Legislature(2023 - 2024)BUTROVICH 205

04/25/2024 03:30 PM Senate HEALTH & SOCIAL SERVICES

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Audio Topic
03:33:22 PM Start
03:34:02 PM SB219
03:42:13 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 219 PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
      SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                    
                         April 25, 2024                                                                                         
                           3:33 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator David Wilson, Chair                                                                                                     
Senator James Kaufman, Vice Chair                                                                                               
Senator Forrest Dunbar                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Löki Tobin                                                                                                              
Senator Cathy Giessel                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 219                                                                                                             
"An  Act  relating  to  utilization  review  entities;  exempting                                                               
certain  health  care   providers  from  making  preauthorization                                                               
requests  for certain  services; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 219                                                                                                                  
SHORT TITLE: PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS                                                                             
SPONSOR(s): SENATOR(s) WILSON                                                                                                   
                                                                                                                                
02/07/24       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/24       (S)       L&C, HSS                                                                                               
03/13/24       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/24       (S)       Heard & Held                                                                                           
03/13/24       (S)       MINUTE(L&C)                                                                                            
04/08/24       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/08/24       (S)       Heard & Held                                                                                           
04/08/24       (S)       MINUTE(L&C)                                                                                            
04/10/24       (S)       L&C WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
04/10/24       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/10/24       (S)       Moved SB 219 Out of Committee                                                                          
04/10/24       (S)       MINUTE(L&C)                                                                                            
04/15/24       (S)       L&C RPT 3DP 1NR                                                                                        
04/15/24       (S)       DP: BJORKMAN, DUNBAR, GRAY-JACKSON                                                                     
04/15/24       (S)       NR: MERRICK                                                                                            
04/16/24       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
04/16/24       (S)       Heard & Held                                                                                           
04/16/24       (S)       MINUTE(HSS)                                                                                            
04/25/24       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JULIA FONOV, Staff                                                                                                              
Senator David Wilson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview  of SB 219 and delivered                                                             
a summary of changes from version A to B.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:33:22 PM                                                                                                                    
CHAIR DAVID WILSON  called the Senate Health  and Social Services                                                             
Standing Committee meeting  to order at 3:33 p.m.  Present at the                                                               
call to order were Senators Dunbar, Kaufman, and Chair Wilson.                                                                  
                                                                                                                                
         SB 219-PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS                                                                      
                                                                                                                                
3:34:02 PM                                                                                                                    
CHAIR WILSON announced the consideration of SENATE BILL NO. 219                                                                 
"An  Act  relating  to  utilization  review  entities;  exempting                                                               
certain  health  care   providers  from  making  preauthorization                                                               
requests  for certain  services; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
3:34:20 PM                                                                                                                    
CHAIR  WILSON  stated his  office  worked  with stakeholders  and                                                               
created a committee substitute for SB 219.                                                                                      
                                                                                                                                
3:34:45 PM                                                                                                                    
JULIA   FONOV,  Staff,   Senator  David   Wilson,  Alaska   State                                                               
Legislature, Juneau, Alaska, said SB  219 allows providers with a                                                               
proven  track  record  of approved  prior  authorizations  to  be                                                               
exempt from the lengthy process  of requesting authorization from                                                               
insurance companies. SB 219 would  reduce wait times for patients                                                               
to  receive   services  and  reduce  the   time  providers  spend                                                               
performing prior  authorizations. Physicians spend an  average of                                                               
two  business  days   a  week  dedicated  to   working  on  prior                                                               
authorizations. Under SB 219 providers that qualify for                                                                         
exemption would receive a list of services and the duration.                                                                    
                                                                                                                                
3:35:42 PM                                                                                                                    
CHAIR WILSON solicited a motion.                                                                                                
                                                                                                                                
3:35:56 PM                                                                                                                    
CHAIR WILSON moved to adopt the committee substitute (CS) for SB
219, work order 33-LS1302\B, as the working document.                                                                           
                                                                                                                                
3:36:02 PM                                                                                                                    
SENATOR KAUFMAN objected for purposes of discussion.                                                                            
                                                                                                                                
3:36:08 PM                                                                                                                    
MS. FONOV provided a summary of changes for SB 219 from version                                                                 
A to B:                                                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                         CSSB 219 (HSS)                                                                                       
        "An Act relating to utilization review entities;                                                                      
      exempting certain health care providers from making                                                                     
      preauthorization requests for certain services; and                                                                     
               providing for an effective date."                                                                              
                       SUMMARY OF CHANGES                                                                                     
                     Version A to Version B                                                                                   
     Section 1:                                                                                                               
     Version B  raises the  approval rate  to 90%  for prior                                                                    
     authorization requests that  health care providers must                                                                    
     have to  be exempt from  preauthorization requirements,                                                                    
     instead of 80% in Version A.                                                                                               
     Version  B  adds  that  the  approval  rate  for  prior                                                                    
     authorization requests  is determined after  the appeal                                                                    
     process.                                                                                                                   
                                                                                                                                
