HB 141-WORKERS' COMPENSATION MEDICAL FEES  4:22:34 PM CHAIR DUNLEAVY reconvened the meeting and announced the consideration of HB 141."An Act setting the fee for medical treatment or services performed outside the state under the Alaska Workers' Compensation Act, requiring a provider of medical treatment or services under the Alaska Workers' Compensation Act to submit bills for treatment or services to employers within 180 days after the date the treatment or services are rendered, and limiting the time for appealing an employer's denial or reduction of a bill; and providing for an effective date." He noted that this was the [first] hearing. 4:22:52 PM ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State Legislature, Juneau, Alaska, introduced HB 141 on behalf of the sponsor. She explained that the bill sets the fee schedule for workers' compensation claims treated outside Alaska and establishes billing timelines for medical providers. Providing some background, she said the state has used a usual, customary, and reasonable fee schedule for workers' compensation that is reflective of the costs and geographic area where services are rendered. Services have been billed at the 90th percentile for the past ten years. In 2011, the legislature passed House Bill 13, which extended the current fee schedule but what it failed to do was to set parameters for where the fee schedule could be used. She reported that Alaska has the highest workers' compensation premiums in the nation. The Oregon Department of Business and Consumer Services conducts a biennial study of workers' compensation rates that is considered the industry standard. For the past ten years, Alaska has ranked in either the first or second place for the highest workers' compensation insurance premium rates in the nation. 4:24:19 PM MS. LATHAM provided examples of some discrepancies between the rates in Alaska and other western states. She directed attention to the top 25 surgery procedure code fee comparison charts in the bill packets. It shows that Alaska's costs are substantially higher that those for Washington, Oregon, and Idaho. She drew attention to page 40, chart 30, of the report entitled, "Medical Data Report for the state of Alaska dated September 2013." This chart ranks the top ten diagnostic codes by total claim payments. It shows that the average payment in Alaska for treating a diagnosis of a ruptured disc is $31,177 compared to $17,049 nationwide. That's 182 percent higher in Alaska. MS. LATHAM said there is nothing in statute from preventing workers' compensation claims treated in the Lower 48 from being billed at Alaska's higher rates. HB 141 changes that. Medical services treated in-state would still be charged using the UCR fee schedule that was established in 2011, and medical services provided outside Alaska could not exceed the charges set by the statute in the state where the services are rendered. The bill also establishes billing timelines. It requires a provider to submit bills within 180 days after the services are rendered and limits the time for appealing an employer's denial or reduction of a bill to 60 days. The effective date is immediate and there is a retroactivity clause that includes transitional language. The transition language allows medical providers to submit bills for service within 180 days of the effective date, irrespective of the date of service, and allows providers to submit an appeal for denied payment within 60 days of the effective date, irrespective of the date of the disputed payment. She summarized that HB 141 sets reasonable time limits to provide certainty for the employer and the insurer as they budget for the future. CHAIR DUNLEAVY opened public testimony. VINCE O'SHEA, Vice President, Pacific Seafood Processors Association (PSPA), Juneau, Alaska, testified in support of HB 141. He reported that PSPA has over 27,000 workers in seafood processing plants across the state and the high workers' compensation rates need to be addressed. This will eliminate the abuse and unnecessary expenses related to treatment, he said. 4:29:35 PM SALLIE STUVEK, Human Resources Director, Fairbanks North Star Borough (FNSB), Fairbanks, Alaska, said she oversees risk management, which handles workers' compensation for the FNSB and the FNSB School District (FNSBSD). She reported that the FNSB spends about $1.1 million on workers' compensation benefits each year. FNSB continues to see medical costs rising and believes that the resolution adopted by the workers' compensation board 1301 dated September 27, 2013 is a positive step to address these costs. The FNSB assembly passed a resolution on February 13, 2014 in support of continuing to pursue this legislation. SENATOR MICCICHE stated support for the legislation and commented that it might cut back on medical tourism. 4:31:18 PM CHAIR DUNLEAVY held HB 141 in committee for further consideration. Public testimony was open.