HB 316-WORKERS' COMPENSATION MEDICAL FEES  3:19:52 PM CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 316, "An Act relating to workers' compensation fees for medical treatment and services; relating to workers' compensation regulations; and providing for an effective date." [Before the committee was Version O, labeled 28-LS1362\0, Wallace, 3/10/14, adopted on 3/10/14.] 3:20:30 PM ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State Legislature, stated that Version O would set the fee schedules for workers' compensation based on a resource-based relative value scale, which in turn is based on the Centers for Medicaid and Medicare services, including a conversion factor set by the medical services review committee (MSRC). The MSRC would advise the workers' compensation board to set conversion factors for the fee schedules. 3:21:27 PM REPRESENTATIVE REINBOLD made a motion to adopt Amendment 1, labeled 28-LS1362\O.1, Wallace, 3/10/14, which read: Page 3, line 12, following the second instance of "the": Insert "original" Page 3, line 15, following the first instance of "the": Insert "original manufacturer's" CHAIR OLSON objected for the purpose of discussion. 3:21:51 PM MS. LATHAM explained that the Amendment [1] would add language on page 3, line 12, to insert "original" and on page 3, line 15 to insert "original manufacturer's" with the intent that it would avoid the higher priced invoice costs for prescriptions or the mark ups on the original fees. CHAIR OLSON removed his objection. There being no further objection, Amendment 1 was adopted. 3:22:58 PM SALLIE STEVEK, Human Resources Director, Fairbanks North Star Borough (FNSB), stated this is the third time she has testified in support of HB 316. She appreciated the work addressing the concerns. As an employer with a self-funded workers' compensation program, she also appreciated the efforts to reform an expensive system. Mayor Hopkins spoke in favor of HB 316 last week and the Fairbanks North Star Borough Assembly adopted a resolution supporting the Workers' Compensation Board recommendations. 3:24:17 PM REPRESENTATIVE JOSEPHSON, relative to current law, asked whether the FNSB knows what rate reduction will be achieved under the bill using Medicare and the conversion factor. MS. STEVEK answered no. The FNSB hasn't performed any analysis, but she believes that the bill will definitely reduce the costs. She shared the concern of previous testifiers to be certain that when workers are injured that they are able to get care and this is why the multiplier and allowing the workers' compensation board to set rates is a reasonable way to address this. 3:25:58 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 316. [HB 316 was held over.]