     Section 2:                                                                                                               
     Version B  adds a definition for  health care provider,                                                                    
     which is  a person  licensed in  this state  or another                                                                    
     state  of the  United  States to  provide medical  care                                                                    
     services,  a health  care facility,  or  a health  care                                                                    
     institution.                                                                                                               
                                                                                                                                
3:37:22 PM                                                                                                                    
CHAIR WILSON asked if there was further discussion, finding none                                                                
he asked if objection to the adoption of the CS was maintained.                                                                 
                                                                                                                                
3:38:02 PM                                                                                                                    
SENATOR KAUFMAN removed his objection.                                                                                          
                                                                                                                                
3:38:03 PM                                                                                                                    
CHAIR  WILSON  asked  if  there  was  further  objection  to  the                                                               
adoption of the CS for SB 219.                                                                                                  
                                                                                                                                
3:38:14 PM                                                                                                                    
SENATOR  DUNBAR  stated he  did  not  have  an objection  to  the                                                               
adoption of the  CS but asked if there could  be discussion after                                                               
its adoption.                                                                                                                   
                                                                                                                                
3:38:17 PM                                                                                                                    
CHAIR WILSON found no further  objection and CSSB 219 was adopted                                                               
as the working document.                                                                                                        
                                                                                                                                
3:38:25 PM                                                                                                                    
SENATOR  DUNBAR asked  whether  the "gold  card"  would apply  to                                                               
specific providers  versus groups of  providers. He asked  if the                                                               
provision existed in the prior version of SB 219.                                                                               
                                                                                                                                
3:38:48 PM                                                                                                                    
CHAIR  WILSON replied  it is  a  forthcoming change  that is  not                                                               
currently in SB 219.                                                                                                            
                                                                                                                                
3:38:54 PM                                                                                                                    
MS. FONOV stated that it is  in the definition section for health                                                               
care  provider  and  can  be  applied under  the  CSSB  219.  She                                                               
referenced  work  draft SB  219,  version  B,  page 3,  line  27,                                                               
"'health care provider' means a  person licensed in this state or                                                               
another  state  of the  United  States  to provide  medical  care                                                               
services, a health care facility,  or a health care institution."                                                               
She  stated  this  definition  was  not in  SB  219,  version  A.                                                               
Providers  and  insurance  companies  recommended  including  the                                                               
definition.                                                                                                                     
                                                                                                                                
3:40:07 PM                                                                                                                    
SENATOR  DUNBAR opined  that a  legal  and practical  distinction                                                               
exists  between  a facility  or  institution  functioning as  one                                                               
entity  and  a  group  of  providers. He  noted  that  while  the                                                               
providers  are  not  independent  contractors,  their  operations                                                               
differ  from a  hospital  group. He  questioned  whether the  two                                                               
groups  should   be  treated  the  same   and  suggested  further                                                               
consideration of the issue before SB 219 is heard again.                                                                        
                                                                                                                                
CHAIR WILSON said  he is willing to work on  the language used in                                                               
the definition.                                                                                                                 
                                                                                                                                
3:41:07 PM                                                                                                                    
SENATOR KAUFMAN stated he would reserve his questions for a                                                                     
later hearing of SB 219.                                                                                                        
                                                                                                                                
3:41:15 PM                                                                                                                    
CHAIR WILSON held SB 219 in committee.                                                                                          
                                                                                                                                
3:42:13 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Wilson adjourned the Senate Health and Social Services                                                                    
Standing Committee meeting at 3:42 p.m.                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
CS SB 291(HHS) v B.pdf SHSS 4/25/2024 3:30:00 PM
SB 291
SB 219 LOS - Alaska Regional Hospital.pdf SHSS 4/25/2024 3:30:00 PM
SB 219
DCCED-DOI Response to SHSS re SB 219 4.19.24.pdf SHSS 4/25/2024 3:30:00 PM
SB 219
SB 219 Premera letter to Senator Wilson.pdf SHSS 4/25/2024 3:30:00 PM
SB 219
CSSB 219(HSS) - Summary of Changes.pdf SHSS 4/25/2024 3:30:00 PM
SB 219