Senate Bill 149                                                              
                                                                             
     "An Act relating to reports and audits concerning health                  
     care facilities; and providing for an effective date."                    
                                                                             
                                                                             
Co-chair Sharp  noted that action needed  to be taken on  SB 149 in            
the current year.                                                              
                                                                             
GARREY  PESKA,  LOBBYIST,   ALASKA  STATE  HOSPITAL/NURSING   HOMES            
(ASHNHA), testified  in support of  the legislation. He  noted that            
the  purpose of  the bill  was to  clarify in  Alaska statute  that            
Medicaid audits  of hospitals  and nursing homes  could be  used in            
the  rate-setting  process.  He  observed  that  legal  issues  had            
raised  the question  of whether  or not Medicaid  audits could  be            
used  to  set  hospital   rates  for  Medicaid  reimbursement.   He            
emphasized that  ASHNHA believed the  audits were necessary  to set            
rates and that federal  law required that the state  perform audits            
of hospitals  for  Medicaid purposes,  and emphasized  that SB  149            
was necessary to  allow the process to work properly.  He clarified            
that the  Department of  Health and Social  Services sponsored  the            
bill.                                                                          
                                                                               
Senator  Adams  MOVED  to  REPORT  SB 149  out  of  committee  with            
individual  recommendations   and  the  accompanying  fiscal  note.            
There being NO OBJECTION, it was so ordered.                                   
                                                                               
SB  149   was  REPORTED   out  of  committee   with  a  "do   pass"            
recommendation  and with  a previously published  zero fiscal  note            
by the Department of Health and Social Services.