Legislature(1993 - 1994)

03/28/1994 01:37 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE                     
                         March 28, 1994                                        
                           1:37 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Steve Rieger, Chairman                                                
 Senator Bert Sharp, Vice-Chairman                                             
 Senator Loren Leman                                                           
 Senator Mike Miller                                                           
 Senator Jim Duncan                                                            
 Senator Judy Salo                                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Johnny Ellis                                                          
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 367                                                           
 "An Act relating to health care and insurance for health care; to             
 review and approval of health insurance rates and rating factors;             
 relating to certain civil actions against health care providers; to           
 coordination of insurance benefits and to determination and                   
 disclosure of fees paid to an insured or health care provider; to             
 the rate of interest on certain judgments and decrees; to excise              
 taxes on cigarettes; amending Alaska Rules of Civil Procedure 26,             
 27, 68, 79, and 82 and Alaska Rules of Evidence 802, 803, and 804;            
 repealing Alaska Rule of Civil Procedure 72.1; and providing for an           
 effective date."                                                              
                                                                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 SB 367 - No previous action to record.                                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Nancy Usera, Commissioner                                                     
 Department of Administration                                                  
 P.O. Box 110200                                                               
 Juneau, Alaska 99811-0200                                                     
  POSITION STATEMENT:   Expressed concerns with SB 367.                        
                                                                               
 Jay Livey, Deputy Commissioner                                                
 Department of Health and Social Services                                      
 P.O. Box 110601                                                               
 Juneau, Alaska 99811-0601                                                     
  POSITION STATEMENT:   Suggested including an excise tax on alcohol.     .    
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
 TAPE 94-23, SIDE A                                                            
 Number 005                                                                    
 CHAIRMAN RIEGER called the Senate Health, Education and Social                
 Services (HESS) Committee to order at 1:37 p.m.  He introduced                
  SB 367  (HEALTH CARE REFORM COMMITTEES) as the only business before     e    
 the committee.  He gave an overview of SB 367 through the sectional           
 summary provided in the committee packets.  He noted his previous             
 amendment which strengthened the arbitration provision when                   
 indicating that it may be useful in sections 1 and 2 of SB 367.               
                                                                               
 Chairman Rieger indicated that the language of section 4 was                  
 simpler language than earlier recommended to the committee which              
 may or may not be appropriate.  He explained that commercial                  
 enterprises would need a high enough rate of interest on judgements           
 so as not to induce a delay of settlement.  On the other hand, when           
 not dealing with a commercial settlement, the penalty should not              
 increase at a punitively high rate.  The settlement should be                 
 relatively equal to the adjusted value of the damage when the                 
 damage occurred.  He suggested that the committee review that                 
 language.                                                                     
                                                                               
 Chairman Rieger pointed out that section 6 provides a $300 per day            
 fee as opposed to the previous $150 per day fee.  This may still be           
 too low.  He noted that section 12 changes the excise tax on                  
 cigarettes to 17 mills which differs from the Governor's proposal.            
 He emphasized that the most significant changes in SB 367 are                 
 encompassed in sections 16 and 17.  Section 16 establishes a                  
 committee with a more specific direction than that of SB 270; this            
 section provides a mechanism for implementing a catastrophic                  
 universal plan and a major medical plan.  Section 17 attempts to              
 pursue the idea of practice parameters.  He pointed out that the              
 Health Care Plan Advisory Committee and the Medical Practice                  
 Advisory Committee are repealed under section 23 which eliminates             
 the lengthy sunset process.                                                   
                                                                               
 Number 185                                                                    
                                                                               
 NANCY USERA, Commissioner of the Department of Administration,                
 stated support for SB 270.  She said that in some areas SB 367 goes           
 farther than SB 270 and in others it does not.  SB 367 would                  
 advance the cause of the health care system in Alaska.  She                   
 supported the concept of discovering a financing mechanism and a              
 financing source for the data collection; however, she expressed              
 that the 1996 repealor of the advisory boards would leave a void              
 for dealing with this issue in the long term.  She stated that the            
 things that SB 367 would do for the health care system are helpful.           
                                                                               
 CHAIRMAN RIEGER explained that the repealer of the two committees             
 is in response to the difficulty to sunset organizations.  He said            
 that language could be added to extend the existence of the                   
 committees, if they prove useful or if more information was needed            
 by the state.                                                                 
                                                                               
 NANCY USERA expressed concern that any long term changes to the               
 health care system have adequate planning and management so that              
 health care is reviewed in a comprehensive manner for Alaska.                 
                                                                               
 CHAIRMAN RIEGER asked if Ms. Usera had any specific areas that she            
 wanted addressed in SB 367.  NANCY USERA said no.  CHAIRMAN RIEGER            
 said that SB 367 would be open to suggestions.  NANCY USERA said              
 that she would review SB 367.                                                 
                                                                               
 JAY LIVEY, Deputy Commissioner of the Department of Health and                
 Social Services, commended the inclusion of an excise tax on                  
 cigarettes in SB 367.  He informed the committee that if someone              
 can reach the age of eighteen without smoking, then they are not              
 likely to start smoking.  The higher price of cigarettes would be             
 price sensitive to young smokers; hopefully, leading to a decrease            
 in the number of young smokers.  He suggested that an alcohol                 
 excise tax would be good for the same reasons as discussed                    
 regarding the cigarette excise tax.  He noted SB 269 which includes           
 an excise tax on cigarettes and alcohol.  He offered to provide the           
 committee with more information regarding an alcohol excise tax.              
                                                                               
 CHAIRMAN RIEGER asked if anyone else would like to testify on                 
 SB 267.  A brief at ease was taken in order to allow the listen               
 only teleconference sites to testify.  No one desired to testify by           
 teleconference.  Chairman Rieger held SB 367 until Wednesday's                
 meeting.                                                                      
                                                                               
 There being no further business before the committee, the meeting             
 was adjourned at 2:00 p.m.                                                    
                                                                               

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