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FOR IMMEDIATE RELEASE: Oct. 28, 2005
Contact: Sherry Hill, (907) 465-1618, Cell (907) 321-2838
Jeff Kasper, (907) 465-8194, Cell (907) 321-3158

Governor’s proposals will provide relief, hope to health care systems from uninsured and underinsured patients

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( Girdwood, Alaska) – Alaska Department of Health and Social Services Commissioner (DHSS) Karleen Jackson announced Oct. 27 at the Alaska State Hospital and Nursing Home Association annual meeting in Girdwood two of Governor Frank H. Murkowski’s fiscal year 2007 budget proposals to provide relief to health care systems from the financial burden of uninsured and underinsured patients.

“The health care needs of those who are uninsured and underinsured have a huge impact on hospitals and other health care providers in our state as well as the Department of Health and Social Services,” Jackson said. “The Governor’s proposed changes will not only provide relief to health care organizations, but also hope for those who face the lack of health care coverage.”

The $13.2 million increase — $6.7 million federal funds and $6.5 million general funds match — to the Disproportionate Share Hospital (DSH) allotment makes payment adjustments for qualifying hospitals which serve a disproportionate number of patients who are uninsured or underinsured. Many of these hospitals often lose money because of low Medicaid reimbursement rates; and because they generally provide high volumes of uncompensated care to indigent patients.

A hospital must meet three criteria to be eligible for a DSH payment: be an acute care, specialty or psychiatric hospital; meet obstetrical requirements; and have at least 1 percent more Medicaid-eligible inpatient days than total inpatient days for the qualifying year. There are additional requirements such as federal allocation guidelines, limits to the amount facilities may receive, agreement by facilities to provide services and sufficient legislative appropriation of funds.

In addition to this proposed short-term financial solution, DHSS has received $964,000 from a federal grant on the uninsured to assemble existing data, and evaluate the lack of health insurance coverage, and develop a statewide plan for health care for Alaskans.

“This grant will allow public and private policymakers to use data about current health care accessibility and costs to plan a coherent, comprehensive, and coordinated approach to health care that can promote and protect the health and well-being of all Alaskans,” Jackson said.

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