Legislature(2011 - 2012)BUTROVICH 205

02/07/2011 01:30 PM Senate HEALTH & SOCIAL SERVICES


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01:32:03 PM Start
01:33:30 PM Overview: Department of Health and Social Services
02:35:36 PM Presentation: Alaska Health Care Commission
03:02:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
Department of Health & Social Services Overview
Commissioner William Streur
Alaska Health Care Commission Report/Update
Deborah Erickson, Executive Director and
Ward Hurlburt, MD, MPH, Chair
                    ALASKA STATE LEGISLATURE                                                                                  
      SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                    
                        February 7, 2011                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bettye Davis, Chair                                                                                                     
Senator Dennis Egan                                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Kevin Meyer                                                                                                             
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEW: DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION: ALASKA HEALTH CARE COMMISSION                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WILLIAM J. STREUR, Commissioner                                                                                                 
Department of Health and Social Services                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented Department of Health and Social                                                                 
Services overview.                                                                                                              
                                                                                                                                
ALLISON ELGEE, Assistant Commissioner                                                                                           
Division of Finance Management                                                                                                  
Department of Health and Social Services (DHSS)                                                                                 
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented Department of Health and Social                                                                 
Services overview.                                                                                                              
                                                                                                                                
DEBORAH ERICKSON, Director                                                                                                      
Alaska Health Care Commission                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
POSITION STATEMENT: Presented Health Care Commission report.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:03 PM                                                                                                                    
CHAIR BETTYE  DAVIS called the  Senate Health and  Social Services                                                            
Standing Committee  meeting to order  at 1:32 p.m. Present  at the                                                              
call to order were Senators Ellis, Dyson, Egan, and Chair Davis.                                                                
                                                                                                                                
      ^Overview: Department of Health and Social Services                                                                   
       Department of Health and Social Services Overview                                                                    
                                                                                                                                
CHAIR DAVIS announced the committee would hear an overview from                                                                 
the Department of Health & Social Services.                                                                                     
                                                                                                                                
SENATOR MEYER joined the meeting.                                                                                               
                                                                                                                                
1:33:30 PM                                                                                                                    
WILLIAM J. STREUR,  Commissioner, Department of Health  and Social                                                              
Services,  said the department's  vision  is that all  individuals                                                              
and families in  the state are healthy, safe,  and productive, and                                                              
its mission  is to promote and  protect the health  and well-being                                                              
of  Alaskans. He  explained  the department's  strategies  include                                                              
more   integration   of  services,   strategic   technology   use,                                                              
promoting  rural infrastructure,  development and  standardization                                                              
of  regional  structures,  and  promoting  accountability  at  all                                                              
levels.  He said  that the  department  is very  good at  spending                                                              
money, but telling  people exactly what they do  has been elusive.                                                              
He further  explained that  the department's  2011 priorities  are                                                              
substance  abuse  and mental  health  services. These  affect  all                                                              
Alaskans, and  are contributing  factors to problems  ranging from                                                              
unemployment to  domestic violence  to suicide. The  department is                                                              
constantly  refining  the  way it  addresses  these  issues;  with                                                              
limited  resources it  is a  difficult challenge  to target  areas                                                              
such  as  underage drinking,  binge  drinking,  suicide,  domestic                                                              
violence and  sexual assault, but  early intervention can  work to                                                              
integrate behavioral health with primary care.                                                                                  
                                                                                                                                
1:37:50 PM                                                                                                                    
COMMISSIONER  STREUR  stressed  there  is  a  need  for  universal                                                              
screening for behavioral  health issues in primary  care settings.                                                              
In the  Juneau School  District,  he said, 23-40  percent  of high                                                              
school students  had major  depression or  suicidal thoughts.  The                                                              
department's   goals   are   expanding   family-based   treatment,                                                              
increasing   access   to   substance    abuse   services,   adding                                                              
involuntary   treatment  and  secure   detox  services,   ensuring                                                              
adequate   response   to  behavioral   health   emergencies,   and                                                              
increasing use of telemedicine.                                                                                                 
                                                                                                                                
In terms of recovery,  he noted, the department  supports an array                                                              
of  recovery  services,  using   performance-based  standards  and                                                              
funding;   the  department   aims   to  have   behavioral   health                                                              
regulations in  place this summer  that reflect the  philosophy of                                                              
integration between mental health and substance abuse.                                                                          
                                                                                                                                
COMMISSIONER  STRUER   also  said  that  chronic   disease  has  a                                                              
staggering  impact  on Alaska,  and  most of  this  is related  to                                                              
personal choice  around diet, smoking,  and exercise.  Roughly 35%                                                              
of children in Alaska  and 66% of adults are overweight  or obese;                                                              
direct  medical  costs related  to  being overweight  cost  Alaska                                                              
$477 million  per year, and now  surpass those related  to tobacco                                                              
use. He stated  that major health and wellness  strategies include                                                              
prevention and  health promotion,  disease control, and  access to                                                              
insure  that all  possible  resources  are available  in  Alaska's                                                              
communities.                                                                                                                    
                                                                                                                                
