2005 (prorated) annual) (prorated)
Medicare Bene- *Annual Medi- *Annual Medicare
fit May 2004- care Subsidy Subsidy $600
December 2005 $600
*Medicare *Medicare *Medicare
drug discount drug discount drug discount
Commissioner Gilbertson reiterated that the proposed legislation
would be terminated upon the implementation of the federal
prescription drug benefit program; and he reminded that this
legislation does not specify a specific termination date because
the desire is to assure that State assistance would continue were a
delay in the federal program to occur.
Commissioner Gilbertson declared that the transition from the State
assistance program to the federal program would be "seamless," and
that the federal benefits would be comparable to the benefit
provided by this legislation. He shared that the forthcoming
federal assistance program would include such things no annual
premium or deductible being required of eligible seniors living at
or less than 135 percent of poverty level. He noted that coverage
for seniors living between 135 and 150 percent of the FPL would be
subject to a sliding scale premium subsidy and a lower deductible
than normally available.
SHERRY HILL, Special Assistant, Office of the Commissioner,
Department of Health and Social Services, noted that while the
Department has provided detailed information pertinent to this
legislation, specific details regarding the federal program have
not been provided.
Commissioner Gilbertson presented a chart [copy on file] titled
"SeniorCare Bridging the Gap Comparison of Benefits" that exampled
how the SeniorCare proposal would affect a senior who might spend
$2,500 annually on prescription drug expenses.
[Note: While the Department's oral testimony correctly specified
that in order to qualify for the subsidy, a senior's income must be
equal to or less than 135 percent of the federal poverty level, the
following chart provided by the Department incorrectly specifies
that the income level must exceed 135 percent.]
Bridging the Gap
Comparison of Benefits
$2,500 Annual Rx Cost
> 135% FPL
Without SeniorCare: Out of Pocket: $1,650
Medicare Discount: $ 250
Medicare Subsidy: $ 600
SeniorCare RX Benefit: SeniorCare RX Benefit: $1,600
Out of Pocket: $ 50
Medicare Discount: $ 250
Medicare Subsidy: $ 600
SeniorCare Cash Benefit: SeniorCare Cash Benefit:$1,440
Out of Pocket: $ 210
Medicare Discount: $ 250
Medicare Subsidy: $ 600
Between 135-150% FPL
Without SeniorCare: Medicare Discount: $ 250
Out of Pocket: $2,250
SeniorCare RX: Out of Pocket: $1,250
Medicare Discount: $ 250
SeniorCare Cash Benefit:$1,000
Commissioner Gilbertson avowed that while the proposed out-of-
pocket expenses might remain a hardship for some seniors in the
State, the Governor's proposal would provide "a safety net" to
those who cannot provide for themselves until the federal program
is implemented.
Commissioner Gilbertson pointed out that such things as smoking
cessation aides, over-the-counter drugs, cough and cold remedies,
and impotency drugs would be excluded from coverage. Continuing, he
noted that while the program encourages the use of generic drugs,
provisions are included in the bill to cover brand name drugs when
designated as "medically necessary" by a prescriber.
Commissioner Gilbertson exampled that, were this cash subsidy
program implemented, regulations would be designed to enable
seniors to access the program with ease. He stated that qualifying
seniors would be issued a card to present at the point of purchase,
and, he continued, that card would electronically communicate with
the State's Medicaid Management Information System (MMIS) and track
the benefit subsidies for the user. He noted that the associated
administrative expenses are specified in the Department's
accompanying fiscal notes. He stated that were this legislation
approved within the next few weeks, the application process could
begin in February; enrollment could be conducted in March, and
benefits could begin in April 2004. He stated that were this
timeframe to occur, expenses would be incurred in the last quarter
of FY 04, throughout FY 05, and into approximately the first
quarter of FY 06 when the transition to the federal program is
expected to occur.
Senator Bunde asked for further information regarding the program's
cash benefit component, as he perceives that State programs benefit
more from non-cash benefits as opposed to cash benefits.
