HB 14

                         LAWS OF ALASKA
                                        2026
Source  Chapter No.
HB 14 am S(efd add S)  _______
                                        AN ACT
Relating to health care insurance; relating to insurance reimbursement for health care services
provided through telehealth; relating to telehealth; relating to workers' compensation coverage
for disability from diseases for certain firefighters; repealing programs for catastrophic illness
assistance and medical assistance for chronic and acute medical conditions; relating to
occupational disability benefits and medical benefits available under the public employees'
retirement system; providing for an effective date by amending the effective date of secs. 9 and
10, ch. 38, SLA 2022; and providing for an effective date.
                                   _______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
                          THE ACT FOLLOWS ON PAGE 1
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                                             AN ACT
1  Relating to health care insurance; relating to insurance reimbursement for health care services
2  provided through telehealth; relating to telehealth; relating to workers' compensation coverage
3  for disability from diseases for certain firefighters; repealing programs for catastrophic illness
4  assistance and medical assistance for chronic and acute medical conditions; relating to
5  occupational disability benefits and medical benefits available under the public employees'
6  retirement system; providing for an effective date by amending the effective date of secs. 9 and
7  10, ch. 38, SLA 2022; and providing for an effective date.
8_______________
9   * Section 1. AS 21.42.422(b) is amended by adding a new paragraph to read:
10(3) "health care provider" has the meaning given in AS 21.07.250.
11  * Sec. 2. AS 21.42.422 is amended by adding a new subsection to read:
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1(c) A health care insurer shall reimburse a health care provider for health care
2services, including behavioral health services, provided through telehealth on the same
3basis and at least at the same rate as for comparable health care services provided in
4person. A health care insurer may use a geographic pay differential to reimburse out-of-
5state health care providers.
6   * Sec. 3. AS 23.30.121(b) is amended to read:
7(b) For a firefighter covered under AS 23.30.243,
8(1) there is a presumption that a claim for compensation for disability as
9a result of the following diseases is within the provisions of this chapter:
10(A) respiratory disease;
11(B) cardiovascular events that are experienced within 72 hours
12after exposure to smoke, fumes, or toxic substances; and
13(C) the following cancers:
14(i) primary brain cancer;
15(ii) malignant melanoma;
16(iii) leukemia;
17(iv) non-Hodgkin's lymphoma;
18(v) bladder cancer;
19(vi) ureter cancer;
20(vii) kidney cancer;
21(viii) prostate cancer; and
22(ix) breast cancer;
23(2) notwithstanding AS 23.30.100(a), following termination of service,
24the presumption established in (1) of this subsection extends to the firefighter for a
25period of six [THREE] calendar months for each year of requisite service but may not
26extend more than 120 [60] calendar months following the last date of employment;
27(3) the presumption established in (1) of this subsection applies only to
28an active or former firefighter who has a disease described in (1) of this subsection that
29develops or manifests itself after the firefighter has served in the state for at least six
30[SEVEN] years and who
31(A)     underwent [WAS GIVEN] a qualifying medical
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1examination
2(i)   upon the first employment as [BECOMING] a
3firefighter that did not show evidence of the disease;
4(ii) at least once every two years [(B) WAS GIVEN AN
5ANNUAL MEDICAL EXAM] during [EACH OF] the first six
6[SEVEN] years of employment as a firefighter that did not show
7evidence of the disease; and
8(B) [(C)] with regard to diseases described in (1)(C) of this
9subsection, demonstrates that, while in the course of employment as a
10firefighter, the firefighter was exposed to a known carcinogen, as defined by the
11International Agency for Research on Cancer or the National Toxicology
12Program, and the carcinogen is associated with a disabling cancer.
13 * Sec. 4. AS 29.10.200 is amended by adding a new paragraph to read:
14(68) AS 29.20.420 (health care insurance plans).
15 * Sec. 5. AS 29.20 is amended by adding a new section to article 5 to read:
16Sec. 29.20.420. Health care insurance plans. (a) If a municipality offers a
17      group health care insurance plan covering municipal employees, including by means of
18      self-insurance, the municipal health care insurance plan is subject to the requirements
19      of AS 21.42.422(c).
