State Investigates Alaska Healthcare Cost Drivers; Final Report Deadline Scheduled May 2027

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On November 20, this year, Procurement Officer Robert Roys issued a Request for Proposals (RFP) on behalf of the Department of Commerce, Community, and Economic Development (DCCED), Division of Administrative Services on behalf of the Division of Insurance (INSU). DCCED-INSU requests the help of qualified contractors to provide “a report identifying the cost drivers of primary care delivery and recommendations to improve access to primary care within Alaska.” Opportunity for qualified contractors to submit proposals closes this Wednesday, December 31.

With healthcare costs rising in Alaska, the State wishes to investigate “how health care providers and health care payers are impacted by state and federal laws and regulations, as well as how primary care operations are impacted by the payer mix and various payment models.”

Healthcare providers to be included in the comprehensive report are all levels of primary care practitioners, including mid-level practitioners and support professionals such as Advanced Practice Registered Nurse (APRN), Certified Medical Assistant (CMA), Community Health Aides/Practitioners (CHA/Ps), and Medical Assistant (MA). Primary care also includes behavioral health, pediatric, prenatal/obstetrical, and dental care.

DCCED-INSU estimates a budget between $1million and $1.5million. The contractor(s) will be paid subject to funds already appropriated and identified.

The report will include the following:

  1. An analysis of Alaska primary care providers overall business operations. 
  1. A comparative assessment of primary care provider operational costs for Alaska, the national average, Washington state, Montana, and North and Dakota. Alternatively, the offeror can propose a different comparison state. 
  1. An analysis of how the payer mix and various payment methodologies impact the operational viability of primary care providers and patient access to primary care. 
  1. An analysis of how state and federal laws and regulations are impacting primary care providers and payers.  
  1. An analysis of how pressures on one payer impact other payers. 
  1. Identification of barriers to primary care in Alaska 
  1. The financial impact of patients being sent out of state to receive primary care available in Alaska, include access to follow-up care. 
  1. The impact on access and the scope of costs passed down to consumers in the form of monthly premiums and cost-sharing (deductibles, copays, and coinsurance), and to the State. 

The report is expected to take approximately a year and a half to complete. The project’s provided deliverables timeline determines the final report will be completed May 31, 2027.

While future Alaskans may benefit from this extensive report on what drives healthcare costs in Alaska, many remain skeptical that the report will lead to any real action to reduce healthcare costs. While taxpayer monies go to a year and a half of data gathering and analysis, it remains to be seen whether the report will stimulate action or simply be filed away and forgotten.

8 COMMENTS

  1. I thought we all knew that the cause of high healthcare costs is all because of Sen. Dan Sullivan. 😂😂

    The more I see the negative Dan Sullivan ads, the more eager I am to vote for him. 🇺🇸

  2. Nobody screws Alaskans like Alaskans screw Alaskans.

    I’ll take $1.25mm and we’ll call it a compromise. But of course there’s going to be a ‘fuel surcharge’ and a ‘had to get my lazy heinder to work’ surcharge and the ‘need a new porsche’ charge rests atop all that, too.

    And I should tell you up front that I don’t take medicare or medicaid. It’s just not going to cover it. I see 30 pts a day, too so don’t expect any actual like, explanation. Oh yeah, got to go. A drug rep wants to buy me a lavish dinner so I’ll specify their proprietary pharma to all you farm animals.

  3. Wonder how much “Minnesota Somali like” fraud is going on relative to health care services for the Alaska native community?

    Those that are in the know – know it is rife with FRAUD.

    Now with the country hemorrhaging black fatigue, illegal alien fatigue, endless war fatigue – native fatigue is NOW.

    The MSM media, along with the establishment politicos, on both sides of the aisle will do nothing.

    Natalie, pull a Nick Shirley and go down the rabbit hole of native health care corruption…..

  4. #6 Identify Barriers to Primary Care – Let’s start with Certificates of Need and how AK Legislators “delayed” Sen. David Wilson’s bill to eliminate these. That’s exactly what’s blocking Providence from adding beds at a new emergency facility in South Anchorage. Let’s start with the basics – if anyone REALLY cares!

  5. #1 cause of high healthcare costs is third party payers.
    Yep, insurance or government paying the bill.
    .
    If the Drs. actually had to compete in a competitive market, and the buyer (patient) knew the real cost of healthcare services, the costs would not be anywhere near as high as they are. The moment “someone else is paying” becomes the reality for the patient, no concern about cost follows immediately.
    .
    How much does a doctor visit cost for a simple service, say getting a prescription?
    $20? Nope that is your co-pay, not the cost of the appointment.
    Do you even know? Probably not because someone else is paying for it. So not only do you not know, you do not care. But, then you complain because your insurance rates go up too much.
    .
    I will bet there is a measurable percentage of Dr. visits that are not necessary, and the patient is only going because it is $20, so better to be sure. Meanwhile, the insurance company is billed hundreds.

  6. GREED
    Monopolistic practices
    Ripping off Medicare with inflated prices, then double-billing the patient with illegal “co-pays”
    LAWYERS eager to sue
    Billing practices designed to hide what they are charging you for
    GREED because they can…
    After all that bellyache (they’ll charge you $K to treat that too…) we actually get pretty good care!

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