Monday, May 5, 2025
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State stalls payments on Medicaid; out of money

Doctors and other Medicaid providers around the state began receiving letters today from the Alaska State Department of Health and Social Services stating that their payments would be delayed because the state has run short of money.

The letters were dated May 24, but there has been no public notification from the Office of the Governor or DHSS that payments were being withheld in his signature Medicaid program.

The letter, from Margaret Brodie, Director of the Division of Health Care Services, simply says that the delay is necessary due to a “tight budget situation” in the current fiscal year.

Brodie’s letter says the solution will come as “Medicaid funds are reallocated among accounts.” Moving money from one account to another is like paying off one credit card with another one when you’re broke. It’s one step short of a bounced check.

“Doctors are getting stuck in this shell game, using doctors as political pawns,” said one medical provider, who asked to remain anonymous for fear of retribution. “Shame on them for dragging doctors into a reimbursement that is questionable as to whether it even meets our costs, and now to delay payments because the State is out of money?”

Alaska’s budget challenge for Fiscal Year 2017 is now being addressed by the Legislature, which is in special session in Juneau. But the Brodie letter indicates that the FY16 budget has simply come up short.

No announcement from the department, nor notification to lawmakers was made to indicate the crisis has reached the point where payments cannot be made.

Eight months ago, three Kenai area healthcare providers filed a lawsuit against Alaska’s Medicaid billing and payments contractor, Xerox State Healthcare, over millions of dollars in unreimbursed claims.

South Peninsula Hospital in Homer, Alaska Speech and Language Clinic in Kenai and the Kenai Vision Center said they suffered severe losses due to the State’s unpaid debts.

In 2014, Alaska sued Xerox State Healthcare for breach of contract. The new software system the company installed was far past deadline. Providers were going bankrupt and leaving the state because they were not paid for their services.

In August of 2015, Governor Walker expanded Medicaid in Alaska by executive order, saying the costs would be borne by the federal government. The Alaska Legislature did not want Medicaid expanded until it was reformed, and Governor Walker and Commissioner Davidson promised significant reforms. To date, none is apparent, costs have climbed, and the system cannot pay its existing bills.

NOW THIS: The letter received by providers on May 24 was not copied to members of the Legislature, and there was no statement to the press by the Governor’s Office on this collapse of his signature program, Medicaid.  Surely this matter was known by Commissioner Valerie Davidson, a champion of the Medicaid expansion program that the governor signed into law by executive order last summer.

Davidson was nowhere to be found in this crisis, and neither was the governor. Instead, the governor’s web site published a statement from him encouraging Alaskans to “buy local.”

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This story will be updated.

Portland and Anchorage: Homelessness policies adrift

Portland, Ore. launched a six-month experiment in February: Between 9 p.m. and 7 a.m., street dwellers can erect tents, structures, roll out their sleeping bags and spend the night right on the cold sidewalks and various rights of way. Other cities are watching with interest to see how the experiment goes.

This week, Anchorage Mayor Ethan Berkowitz went the opposite direction on homeless policy: The nonfunctional fountain in Town Square, constructed for $150,000 many years ago, is getting bulldozed because it provides shelter for the homeless to get out of the wind. No more naps in the sun for the mildly stoned and disturbingly inebriated downtown.

Town Square Park was, up until about five years ago, a sweet urban pocket park that felt relatively safe. But change is in the wind. Even though there are plenty of jobs to be found in Anchorage, the homeless population grows yearly, fueled by mental illness, substance addiction, and the breakdown of the family. Town Square is not for the rest of us any longer. It belongs to its own community — the homeless and the restless.

Last year, Los Angeles, Seattle and Portland declared states of emergency due to their burgeoning homeless population. Leaders likened homelessness to a natural disaster and having a disaster declaration in hand gave them more money and more flexibility to deal with the growing human tragedy.

Is there anything wrong with allowing Town Square Park to be a refuge for those who are lost or who are finding their way? How will we know when an afternoon lounging in the park becomes a criminal act of loitering? It’s a big question for public safety, but it’s a deeper question for civil liberty watchdogs.

 

Budget: Governor loses support on gasoline tax

BUDGET IS THE DEAL BREAKER: Alaska Trucking Association on Tuesday withdrew its support for Gov. Bill Walker’s proposed 100 percent increase of the motor fuel tax. The group cited a lack of budgetary discipline.

Earlier this year, truckers had agreed in principle to doubling the fuel tax from 8 cents to 16 cents, but only as a part of a framework that included significant budget reductions.  The May 24 letter cites current reductions as negligible.

Opposition to Motor Fuel Tax 20160524

Here’s what Anchorage PD and FD pay raises look like

On May 24, 2016 the Anchorage Assembly, by a vote of 8-3 (Starr, Demboski, Flynn voting no) passed pay raises for city police and fire officials that average 22 percent and 35 percent respectively, as seen below. The cost to taxpayers for these 30 raises is another $840,000 a year, and the cost to pensions is yet to be determined.