COMMISSIONER  STREUR   continued  summarizing  a   number  of  the                                                              
department's priorities, as follows:                                                                                            
                                                                                                                                
Prevention   and  Health   Promotion:  Implement   evidence-based,                                                              
population-based  health  promotion  efforts  to  reduce  obesity,                                                              
chronic  disease,   and  injuries.  Increase   primary  prevention                                                              
approaches,    including   those    targeting   increased    self-                                                              
responsibility. Educate  about and improve methods  for screening,                                                              
diagnosis, and  early treatment  of conditions and  behaviors most                                                              
detrimental to the physical and mental health of Alaskans.                                                                      
                                                                                                                                
Disease  Control:  Detect  epidemics  and control  the  spread  of                                                              
infectious  diseases,   in  particular  influenza,   tuberculosis,                                                              
hepatitis  C,  HIV  and  sexually  transmitted  diseases,  through                                                              
screening,  testing, diagnosis  and  treatment. Immunize  children                                                              
and adults against vaccine-preventable diseases.                                                                                
                                                                                                                                
Access:  Use   public  health  nurses   to  ensure   all  possible                                                              
resources  are  made  available  in  Alaskan  communities.  Expand                                                              
medical   examiner   services    statewide.   Increase   community                                                              
partnerships  to  improve  local  capacity for  primary  care  and                                                              
preventive health services.                                                                                                     
                                                                                                                                
Emergency Response  and Preparedness:  Build capacity  in Alaska's                                                              
statewide trauma  system. Work with communities to  prevent health                                                              
emergencies and prepare for pandemics and natural disasters.                                                                    
                                                                                                                                
Environmental  Health  Impacts:  Provide  medical,  toxicological,                                                              
and  public health  expertise to  individuals  and communities  to                                                              
enable  them  to  reduce  hazards  from  environmental  exposures.                                                              
Develop  credible,   science-based,  Alaska-specific   information                                                              
about  environmental  exposure  levels  and  potential  impact  to                                                              
human health.                                                                                                                   
                                                                                                                                
1:42:11 PM                                                                                                                    
Workforce:  Partner with the  University of  Alaska and  others to                                                              
create  new   training  opportunities  for   health  professionals                                                              
throughout the  state. Create professional residency  programs for                                                              
"hard to attract"  health care fields such as  psychiatry. Develop                                                              
alternative approaches to health care delivery in rural Alaska.                                                                 
                                                                                                                                
In  terms  of   long-term  care,  Commissioner  Streur   made  the                                                              
following comments:                                                                                                             
                                                                                                                                
Medicaid  is the  primary payer  for long-term  care services  for                                                              
the  elderly   and  disabled.  In   Alaska,  those   services  are                                                              
delivered  in  a fragmented  fee-for-service  environment.  Alaska                                                              
has been  very successful  in making  services available  in homes                                                              
and  communities, thereby  delaying  or avoiding  the higher  cost                                                              
and  more restrictive  institutional  care  for many  individuals.                                                              
Challenges  remain,  however,  in  the availability  of  home  and                                                              
community-based services  in rural areas; long-term  institutional                                                              
care for  those individuals  with very high  needs that  cannot be                                                              
met  in the  community;  standardization of  the  quality of  care                                                              
delivered; and comprehensive  oversight of the health  and welfare                                                              
of these participants.                                                                                                          
                                                                                                                                
Major strategies include:                                                                                                       
                                                                                                                                
Identification and Coordination of Health and Welfare Needs:                                                                    
                                                                                                                                
Implement quality  assurance strategies  that set forth  standards                                                              
of performance  for home  and community-based  care providers  and                                                              
remediation responses for failure to meet those standards.                                                                      
                                                                                                                                
Integrate  automated solutions  that  provide  for real-time  care                                                              
plan  development and  amendment to  meet change  in condition  of                                                              
the participant and to conduct risk assessments.                                                                                
                                                                                                                                
Align  cross-division  efforts   to  manage  provider  enrollment,                                                              
certification, and compliance and performance oversight.                                                                        
                                                                                                                                
Train and  oversee the performance  of care coordinators  who have                                                              
the role of continuous  monitoring of health and  welfare needs of                                                              
waiver program participants.                                                                                                    
                                                                                                                                
Integrate recipient  feedback on analysis of the  efficacy of home                                                              
and community based programs.                                                                                                   
                                                                                                                                
Develop  integrated pro-active  and  reactive  programs of  safety                                                              
related  to  complaints and  reports  of  harm received  by  Adult                                                              
Protective  Services,  Long  Term Care  Ombudsman,  Licensing  and                                                              
Certification and Senior and Disabilities Services.                                                                             
                                                                                                                                
Increase utilization  of Aging and Disability Resource  Centers as                                                              
referral sources  to meet  the needs  of those receiving  services                                                              
in their home and community settings.                                                                                           
                                                                                                                                
Promote a  service array that meets  the needs of  the underserved                                                              
who require long term care services                                                                                             
                                                                                                                                