Commissioner Gilbertson responded that the Department would be
providing approximately $220 million in program assistance to
seniors in FY 04 in a variety of manners; some of which would be in
the form of cash. He stated that, in addition to various senior
care cash programs, the Department also manages the Adult Public
Assistance Program, which expends approximately $20 million
annually and supplies up to $362 per month in cash assistance to
approximately 5,000 seniors. He agreed that the State does "get
better mileage" from direct benefit programs such as heating and
housing assistance "because the dollars are more directly targeted
toward the need," could be more "efficiently" delivered, and could
deliver a higher level of direct program resources. However, he
noted that a benefit of providing cash assistance is "the
flexibility" that it provides to the consumer. He attested that
this flexibility is "important to protect" and he noted that the
adult cash assistance programs proposed in the Governor's FY 05
budget would be fully funded. On behalf of the Department, he
acknowledged "the need to temporarily" assist the State's seniors
with either cash assistance or a subsidy to address prescription
drug expenses, and he stated that the Department would continue to
support its cash assistance programs.
Senator Bunde ascertained, therefore, that a part of the proposed
SeniorCare cash assistance program "is a duplication of the Adult
Public Assistance" Program.
Commissioner Gilbertson characterized the SeniorCare cash
assistance "as a supplement, on top of" the Adult Public Assistance
program. He stated that some of the seniors who might receive the
prescription drug cash benefit or subsidy money might not meet the
income eligibility requirements of the Adult Public Assistance
Program.
Senator Bunde described the SeniorCare proposal as "Adult
Assistance Program Plus," in that higher income level seniors would
qualify.
Commissioner Gilbertson pointed out that, "the one difference is
that if you are eligible for Adult Public Assistance…you are
automatically eligible for Medicaid," whereas, he clarified,
seniors in the SeniorCare program would be limited to simply the
receipt of the cash prescription drug benefit.
Senator Bunde commented that, in addition, the SeniorCare
eligibility levels also differ from those of the Adult Public
Assistance Program.
Commissioner Gilbertson concurred that the eligibility levels would
differ in that the qualifying parameters for the Adult Public
Assistance Program are an annual income of approximately $12,000 as
compared to a SeniorCare annual qualifying income of approximately
$15,000.
Senator Bunde asked whether qualifying for the Adult Public
Assistance program is based on a percent of the FPL.
JON SHERWOOD, Unit Manager, Beneficiary Eligibility Policy,
Division of Medical Assistance, Department of Health and Social
Services commented that were it a factor, it would amount to
approximately 110 percent of the FPL.
Commissioner Gilbertson clarified that while the income level would
amount to approximately 110 percent of the FPL, the qualifications
are "not directly tied to the FPL."
Co-Chair Green asked for assurance that the transition from the
State to the federal medical prescription program "would be
seamless and uncomplicated" and that similar benefits would be
provided.
Commissioner Gilbertson assured that the transition would be
seamless and that the initial federal benefit "would be a little
bit richer." He continued that seniors living at or below 135
percent of the FPL would amount to approximately 8,000 of the
approximately 10,500 total Alaskan seniors anticipated to receive
SeniorCare benefits. He reiterated that these 8,000 seniors would
not be required to meet a deductible nor remit any premiums, and
that those seniors living at between 135 and 150 percent of the FPL
would have no premiums and reduced deductible levels. In addition,
he stated that their cost sharing expenses would also be reduced as
compared to that of the general Medicare population.
Co-Chair Green surmised that the Senior Information Service would
be available to assist applicants with the transition to the
Medicare drug program.
Commissioner Gilbertson agreed. He specified that two fulltime
staffers would be hired and trained to assist seniors with federal
and local senior programs in addition to the entirety of the
Department's programs. He mentioned that the Department has
restructured in order to concentrate senior services within one
division and to address seniors' concerns regarding the
"impenetrability" of the multitude of senior programs.
Senator Olson noted that the legislation specifically identifies in
Section 1(h) that prescription drugs, insulin, and insulin syringes
would be covered items. Therefore, he asked whether other elderly
persons' medically necessary items such as colonoscopy bags would
be covered.
Commissioner Gilbertson clarified that this legislation is targeted
to address the expense incurred by prescription drugs, and
therefore, while some associated items such as insulin would be
provided for, the focus of the legislation is limited. He pointed
out that some items such things as cough and cold medicine, oral
vitamins, smoking cessation aides, and brand name prescription
drugs when generic drugs are available, are specifically excluded.
