Session: State Capitol, Room 125 Juneau, AK 99801-1182 Phone: (907) 465-6600 Fax: (907) 465-3805 Interim: 600 E. Railroad Ave. Wasilla, AK 99654-7035 Phone: (907) 376-3370 Fax: (907) 376-3157

Health Care and Welfare Subcommittee Formed

(WASILLA) - Senator Lyda Green (R-Mat-Su), Chair of the Senate Health, Education and Social Services Committee announced the formation of a legislative subcommittee to explore the future of health care costs and welfare reform in Alaska.

After education, health care is Alaska's most expensive service, and it is continuing to grow every year. At the current rate of growth, approximately 10% annually, Medicaid costs could overtake education costs within five years and the state's total budget for Medicaid services will double in seven years. Alaska's Medicaid expenditures increased by approximately $75 million in the last budget cycle and are anticipated to exceed that in the next cycle unless cost containment measures are implemented. In addition to the rising costs of the total program, reductions by the new leaders in Congress of Alaska's Federal Match Percentage (FMAP), which go into effect October 1, 2001, will create an immediate shortfall of $10 million in the coming year.

State provided welfare is another program that will be revisited during the coming legislative session, since the mandatory 60-month limit occurs for some recipients in 2002. Additionally, the federal government is reducing their funding of the state's welfare program by $7 million in the upcoming year. Consequently, it will be necessary for the Legislature to address the continuation of and changes to the welfare program.

In response to these issues, Senator Green has formed a legislative subcommittee to progressively address these important social and policy issues. "It has been years since the legislature has taken a comprehensive look at our state's growing health care costs. It is important that, as these costs increase, the legislature consider these programs and their costs and whether they are appropriate and reasonable," said Senator Green. "Furthermore, access to quality health care is a major concern to residents of both rural and urban areas of Alaska. I want to be sure that Alaskans who really need health care coverage are receiving it, and we need to explore how greater access to health care insurance can be provided for the people of Alaska," continued Green.

Senator Green will be joined by Senators Bettye Davis, Robin Taylor and Jerry Ward, as well as Representatives Fred Dyson (Chair of the House Health, Education and Social Services Committee), Sharon Cissna and John Coghill.

The subcommittee will hold public meetings on Nov. 8 & 9 at the Mat-Su Legislative Information Office, 600 E. Railroad Ave. The meetings will begin at 9 a.m. each day, and will focus on:

• Access to health insurance for Alaskans;
• Welfare reform and reauthorization and its effects on health care costs and access;
• The Certificate of Need Program for expanding health care facilities or building new health care facilities and its effects on health care costs;
• Review of Medicaid programs, including the Child Health Insurance Program (CHIP), costs associated with Medicaid, cost containment and proposed solutions; and
• Rural Health Care and the role of the state, the federal government, the Denali Commission and native non-profit health corporations.

The subcommittee will be inviting expert testimony from state and federal agencies and interested groups as well as public testimony. At the conclusion of the hearings, the subcommittee will submit a written report to the Legislature and may propose legislation to be introduced by the Senate or House Health Education and Social Services Committees.

The public is encouraged to contact Senator Green to provide the subcommittee with questions to explore with experts and written testimony concerning health care costs and access. Questions or comments can be submitted to Senator Green in writing at 600 East Railroad Avenue, Wasilla, AK 99654, by email at Senator_Lyda_Green@legis.state.ak.us, or by telephone at (907)376-3370 or (888)465-6601.

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