This article was submitted in December 2010 as a group term project for HS 690 Alaska Health Policy, a graduate course in the Master of Public Health program at the University of Alaska Anchorage. The article was originally submitted as "Midtown Public Policy Consultants Report on Lobbyists' Affect on Health Policy," and was authored by Amanda Cooper, Wendy Parsons, and Jennifer LaCasse. This published version of the article has been edited for length and clarity, and is being presented in two parts over two consecutive weeks. The first part ran last week; this is part two. The original version of the article was accompanied by extensive endnotes, which are available via a link at the end of the article. Lobbyists' Earnings, Background, Clients, Activities
Eldon MulderEldon Mulder began his political career in 1984 as a Professional Legislative Aide with the Alaska State Senate (written communication, November 2010). Prior to the beginning of his career, Mr. Mulder had obtained a Bachelor of Arts degree in Political Science from Central College and a Master of Arts degree in Political Science from the University of Colorado in 1982. After eight years as a Legislative Aide, Mr. Mulder made the decision to run for a seat in the Alaska State House of Representatives. After securing his position as a state Representative for District 23, Mr. Mulder began a ten-year career within the Alaska State Legislature where he served as Chair, Co-Chair and Member of several committees.
Soon after stepping into his state Representative role, Mr. Mulder served as Chair of the Alaska Legislative Council from 1993 to 1994. From there, Mr. Mulder moved onto Vice-Chair of the House Finance Committee from 1995 to 1999, Co-Chair of the House Finance Committee from 1999 to 2001, Co-Chair of the Joint Armed Services Committee from 2000 to 2002, Chair of the Information and Technology Sub-Committee from 2001 to 2002, Chair of the Fiscal Affairs Committee of the Council of State Governments: West from 2001 to 2002, and Vice-Chair of the Fiscal Affairs Committee NCSL from 2001-2002 (written communication, November 2010). During his tenure as an Alaska State Representative, Mr. Mulder sponsored and co-sponsored many pieces of health care legislation including House Bill 76 that provided financing for a new facility now known as Alaska Psychiatric Institute and House Bill 313, which would have required certain health insurance coverage to include the cost of contraceptives under plan provisions.
10 After ten years of serving as an Alaska State Representative for District 23, Mr. Mulder made the decision to not seek a sixth term in order to spend more time with his family.
11 During his time as an Alaska State Representative, Mr. Mulder pursued other interests and activities. In 1992, Mr. Mulder began a career as a licensed real estate agent with the State of Alaska (Penco Properties) and he continues this employment through the present day (written communication, November 2010). Mr. Mulder also worked as a Kenai River guide and is a licensed 25-ton boat operator. Mr. Mulder presently serves as the Board Chair of Kenai River Sportfishing Association's Board of Directors and has served on this board since 2002. As mentioned above, Mr. Mulder served as the Co-Chair of the Joint Armed Services Committee and he carried his interest of the armed services into a civic organization where he served on the Board of Directors of the Armed Services YMCA from 1992 to 2009 (written communication, November 2010).
Shortly after his departure from the Alaska State Legislature, Mr. Mulder established his own lobbying and consulting company in 2003 (written communication, November 2010). The Mulder Company maintains clients with a wide-range of interests and provides professional state, local and federal lobbying and consulting services. Current and recent client issues have included health care, telecommunications, fisheries, mining, educational programs, and capital funding for various projects. From 2005 through 2009, Mr. Mulder has received a total of $1,473,979 in lobbyist earnings with a high of $375,504 in 2009 alone.
12-16 While Mr. Mulder's 2009 health care related lobbying earnings were a modest $45,000,
9 he is a well-known individual among interviewed legislators.
Current clients of The Mulder Company include the Anchorage Museum Association, Cash America International, Cisco Systems, Inc., Consumer Healthcare Products Association, E-Terra, LLC, GCI, Health Management Systems, International Tower Hill Mines Ltd., Pebble Limited Partnership, Providence Health & Services and Reed Elsevier.
16 Health care related clients include the Consumer Healthcare Products Association, Health Management Systems and Providence Health & Services.
The Consumer Healthcare Products Association (CHPA) made its mark in the health care world by representing leading manufacturers and distributors of nonprescription, over-the-counter (OTC) medications and nutritional supplements.
17 The mission of the CHPA is to provide safe, effective and convenient OTC medications and nutritional supplements to millions of Americans through a three-fold system: science, education and advocacy. The Consumer Healthcare Products Association plays an active role in Congress, state legislatures, and federal, state, and international government agencies by providing leadership and up-to-date guidance on issues related to current regulations and science. The CHPA is a member-based association with more than 70 active members and over 120 associate members. For an organization or business to be considered an active member of the CHPA, they must either manufacture or market OTC medications and/or nutritional supplements.
