Overview
According to data from the Council for Community and Economic Research, health services in Alaska are 70 – 200 percent more expensive than the national average. Many pressures influence Alaska’s health-care costs. They include expenses related to recruiting providers from out of state, lack of competition, the state’s small population.
In 2016, Alaska passed a law which set up a $55 million fund for the Alaska Reinsurance Program (ARP), financed through an existing tax on all insurance companies, to subsidize enrollees’ costs as the state struggles with Obamacare price spikes. Alaska Governor Bill Walker said the program would ensure that the 23,000 Alaskans enrolled in exchange plans would not suddenly lose their insurance. The state also received CMS approval for federal passthrough to partially finance the ARP, which would fully or partially reimburse insurers for incurred claims for high-risk enrollees diagnosed with certain health conditions.
In recent legislative terms, Alaska sought legislative solutions to skyrocketing healthcare costs in terms of price transparency and cost containment. Most notably, the legislature made repeated attempts to establish an all-payer claims database (APCD). The legislature also continued to introduced bills that would create a shared savings incentive program that encourages patients to become active consumers and to actively shop for the most competitive prices for care. Other price transparency measures propose to limit how much an insurance company must reimburse an out-of-network provider for covered services and would require providers and medical facilities to disclose the undiscounted costs of their most common procedures.
See below for an overview of existing Alaska state mandates. Click on citation tab for detailed information of specific statutes (click link to download statute text).
State Action
Latest Legislative Session: 1/17/2023 - 4/17/2022 (2023-2024 term). *Current session bill updates are ongoing. Check back weekly for updates.
SB 78 – Alaska
Introduced: 2021 Status: Inactive / Dead
An Act relating to telehealth: A health care provider may provide treatment, render a diagnosis, or prescribe, dispense, or administer a prescription, excluding a controlled substance listed under AS 11.71.140 – 11.71.190, through telehealth as …
SB 8 (see companion bill HB 35) – Alaska
Introduced: 2023 Status: In Process
House Bill 35 repeals the Certificate of Need Program in Alaska and provides for an effective date of July 1, 2024. The Certificate of Need program was first mandated by the Federal Government in 1974 …
SB 93 (see companion bill HB 113) – Alaska
Introduced: 2021 Status: Inactive / Dead
An Act relating to the establishment of an all-payer health claims database; and providing for an effective date
SB 94 (see companion bill HB 112) – Alaska
Introduced: 2023 Status: In Process
An Act relating to the Board of Pharmacy; relating to the practice of pharmacy; relating to pharmacies; relating to prescription drug manufacturers; relating to prescriptions for epinephrine; relating to the administration of epinephrine; and providing …
SJR 10 – Alaska
Introduced: 2023 Status: In Process
Encouraging Alaska’s Congressional delegation and the federal government to raise Medicare reimbursement rates to meet the actual cost of care for the state’s senior citizens.
Alaska Stat. § 18.09.010. Alaska Health Care Commission: Alaska Health Care Commission – Alaska
Introduced: Status: Enacted
Creates the Alaska Health Care Commission to serve as the state health planning and coordinating body, with duties to reduce health care costs by enhancing market forces and increase saving from health information technology, among …
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Alaska Stat. § 18.09.070. Duties of the commission: Alaska Health Care Commission – Alaska
Introduced: Status: Enacted
The commission shall serve as the state health planning and coordinating body. Consistent with state and federal law, the commission shall provide recommendations for and foster the development of a statewide health plan
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Alaska Stat. § 18.23.300. Creation of health information exchange system: Electronic Health Information Exchange System – Alaska
Introduced: Status: Enacted
Creates a statewide electronic health information exchange system in order to “promotes a more effective marketplace, greater competition, greater systems analysis, increased choice, enhanced quality, and improved outcomes in health care services.”
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Alaska Stat. § 18.23.305. Department; duties: Electronic Health Information Exchange System – Alaska
Introduced: Status: Enacted
In carrying out its duties under AS 18.23.300, the department shall do the following.
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Alaska Stat. § 18.23.325. Definitions: Electronic Health Information Exchange System – Alaska
Introduced: Status: Enacted
Definitions of Alaska’s Electronic Health Information Exchange System
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In re: Suboxone Antitrust Litigation (State of Wisconsin, et al. v. Indivior Inc, et al.) – Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin
District Court: E.D. Pennsylvania Status: Pending
In September 2016, 35 state attorneys general and the District of Columbia brought a multi-district case against pharmaceutical manufacturer Indivior, MonoSol RX et al., alleging …
In Re: Generic Pharmaceuticals Pricing Antitrust Litigation – Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin
District Court: Eastern District of Pennsylvania Status: Pending
Plaintiffs are attorney generals from 48 states, Puerto Rico, and the District of Columbia, as well as classes of private plaintiffs that filed an antitrust …
Additional Resources
STATE BUDGET
Alaska budgets on an annual budget cycle with the fiscal year beginning July 1stand ending June 30th. The governor will submit his or her proposed budget to the state legislature by December 15 and the legislature will adopt a budget by simple majority in April. To view Alaska’s budget for the latest fiscal year, click here.
REGULATION & ENFORCEMENT
- In April 2017, Department of Justice and the FTC issued a joint statement regarding proposed legislation repealing the state’s Certificate of Need (CON) laws. The agencies recommended that Alaska repeal its CON laws, which require healthcare providers to obtain state approval before expanding, establishing new facilities or services, or making certain large capital expenditures.
KEY RESOURCES