Collaborate  with providers  to  develop sustainable  options  for                                                              
institutional  care that  meets the  needs of  those very  complex                                                              
individuals whose  needs may  not be safely  met in  the community                                                              
setting;                                                                                                                        
                                                                                                                                
Improved  coordination of  services to  individuals utilizing  the                                                              
general  relief  program to  promote  greater  self-responsibility                                                              
and self-reliance where appropriate;                                                                                            
                                                                                                                                
Provide continued  support to individuals  who do not  qualify for                                                              
waiver  services   but  need  supports  through   continued  grant                                                              
opportunities;                                                                                                                  
                                                                                                                                
Create  sustainable   solutions  through  partnerships   with  the                                                              
Pioneer  Homes, Senior  and  Disabilities  Services, Medicaid  and                                                              
Behavioral Health  to address the needs of individuals  with long-                                                              
term  needs related  to complex  behavioral  issues and  cognitive                                                              
deficits such as Alzheimer's disease and other dementias.                                                                       
                                                                                                                                
Develop Integrated and Comprehensive Model of Care                                                                              
                                                                                                                                
Evaluate  opportunities  provided  by the  federal  government  to                                                              
manage the benefits of dually eligible individuals.                                                                             
                                                                                                                                
1:44:52 PM                                                                                                                    
COMMISSIONER STREUR  emphasized that family centered  services are                                                              
the key  to meeting  the needs  of our  most vulnerable  citizens;                                                              
developmentally  disabled children and  adults should  have access                                                              
to  quality  services,   as  well  as  financial   and  vocational                                                              
supports  that  they  need  to  maximize  their  contributions  to                                                              
society.                                                                                                                        
                                                                                                                                
He noted that strategies include the following:                                                                                 
                                                                                                                                
Protective  Services:  Provide  effective  and  timely  protective                                                              
services  to vulnerable children  and adults  experiencing,  or at                                                              
risk  for,  neglect,  abuse and  exploitation  in  an  environment                                                              
where  more  timely  and  effective  reporting  by  providers  and                                                              
community   members  is   occurring.   Forge  relationships   with                                                              
community  partners to develop  proactive  measures to reduce  and                                                              
eliminate risks to  the health and welfare of  vulnerable children                                                              
and adults.                                                                                                                     
                                                                                                                                
Domestic  Violence  and  Sexual   Assault:  Strengthen  behavioral                                                              
health  programs  to address  family  violence prevention  and  to                                                              
provide  treatment  for  alcohol  and substance  abuse,  often  an                                                              
underlying cause of DVSA.                                                                                                       
                                                                                                                                
Suicide   Prevention:  Target   suicide   prevention  efforts   to                                                              
individuals and communities most in need.                                                                                       
                                                                                                                                
Bring the  Kids Home Initiative:  Continue efforts to  develop the                                                              
infrastructure within  the state to support the  needs of children                                                              
who have  previously been  sent out of  state to receive  services                                                              
and to keep youth in state.                                                                                                     
                                                                                                                                
Families First Initiative:  Expand this project which  is designed                                                              
to  help families  leave  the  public  assistance rolls  and  find                                                              
employment   through  coordination   of  services  between   state                                                              
agencies  to assure  that  services are  designed  to meet  family                                                              
needs vs. individual program requirements.                                                                                      
                                                                                                                                
1:48:13 PM                                                                                                                    
COMMISSIONER  STREUR  explained  that  the  DHSS  has  over  3,690                                                              
employees  working  in  eight divisions;  those  are,  the  Alaska                                                              
Pioneer Homes,  Behavioral Health  Services, Children's  Services,                                                              
Juvenile  Justice,   Public  Assistance,  Health   Care  Services,                                                              
Senior  Disability Services,  and  Financial Management  Services.                                                              
He  then turned  the  floor over  to Allison  Elgee  for a  budget                                                              
overview.                                                                                                                       
                                                                                                                                
1:49:25 PM                                                                                                                    
ALLISON  ELGEE, Assistant  Commissioner, Division  of Finance  and                                                              
Management,  Department  of  Health and  Social  Services  (DHSS),                                                              
noted that  the information  in the Budget  Overview Book  is also                                                              
available on the  department's web site. She said  the Fiscal Year                                                              
2011 Operating Grants  book provides detailed information  on over                                                              
$160 million  worth of grant  funding that department  oversees on                                                              
annual basis.                                                                                                                   
                                                                                                                                
MS. ELGEE stated  that she would go through the  budget, division-                                                              
by-division.  By far  and away  the  largest portion  of the  DHSS                                                              
budget is made up  of Medicaid services. She then  spoke about the                                                              
Alaska Pioneer Homes;  this division employs 557  full-time and 43                                                              
part-time  staff  in  6  homes throughout  state.  There  are  508                                                              
licensed  beds,  and  these  are  24-hour,  seven  days  per  week                                                              
facilities,  with staff  working  in three  shifts  each day.  She                                                              
explained  the  Pioneer  Homes are  licensed  as  assisted  living                                                              
facilities,  although  many residents  do  meet the  nursing  home                                                              
level  of need.  Residents must  be at  least 65  and residing  in                                                              
Alaska  for one year  prior to  seeking admission.  There  are two                                                              
waiting  lists,  one inactive,  and  one active.  Inactive  status                                                              
simply means  that people  have signed  up for  some point  in the                                                              
future; active means  that people are interested  in residency and                                                              
have to  make a decision  within 30 days  once notified.  Fees for                                                              
the homes  range from  $2,350/month to  $6170/month, depending  on                                                              
the level of care needed.                                                                                                       
                                                                                                                                