Associate members include many different types of entities whose primary role is to provide active members with goods and services. Examples of associate members include advertising agencies, logistics providers, packaging designers and packagers, table manufacturers, merchandising companies, individual and scientific consulting companies, retailers, and clinical and research services.
17 Recent legislative issues of interest to the CHPA include HB 327 and SB 52. House Bill 327 was introduced during the 26th Alaska Legislature by Representative Johansen. If passed, this bill would [have altered] Alaska's current anti-drug laws by scheduling and rescheduling two specific substances as well as increasing the difficulty of purchasing OTC products that contain the ingredient dextromethorphan.
18 Dextromethorphan is a common ingredient found in many OTC cough suppressants.
19 Dextromethorphan, or DXM, has received attention in the past few years due to its increased abuse. When taken in large doses, DXM provides an intoxicating affect that attracts mainly younger adolescents.
20 The CHPA currently opposes any legislation that would require dextromethorphan-containing products to be placed behind the counter instead of easily accessible store shelves.
21 The CHPA not only feel that this practice would limit customer's access to the product
21 but that, according to Mr. Mulder (written communication, November 2010), this issue is not currently a problem in Alaska. House Bill 327 [resided] in the House Finance Committee.
18 [The bill has not been introduced the current legislative session.]
The second piece of legislation that caught the interest of the CHPA is Senate Bill 52. Senate Bill 52 was introduced by Senators Therriault and Menard during the 26th Alaska Legislative session. This bill would [have required] that the substances Salvia divinorum and Salvinorin A be listed as Schedule II substances due to the dangers associated with their use.
22 Salvia divinorum is a hallucinogenic substance that is grown in the mountains of Mexico. The leaves of this herb are commonly eaten, drunk as tea, or inhaled. This substance is easily obtained by most individuals over the internet. Because Salvia divinorum is prone to abuse and has the ability to cause long-lasting psychological effects, it has been banned in many countries and states.
23 Although the CHPA has not taken an official stance on Salvia divinorum, they are nonetheless interested in the outcome of this proposed legislation. Senate Bill 52 [resided] within the Senate Finance Committee.
22 Additional legislative priorities of the CHPA include making OTC medications a tax exempt product and decreasing costly and unnecessary drug take-back programs.
21 The Consumer Healthcare Products Association holds a $15,000 annual contract for services provided by Mr. Mulder.
6 Health Management Systems (HMS) was founded in 1974 with the aim of providing clients with innovating cost containment solutions.
24 Health Management Systems accomplishes this task by ensuring that health care claims are paid correctly and by the correct parties as well as confirming that benefit recipients meet the qualifying criteria. Health Management Systems' clients include Medicaid and child support agencies, Centers for Medicare and Medicaid Services, HMOs, and managed care organizations. Services provided to these clients range from coordination of benefits to eligibility services. By utilizing state-of-the-art information management and processing technology, HMS recovers more than one billion dollars for their clients every year. This monetary recovery is in addition to the savings of billions of additional dollars that would have been spent on erroneous payments. In addition to their current list of clients, HMS also provides dependent eligibility audits and program integrity services to many self-insured employers including school districts, hospitals, and state health benefit plans. Health Management Services is headquartered in New York but has a local office in Anchorage.
24 A written communication from Mr. Mulder (November 2010) revealed that HMS currently holds a contract with the State of Alaska and is charged with the task of recovering money from insurance companies whose clients have received Medicaid benefits from the State of Alaska. Total recovery amounts were not available, but the State of Alaska paid HMS $1,814,449.22 in Fiscal Year 2010 for auditing services.
25 Mr. Mulder further reported (November 2010) that HMS hold contracts with several other states with the intent of identifying fraud, abuse, and waste of Medicaid monies to slow the growth of Medicaid budgets. Although HMS does not specifically state which pieces of legislation they are currently interested in, their primary focus in Alaska is on Medicaid services.
6 During the 26th Alaska Legislative session, there were more than twenty pieces of proposed legislation alone that were related to Medicaid services.
26 Examples include HB 62, which relates to eligibility and premium requirements for medical assistance coverage for children; HB 265, which relates to Medicaid coverage for dentures; and SB 219, which relates to medical assistance coverage for traumatic or acquired brain injury services.
26 Health Management Services currently holds an annual contract with Mr. Mulder for compensation totaling $34,000.
6 Providence Health & Services Alaska is the second largest private employer in Alaska with more than 4,000 full and part-time employees.
27 Providence Health System arose from very humble beginnings in 1902 when the Sisters of Providence began providing health care for patients in Nome, Alaska. Over a span of the next 90 years, the Sisters of Providence opened and acquired control of numerous hospitals and health care centers throughout Alaska. Providence Health & Services is a not-for-profit health care ministry whose mission is to serve the poor and vulnerable.