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Governor Bill Walker’s Hunger Games

DEMOCRATS PLAYING GAMES WITH ALASKANS’ LIVES: Gov. Bill Walker was given his orders by the Alaska Democrats last week and, like a good Democrat himself, he followed them to the letter. It resulted in their anticipated chaos.

Well played, Gov. Walker, well played.

Here’s how the end of session went down: They were in conference committee, and it was down to the wire, with exhaustion setting in. The House bipartisan majority offered the Democratic minority $34 million for any program they wanted, if they would only pass a budget, which had been completed on Day 60 of the 90-day session.

Rep. Andy Josephson, D-District 17, and other Ds dug in their heels and said no. They wanted the session to end. They also turned their backs on a 10-day extension.

Why? Agreeing to solve the budget would have spoiled their battle plans. These were plans that involved so much more than the budget and they’d been working on them for weeks; they did not even offer their budget amendments until the 11th hour on Day 121.

Democrats knew the governor had already prepared his call for a special session and, like last year, they could up the ante and get more spending, which would demand taxes from the public.

At 12:01 a.m., the governor sent out his prepared special session call. The plan had worked.

Key Democratic strategists such as Sam Kito of Juneau knew the special session would contain the governor’s deliverables alone. Republicans would have no trading stock and would be severely limited.

The governor and Democrats also knew they could hold Republican lawmakers in Juneau for another 30 days with an extraordinary list of demands, and prevent them from returning home to tell Alaskans what is really going on.

By keeping lawmakers in Juneau, the governor and the Democrats are attempting to continue to fracture the House, weaken the majority, and flip the majority in the November elections.

The end game is not to balance the budget, but for Democrats to take over the House: Blame Republicans for the dysfunction and win in November.

Alaska Legislature’s Musk Ox Caucus explainer

Jim Colver, R-Palmer; Paul Seaton, R-Homer; Gabrielle LeDoux, R-Muldoon; Louise Stutes, R-Kodiak; Neal Foster, D-Nome; Bryce Edgmon, D-Dillingham.

‘OVIBOS MOSCHATUS’ CAUCUS: A month ago, the Legislature was to have adjourned after its regular 90-day session. It extended because HB 247 (oil and gas tax and credits by the governor) was stuck due to a Republican breakaway faction that developed last year.

Now, the “musk ox caucus,” as they call themselves, has joined the minority on oil and gas taxes and credits.

In the Alaska Journal of Commerce, Tim Bradner described it this way: “A dissident Republican faction — the ‘musk ox’ caucus — joined with the House Minority of 12 Democrats and one independent, to muster majority votes of 21 and at times 22 votes in the 40-member House to tack on amendments making changes in HB 247.”

Since then, the mainstream media has been tracking the musk oxen as they have, in essence, joined a new Democrat-led majority.

Many in business and industry believe some of the radical changes being pushed by the Democrats would have eliminated thousands of private sector jobs and crippled the economy. “It would have turned out the lights,” one analyst told us.

It’s not just HB 247, but a host of philosophical issues around which the Musk Oxen have gelled. And in no small way, they are the reason that a special session was called and lawmakers are being prevented from returning home.

The Musk Ox Caucus is made up of the following Republican legislators and two (Democratic) members of the Bush Caucus: Jim Colver, R-Palmer; Paul Seaton, R-Homer; Gabrielle LeDoux, R-Muldoon; Louise Stutes, R-Kodiak; Neal Foster, D-Nome; Bryce Edgmon, D-Dillingham.

DISTRICT 9 ACTION ALERT: District 9 sent a letter last week to its area Republican activists requesting they contact Rep. Colver and demand action on the budget. It’s the district’s second letter to him. Read the letter here.

District 9 Republicans hear call to action

Carol Carman, chair of District 9 (Palmer) Republicans, issued the following letter to Mat-Su activists late last week:

Hello District 9,

Early Monday morning our legislators are entering a special session to address the budget. The most important factor is funding the deficit. There are two ways to do that.

Using the PF Earnings Reserve requires a simple majority vote. The majority caucus is Republican, so they can vote for this to fund the budget easily.

Please note that this source replenishes itself every year – it is money left over after PFD distribution and inflation proofing, so it does not affect the PFD at all. There is a significant amount in that pool because it has not been touched in a few years. Side Note: if we reduce the budget a little more each year we will be able to use the Earnings Reserve indefinitely instead of restructuring the PF.

Using the CBR (Constitutional Budget Reserve) requires a 3/4 vote so that Democrats must approve. This means compromising with them, so the budget will grow to suit the minority (as it did last year).
Please note that this source does not renew itself. Once it is gone, it is gone. 

Please contact your legislator ASAP and urge him to focus on resolving the budget deficit by funding it with the Earnings Reserve.

Thank you for participating in the Alaska Budget Solution!  Please Contact Representative Colver before Monday!

Carol Carman
Chair, District 9 – ARP

Luke Hopkins, AGDC quitter or gaming the system?

Luke Hopkins, former mayor of the North Star Borough and Democrat to the marrow, is challenging John Coghill for his Alaska Senate seat, District B.

