HB 356-ADVISORY COMMITTEE ON WELLNESS  11:18:28 AM CHAIR DYSON reconvened the meeting and announced the consideration of HB 356. [CSHB 356(STA) was before the committee.] 11:18:46 AM REPRESENTATIVE PAUL SEATON, Alaska State Legislature, sponsor of HB 356, introduced the bill paraphrasing the following sponsor statement: HB 356 requires the Commissioner of the Department of Administration to implement procedures for decreasing the incidence of disease in Alaska in order to hold the inflation of healthcare costs of active and retired Alaska state employees to 2% per year. According to the Institute of Social and Economic Research, total health care spending in Alaska topped $7.5 billion in Alaska in 2010, with state government employers paying over $400 million. A major component of our $12 billion unfunded pension liability is retiree healthcare costs. HB 356 requires the Commissioner of Administration to put in place programs that will decrease the incidence of disease in State of Alaska employees, both current and retired, in order to hold the inflation of costs to 2% per year. This bill focuses on preventing the incidence of disease as opposed to treatment of disease. Prevention of disease is the policy approach unanimously requested of the Governor by the legislature through HCR 5 in 2011. This is an area of healthcare where the most economic impact can be achieved. For instance, recent studies show that an action as simple as taking a daily supplement of 5,000 IU of vitamin D can dramatically reduce the risk of heart disease, diabetes, cancer, autism, gingivitis, and many other conditions. HB 354 creates an Advisory Committee on Wellness which is charged with making recommendations to the Commissioner of Administration on ways to decrease the incidence of disease in Alaska. HB 365 will enforce a paradigm shift for the Department of Administration and the Department of Health and Social Services. It will require the agencies to implement policies to keep Alaska state employees healthy by preventing disease, rather than the common, reactive policy of waiting until people get sick and then treating them. 11:21:23 AM SENATOR GIESSEL asked how this advisory committee differs from the Alaska Health Care Commission (AHCC), which is already established. REPRESENTATIVE SEATON replied AHCC deals broadly with all Alaskans, whereas the proposed Advisory Committee on Wellness, working within the Department of Administration, would focus on active and retired State of Alaska employees and their dependents to encourage participation in wellness measures. SENATOR GIESSEL questioned what would change with passage of the bill, because she already sees that happening. REPRESENTATIVE SEATON explained that the existing wellness committee meets infrequently and the Department of Administration feels this would ensure that any recommendations are taken seriously. Although AHCC has done some things like negotiate for lower gym memberships, it has limited ability and direction to talk about such things as co-pays if DOA determines it would be beneficial to the state in reducing health care costs. 11:23:43 AM CHAIR DYSON asked if he was saying that DOA can't negotiate co- pays without the proposed volunteer committee. REPRESENTATIVE SEATON clarified that there is no statutory direction for DOA to do that, but it has the authority. CHAIR DYSON commented that there is nothing to keep any group of experts from forwarding suggestions and recommendations on to DOA regarding employee health issues. REPRESENTATIVE SEATON replied that is correct, but there isn't a formal process. He reported that there was great interest in the advisory group last year, but the departments weren't required to respond to their recommendations and the group fell apart. 11:25:05 AM CHAIR DYSON questioned whether it couldn't be resurrected and operate under existing statute. REPRESENTATIVE SEATON said there's nothing that prevents it, but there's nothing in statute that specifies that there's anything to be done. 11:25:39 AM CHAIR DYSON held HB 354 in committee.