1:54:41 PM                                                                                                                    
MS.  ELGEE  further stated  the  pioneer  homes are  eligible  for                                                              
Medicaid payment  waivered rates,  as well as payment  assistance;                                                              
no  one  is  asked  about  financial  resources  as  part  of  the                                                              
admission process.  She said  the biggest  problem in  running the                                                              
Pioneer Homes  is the increase in  acuity; in 1995, 63  percent of                                                              
residents  sought the  highest level  of  care. Today  that is  88                                                              
percent, and  the average age of  residents is over 85  years. The                                                              
second  issue,  she said,  is  lack  of available  placements  for                                                              
individuals exhibiting  difficult behaviors. People  with dementia                                                              
can end up being  assaultive and become a danger  to themselves or                                                              
others,  and the Pioneer  Homes  are not funded  to staff  one-on-                                                              
one, which  is needed  for that type  of behavior. No  alternative                                                              
placements are currently available.                                                                                             
                                                                                                                                
1:57:32 PM                                                                                                                    
MS.  ELGEE  then  discussed the  Division  of  Behavioral  Health,                                                              
which currently  employs  334 full-time people  and 11  part-time,                                                              
the  majority of  whom work  at the  Alaska Psychiatric  Institute                                                              
(API).  She said that  API has  240 full-time  and nine  part-time                                                              
employees.  With  the exception  of  API  and the  Alcohol  Safety                                                              
Action  Program (ASAP),  most of  the  division's work  is in  the                                                              
management and oversight  of grant programs which  are distributed                                                              
throughout  the   state  to   numerous  nonprofit  and   community                                                              
partners, who deliver a variety of behavioral health services                                                                   
                                                                                                                                
1:58:55 PM                                                                                                                    
SENATOR ELLIS asked  if the commissioner was aware  that less than                                                              
half of  the money collected  in the state  alcohol tax  goes back                                                              
to cost-effective,  evidence-based treatment programs.  He said he                                                              
has  a goal  to  see  more of  that  alcohol  tax money  used  for                                                              
treatment. He  also asked how  long it  takes for grant  monies to                                                              
get onto the  street once appropriated. He further  noted that the                                                              
number of  treatment programs in  the state is wholly  inadequate,                                                              
and reemphasized  that it seems to  take a long time to  get grant                                                              
money onto  the street,  and said that  getting into  treatment is                                                              
literally a life or death situation for some people.                                                                            
                                                                                                                                
2:00:25 PM                                                                                                                    
COMMISSIONER STREUR  replied that he  had no argument  with either                                                              
of those  two points, but  noted the alcohol  tax also has  to pay                                                              
for  alcohol-related  costs  of   criminal  justice,  safety,  and                                                              
health care, beyond  alcohol and drug treatment  centers. He noted                                                              
the department  is moving  toward a goal  of prevention  and early                                                              
intervention.                                                                                                                   
                                                                                                                                
2:01:26 PM                                                                                                                    
MS. ELGEE  agreed that  Senator Ellis  was correct; receiving  new                                                              
money from  grants can  be a struggle,  because the  department is                                                              
obligated  by statute to  competitively solicit  for grants.  They                                                              
do  two or  three  year  grant cycles,  and  they  try to  utilize                                                              
existing  grantees  during  the   first  year.  For  a  brand  new                                                              
concept, there has to be a competitive solicitation.                                                                            
                                                                                                                                
SENATOR  ELLIS asked  if  she was  positive  that  only new  money                                                              
takes a long time to get out.                                                                                                   
                                                                                                                                
2:03:56 PM                                                                                                                    
MS. ELGEE  said she would look  into specific program areas  if he                                                              
could provide them,  but the department has worked  on speeding up                                                              
payments to grantees;  they now provide 90 percent  of their grant                                                              
dollars  for  small grantees  in  July,  and start  soliciting  in                                                              
December.                                                                                                                       
                                                                                                                                
2:04:54 PM                                                                                                                    
MS.  ELGEE noted  the  Division of  Behavioral  Health has  worked                                                              
hard  to  incorporate   performance  standards  into   its  review                                                              
process,  making grant award  decisions based  on the  performance                                                              
of grantees.  She said  the biggest issue  in terms  of delivering                                                              
behavior  health services  is geography;  small populations  makes                                                              
providing  resources  at  the community  level  difficult  if  not                                                              
impossible, which can result in inappropriate referrals to API.                                                                 
                                                                                                                                