Although the ink is barely dry on Hopkins’ ill-advised appointment to the board of the Alaska Gasline Development Corporation, he’s off to his next gig.

Gov. Walker spent a lot of political capital to get ol’ Luke the AGDC post, which pays a tidy stipend and is the most powerful appointed panel after, perhaps, the Alaska Supreme Court. And the Legislature wasted several man- and woman-hours vetting him, just to have him bail.

No one in oil and gas ever actually believed Hopkins was quite up for the job, as expressed by Soldotna Republican Sen. Peter Micciche during Hopkins’ confirmation hearings:

“At some point, there has to be someone on the board that can call – I’ll try to think of a nice way for the word I would use – but I would say, could just call hogwash on something, when it comes to operational, marketing and direct natural gas and LNG experience.”

It was obvious to all that Hopkins was not that person.

Turns out, Hopkins is just another old Walker crony whose alliance with the failed Alaska Natural Gas Port Authority (ANGPA) doesn’t help his street cred.

The smart money says Hopkins has been convinced by Super Lobbyist Mark Begich to take on Coghill and keep Republican money busy defending Fairbanks.

But there’s a hitch. Per AS 39.25.160, Hopkins can’t run for a partisan seat and serve on the AGDC board at the same time.

The governor knows this…surely he does. Has Walker decided that good ol’ Luke needs a different retirement hobby than AGDC? Or is it just that there is absolutely nothing going on with the gasline, so Luke may as well run for office?

As Alaskans have been told, the Alaska Gasline is in its critical pre-FEED stage; AGDC is a working board for what is the largest project in North American history. “Working board” means time spent working. So which of these horses is Hopkins trying to ride?

The latest word is Halfway Hopkins asking the Alaska attorney general, another crony from the old ANGPA, for an ethics ruling. Attorney General Craig Richards? He’s Bill Walker’s immediate past law partner and who represented ANGPA during its many past disputes and legal battles against the State of Alaska.

 

The astonishing claims of Byron Mallott

Alaska Lt. Gov. Byron Mallott was in high dudgeon at the Democrats’ convention this weekend: “In the 50 years of Alaska statehood, I know of no single incentive that has been put in place to develop rural Alaska.”

It’s not the first time he has blasted the very American system he has used to become a millionaire. And if past behavior is a predictor of future behavior, it won’t be the last.

Mallott forgot to tell his audience about ANSCA, the Alaska Native Claims Settlement Act. He forgot about the RurAL CAP grant siphon, which has directed billions of federal dollars to rural Alaska since its inception in the mid-1960s.

On RurAL CAP’s history page, it boasts:

“In the nearly 50 years since it began, it is difficult to imagine any aspect of rural Alaskan lives which has not been touched in some way by the people and programs of RurAL CAP. From Head Start, parent education, adult basic education, and elder-youth programs, to Native land claims and subsistence rights, energy and weatherization programs, and alcohol and substance abuse prevention, RurAL CAP has left a lasting mark on the history and development of Alaska and its rural Peoples.”

Mallott, the second Alaska Native to hold that office (Loren Leman was the first), forgot about subsistence co-management. He ignored Native-owned mines and the clear-cutting that his own Sealaska Corporation has been doing all over Southeast Alaska. He apparently didn’t recall that oil in Alaska is a rural economic engine that has made the North Slope Borough the richest borough in Alaska.

The long-time partisan politician chose to skip over Red Dog Mine, Donlin Mine, and alas, Pebble Mine, which Democrats and the EPA beat into submission, thus leaving Western Alaska once again a job-free zone.

Even now, Democrats, the environmental lobby, and the Y-K Health Corporation have started a campaign against the Donlin Mine. Y-KHC says the mine would harm village culture. People with jobs might get used to having nice things, and then they would want to move away. No jobs, no hope — that would keep people mired in poverty and hooked on Y-K’s health services.

Mallott skipped over the great legacies of Ted Stevens, Don Young and Lisa Murkowski, and the major improvements they have brought across Alaska, including the airports, health clinics, schools, broadband and sanitation.

Back in the 1970s, 85 percent of rural Alaska homes had no running water or flush toilets. Today, more than 80 percent of rural homes have both.

The list goes on: Rural Alaska Village Grant Program, Denali Commission, the work done to advance a gasline, not to mention 8(a) provisions: Mallott may want to try that  “no incentives for rural Alaska” laugh line at the national 8(a) conference next month in Anchorage.

In fact, progress in rural Alaska has been blocked by rural Alaskans themselves, and by the environmental lobby, not by his imaginary foe — the business establishment.

Mallott, a millionaire who has served on the boards of major corporations in order to become wealthy, came from rural Alaska. His roots are there, but he’s lived a comfortable existence in the city for most of his life. He, like all of us, can’t have it both ways: If you want development in rural Alaska, that means resource development, and the inevitable trade off for other ways of life.

There has been no greater opponent of a resource-based rural economy than the Democrats. And this weekend, they  let Mallott play the victim card like a pro. His astonishing words went completely unchallenged by a complicit audience and an oblivious media.