20(b) This section applies to home rule and general law municipalities.
21(c) In this section, "health care insurance plan" has the meaning given in
22      AS 21.54.500.
23 * Sec. 6. AS 36.30.850(b)(11) is amended to read:
24(11)   agreements with providers of services under AS 47.25.071 -
25      47.25.095; AS 47.07; [AS 47.08;] AS 47.10; AS 47.12; AS 47.14; AS 47.17; AS 47.24;
26      and AS 47.27, including contractors under AS 47.27.050;
27 * Sec. 7. AS 39.30.090(a) is amended to read:
28(a) The Department of Administration may obtain a policy or policies of group
29      insurance covering state employees, persons entitled to coverage under AS 14.25.168,
30      14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,
31      employees of other participating governmental units, or persons entitled to coverage
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1under AS 23.15.136, subject to the following conditions:
2(1) a group insurance policy shall provide one or more of the following
3benefits: life insurance, accidental death and dismemberment insurance, weekly
4indemnity insurance, hospital expense insurance, surgical expense insurance, dental
5expense insurance, audiovisual insurance, or other medical care insurance;
6(2) each eligible employee of the state, the spouse and the unmarried
7children chiefly dependent on the eligible employee for support, and each eligible
8employee of another participating governmental unit shall be covered by the group
9policy, unless exempt under regulations adopted by the commissioner of administration;
10(3) a governmental unit may participate under a group policy if
11(A)    its governing body adopts a resolution authorizing
12participation and payment of required premiums;
13(B) a certified copy of the resolution is filed with the Department
14of Administration; and
15(C)     the commissioner of administration approves the
16participation in writing;
17(4) in procuring a policy of group health or group life insurance as
18provided under this section or excess loss insurance as provided in AS 39.30.091, the
19Department of Administration shall comply with the dual choice requirements of
20AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to
21transact business in the state under AS 21.09, a hospital or medical service corporation
22authorized to transact business in this state under AS 21.87, or a health maintenance
23organization authorized to operate in this state under AS 21.86; an excess loss insurance
24policy may be obtained from a life or health insurer authorized to transact business in
25this state under AS 21.09 or from a hospital or medical service corporation authorized
26to transact business in this state under AS 21.87;
27(5)   the Department of Administration shall make available bid
28specifications for desired insurance benefits or for administration of benefit claims and
29payments to (A) all insurance carriers authorized to transact business in this state under
30AS 21.09 and all hospital or medical service corporations authorized to transact business
31under AS 21.87 who are qualified to provide the desired benefits; and (B) insurance
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1  carriers authorized to transact business in this state under AS 21.09, hospital or medical
2  service corporations authorized to transact business under AS 21.87, and third-party
3  administrators licensed to transact business in this state and qualified to provide
4  administrative services; the specifications shall be made available at least once every
5  five years; the lowest responsible bid submitted by an insurance carrier, hospital or
6  medical service corporation, or third-party administrator with adequate servicing
7  facilities shall govern selection of a carrier, hospital or medical service corporation, or
8  third-party administrator under this section or the selection of an insurance carrier or a
9  hospital or medical service corporation to provide excess loss insurance as provided in
10 AS 39.30.091;
11(6) if the aggregate of dividends payable under the group insurance
12 policy exceeds the governmental unit's share of the premium, the excess shall be applied
13 by the governmental unit for the sole benefit of the employees;
14(7)   a person receiving benefits under AS 14.25.110, AS 22.25,
15 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in
16 effect under this section at the time of termination of employment with the state or
17 participating governmental unit;
18(8) a person electing to have insurance under (7) of this subsection shall
19 pay the cost of this insurance;
20(9) for each permanent part-time employee electing coverage under this
21 section, the state shall contribute one-half the state contribution rate for permanent full-
22 time state employees, and the permanent part-time employee shall contribute the other
23 one-half;
24(10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35,
25 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person
26 and eligible dependents under this section; the level of coverage for persons over 65
27 shall be the same as that available before reaching age 65 except that the benefits
28 payable shall be supplemental to any benefits provided under the federal old age,
29 survivors, and disability insurance program; a person electing to have insurance under
30 this paragraph shall pay the cost of the insurance; the commissioner of administration
31 shall adopt regulations implementing this paragraph;
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1(11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35,
2or former AS 39.37 may obtain long-term care insurance for that person and eligible
3dependents under this section; a person who elects insurance under this paragraph shall
4pay the cost of the insurance premium; the commissioner of administration shall adopt
5regulations to implement this paragraph;
6(12) each licensee holding a current operating agreement for a vending
7facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that applies
8to governmental units other than the state;
9(13)   a group health insurance policy covering employees of a
10participating governmental unit must meet the requirements of AS 21.42.422(c).