28 Alaska's largest hospital, Providence Alaska Medical Center, opened its doors in 1939 with 52 beds. After Alaska was officially declared the 49th state, the need for a much larger hospital became apparent.
Twenty-three years after the opening of the first Providence Hospital, a much larger medical facility was opened and is now known as Providence Alaska Medical Center. Providence Alaska Medical Center is a 341-bed hospital with more than 500 physicians on staff. This medical facility features the state's most advanced medical treatment and equipment. Providence Alaska Medical Center includes The Children's Hospital, a maternity center with the only Level III Neonatal Intensive Care Unit in Alaska, full surgical services, mental health care, a Family Practice Center, Sleep Disorders Center, Imaging Center, and telemedicine services for various Alaska communities. Providence Alaska Medical Center is only one part of Providence Health & Services Alaska as Providence also serves Alaskans in the Matanuska-Susitna Valley, Kodiak Island, Seward and Valdez.
27 Due to the increasing costs of health care, Providence has become a strong voice in advocacy. Current legislative priorities include ensuring everyone has access to health care, transforming health care delivery including developing new payment models, removing barriers to coordinated care that would increase collaboration between health care providers, protecting the poor and vulnerable by ensuring sufficient federal funding for state Medicaid services, and strengthening the health care workforce by expanding medical education and offering monetary incentives.
29 Mr. Mulder is currently contracted with Providence Health & Services Alaska with an annual fee of $45,000.
6 Mr. Mulder is a very active lobbyist within the State of Alaska. His activities range from lobbying for capital funding for museum renovation to mining issues to health care issues.
6 Mr. Mulder reported (written communication, November 2010) that his recent activities for the Consumer Healthcare Products Association included lobbying against House Bill 327, which would require that dextromethorphan-containing products be removed from store shelves, where it is easily accessible by anyone, and moved to a location behind the store counter.
18 The Consumer Healthcare Products Association believes that if stores are required to limit access to dextromethorphan-containing products by keeping them behind store counters, they may simply decide to cease stocking and selling those products. House Bill 327 has moved through the House Judiciary Committee and [died] in the House Finance Committee ... .
18 Mr. Mulder also noted (written communication, November 2010) that Providence Health & Services Alaska has not yet confirmed what projects or legislation he would be working on [in the] 2011 legislative session, but past lobbying activities have included securing $46 million in funding for the new UAA Health Sciences Building that will be housed on a land parcel that UAA received in the 2005 trade with Providence Hospital. This new building will provide a location for the nursing department, WWAMI program, and other selected allied health training programs. The location of this new health center is ideal as UAA graduates are in high demand by local health institutions including Providence Health & Services Alaska.
30 An additional piece of legislation Mr. Mulder reported as having worked on was HB 55. This bill provided expansion of the current WWAMI program from 10 to 20 students.
31 This bill could not have come at a better time as Alaska is currently facing severe physician shortages.
30 During the upcoming session of the Alaska State Legislature, Mr. Mulder will continue to lobby for health care issues that affect Alaskans. He has a proven track record of success not only as a state Representative, but as a lobbyist as well.
Wendy Chamberlain Wendy Chamberlain came to Alaska many years ago from Wagga Wagga, Australia.
32 After completing her secondary education at the University of Alaska Anchorage in 1976, Wendy began to establish herself within Alaska's political arena. Previous positions held by Wendy include Chief of Staff to the late Representative Richard Foster
32 who represented District 38 (Nome, Alaska) from 1988 until 2000
33 and as Legislative Liaison for the Department of Commerce and Economic Development
32 during Governor Wally Hickel's second governorship.
Shortly after her departure from the Department of Commerce and Economic Development, Ms. Chamberlain [joined] a government relations firm owned by Joe Hayes. Mr. Hayes is well known in the Alaska community from his former position as Alaska Speaker of the House of Representatives. Mr. Hayes opened his own lobbying firm in 1989 and welcomed Ms. Chamberlain in 1996. Ms. Chamberlain continued her work with Mr. Hayes' government relations firm and became Partner in 2002.
Ms. Chamberlain currently owns Legislative Consultants in Juneau, Alaska. Legislative Consultants provides government relations services to a wide array of clients including Marathon Oil Company, the Municipality of Anchorage, Providence Health & Services, Alaska Cruise Association, Pebble Limited Partnership, and Anchorage Neighborhood Health. In addition to Ms. Chamberlain, Legislative Consultants employs Ms. Chamberlain's former partner, Joe Hayes, as a Senior Consultant, Matt Gill, former Chief of Staff to Representative John Harris of Valdez, as Partner, and a full-time support staff that provides assistance with legislative monitoring and client services.
