CS FOR SENATE BILL NO. 172(FIN) am "An Act establishing the Alaska Health Care Commission in the Department of Health and Social Services; and providing for an effective date." 7:16:24 PM DENISE LICCIOLI, STAFF, SENATOR DONALD OLSON, stated that Alaska is facing a health care shortage with access and quality issues. Health care costs tripled from 1991 to 2005. She noted that the cost is expected to double again by 2013 to over $10 billion. The purpose of the commission is to provide recommendations for a statewide plan to assess the quality, accessibility, and availability of health care for all Alaskans. The duties are outlined in the bill and in the sponsor statement. The CS has 13 members, 10 of which are voting and the others are ex officio members. The commission would be tasked with holding public hearings and submitting an annual report to the governor and legislature regarding its recommendations and activities. The cost alone justifies the changes on the national level. The national changes allow for a planning body that provides for the policy information that will make meaningful change. She highlighted Line 8, Page 3 ending on Page 4, line 12, which lists the members. 7:19:35 PM Representative Gara asked if the intention of the legislation was to replace the new standing body for health care recommendations. Ms. Liccioli explained that our previous governor had an administrative order that established the health care commission. The order has since expired. Without the legislation, there would be no body. Representative Gara understood that there were additional costs. Ms. Liccioli stated that the cost of the previous commission was not funded by the state, but instead funded out of the existing budget. She noted that Senator Olson appreciated the hearing. 7:21:47 PM DR. WARD HURLBURT, CHEIF HEALTH CARE COMMISSION, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, informed that the administration is in support of the legislation and the health care commission. He explained that the challenge with health care reform is great. The funding is designated to pay for the position of the executive director, an administrative support person, and outside consultation. He furthered that much work with the impact of national analysis will occur for health care reform. He noted that each bill comes representing a constituency. He noted that the cost of health care is approximately $6 billion per year. 7:25:55 PM Co-Chair Hawker Moved Conceptual Amendment 1. Co-Chair Stoltze OBJECTED. Co-Chair Hawker explained the amendment. He wished the membership to reflect the critical cohorts of healthcare in Alaska. He preferred 11 voting members. He opined that the missing cohort was one involved in the U.S. Department of Veterans Affairs (VA). He stated that a representative of the VA was critical to the commission. Co-Chair Stoltze asked if the member would be a consumer or a provider. Co-Chair Hawker stated a provider. Representative Doogan asked if the voting membership will change from 10 to 11. Ms. Liccioli responded that Senator Olson was willing to go with the will of the committee. Co-Chair Stoltze removed his objection. Conceptual amendment 1 was adopted. 7:29:33 PM WILLIAM HOGAN, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES discussed the fiscal note, $500 thousand. He commented that the federal Medicaid claiming required $165 thousand. He noted that the money will fund an executive director, support staff and allow for analysis needed to implement certain aspects of health care reform. Co-Chair Hawker recalled that the first proposed fiscal note was substantially larger. Commissioner Hogan responded that the department analyzed various methods of cost savings. Co-Chair Hawker MOVED to report HCS CSSB 172(FIN) out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCS CSSB 172(FIN) was REPORTED out of Committee with a "do pass" recommendation and with attached new fiscal note by the Department of Health and Social Services. Co-Chair Hawker thanked the aides of the department.