11  * Sec. 8. AS 39.30.091 is amended to read:
12Sec. 39.30.091. Authorization for self-insurance and excess loss insurance.
13Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration
14may provide, by means of self-insurance, one or more of the benefits listed in
15AS 39.30.090(a)(1) for state employees eligible for the benefits by law or under a
16collective bargaining agreement and for persons receiving benefits under AS 14.25,
17AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall
18procure any necessary excess loss insurance under AS 39.30.090. A self-insured group
19health insurance plan covering active state employees provided under this section
20is subject to the requirements of AS 21.42.422(c).
21  * Sec. 9. AS 39.35.410(d) is amended to read:
22(d) The monthly amount of an occupational disability benefit is 75 [40] percent
23of the disabled employee's gross monthly compensation at the time of termination due
24to disability.
25  * Sec. 10. AS 39.35.870 is amended by adding a new subsection to read:
26(h) Notwithstanding (a) and (g) of this section, a disabled employee who is
27eligible to obtain a disability benefit under AS 39.35.890 is eligible to obtain retiree
28major medical insurance benefits under AS 39.35.880.
29  * Sec. 11. AS 39.35.880(g) is amended to read:
30(g) Except as provided under (l) of this section, the [THE] cost of premiums
31for retiree major medical insurance coverage for an eligible member or surviving spouse
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1who is
2(1) not eligible for Medicare is an amount equal to the full monthly
3group premiums for retiree major medical insurance coverage;
4(2) eligible for Medicare is the following percentage of the premium
5amounts established for retirees who are eligible for Medicare:
6(A) 30 percent if the member had 10 or more, but less than 15,
7years of service;
8(B) 25 percent if the member had 15 or more, but less than 20,
9years of service;
10(C) 20 percent if the member had 20 or more, but less than 25,
11years of service;
12(D) 15 percent if the member had 25 or more, but less than 30,
13years of service;
14(E) 10 percent if the member had 30 or more years of service.
15 * Sec. 12. AS 39.35.880 is amended by adding a new subsection to read:
16(l) An eligible member or surviving spouse who receives a disability benefit as
17      provided under AS 39.35.890 or 39.35.891 and is not eligible for Medicare is not
18      required to pay a premium for retiree major medical insurance coverage.
19 * Sec. 13. AS 39.35.890(d) is amended to read:
20(d) The monthly amount of an occupational disability benefit is 75 [40] percent
21      of the disabled employee's gross monthly compensation at the time of termination due
22      to disability. Notwithstanding AS 39.35.790(b), at the time a member is appointed to
23      disability, the member becomes fully vested in the employer contributions made under
24      AS 39.35.750(a). A disabled member is fully vested in the contributions to the member's
25      individual account made under this subsection. An employee is not entitled to elect
26      distributions from the employee's individual contribution account under AS 39.35.810
27      while the employee is receiving disability benefits under this section. While an
28      employee is receiving disability benefits, based on the disabled employee's gross
29      monthly compensation at the time of termination due to disability, the employer shall
30      make contributions
31(1) to the employee's individual account under AS 39.35.730 on behalf
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1of the employee, without deduction from the employee's disability payments; and
2(2) on behalf of the employee under AS 39.35.750.
