HB 362-PRISONER MED CARE MEDICAID REIMBURSEMENT  4:43:59 PM CHAIR SHAW announced that the final order of business would be HOUSE BILL NO. 362, "An Act relating to the reimbursement rate for prisoner medical care." 4:44:19 PM REPRESENTATIVE MIKE PRAX, Alaska State Legislature, as prime sponsor, presented HB 362 and read from the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: HB362 proposes to cap the reimbursement rate for prisoner medical care costs in Alaska at the rate established under federal law, 42 U.S.C 1396-1396w-7 (Title XIX, Social Act), thus presenting a strategic approach to address the ever-growing costs of healthcare in our prisons. Capping the reimbursement rates with those established under Title XIX of the Social Act, we can expect cost savings. This alignment ensures cost-effectiveness and brings predictability to the budgeting processes. In addition, the provision allowing the commissioner to negotiate contracts for higher rates allows flexibility when needed. HB362 presents a balanced and strategic approach to managing healthcare costs in prisons while ensuring the provision of necessary care. It is a step towards a more sustainable and effective healthcare system within our prisons. 4:46:05 PM CHAIR SHAW opened public testimony on HB 362. After ascertaining there was no one who wished to testify, he closed public testimony. 4:46:28 PM REPRESENTATIVE STORY questioned whether medical professionals provide care for individuals who are incarcerated with the low reimbursement rate. REPRESENTATIVE PRAX said the Department of Corrections (DOC) could start negotiations at the Medicaid rates. REPRESENTATIVE STORY asked Representatives Prax whether he talked with the department regarding the ability to lower rates with the proposed legislation. REPRESENTATIVE PRAX deferred the question to DOC staff. 4:47:47 PM TERI WEST, Director, Administrative Services, Department of Corrections, stated that she believed the services could be provided at lower rates and that currently, several providers provide fees for services and some have a letter of agreement (LOA) for discounted rates. She said DOC believed that this would continue should the bill pass. 4:49:24 PM REPRESENTATIVE CARPENTER inquired about negotiated contracts at higher rates and how it worked. MS. WEST replied that she did not fully understand the question but stated that DOC had both higher and reduced contract rates, and some allow for 10- to 30-percent discounts. 4:50:51 PM REPRESENTATIVE PRAX corrected his opening statement by saying the bill would allow the department to negotiate a base rate starting with Medicaid rates, it does not necessarily cap the rate. 4:52:18 PM REPRESENTATIVE STORY asked whether there were established statistics so that the legislature could determine after passage of the bill that there was improvement. MS. WEST answered that if the bill passed, the department could see where the cost savings would be. REPRESENTATIVE STORY questioned how it would be documented. MS. WEST stated she could get back to the committee with an answer at a later date. 4:53:55 PM CHAIR SHAW announced HB 362 was held over.