HJR 35-CONST AM: HEALTH CARE  4:08:26 PM CO-CHAIR HERRON announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 35 Proposing amendments to the Constitution of the State of Alaska prohibiting passage of laws that interfere with direct payments for health care services and the right to purchase health care insurance from a privately owned company, and that compel a person to participate in a health care system. 4:09:10 PM REPRESENTATIVE MIKE KELLY, Alaska State Legislature, discussed the proposed national health care system and the backlash to the mandated single payer system. He noted that 35 other states were also in opposition to the proposed national health care system. He explained that HJR 35 would protect the right to choose participation in any given health care system, and would prohibit and fines or penalties for failure to participate; it would protect the right to purchase or provide lawful medical services without government fines, interference or penalties. He emphasized that HJR 35 would place these rights in the Constitution of the State of Alaska. He offered his belief that the majority of Alaskans opposed mandated health care, and that this mandate could result in a lawsuit. He opined that the U. S. Supreme Court would lean toward the protection of personal choice of health care. 4:14:03 PM REPRESENTATIVE SEATON declared that he recognized the intent of HJR 35, and he directed attention to the proposed Section 2, which stated in part: "no law shall be passed that compels a person, employer, or health care provider to participate in a health care system..." He asked if this would not allow the state to initiate a new tier of the retirement system. 4:15:27 PM REPRESENTATIVE KELLY replied that he would research that question. 4:16:20 PM REPRESENTATIVE HOLMES referred to Medicare, Indian Health Services, and other similar medical plans, and pointed out that these had limits which violated the language of HJR 35. She expressed concern that this would tie the hands of legislators for any future changes and pointed specifically to the language in Section 2 (b) which stated: "prohibits a person from or that penalizes a person for making direct payment to a health care provider for tendering health care services." 4:18:08 PM REPRESENTATIVE KELLY offered his belief that HJR 35 did not have any effect on programs already in place. He reiterated that it reinforced personal choice. 4:20:05 PM CO-CHAIR HERRON asked Representative Kelly where the House Health and Social Services Standing Committee should focus its policy debate, and then where he believed that the House Judiciary Standing Committee would focus. 4:20:32 PM REPRESENTATIVE KELLY suggested that each committee should look at whether HJR 35 was "in the best overall health care interest of the state." 4:22:07 PM CO-CHAIR HERRON clarified that proposed HJR 35 would be held in the committee until the following week, and he suggested that the House Health and Social Services Standing Committee debate the health and social services aspect of it. 4:22:33 PM REPRESENTATIVE CISSNA cited that more than 100,000 Alaskans did not have health coverage. She shared that there were already capacity problems within the health care system, and she voiced "that we are a state that is addicted to addictions." She asked how HJR 35 addressed the health care problems in Alaska. She noted the difficulty of access to health care for many Alaskans. 4:25:22 PM REPRESENTATIVE KELLY, in response to Representative Cissna, disclosed that he had served on a hospital foundation for 20 years. He agreed that the current health care system was in need of improvement. He opined that the government element was a disincentive for doctors and that the more separated the patient was from the provider and the cost, the worse the situation became. He offered his belief that the heart of the problem for the health care system was government centralized control. 4:28:43 PM REPRESENTATIVE SEATON asked for clarifications that HJR 35 would not prevent the federal government from passing a law, but that it would stop future legislatures from adopting a federal program. 4:30:40 PM REPRESENTATIVE KELLY replied that the least effect of HJR 35 would be to send a signal to the federal government that Alaska was against additional federal controls over medical choices. He said the strictest application would be Alaska's refusal to comply with a federal mandate. 4:32:43 PM REPRESENTATIVE SEATON asked to clarify that HJR 35 was an amendment to the Constitution of the State of Alaska to restrict the legislature from passing a law, even if that law was in the public interest. He questioned if the proposed resolution would prevent the state from adopting a medical plan without passing or repealing a constitutional amendment. 4:33:58 PM REPRESENTATIVE KELLY agreed. 4:34:03 PM REPRESENTATIVE T. WILSON asked if Representative Kelly had heard any concerns from the public. 4:34:25 PM REPRESENTATIVE KELLY replied that worries about a "head butt with the federal government" and complications to existing programs were the two concerns. 4:34:51 PM REPRESENTATIVE T. WILSON asked if those two concerns were stronger than the "fear that people have with being forced into a program that they don't want and us sitting back as a state acting like we don't care." 4:35:15 PM REPRESENTATIVE KELLY offered his belief that the overwhelming response was in support of HJR 35. 4:35:23 PM CO-CHAIR KELLER, as a prime co-sponsor of the bill, reported that Arizona had vetted this legislation, and that most of the questions had already been answered. He said that "precisely what the bill does, it forbids any law that we have would be unconstitutional that would forbid an individual in the State of Alaska from securing medical care outside of the required medical system that is there." He opined that the constitution was the law of the land and that this resolution would be voted on by the people. 4:37:19 PM CO-CHAIR HERRON opened public testimony and said that he would hold it open. 4:37:33 PM MIKE PRAX offered his support for HJR 35 as it "might set up a confrontation between the state and the federal government over this particular issue." He opined that the federal administration assumed it had absolutely authority and power. He asked that the resolution be passed to protect "the individual right to make decisions." 4:39:21 PM PEGGY ANN MCCONNOCHIE, National Federation of Independent Business (NFIB), shared that she and her husband were small business owners. She offered her belief that the single payer health care system did not fit for Alaskans, as it did not provide lower cost, greater availability, or choice. She emphasized that she was totally against what the federal government was trying to do. She offered her opinion that small business owners would easily go out of business with additional federal fees. She encouraged the protection of small businesses from unreasonable taxation, and any mandates for health care for employees. 4:42:25 PM CHRISTIE HERRERA, Director, Health and Human Services Task Force, American Legislative Exchange Council (ALEC), explained that ALEC was a non-partisan organization of lawmakers. She offered support for HJR 35. She offered the belief that it would ensure continued access to health services and the right to pay directly for health services. She opined that it would stop mandates that did not work, as a government requirement for health insurance was ineffective, bureaucratic, and costly. She summarized that the cornerstone of any reform was the protection of patients' rights. 4:45:38 PM REPRESENTATIVE SEATON directed attention to the proposed Section 2, which stated in part: "no law shall be passed that compels a person, employer, or health care provider to participate in a health care system..." He asked if this issue had arisen in any other jurisdiction and would it restrict the state's ability to initiate a new tier of the state retirement system. MS. HERRERA agreed with Representative Kelly that this was a forward looking bill, and would not affect current programs. She stated that there was no intent to affect any safety net programs. She agreed that it would preclude the state from enacting an individual or an employer mandate to purchase health coverage. 4:47:07 PM CO-CHAIR HERRON stated that he would keep public testimony open. [HJR 35 was held over.]