3   * Sec. 14. AS 47.05.085(a) is amended to read:
4(a) The commissioner or the commissioner's designee at the director level may
5issue subpoenas to compel the production of books, papers, correspondence,
6memoranda, and other records considered necessary as evidence in connection with an
7investigation under or the administration of AS 47.07 (medical assistance), [AS 47.08
8(ASSISTANCE FOR CATASTROPHIC ILLNESSES AND ACUTE OR CHRONIC
9MEDICAL CONDITIONS),] AS 47.25 (child care assistance, child care grants, general
10relief, adult public assistance, and food stamps), and AS 47.27 (Alaska temporary
11assistance program).
12  * Sec. 15. AS 47.05.200(d) is amended to read:
13(d) As a condition of obtaining payment under AS 47.07 [AND AS 47.08] and
14for purposes of this section, a provider shall allow
15(1) the department reasonable access to the records of medical assistance
16recipients and providers; and
17(2) audit and inspection of the records by state and federal agencies.
18  * Sec. 16. AS 47.05.210(a) is amended to read:
19(a) A person commits the crime of medical assistance fraud if the person
20(1) knowingly submits or authorizes the submission of a claim to a
21medical assistance agency for property, services, or a benefit with reckless disregard
22that the claimant is not entitled to the property, services, or benefit;
23(2) knowingly prepares or assists another person to prepare a claim for
24submission to a medical assistance agency for property, services, or a benefit with
25reckless disregard that the claimant is not entitled to the property, services, or benefit;
26(3)      except as otherwise authorized under the medical assistance
27program, confers, offers to confer, solicits, agrees to accept, or accepts property,
28services, or a benefit
29(A) to refer a medical assistance recipient to a health care
30provider; or
31(B) for providing health care to a medical assistance recipient if
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1the property, services, or benefit is in addition to payment by a medical
2assistance agency;
3(4) does not produce medical assistance records to a person authorized
4to request the records;
5(5)   knowingly makes a false entry in or falsely alters a medical
6assistance record;
7(6) knowingly destroys, mutilates, suppresses, conceals, removes, or
8otherwise impairs the verity, legibility, or availability of a medical assistance record
9knowing that the person lacks the authority to do so; or
10(7) violates a provision of AS 47.07 [OR AS 47.08] or a regulation
11      adopted under AS 47.07 [OR AS 47.08].
12 * Sec. 17. AS 47.05.240 is amended to read:
13Sec. 47.05.240. Exclusion from medical assistance programs. (a) The
14      commissioner may exclude an applicant to or disenroll a medical assistance provider in
15      the medical assistance program in AS 47.07 [OR AS 47.08, OR BOTH,] for a period of
16      up to 10 years after unconditional discharge on a conviction
17(1) for medical assistance fraud under AS 47.05.210 or misconduct
18      involving a controlled substance under AS 11.71; or
19(2) in a court of the United States or a court of another state or territory,
20      for a crime with elements similar to the crimes included under (1) of this subsection.
21(b) After a period of exclusion under (a) of this section, an applicant may not
22      participate in a medical assistance program under AS 47.07 [OR AS 47.08] until the
23      applicant establishes to the commissioner by clear and convincing evidence that the
24      applicant possesses all required licenses and certificates and is qualified to participate.
