Proposed changes could alter health care payment practices across Alaska

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Proposed changes could alter health care payment practices across Alaska
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The Division of Insurance is proposing repealing the 80th percentile rule – which was implemented decades ago to help protect providers and patients – claiming the provision raises health care costs for consumers.

ANCHORAGE, Alaska - The state of Alaska is proposing changes to and repeal of a health care-related policy that could alter payment practices for providers, and in turn patients, across the state.

Despite the provision having been established as a way to protect consumers and keep costs from being astronomical, proponents of the move claim the change would reduce health care costs in Alaska. However, people against the removal of the policy caution against what it could do to already costly visits.

On the other hand, many providers, including groups such as the Alaska State Medical Association and Alaska Medical Group Management Association, said repealing the 80th percentile rule could actually lead to even higher health care costs for patients and providers. This is in addition to further reducing access to health care by creating additional cost barriers and boxing potential providers out of the state, according to representatives for both of those entities.

Harkreader said the campaign to remove the regulation, spearheaded by the largest insurance payer in the state, is also touting an outdated study and using inaccurate data points. The study also acknowledges that over time, providers can increase their charges, and insurance payments and payouts would have to keep up.

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