Bill Summary – FastDemocracy

State of Alaska
                                                          Fiscal Note
                                                                                           Bill Version:                    CSSB 8(HSS)
 2023 Legislative Session
                                                                                           Fiscal Note Number:              1
                                                                                           (S) Publish Date:                3/8/2023
 Identifier:       SB0008A-DOH Medicaid                                     Department:        Department of Health
 Title:            REPEAL CERTIFICATE OF NEED PROGRAM                       Appropriation: Medicaid Services
 Sponsor:          WILSON                                                   Allocation:        Medicaid Services
 Requester: Senate Health and Social Services                               OMB Component Number:               3234
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                             (Thousands of Dollars)
                                                 Included in
                                    FY2024       Governor's
                                Appropriation      FY2024                                         Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2024        FY 2024       FY 2025                   FY 2026           FY 2027            FY 2028        FY 2029
 Personal Services                                                                                ***               ***                ***            ***
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                         ***                ***              ***             ***
 Fund Source (Operating Only)
 None
 Total                                          0.0            0.0                 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 (FY2023) cost:                                0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2024) 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?                              07/01/25
 Why this fiscal note differs from previous version/comments:
 Initial version.
 Prepared By:            Terra Serpette                                                                          Phone:         (907)465-6333
 Division:               Medicaid Services                                                                       Date:          02/10/2023
 Approved By:            Josie Stern, Assistant Commissioner                                                     Date:          02/10/23
 Agency:                 Department of Health
Printed 3/8/2023                                                     Page 1 of 2                                                         Control Code: BEWFH
                                                                                                             CSSB 8(HSS) - Fiscal Note 1
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                    BILL NO. SB 8
2023 LEGISLATIVE SESSION
Analysis
   The certificate of need process 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, 2026 (start of FY2027). The passage of this bill will
   require the department to adopt regulations necessary to implement the changes by July 1, 2025 (start of FY2026). With
   the repeal of this program, there will be increased costs to Medicaid Services due to expenditures not being adverted by a
   denial or a partial denial of a proposed Certificate of Need project. With passage of this bill, there will be no review and
   approval process, and an indeterminate increased cost to the Medicaid program will occur.
   Note: This fiscal note is marked as indeterminate due to the uncertainties associated with predicting future Alaska
   Healthcare Industries 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
   both the state and federal levels.
(Revised 08/26/2022 OMB/LFD)                                                                                          Page 2 of 2
SB0008A-DOH Medicaid                                            Page 2 of 2                                               Control Code: BEWFH
Statutes affected: 
SB0008A, AM SB 8, introduced 01/09/2023: 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
SB0008B, AM CSSB 8(HSS), introduced 03/08/2023: 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