Medicaid & an Alaska gasline

Dear Neighbors,

Happy Spring Equinox!  In this week’s newsletter, we will touch on Medicaid, an Alaska Natural Gas pipeline, and finish up with a couple of shout outs and reminders.  A very big thank you to everyone who has called, emailed, wrote, and visited the office this session – it’s great to hear from you.

11 March: Thanks to the Yakoosge Daakahidi Alternative High School for visiting the Capitol. I enjoyed discussing the bills they’re tracking – Alaska’s future leaders ask great questions!

Governor’s Medicaid Reform & Expansion Bill

On Tuesday, March 17, Governor Walker introduced a bill that would allow Alaska to accept federal funding for Medicaid expansion and make reforms to the program.  The bill directs Alaska’s Department of Health and Social Services to examine all options available to improve Medicaid while limiting its costs.

The bill offers reforms (called “waivers” and “options”) designed to implement a Medicaid program that meets Alaska’s particular needs and challenges.  Generally speaking, these changes involve accepting Federal funding to pay for Medicaid eligible individuals that Alaska is already using state funds to cover.  Two specific examples of reforms include (by the federal designation):

1.       1115 waiver: Under this program, the federal government will pay 100% of the costs incurred by Indian Health Services beneficiaries who receive services from tribal health providers.  This reform has the potential to realize a savings of $100-150 million, annually.

2.       1915 option: This reform will result in potential savings of $24 million, annually.

a.       (i): Under this sub-paragraph, the federal government will cover 50% of the cost of care for those Alaskans that do not meet the nursing level of care, but do meet other criteria like Alzheimer’s, traumatic brain injury, severe mental illness, or individuals that have developmental or cognitive disabilities.
b.      (k): Under this sub-paragraph, the federal government will cover 56% of the cost of care for those Alaskans that receive home, and community based services.

Telehealth in action – technology offering new tools to health providers (Google images).

Other proposed changes are designed to help the program operate more efficiently and effectively.  These changes include:

1.       Payment reform and innovative service delivery improvements to increase efficiency and enhance service delivery
2.       Tele-health improvements that utilize technology to improve health service delivery. 
3.       Streamlining state and federal audits for better coordination that can result in a reduction of the strain on providers.
4.       Granting of emergency regulation authority that will enable savings opportunities.

Alaska already accepts federal funds to pay for all sorts of services including our current Medicaid program.  Some of the other programs where we receive federal funds include:  roads, education, airports, and ferries.  Accepting federal funding to pay for Medicaid expansion is no different from accepting federal funding to pay for roads and ferries, and will result in a healthier and more productive Alaska.

HB132 – relating to developing the Alaska gasline

The Governor recently announced his intention to expand the scope of the Alaska Gasline Development Corporation (AGDC) to include consideration of the feasibility of a large-diameter export pipeline that would be designed and constructed completely under the authority of the State of Alaska.  Currently, AGDC is tasked with identifying the feasibility of a small-diameter, in-state pipeline designed to provide Natural Gas to Alaskans.  In response, several members of the majority leadership recently introduced a bill (House Bill 132) that would limit AGDC to the small-diameter, in-state pipeline.  HB132 will limit the Governor’s ability to explore expanding the capacity of the small-diameter pipeline until, and only if, a large diameter, export pipeline designated as the Alaska Natural Gas Pipeline Project, or AKLNG, is determined to be unfeasible.  This will limits the Governor’s ability to adequately consider.

While a smaller, in-state gas line would provide natural gas to Alaskans and reduce energy costs in the state, it leaves no option for export.  Without export the state receives no income, and without income we cannot afford to fund education, healthcare, or other state services with our current state population.  Given the current drastic decline in oil revenue to the state, I believe it is wise to consider alternative means of income, and as such, I think it is important to keep all options on the table when looking at our future gas line potential. 

13 March: opening ceremonies for the Bantam III Hockey State Tournament.  It was fun to lace up and join Governor Walker for a couple of loops around the rink.

Shout out

A job well-done to the hockey teams who competed in the Bantam Hockey state tournament last weekend, as well as the Juneau-Douglas Ice Association, the parents, coaches, referees, and volunteers who made the tournament possible!

Congratulations to all the Gold Medal Basketball tournament teams!  It’s been a great week of hoops in the capital city.

Do you have a recognition or community shout out? Let me know so I can include it.

Reminders:

DOTPF is taking public testimony on Amendment 14 to the Statewide Transportation Improvement Program (STIP).  This amendment addresses scope, funding, and scheduling issues on various projects around the state.  Public comment period closes April 17, 2015 at 5:00pm AST.  More details on the amendment are available at this link.

PFD Application: Apply online for your 2015 Permanent Fund Dividend – Deadline is March 31.  If you haven’t yet done so, please don’t forget to apply for your 2015 Permanent Fund Dividend. You can apply online at http://pfd.alaska.gov or call the Permanent Fund Dividend office (465-2326) to find your nearest location to fill out the application by hand.

With Regards,

Sam Kito III