2:06:35 PM                                                                                                                    
MS.  ELGEE then  spoke about  the office  of Children's  Services,                                                              
and introduced  Christy Lawton, who  has been the  acting director                                                              
since August.  Ms. Elgee  said the  Office of Children's  Services                                                              
has  499  full-time  employees,   and  is  organized  around  five                                                              
regions  which  include  the newly  organized  region  of  western                                                              
Alaska. They  also have  26 field  offices; the primary  operation                                                              
of  the  division  is  child  protection  services,  meaning  they                                                              
respond  to  reports of  harm  and  do  whatever is  necessary  to                                                              
assure  the safety  of the child.  The division  also manages  the                                                              
infant  learning grant  program,  which provides  early  childhood                                                              
services for children  with developmental delays.  Ms. Elgee noted                                                              
the biggest  issue in  the division  is workforce recruitment  and                                                              
retention.   Children's   Services   is   a   very   high   stress                                                              
environment, and  a study in  2009 found  that over 60  percent of                                                              
division  employees  had held  their  current positions  for  less                                                              
than two years.                                                                                                                 
                                                                                                                                
2:09:44 PM                                                                                                                    
SENATOR DYSON asked if the division conducted exit interviews.                                                                  
                                                                                                                                
MS.  ELGEE replied  that  they do,  and that  they  are trying  to                                                              
strengthen the supervisory staff.                                                                                               
                                                                                                                                
SENATOR  DYSON  then asked  if  we  doubled  the money,  would  it                                                              
greatly reduce the amount of turn over.                                                                                         
                                                                                                                                
MS. ELGEE  said she doubted if  we could spend the  money, because                                                              
there  is  a  shortage  of  qualified  applicants  in  the  field;                                                              
reducing  caseloads would  be positive,  but the  turnover is  not                                                              
all about money.                                                                                                                
                                                                                                                                
SENATOR DYSON  said he would  enjoy further conversation  with Ms.                                                              
Elgee on this subject.                                                                                                          
                                                                                                                                
CHAIR  DAVIS  asked why  the  director  position has  been  vacant                                                              
since August.                                                                                                                   
                                                                                                                                
MS.  ELGEE  responded  it  is  difficult   to  recruit  during  an                                                              
election  year, and  they were holding  off until  the outcome  of                                                              
the election was known.                                                                                                         
                                                                                                                                
2:12:42 PM                                                                                                                    
MS. ELGEE said  she would move on  to the Division of  Health Care                                                              
Services. This  division is the  primary management  structure for                                                              
Medicare  services  programs,  and  has 134  staff;  the  division                                                              
manages  the acute  medical  care components,  hospital  services,                                                              
and  the  Denali  kid care  program.  Health  Care  Services  also                                                              
manages  the contract  for  the third-party  payment  environment.                                                              
She explained the  division also provides the rate  review process                                                              
for all  Medicaid rate settings.  The biggest challenge  is trying                                                              
to  maintain  a  balance  between the  rates  paid  and  providers                                                              
willing  to serve  the  Medicaid program.  When  services are  not                                                              
available  in rural  Alaska for  a Medicaid  client, the  division                                                              
also pays for  transportation services. She said they  try to have                                                              
services  available at  the local  level,  except for  specialized                                                              
services.  The  division  is  working   with  tribal  partners  to                                                              
develop a  strong tribal health  system. They are also  working to                                                              
bring  up a  health records  exchange environment,  and get  their                                                              
providers converted to electronic health records.                                                                               
                                                                                                                                
2:16:43 PM                                                                                                                    
MS. ELGEE asked  if she should briefly cover  the other divisions,                                                              
since many members may have heard them in other committees.                                                                     
                                                                                                                                
CHAIR DAVIS asked which she would prefer.                                                                                       
                                                                                                                                
MS. ELGEE  said she  would do  a quick  review of those  divisions                                                              
that  many people  may have  already heard.  She briefly  reviewed                                                              
the Division of  Juvenile Justice, which has  479 full-time staff;                                                              
the  division operates  eight youth  detention  facilities and  16                                                              
juvenile probation  offices throughout  the state. The  facilities                                                              
operate in  a 24-hour environment,  and employees work  in several                                                              
shifts.  She noted  that McLaughlin  specializes  in services  not                                                              
offered elsewhere in the state.                                                                                                 
                                                                                                                                
2:18:58 PM                                                                                                                    
MS. ELGEE  said the Division of  Public Assistance has  535 staff,                                                              
and  operates through  15  field  offices throughout  state.  This                                                              
division  serves over 174,000  people per  year; programs  offered                                                              
include temporary  assistance  to families  in need, food  stamps,                                                              
heating  assistance,  senior benefits,  adult  public  assistance,                                                              
and the  Women, Infants and  Children (WIC) program.  The division                                                              
also  does all  of the  eligibility  determinations for  Medicaid.                                                              
She  noted  they  struggle  to meet  increased  caseloads  with  a                                                              
static level of staff.                                                                                                          
                                                                                                                                
