Bill Summary – FastDemocracy

State of Alaska
                                                           Fiscal Note
                                                                                             Bill Version:                    CSSB 26(L&C)
 2022 Legislative Session
                                                                                             Fiscal Note Number:              4
                                                                                             (S) Publish Date:                2/18/2022
 Identifier:        SB026-DOH-MS-2-16-2022                                    Department:        Department of Health
 Title:             REPEAL CERTIFICATE OF NEED PROGRAM                        Appropriation: Medicaid Services
 Sponsor:           WILSON                                                    Allocation:        Medicaid Services
 Requester: (S) LC                                                            OMB Component Number:               3234
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                               (Thousands of Dollars)
                                                 Included in
                                    FY2023       Governor's
                                Appropriation      FY2023                                           Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2023        FY 2023       FY 2024                     FY 2025           FY 2026            FY 2027         FY 2028
 Personal Services                          ***                         ***                         ***               ***                ***             ***
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            ***           0.0           ***                          ***                ***              ***              ***
 Fund Source (Operating Only)
 None
 Total                                           ***             0.0                 ***             ***                ***              ***              ***
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                           0.0             0.0                 0.0             0.0                0.0              0.0              0.0
 Estimated SUPPLEMENTAL (FY2022) cost:                                  0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2023) cost:                                       0.0                (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                07/01/24
 Why this fiscal note differs from previous version/comments:
 This fiscal note has been updated to reflect FY2023 and the change to the Department of Health.
 Prepared By:             Linnea Osborne, Manager                                                                  Phone:         (907)465-6333
 Division:                Finance and Management Services                                                          Date:          01/21/2022
 Approved By:             Sylvan Robb, Assistant Commissioner                                                      Date:          01/24/22
 Agency:                  Department of Health and Social Services
Printed 2/18/2022                                                      Page 1 of 2                                                         Control Code: cvzEO
                                                                                                          CSSB 26(L&C) - Fiscal Note 4
                                                 FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. SB026
2022 LEGISLATIVE SESSION
Analysis
   The certificate of need program requires health service providers to obtain approval of the commissioner before building
   or remodeling health care facilities, or purchasing equipment costing more than an established capital expenditure
   threshold. Under AS 18.07.031, the existing expenditure threshold for requiring a certificate of need is $1.5 million.
   Alaska is one of 31 states and the District of Columbia to have a Certificate of Need program.
   This bill would repeal the Certificate of Need program, effective July 1, 2024 (start of FY2025). With the repeal of this
   program, there will be increased costs to Medicaid services due to expenditures not being averted by a denial or a partial
   denial of a proposed Certificate of Need project. The increase in costs is indeterminate and is reflective of the most recent
   denial or partial denial of a Certificate of Need application for a facility covered under this component. With passage of
   this bill, there will be no review and approval process, and an increased cost to the Medicaid program will occur.
   Note: This fiscal note is marked as indeterminate due to uncertainties associated with predicting future Alaska Healthcare
   Industry Initiatives; federal regulation changes; and state health care cost containment measurements. The health care
   industry is evolving with considerable program changes and/or innovative management practices in process at the both
   state and federal levels.
(Revised 11/23/2021 OMB/LFD)                                                                                        Page 2 of 2
SB026-DOH-MS-2-16-2022                                         Page 2 of 2                                               Control Code: cvzEO
Statutes affected: 
SB0026A, AM SB 26, introduced 01/22/2021: 12.25.030, 12.55.155, 18.07.111, 18.20.400, 26.23.020, 26.23.140, 18.20.410, 47.32.900, 47.12.990, 18.20.499, 18.26.220, 18.35.399, 18.07.021, 18.07.031, 18.07.035, 18.07.041, 18.07.043, 18.07.045, 18.07.051, 18.07.061, 18.07.071, 18.07.081, 18.07.091, 18.07.101, 21.86.030, 44.64.030, 47.80.140
SB0026B, AM CSSB 26(L&C), introduced 02/18/2022: 12.25.030, 12.55.155, 18.07.111, 18.20.400, 26.23.020, 26.23.140, 18.20.410, 47.32.900, 47.12.990, 18.20.499, 47.14.990, 18.26.220, 18.35.399, 18.07.021, 18.07.031, 18.07.035, 18.07.041, 18.07.043, 18.07.045, 18.07.051, 18.07.061, 18.07.071, 18.07.081, 18.07.091, 18.07.101, 21.86.030, 44.64.030, 47.80.140