HB 391: "An Act establishing state employee health care provider networks; and providing for an effective date."

00 HOUSE BILL NO. 391 01 "An Act establishing state employee health care provider networks; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 39.30 is amended by adding a new section to read: 05 Sec. 39.30.093. State employee health care provider networks. (a) The 06 commissioner of administration shall, for each state employee health care service 07 region under (c) of this section, 08 (1) establish a network of health care providers who are generally 09 available to provide a health care service to state employees in that region and require, 10 as a condition of membership, that each member 11 (A) is able to provide the service; 12 (B) is properly licensed by the state to provide the service; 13 (C) annually demonstrate to the commissioner of 14 administration that not less than 20 percent of the patients served by the

01 provider are eligible to receive benefits from Medicaid or Medicare; 02 (D) for a service subject to a rate established under (b) of this 03 section, agree not to charge more than that rate; 04 (2) identify health care services provided at a market rate that is, on 05 average, higher than the market rate in a more competitive market where the state 06 employee can reasonably obtain similar services. 07 (b) The commissioner of administration shall establish a competitive bid 08 procedure and solicit bids from qualified members of the network to provide a service 09 identified under (a)(2) of this section at a lower rate. The commissioner shall 10 determine the lowest bid under this subsection. The lowest bidder may charge 100 11 percent of the lowest bid for the corresponding service, and other members of the 12 network may charge not more than 95 percent of the lowest bid for that service. 13 (c) For purposes of this section, there are three state employee health care 14 service regions, as follows: 15 (1) the Municipality of Anchorage and the Matanuska-Susitna 16 Borough; 17 (2) the Fairbanks North Star Borough; 18 (3) the City and Borough of Juneau. 19 (d) In this section, 20 (1) "dependent child" means an unmarried child of a state employee, 21 including one adopted, who is dependent on the state employee for support and who is 22 (A) under 19 years of age; 23 (B) under 23 years of age and registered at and attending on a 24 full-time basis an accredited educational or technical institution recognized by 25 the Department of Education and Early Development; or 26 (C) of any age, and totally and permanently disabled; 27 (2) "health care provider" has the meaning given in AS 21.42.347; 28 (3) "state employee" means a person, or the spouse or a dependent 29 child of the person, employed on a full-time or part-time basis with a branch, 30 department, office, institution, board, commission, bureau, division, or other 31 administrative unit that forms state government.

01 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).