25 * Sec. 18. AS 47.05.290(9) is amended to read:
26(9) "medical assistance program" means a program under AS 47.07 [OR
27      AS 47.08];
28 * Sec. 19. AS 47.05.290(10) is amended to read:
29(10) "medical assistance provider" or "provider" means a person or
30      organization that provides, attempts to provide, or claims to have provided services or
31      products to a medical assistance recipient that may qualify for reimbursement under
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1AS 47.07 [OR AS 47.08] or a person or organization that participates in or has applied
2to participate in a medical assistance program as a supplier of a service or product;
3   * Sec. 20. AS 47.05.290(17) is amended to read:
4(17) "services" or "medical assistance services" means a health care
5benefit that may qualify for reimbursement under AS 47.07 [OR AS 47.08], including
6health care benefits provided, attempted to be provided, or claimed to have been
7provided to another, by a medical assistance provider, or "services" as defined in
8AS 11.81.900;
9   * Sec. 21. AS 47.05.330(a) is amended to read:
10(a) The Department of Health and the Department of Family and Community
11Services shall by regulation identify each database that department will review when
12conducting a civil history check under AS 47.05.325 to identify each individual
13(1) whom a court or the applicable department has found
14(A)     to have committed abuse, neglect, undue influence, or
15exploitation of a vulnerable adult;
16(B) under AS 47.32 or regulations adopted under AS 47.32, to
17have significantly adversely affected the health, safety, or welfare of an
18individual who is receiving a service from an entity licensed under AS 47.32; a
19finding described in this subparagraph includes a decision to revoke, suspend,
20or deny a license or license renewal, or the relinquishment of a license as part of
21a settlement agreement;
22(2) who has been subject to criminal or civil penalties for a violation of
23AS 09.58, AS 47.05, AS 47.06, AS 47.07, former AS 47.08, or regulations adopted
24under AS 09.58, AS 47.05, AS 47.06, AS 47.07, or former AS 47.08;
25(3) about whom the applicable department or a court has made a
26substantiated finding of child abuse or neglect under AS 47.10 or AS 47.14;
27(4) who was a biological or adoptive parent, guardian, custodian, or
28Indian custodian of a child at the time the child was the subject of a child-in-need-of-
29aid petition under AS 47.10;
30(5) who, in the course of employment with the state, has been terminated
31from employment or has had an allegation of assaultive, abusive, neglectful, or
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1exploitive behavior or actions substantiated;
2(6) who, in this state or another jurisdiction, for reasons related to abuse,
3neglect, undue influence, exploitation, or other reasons that are inconsistent with
4standards for the protection of public health, safety, or welfare, has had a professional
5license, certification, or similar professional designation revoked, suspended, or denied,
6or has had a request for renewal of a professional license, certification, or similar
7professional designation denied;
8(7) whom another state or jurisdiction has identified on a civil registry
9or database substantially similar to the databases identified under this section for reasons
10substantially similar to the reasons identified in (1) - (6) of this subsection.
11  * Sec. 22. AS 47.08.010, 47.08.020, 47.08.030, 47.08.040, 47.08.050, 47.08.060, 47.08.070,
12 47.08.080, 47.08.090, 47.08.100, 47.08.110, 47.08.120, 47.08.130, 47.08.140, and 47.08.150
13 are repealed.
14  * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to
15 read:
16APPLICABILITY. AS 47.05.210(a), as amended by sec. 16 of this Act, applies to
17 offenses committed on or after the effective date of sec. 16 of this Act.
18  * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to
19 read:
20TRANSITION. (a) Notwithstanding AS 47.05.085(a), as amended by sec. 14 of this
21 Act, the commissioner of health or the commissioner's designee at the director level may issue
22 subpoenas to compel the production of books, papers, correspondence, memoranda, and other
23 records considered necessary as evidence in connection with an investigation under AS 47.08
24 that began before the effective date of sec. 14 of this Act or for an investigation of a violation
25 of AS 47.08 that occurred before the effective date of sec. 14 of this Act.
26(b) Notwithstanding AS 47.05.200(d), as amended by sec. 15 of this Act, a provider
27 shall allow the department reasonable access to the records of medical assistance recipients and
28 providers and allow audit and inspection of the records by state and federal agencies
29(1) in order to receive payment for a service provided under AS 47.08 before
30 the effective date of sec. 15 of this Act; and
31(2) in connection with an audit under AS 47.05.200 for activities that occurred
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1before the effective date of sec. 15 of this Act.
2  * Sec. 25. Section 14, ch. 38, SLA 2022, is amended to read:
3Sec. 14. If secs. 9 and 10, ch. 38, SLA 2022, [OF THIS ACT] take effect under
4sec. 13, ch. 38, SLA 2022 [OF THIS ACT], they take effect June 30, 2040 [2030].
5  * Sec. 26. Sections 1, 2, 4, 5, 7, 8, and 25 of this Act take effect January 1, 2027.
6  * Sec. 27. Sections 3 and 9 - 13 of this Act take effect immediately under AS 01.10.070(c).
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