2:20:32 PM                                                                                                                    
MS. ELGEE  then spoke  about the Division  of Public  Health. This                                                              
division has  507 full-time  and 11  part-time employees,  and its                                                              
operations  include   public  health  nursing,   vital  statistics                                                              
record keeping,  two public  health labs,  infectious disease  and                                                              
epidemic prevention  and control, certification and  licensing for                                                              
health care  facilities and background  checks for  health service                                                              
providers.  They also  manage the  medical  examiner's office  and                                                              
oversee the  grant program  for emergency  medical services.   She                                                              
said  that challenges  faced by  this division  include the  fight                                                              
against  chronic   disease,  including  many   lifestyle  choices;                                                              
improving childhood  immunization rates. Ms. Elgee  explained that                                                              
the  Alaska  immunization  rate for  two  year  olds in  2009  was                                                              
ranked 49th  among all  50 states,  due in part  to a  shortage of                                                              
health  care  work  force.  The division  is  working  to  improve                                                              
statewide coverage for public health.                                                                                           
                                                                                                                                
2:23:30 PM                                                                                                                    
MS.  ELGEE then  reviewed the  Division of  Senior and  Disability                                                              
services.  She said  this division  has 138-full  time staff,  and                                                              
the division conducts  Medicaid waiver programs for  children with                                                              
complex  medical conditions,  adults  with physical  disabilities,                                                              
older  Alaskans, and  developmental  disabilities. These  programs                                                              
are designed  to provide alternate  approaches to  long-term care;                                                              
individuals eligible  for these programs meet criteria  that allow                                                              
them admission  to nursing homes  where home or  community service                                                              
is not  available. The  division also  manages grant programs  for                                                              
senior and developmentally  disabled adults throughout  the state,                                                              
as  well  as   nutrition,  transportation  and   support  services                                                              
throughout the  state. In this  division also includes  the Alaska                                                              
Commission  on  Aging  and  the   Governor's  Council  on  Special                                                              
Education and Developmental Disabilities.                                                                                       
                                                                                                                                
2:25:42 PM                                                                                                                    
MS.  ELGEE  then  spoke  about  the  department  support  services                                                              
program,  which  includes all  administrative  support  functions,                                                              
the commissioner's  office, public  information services,  finance                                                              
and  management services,  and the  human  service matching  grant                                                              
program.                                                                                                                        
                                                                                                                                
2:26:21 PM                                                                                                                    
SENATOR DYSON asked how many providers the department pays.                                                                     
                                                                                                                                
COMMISSIONER  STREUR responded there  are a  total of  about 3,600                                                              
providers in the state of Alaska.                                                                                               
                                                                                                                                
SENATOR DYSON asked about the issue of Medicare fraud.                                                                          
                                                                                                                                
COMMISSIONER  STREUR  responded  that  many  federal  efforts  are                                                              
being  undertaken  around fraud,  waste  and  abuse. He  also  met                                                              
recently with  the state  attorney general,  and they  are looking                                                              
at  consolidating efforts  in  the  state, as  well  as trying  to                                                              
figure out how to  work with the federal programs  that are coming                                                              
in.  These  include   the  Medicaid  Integrity   Program,  federal                                                              
audits, and efforts around provider fraud and recipient fraud.                                                                  
                                                                                                                                
SENATOR DYSON noted  that on a national level provider  fraud is a                                                              
huge problem.                                                                                                                   
                                                                                                                                
COMMISSIONER STREUR  said he doesn't  know exact  percentages, but                                                              
hopefully Alaska is  not as bad as some other  states; Florida and                                                              
New York have Medicare fraud in the billions of dollars.                                                                        
                                                                                                                                
SENATOR DYSON  then asked  about the  percentage of costs  related                                                              
to behavioral problems, or self-induced medical issues?                                                                         
                                                                                                                                
COMMMISSIONER  STREUR responded  that $600  million is the  direct                                                              
medical cost related  to self-inflicted health care  issues in our                                                              
state.                                                                                                                          
                                                                                                                                
SENATOR DYSON asked  if it is true that are we  paying nine or ten                                                              
million for obesity related problems among state employees.                                                                     
                                                                                                                                
2:31:03 PM                                                                                                                    
COMMISSIONER STREUR said he was unable to answer that question.                                                                 
                                                                                                                                
SENATOR DYSON  asked if  the pharmacy board  was months  away from                                                              
having the drug registration finished.                                                                                          
                                                                                                                                
COMMISSIONER STREUR responded it was a slow moving process.                                                                     
                                                                                                                                
SENATOR DYSON asked if he had an anticipated date.                                                                              
                                                                                                                                
COMMISSIONER STREUR  responded that it was being  done through the                                                              
Department of Commerce.                                                                                                         
                                                                                                                                
2:31:52 PM                                                                                                                    
SENATOR  MEYER asked  about  funds for  parents  who adopt  foster                                                              
children, or have children with high behavioral issues.                                                                         
                                                                                                                                
MS.  ELGEE  said  he  might  be   speaking  about  the  subsidized                                                              
adoption and guardianship programs.                                                                                             
                                                                                                                                
SENATOR MEYER stated he was talking about TAMA.                                                                                 
                                                                                                                                
