SENATE BILL NO. 154                                                                                                           
                                                                                                                                
     "An Act relating to mental  health treatment facilities;                                                                   
     repealing  the termination  date  of  the mental  health                                                                   
     treatment  assistance  program;  and  providing  for  an                                                                   
     effective date."                                                                                                           
                                                                                                                                
WENDY HALL, STAFF, SENATOR KELLY  spoke in support of SB 154.                                                                   
She  observed  that  the  bill repeals  the  sunset  date  on                                                                   
previously passed  legislation, which created  the Designated                                                                   
Evaluation  Program.  She  maintained   that  the  Designated                                                                   
Evaluation Program  is a critical component  of mental health                                                                   
services in  Alaska, particularly  for indigent persons  with                                                                   
mental illnesses who are being  civilly committed or who meet                                                                   
the criteria for civil commitment.  Through this program many                                                                   
poor people with mental illnesses  who have not qualified for                                                                   
Medicaid are able to receive services  in community hospitals                                                                   
around the state.  Without the program it would  be necessary                                                                   
to  transport   many   clients  in  crisis   to  the   Alaska                                                                   
Psychiatric Institute. She observed  that the previous sunset                                                                   
date was placed  on the program as a result  of concerns that                                                                   
the funding would cease to exist,  but funding has continued.                                                                   
                                                                                                                                
ELMER LINDSTROM, SPECIAL ASSISTANT,  DEPARTMENT OF HEALTH AND                                                                   
SOCIAL SERVICES  testified in support of the  legislation. He                                                                   
explained that  the department  had just received  a one-time                                                                   
federal  grant  at  the time  the  original  legislation  was                                                                   
adopted. Another source of non-general  funds have since been                                                                   
identified. Federal  DSH funds  through the Medicaid  program                                                                   
have been  utilized as  an on going  stream of revenue.  They                                                                   
are  expected   to  continue  to  support  the   program.  He                                                                   
explained  the fiscal note  and pointed  out that the  fiscal                                                                   
cost is included in the Senate and House FY02 budgets.                                                                          
                                                                                                                                
Mr. Lindstrom  gave examples of  the success of  the program.                                                                   
The  number  of   expected  transports  to  API   has  fallen                                                                   
dramatically from 75 to less than 10.                                                                                           
                                                                                                                                
Representative  Davies   MOVED  to  report  SB   154  out  of                                                                   
Committee with the accompanying  fiscal note. Co-Chair Mulder                                                                   
OBJECTED for the purpose of a  question. He asked how success                                                                   
has been defined and when the program was established.                                                                          
                                                                                                                                
Mr. Lindstrom  noted that the  program has been on  the books                                                                   
for many years. Legislation was  enacted two years ago, which                                                                   
defined eligibility  and outlined  how the payments  would be                                                                   
made. The  key measure of success  has been the  reduction in                                                                   
transports to API and the ability to treat clients locally.                                                                     
                                                                                                                                
Co-Chair Mulder  acknowledged the clinical value  of treating                                                                   
locally and questioned the cost.  Mr. Lindstrom did not think                                                                   
that  it was  more expensive  to operate  locally. He  stated                                                                   
that he  would prepare a  cost comparison. He  clarified that                                                                   
these clients  are not Medicaid  eligible and  explained that                                                                   
clients  between 21  and 65  are not  Medicaid eligible.  The                                                                   
income  eligibility is  185 percent  of  the federal  poverty                                                                   
level.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, SB 154 was moved from Committee.                                                                      
                                                                                                                                
SB  154  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation and with a previously  published fiscal impact                                                                   
note (#1) by the Department of Health and Social Services.