However, he noted, "there is an opt-out" provision whereby doctors
could prescribe a specific brand name drug. He declared that these
provisions assist in making the drug subsidy program available for
a "widest range of seniors" as opposed to "a use it or loose it"
program in which such things as over the counter cough and cold
medicines "are snatched up" at the end of the year in order to
expend a specific allotted amount of money.
Senator Olson asked whether prescription cough medicine would be
covered.
Mr. Sherwood noted that the legislation's language would exclude
such things as over the counter cough remedies and "their
prescribed equivalents." However, he clarified that prescribed
cough medicine that does not have an over the counter equivalent
would be covered.
Senator Olson argued that the bill's language is conflicting as
"either a drug is a prescription drug or it isn't."
Commissioner Gilbertson clarified that while drugs that are solely
available by prescription would be covered, over the counter drugs
for which a prescription might be provided, would be excluded. He
noted that further discussion would occur within the Department to
clarify the intent of the bill's language.
Senator Olson surmised that the majority of the State's seniors
would choose the $120 per month cash option as opposed to the drug
subsidy option; however, he noted that this option would be
available once the federal drug assistance program is implemented.
Commissioner Gilbertson reminded that the purpose of this program
is to assist seniors with their prescription drug expenses via
their choice of either the cash assistance or prescription subsidy
option. He stated that upon the implementation of the federal
program, the prescription drug expense "burden would be lifted" and
the State program would be terminated.
Co-Chair Wilken asked the Commissioner for further information
regarding the Department's Division of Health Care fiscal note #5;
specifically whether its projected $85,000 FY 04 expense would be
funded via a supplemental request or by existing Department funds.
Commissioner Gilbertson responded that the Department anticipates
that a combination of excess funds in the senior assistance program
and projected fourth quarter budget surpluses, assisted by some
supplemental funding, would fund the FY 04 expense.
Co-Chair Wilken noted that the Department's Division of Public
Assistance fiscal note #2 provides further information regarding
the number of individuals this legislation would serve. Continuing,
he asked the total number of seniors currently being served by the
aforementioned $220 million FY 04 senior service program
allocation. Additionally, he asked for further information
regarding a separate FY 05 capital project request for a Department
computer-indexing program.
Commissioner Gilbertson responded that currently, due to an
inadequate Information Technology (IT) system, an unduplicated
tracking of individuals being served by the Department's senior
services programs is unavailable. He expanded that while the
Department could provide an accounting of the persons being served
within each of its divisions, the Department's current IT system is
incapable of tracking individuals participating in "cross division"
programs. However he shared that this issue is being addressed in
separate legislation that proposes to consolidate the Department's
125 separate IT systems into one master client index that could be
utilized and shared amongst the entirety of the Department's
divisions. He declared that a resolution to this issue would be
required in order to provide better utilization and tracking of
direct and secondary support services provided to individuals and,
furthermore, to members comprising a family unit.
Senator Hoffman asked regarding Co-Chair Wilken's intentions with
the bill.
Co-Chair Wilken voiced the intent to hold the bill in Committee;
however, he asked that Senator Olson present, for discussion
purpose, his proposed amendment.
Senator Hoffman asked whether the proposed prescription drug cash
benefit and subsidy would be considered income and would,
therefore, be taxable.
Commissioner Gilbertson understood the subsidy to be non-taxable;
however, he was unsure as to the determination regarding the cash
subsidy. He stated that the Department would address this tax
burden concern and report its findings to the Committee.
Senator Hoffman asked regarding the 30-day consecutive absence
language as compared to the Alaska Permanent Fund allowable absence
of 180 days, and its affect on program recipients as specified in
Section 1(k), subsection (2) on page three, line 31 that reads as
follows.
(k) An eligible individual who leaves the state may not
receive cash assistance or prescription drug benefits under
this section during the absence, unless the individual
temporarily leaves for one of the following:
(1) medical treatment; or
(2) a vacation, business trip, or other absences of less
than 30 days, unless the individual has applied for and
received a time extension from the department for special
circumstances.
Commissioner Gilbertson responded that limiting a vacation absence
to 30 consecutive days was a discretionary decision made by the
Administration. He stressed that the intent of the legislation is
to provide assistance to senior citizens within the State of
Alaska.
Senator Hoffman asked for confirmation that the program recipients
must apply for and select one of the two proposed subsidy plans
once a year, as specified in Section 1(e) of the bill, on page two,
line 23 that reads as follows.
