New Medicaid reform committee strives for savings

As lawmakers look to trim the state’s budget shortfall, their attention is focused on one of the biggest areas of the budget: Medicaid.

Eagle River Republican Sen. Anna MacKinnon announced Wednesday that a new Medicaid reform subcommittee will focus on the issue over the next month.

The subcommittee will look at two separate bills: one proposed by Gov. Bill Walker’s administration and another from Fairbanks Republican Sen. Pete Kelly to change how healthcare is delivered to low-income Alaskans.

Both bills encourage the use of case management.

In the state’s version, a contractor assigns a primary care provider to each patient.

The provider would help coordinate the health care that the patient receives, with an eye toward preventing problems that cause unnecessary hospital stays and emergency room visits.

Valerie Davidson, commissioner designee of Alaska’s Department of Health and Social Services listens to the State of the State Address, Jan. 21, 2015. (Photo by Skip Gray/360 North)
Valerie Davidson, commissioner designee of Alaska’s Department of Health and Social Services listens to the State of the State Address, Jan. 21, 2015. (Photo by Skip Gray/360 North)

State Health Commissioner Valerie Davidson says patients benefit from closer attention.

“What we found is they love it, because, you know, maybe for the first time in their life, somebody is contacting them and saying, ‘Hey, it looks like you’re having some health issues,'” Davidson said. “Based upon what you have been seen for, you might benefit from seeing a primary care provider, who can work with a … cardiologist or some other specialist. And based upon what we know about the services that you’ve received, we can set up an appointment for you.”

Both bills also seek to reduce pharmacy spending by pointing patients toward generic prescription drugs rather than name brands.

Senator Kelly is also interested in exploring privatizing some state healthcare services.

Kelly says he’s looking forward to quick and bold action:

“We haven’t done it well enough over many, many years,” Kelly said. “There’s no finger being pointed at the Health and Social Services Committee or this commissioner. This has been a cumulative problem that I think we are just so forced  into dealing with it now because of the other budget considerations that face us, that we’re actually going to do it this time.”

The new subcommittee will meet three times a week.

Republican Senators Kelly and MacKinnon, along with Peter Micciche and Cathy Giessel will serve on the subcommittee, along with Democrat Donny Olson.

MacKinnon says she’s interested in possibly taking pieces from both the administration’s bill and Kelly’s bill and making a recommendation to the full Senate Finance Committee by the end of February.

Andrew Kitchenman

State Government Reporter, Alaska Public Media & KTOO

State government plays an outsized role in the life of Alaskans. As the state continues to go through the painful process of deciding what its priorities are, I bring Alaskans to the scene of a government in transition.

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