MS.  ELGEE replied  that was  the temporary  assistance for  needy                                                              
families program.                                                                                                               
                                                                                                                                
SENATOR DYSON  noted that Alaska is  in the top ten  nationally as                                                              
far as  youth not using  tobacco, and he  was proud of  that fact.                                                              
He  noted that  the department  had  protected tobacco  settlement                                                              
funds.                                                                                                                          
                                                                                                                                
MS.  ELGEE confirmed  that there  are  no new  purposes for  which                                                              
that money  is being  used; education and  cessation are  the only                                                              
purposes.                                                                                                                       
                                                                                                                                
2:34:07 PM                                                                                                                    
SENATOR  ELLIS asked  why the  gubernatorial  election would  have                                                              
affected  the timetable  for appointing  a  permanent Director  of                                                              
Children's Services.                                                                                                            
                                                                                                                                
COMMISSIONER   STREUR  responded   that  division  directors   are                                                              
gubernatorial  appointees; therefore,  no  applicant would  accept                                                              
the position until they knew who would be the governor.                                                                         
                                                                                                                                
          ^Presentation: Alaska Health Care Commission                                                                      
           Alaska Health Care Commission Presentation                                                                       
                                                                                                                                
2:35:36 PM                                                                                                                    
CHAIR DAVIS announced  the next presentation would be  a report on                                                              
The Alaska Health Care Commission.                                                                                              
                                                                                                                                
2:36:23 PM                                                                                                                    
DEBORAH  ERICKSON,   Director,  Alaska  Health   Care  Commission,                                                              
Department of  Health and Social  Services (DHSS), said  she would                                                              
start  with a  brief  history of  health  care  reform efforts  in                                                              
Alaska.  Past   organizations  included  the   Governor's  Interim                                                              
Health  Care Commission,  the  Health  Resources  and Access  Task                                                              
Force, the Commonwealth  North Alaska Health Care  Roundtable, and                                                              
the  Alaska  Health  Strategies  Planning Council.  She  said  the                                                              
creation  of  the Alaska  Health  Care  commission was  the  first                                                              
attempt to  provide a long-term,  sustainable look at  health care                                                              
access  and  cost  issues.  Ms. Erickson  noted  that  the  Health                                                              
Resources and  Access Task  Force, created  by the legislature  in                                                              
1991, projected  that expenditures  for health  care in  the state                                                              
would  exceed $5.5  billion by 2003.  In the  most recent  report,                                                              
from 2005,  the Institute of  Social and Economic  Research (ISER)                                                              
estimated  that  annual  health   care  spending  was  about  $5.5                                                              
billion.                                                                                                                        
                                                                                                                                
2:38:21 PM                                                                                                                    
So, she  noted, those  projections are  panning out. Ms.  Erickson                                                              
said  that policy  choices  will need  to be  made  at the  state,                                                              
local,  and  even family  level.  The  current state  fiscal  year                                                              
operating  budget  contains  $1.4   billion  for  Medicaid  costs,                                                              
alone, while  the operating  budget for  the entire Department  of                                                              
Education is  only $1.4 billion.  Ms. Erickson further  noted that                                                              
the  Health Care  Commission was  originally  created by  Governor                                                              
Palin  under  an  administrative  order, and  was  established  in                                                              
statute through SB 172 in April of 2010.                                                                                        
                                                                                                                                
2:43:25 PM                                                                                                                    
MS.  ERICKSON  explained  the  purpose of  the  commission  is  to                                                              
establish  a state-wide  plan to  address quality,  accessibility,                                                              
and availability  of health  care for all  citizens of  the state.                                                              
The  main duties  are  to develop  a  strategy  for improving  the                                                              
health of  all Alaskans, and  to provide  an annual report  to the                                                              
legislature  and the  governor by  January  15 of  each year.  She                                                              
said  the commission  now  has 11  voting  members  and three  ex-                                                              
officio members.  The commission's  2010  report builds and  picks                                                              
up  where  the  2009  commission  left  off.  The  commission  has                                                              
designed a  five-year process  to develop a  vision for  the ideal                                                              
health  care  system in  Alaska;  the  process will  describe  the                                                              
current  state of health  care,  build a foundation  for a  strong                                                              
health  care  system,  design  transformative   policies,  measure                                                              
progress,  and   report  annually  to  the  legislature   and  the                                                              
governor.  She said the  commission has  reaffirmed that  Alaska's                                                              
health  care  system  will  focus   on  improving  health  status,                                                              
delivering  value, and developing  a system  where both  providers                                                              
and consumers  will be satisfied  with the services.  Developing a                                                              
sustainable  system   is  also   a  significant  concern   of  the                                                              
commission, she said.                                                                                                           
                                                                                                                                