(e) In place of the cash assistance under (d) of this section,
an eligible individual may make an irrevocable election to
receive prescription drug benefits annually, provided in the
manner specified by the department in regulation. The total
maximum prescription drug benefit an individual may receive
under this subsection in a fiscal year is $1,600. An
individual who has prescription drug coverage under AS 47.07
is not eligible to receive prescription drug benefits under
this subsection.
Commissioner Gilbertson confirmed that applications must be
submitted on an annual basis, and that individuals living at or
below 135 percent of the FPL could elect to receive either the cash
assistance option or the prescription subsidy option.
Senator Hoffman suggested that this language, specifically the
phrase "irrevocable election," be further clarified.
Commissioner Gilbertson shared that this issue and a related
amendment were discussed in a House of Representatives Finance
Committee hearing. He stated that the amendment would be supplied
to the Committee. He stated that the Department agrees that
clarifying language should be furthered.
Senator Hoffman asked for an explanation regarding the exclusion of
coverage for name brand prescription drugs, as he ascertained that
the bill's language automatically provides coverage for these items
in language, located in Section 1(h) on page three, line 15 of the
bill that reads as follows.
…However, the department may pay for brand name multi-source
drugs if the prescriber writes on the prescription "The brand
name drug is medically necessary" and the prescriber writes
the reason that the brand name drug is medically necessary.
Commissioner Gilbertson responded that changing the word "may" to
"shall" in Section 1(h) was also discussed in the House Finance
Committee. He stated that the Department would not oppose this
change, as the intent of the Department is to honor a physician's
determination that a specific rather than generic drug be
prescribed.
Co-Chair Wilken asked the Department to provide the Committee with
determinations regarding whether the cash payment would be taxable
and how coverage of name brand drugs should be addressed.
Co-Chair Green asked whether the Department's proposed IT
improvements would provide a family with multiple needs the ability
to work consistently with one agency rather than being required to
meet with several different agencies.
Commissioner Gilbertson responded that while a family's needs and
circumstances would be the determining factor, the primary intent
of the IT enhancements would be to share information intra-
departmentally. He noted that other legislation is being developed
to address program design and administration to improve program
recipients' interaction with the Department as well as with local
agencies to which program grants are awarded.
Co-Chair Wilken asked Senator Olson to address his amendment, and
in addition, he asked that Senator Olson and the Department
consider incorporation of the amendment into a forthcoming
committee substitute.
SFC 04 # 1, Side B 09:50 AM
Amendment #1: This amendment deletes the language on page one, line
four that reads "Section 1. The uncodified law of the State of
Alaska is amended by adding a new section to read" and replaces
that language with the following.
"Section 1. AS 47.65 is amended by adding a new section'
In addition, the amendment deletes "SENIORCARE PROGRAM" on page
one, line six and inserts:
"Article 4. Cash and Drug Benefit for Older Alaskans.
Sec. 47.65.300. Senior care program."
Furthermore, the amendment deletes all material on page five, lines
7 through 12 that read as follows.
Sec. 3. (a) This Act is repealed on the date that the Medicare
Part D benefit under P.L. 101-173 for prescription drugs for
Medicare recipients is operational for recipients in the
state, as communicated to the commissioner of health and
social services by the United States Department of Health and
Social Services.
(b) The commissioner of health and social services shall
notify the revisor of statutes of the date described in (a) of
this section.
Senator Olson explained, but did not formally offer, Amendment #1.
He voiced concern that the implementation of the federal program
might inadequately address the situation, and therefore, he noted
that the intent of the amendment would be to make the SeniorCare
drug assistance program permanent.
Co-Chair Wilken asked the Department to evaluate the effects of the
amendment on the Department.
