The Alaska Legislature has voted to approve an approach to health care that has been likened to a gym membership.
In a vote Monday, the state House voted 28-12 to approve. Senate Bill 45authorizes direct medical arrangements within the state.
SB 45 makes clear that direct medical contracts (effectively, subscriptions for basic medical care from a doctor's office) are not insurance and cannot be regulated as such.
“Alaska's insurance laws are so broadly drafted that the legality of these agreements is unclear,” said Rep. Kevin McCabe, R-Big Lake, who introduced the bill in the House. Ta.
senator Passed SB45 Passed in May 2023, it is only the fourth bill this year to receive approval from both the House and Senate.
In Alaska, Highest medical costs in the countryboth specialty and primary care are in short supply.
Mr McCabe said the newly approved contracts were aimed at avoiding price increases and reducing costs for insurers. Patients can join a local clinic and receive basic treatment as part of their membership.
Emergency medical and professional services may not be covered as part of your contract.
“Direct health care contracts work similarly to gym memberships and other subscription-based services,” McCabe said. “Gym memberships include some things like the use of machines and regular visits, but if you want to use a tanning bed or take a Pilates class, you have to pay extra. You have to pay.”
Rep. Genevieve Mina (D-Anchorage) said she grew up uninsured and sees direct health care agreements as a way to meet the needs of people who are unable or unwilling to purchase insurance for basic medical care. He said he was thinking about it.
But she also said she doesn't know if it will help Alaskans who need emergency care and face large bills as a result.
“So I wonder if this really addresses the cost issues that people are facing. Plus, there's no similar insurance protection for consumers,” she said.
During the debate on the House floor, lawmakers Modified SB 45 would require health care providers offering direct care contracts to have 20 percent of their patients either uninsured or enrolled in Medicare, the federal health insurance program for older Americans.
House lawmakers also added consumer protection language.
But this didn't satisfy all lawmakers, including Rep. Zach Fields, D-Anchorage, and co-sponsor of the successful amendment.
Fields said non-Alaskans are concerned. A private equity firm will buy the clinic. We offer cut-price services, making it impossible for Alaska-owned companies to do business here.
He unsuccessfully tried to include a provision in the bill that would allow only the majority of Alaska-owned businesses to offer direct care contracts.
“If you don't have proper consumer protections in place, it's frankly very easy for these parasitic private equity firms to come in and make money while actually harming patients. '' he said.
Jared Caussin is president of the Alaska Hospital and Healthcare Association, which represents the state's hospitals and established clinics. He said his organization has not taken a stance on the bill.
“We've remained pretty strongly neutral on this matter. We don't oppose it,” he said.
Speaking before the final vote, McCabe said SB45 should be seen as a step forward, not the final step, in addressing the state's health care issues.
“This bill is by no means intended to solve all of Alaskans' health care problems,” he said.
SB45 is now up for a vote in the House to confirm House approval. If passed on reconsideration, the bill will return to the Senate, where lawmakers will be asked to approve changes from the House.
If adopted, SB 45 would go to Gov. Mike Dunleavy for final approval or veto. If senators don't approve the changes, a select group of senators will try to negotiate a compromise.
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