2:46:47 PM                                                                                                                    
MS.  ERICKSON  explained   the  commission  must   report  on  its                                                              
recommendations,  and must  provide indicators  of how the  system                                                              
is performing. The  commission's vision is a system  that includes                                                              
increased    access,   controlled    costs,   improved    quality,                                                              
prevention-based,  sustainability, efficiency, and  effectiveness.                                                              
She said  they will focus on  the importance of  individual choice                                                              
and  personal engagement  in health  care.  The commission's  fist                                                              
report in  2009 included  an appendix  describing how  health care                                                              
services  in the state  are organized  and delivered,  as  well as                                                              
the different  financing streams.  In 2010 the commission  decided                                                              
to  provide an  overview of  the  new federal  health care  reform                                                              
law; the  2010 report  includes a  brief summary  of that  law, as                                                              
well as  information on  what has  happened during 2010  regarding                                                              
implementation of various provisions by the federal government.                                                                 
                                                                                                                                
2:51:21 PM                                                                                                                    
MS. ERICKSON noted  the commission has contracted with  ISER to do                                                              
a new  analysis of health  care spending in  the state, and  has a                                                              
contract   with  a   health  care   actuarial   firm  to   provide                                                              
comprehensive  review and  analysis  of reimbursement  for  health                                                              
care services  in the  state, with  a bit more  focus on  what the                                                              
cost drivers  are. The  commission is trying  to learn  why prices                                                              
for health  care are  higher than other  states; they  are looking                                                              
to  compare Alaska  to  Wyoming  and North  Dakota.  Understanding                                                              
costs also requires  information about the health  of Alaskans, so                                                              
the commission  will be making a  health status estimate  with the                                                              
help of DHSS.                                                                                                                   
                                                                                                                                
2:53:10 PM                                                                                                                    
MS.  ELGEE said  the 2009  commission  report defined  challenges,                                                              
including  the  high,  rising, and  unsustainable  cost  of  care,                                                              
inadequate  insurance  coverage,   the  logistical  challenges  of                                                              
delivering   care,   loss   of    economies   of   scale,   system                                                              
fragmentation  and  duplication,   work  force  shortages,  health                                                              
status  and   health  risk   behaviors,  and  health   information                                                              
technology  development.  One  specific problem  studied  was  the                                                              
problem  of access  to primary  care  for Medicare  beneficiaries,                                                              
especially in Anchorage                                                                                                         
                                                                                                                                
2:54:56 PM                                                                                                                    
MS.  ERICKSON  then  explained   the  commission  is  focusing  on                                                              
transforming  health care  in Alaska; their  focus emphasizes  the                                                              
importance   of   consumer  responsibility   to   live   healthier                                                              
lifestyles,  and looking  at what  communities can  do to  support                                                              
healthy lifestyle choices.  She said they are also  looking at how                                                              
to  make care  more  patient-centered,  so that  individuals  have                                                              
more of  a role in  decision making  and take more  responsibility                                                              
for  their health.  So  the  commission's policies  are  organized                                                              
around  the   goals  of   access,  value,  prevention,   improving                                                              
patients' experience  of health  care, and supporting  individuals                                                              
to live healthier lifestyles.                                                                                                   
                                                                                                                                
MS.  ERICKSON  said there  are  three  building blocks  which  the                                                              
commission  has identified  as the  foundation  for a  transformed                                                              
system; ways  to strengthen  the health  care work force,  improve                                                              
deployment of  health information  technology, and provide  strong                                                              
leadership.  In  terms  of  improving  value,  strategies  include                                                              
evidence-based  medicine, price  and quality transparency,  value-                                                              
driven  purchasing,   increasing  insurance   coverage,  improving                                                              
financial access, and improving access to information.                                                                          
                                                                                                                                
2:59:44 PM                                                                                                                    
SENATOR  ELLIS asked  why medical  procedures  are more  expensive                                                              
here in Alaska.                                                                                                                 
                                                                                                                                
MS. ERICKSON  replied that Linda  Hall, Director of  Insurance, is                                                              
refusing  to use federal  money  available to  find the answer  to                                                              
this question,  because the governor  doesn't want  to participate                                                              
in federal health care reform.                                                                                                  
                                                                                                                                
SENATOR ELLIS  then asked  if the federal  money was  available to                                                              
the Alaska Health Care Commission.                                                                                              
                                                                                                                                
MS. ERICKSON  said that the governor  has to sign  the application                                                              
to accept those  funds, and there are questions  about exactly how                                                              
those resources might  be used; the commission  is also interested                                                              
in  health care  pricing and  reimbursement, and  is developing  a                                                              
contract for a health actuarial firm to do that analysis.                                                                       
                                                                                                                                
SENATOR  ELLIS   said  having  that  information   would  be  very                                                              
helpful.                                                                                                                        
                                                                                                                                
3:02:58 PM                                                                                                                    
There  being no  further business  to come  before the  committee,                                                              
Chair  Davis  adjourned  the  meeting of  the  Senate  Health  and                                                              
Social Services Committee at 3:02 p.m.                                                                                          

Document Name Date/Time Subjects
DHSS Priorities 2011.pdf SHSS 2/7/2011 1:30:00 PM
Health & Social Services Overview.pptx SHSS 2/7/2011 1:30:00 PM
Alaska Health Care Commission's Report 2011.pdf SHSS 2/7/2011 1:30:00 PM