Bill aimed at curbing Medicaid costs moves in Senate

JUNEAU — Legislation aimed at curbing and containing costs within Alaska’s Medicaid program advanced from a key Senate committee Monday after lawmakers were told of the savings it’s expected to generate over the next six years.

On Friday, the Senate Finance Committee co-chairs reacted coolly to agency estimates of the bill’s fiscal impact, raising questions with the number of new employees that would be added and questioning the level of reported savings. Co-chair Anna MacKinnon asked agency officials to review their numbers.

Deputy health commissioner Jon Sherwood told the committee Monday that officials over the weekend looked at their assumptions and timelines and in some cases made significant changes, including moving up timelines, finding areas of additional savings and finding reductions in positions and capital costs. The initial presentation may have been more conservative in areas, he said.

The department is still trying to be reasonable in terms of its projections, Sherwood said. One challenge is to not double-count savings through different efforts, he said.

In a handout provided Monday, the department estimates the bill could save the agency $31.4 million in unrestricted state general funds in the upcoming fiscal year, with that amount rising to nearly $114 million by fiscal year 2022. Those estimates apply only to the health department.

The Department of Administration, for example, estimates it will cost about $835,000 in the next fiscal year to carry out a provision in the bill calling for a study to determine whether the creation of an authority to coordinate state health care plans is feasible.

The next step will be for the bill to be scheduled for a floor vote. The House has been working on Medicaid legislation of its own. Medicaid is one of the areas targeted by legislators for reform as they try to reduce the size of the state budget.

The Medicaid bill, SB 74 from Senate Finance co-chair Pete Kelly, R-Fairbanks, incorporates elements from Gov. Bill Walker’s administration. MacKinnon led a special subcommittee that helped shape the bill.

The measure includes provisions related to cracking down on false claims, verifying eligibility, decreasing the unnecessary use of special care and emergency rooms services, expanded use of telehealth services and coordinated care demonstration projects.

More in News

Jason Criss stands for a photo in Soldotna, Alaska, after being named a qualifier for the Special Olympics USA Games on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
Soldotna athlete to compete in 2026 Special Olympics USA Games

Thousands of athletes from across all 50 states will be competing in 16 sports.

The entrance to the Homer Electric Association office is seen here in Kenai, Alaska on May 7, 2020. (Photo by Brian Mazurek/Peninsula Clarion)
HEA opens bids for real property

The deadline to submit bids is 5 p.m. on Aug. 11.

Arturo Mondragon-Lopez, Jr. (right) attends a change of plea hearing related to the October 2023 fatal shooting of Brianna Hetrick on Wednesday, Feb. 5, 2025, at the Homer Courthouse in Homer, Alaska. (Delcenia Cosman/Homer News)
Mondragon-Lopez sentenced for death of Homer woman

Arturo Mondragon-Lopez, Jr. accepted a plea deal in February for the shooting of Brianna Hetrick.

Soldotna City Hall is seen on Wednesday, June 23, 2021 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs $395,000 capital plan

This year’s list of capital projects is “nominal compared to some past years,” according to officials.

A map of areas proposed for annexation by the City of Soldotna. (Provided by City of Soldotna)
Soldotna adds annexation proposal to ballot

The proposed annexation is split across five small areas around the city.

Nets are extended from North Kenai Beach in Kenai, Alaska, during the first day of the Kenai River personal use dipnet fishery on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
‘A really good day’

Kenai River personal use sockeye salmon dipnet fishery opens.

The entrance to the Kenai Peninsula Borough building in Soldotna is seen here on June 1. (Photo by Brian Mazurek/Peninsula Clarion)
Borough assembly to consider ordinance to increase residential property tax exemption

If approved by voters in October, the ordinance would increase the tax exemption by $25,000.

Vice President Kelly Cooper speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, July 8, 2025. (Jake Dye/Peninsula Clarion)
Borough considers seasonal sales tax rate

Borough sales tax would be modified from a flat 3% to a seasonal model of 4% in summer months and 2% in winter months.

Most Read