HB 178-WORKERS' COMP MEDICAL FEES; DELAY  2:22:03 PM CHAIR COSTELLO announced the consideration of HB 178. "An Act relating to workers' compensation fees for medical treatment and services; providing for an effective date by amending the effective date of sec. 5, ch. 63, SLA 2014; and providing for an effective date." KONRAD JACKSON, Staff, Representative Kurt Olson, introduced HB 178 speaking to the following sponsor statement: For many years Alaska has faced the highest workers' compensation rates in the nation. During the second session of the 28th Legislature, House Bill 316 was passed. The bill was a more sweeping solution to the challenge of the previous medical services fee schedule than we have experienced in many years. House Bill 316 tasked the Medical Services Review Committee (MSRC) with setting a conversion factor and a geographic differential to be used in conjunction with a basic fee schedule based on a relative value unit methodology. Once set, the conversion factor will be approved by the Commissioner of the Department of Labor prior to adoption by regulation by the Workers' Compensation Board. All this was to be accomplished by July 1, 2015. Since passage of HB 316, the MSRC has been reactivated and met numerous times. They have nearly completed their part in establishing the conversion factors. More work remains to be done to ensure the reform can take effect. 2:24:38 PM MIKE MONAGLE, Director, Division of Workers Compensation, Department of Labor and Workforce Development (DOLWD) explained that when HB 316 passed, the Medical Services Review Committee (MSRC) had not met since 2009. Resurrecting the committee took quite some time and the committee didn't start its work until November 2014. The committee has had ten meetings and once the final conversion factor is decided the recommendations will be sent to the commissioner of the Department of Labor and Workforce Development (DOLWD). Public comment will likely be taken and hopefully it will be referred to the Workers Compensation Board after which the board will go out through the public process for regulation adoption. MR. MONAGLE related that it would be virtually impossible to meet the July 1 deadline to have the regulations out, but they should be ready to send to the lieutenant governor's office by late summer. That will give medical providers and the insurance companies and employers two to three months to program their systems with the new fee schedules. CHAIR COSTELLO asked why the Medical Services Review Committee hadn't met since 2009. MR. MONAGLE replied it was probably that the committee didn't see the need to meet if their recommendations were unheeded. They met extensively starting in 2006 and issued some final reports in 2009, but none of the recommendations were acted on. House Bill 316 reenergized the committee and tasks it with evaluating these fee schedules on an annual basis. This work will require regular meetings. 2:28:41 PM CHAIR COSTELLO opened and closed public testimony 2:28:53 PM SENATOR GIESSEL moved to report HB 178, labeled 29-LS0813\H, from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO announced that without objection, HB 178 is reported from the Senate Labor and Commerce Standing Committee.