MARIE DARLIN, Coordinator, Capitol City Task Force, AARP,
referenced the AARP Alaska letter [copy on file] addressed to the
Co-chairs, dated January 20, 2004 that expresses the organization's
support of this legislation. She shared that while the recent
elimination of the Longevity Bonus Program combined with the
escalating cost of prescription drugs has incurred a hardship for
many of the State's seniors, this program would be a beneficial
bridge to numerous low-income seniors until the time that the
federal drug assistance program is implemented. She stated that
AARP would be available to assist the Administration in this
endeavor. In addition she voiced support for the two other
components of the SeniorCare program, as she avowed, the assistance
that would be provided to seniors and their families by the
recently established Senior Information Office is appreciated and
would be required to serve the needs of the State's growing senior
population. She also noted that the development of a preferred drug
list (PDL) for Medicaid and this program, combined with the
assurance that name brand drugs would be covered when medically
prescribed, would be necessary in order to contain expenses. In
summary, she noted that the members of AARP are cognizant of the
State's fiscal situation, and she attested that one of AARP's
initial concerns about the SeniorCare program was how the program
would be funded; specifically that the cost of the program would
not negatively affect another necessary State program.
Senator Bunde voiced appreciation for AARP's recognition of the
State's fiscal situation.
BOB GRIGGS, Staff Attorney, Disability Law Center, referenced his
testimony [copy on file] that was recently submitted to the Co-
chairs and clarified that, rather than being written on January 6,
2004 as incorrectly dated, it was actually penned on January 20,
2004. He also pointed out that an analysis he wrote, titled
"Alaska's Disabled Medicare Beneficiaries & The Debate Over Drug
Benefits: A Forgotten Population?" [copy on file] accompanies the
letter.
Co-Chair Wilken confirmed that this information was recently
received and that it information would be considered for inclusion
in a forthcoming committee substitute.
Mr. Griggs communicated that the Disability Law Center has been
advocating since approximately 1996, that prescription drug
coverage be provided to all eligible Medicare persons because, due
to "an irony" in the federal and State disability benefit programs,
there are 225 Alaskans under the age of 65 who have disabilities
and receive Medicare benefits, but who, due to the fact that they
worked and paid Social Security taxes for ten or more years do not
qualify to participate in the Medicaid program that provides a
prescription drug benefit. However, he pointed out that individuals
with disabilities who have no work history do qualify for the
Medicaid prescription drug benefit.
Mr. Griggs continued that while this legislation "is an excellent
step" in providing a bridge until the time that the federal program
is implemented, numerous individuals with disabilities would not be
provided for. Furthermore, he stated that, as referenced in his
analysis, a total of 707 disabled individuals in the State under
the age of 65 could be characterized as "medically indigent because
they spend more than five percent of their income on prescription
drugs alone per year." He also noted that these individuals are
expensive to provide coverage for, as based on available "dated"
1998 information, $1,284 is spent annually nationally per capita
for prescription drugs as compared to an annual expenditure of $841
per capita for those over the age of 65. He communicated that,
using the 1998 figures, including Alaska's "medically indigent"
disabled under the age of 65, in this legislation would cost
approximately $726,000 per year using a 20-percent co-payment as
compared to a $288,000 per year expense were these disabled
individuals provided for using FPL incomes as the determining
factor.
Mr. Griggs acknowledged the fiscal constraints the State is facing,
but urged that, if possible, this issue be further considered out
of concern that the forthcoming federal prescription program might
not adequately provide for this population group. He voiced support
for the bill.
Senator Bunde keyed in on the fact that the cost projections were
based on 1998 information and asked whether more recent cost
estimates might be available.
Mr. Griggs responded that more recent data is being pursued. He
stated that the information being presented was provided as it
contains the most pertinent data that is available.
Senator Bunde requested that possible funding sources be identified
to support this need.
Co-Chair Wilken asked whether this information has been provided to
the House of Representatives Finance Committee as they are
considering a similar companion bill.
Mr. Griggs assured that this information was recently been provided
to the House Finance Committee.
Co-Chair Wilken noted that, upon evaluation, the Department would
issue a recommendation regarding this information. He noted that
this is considered a priority bill, as the Administration would
like to enact the legislation as soon as April 2004.
At the request of Co-Chair Wilken, Committee Members identified
their Committee aides as follows: Co-chair Wilken's Committee aides
are Sheila Peterson, Darwin Peterson, and Marty Meyers; Co-Chair
Green's Committee aides are Deb Davidson and Jacqueline Tupou,
Senator Ben Stevens' Committee aides are Phelan Straube and Kristy
Tibbles; Senator Bunde's Committee aide is Lynn Smith; Senator
Olson's Committee aide is Dave Grey; Senator Hoffman's Committee
aide is Tim Grussendorf; and Senator Dyson's Committee aide is
Lucky Shultz.
The bill was HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:11 AM
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