32 From 2005 to 2009, Legislative Consultants received compensation totaling $3,491,394 in lobbyist earnings with a high of $1,140,332 in 2008.
9,12 As mentioned above, clients of Legislative Consultants include two prominent health care institutions in Anchorage, Alaska. The first institution being Providence Health & Services Alaska and the second being Anchorage Neighborhood Health.
6 The history, services, and legislative priorities of Providence Health & Services Alaska were covered above and they have also expressed their viewpoint on a couple recent pieces of legislation including HB 50 and SB 133.
34,35 House Bill 50 is a piece of legislation aimed at limiting mandatory overtime for registered nurses and licensed practical nurses in health care facilities.
34 Sponsors of this bill proposed this legislation due to concern that nurses are not receiving adequate rest between shifts, which can often lead to a decrease in patient safety. During public testimony, Providence Health & Services Alaska, via Scott Jungwirth, Chief Human Resources Officer, expressed their opposition to this legislation. Providence does not currently require mandatory overtime by their nurses and instead allows nurses to bid on overtime hours if that is their preference. Mr. Jungwirth testified that there are situations in which on-call teams are necessary, such as emergency operating room staffing. Despite Providence's strong opposition, HB 50 passed both the House and the Senate and this bill in its entirety went into effect January 1, 2011.
34 Senate Bill 133 is another piece of legislation in which Providence conveyed their position. If passed, SB 133 would require the development of a statewide electronic health information exchange system that would link labs, clinics, individual practitioners, pharmacists, and existing hospitals. This linkage would enable providers and institutions to provide a better quality of health care to Alaskans. The potential savings this system would generate annually is approximately $250 million with $10 million from reduced Medicaid costs alone. According to Alaska Senator Paskvan, Providence is in full support of this legislation.
Senate Bill 133 passed the House and the Senate and was signed into law by Governor Parnell on May 25, 2009, with an effective date of July 1, 2009.
35 With the passage of HB 50 and SB 133, Providence Health & Services Alaska will no doubt be making some drastic changes within their organization and will continue to be a voice of advocacy within the health care domain. Ms. Chamberlain is currently under contract with Providence Health & Services Alaska in the amount of $72,000 annually for services rendered relating to health care lobbying.
6 Anchorage Neighborhood Health Center opened its doors in 1974 with the goal of providing primary medical care to the medically underserved and uninsured.
36 Since its inception, Anchorage Neighborhood Health Center (ANHC) has provided primary health care to people of all ages with services including medical care, dental care, pharmacy services, laboratory services, and x-ray and diagnostic services. In addition, ANHC also offers clinical support programs including diabetes care, support for patients with chronic health conditions, health care for the homeless, and care for patients living with HIV/AIDS. Anchorage Neighborhood Health Center currently provides services to over 12,000 patients each year.
Anchorage Neighborhood Health Center is a Federally Qualified Health Center. To qualify as a Federally Qualified Health Center, an organization must meet specific criteria under the Medicare and Medicaid Programs of the Social Security Act and receive funding under the Health Center Program.
37 In 1982, ANHC's Fairview Health Center was built, and expanded in 1992.
36 The current Fairview Health Center contains twenty exam rooms, a procedure room, six chairs in the dental clinic and a laboratory with an x-ray and mammogram machine.
Due to the large number of patients served each year, ANHC is in desperate need of a larger facility. Ms. Chamberlain has been contracted by ANHC to secure capital funding for a new health center.
6 Since 2002, ANHC has obtained $16 million from the State of Alaska and $10.1 million from the federal government to fund the new health care center that is budgeted at $28.3 million.
36 The remaining amount needed, $2.2 million, will be obtained through fundraising.
The new health care center will contain expanded medical clinics including three medical pods each with fifteen exam and consultation rooms, an expanded dental clinic with a total of ten dental operatories, an extended pharmacy, lab, radiology department, and waiting rooms and additional education and meeting rooms. For her lobbying efforts regarding capital funding for the new health care center, Ms. Chamberlain receives an annual fee of $60,000.
6 Ms. Chamberlain and her staff at Legislative Consultants are extremely busy with their current list of 16 clients.
32 Ms. Chamberlain's lobbying activities range from mining to energy to health care issues. Recent lobbying activities for Ms. Chamberlain include obtaining funding for ANHC's new health care center. During Alaska's 25th legislative session, ANHC received $5 million from the State of Alaska's general fund to finance a portion of their new health care center.
38 Anchorage Neighborhood Health Center also received an additional $9 million from the State of Alaska during the 26th legislative session.
39 As mentioned above, this funding will allow ANHC to realize their goal of building a larger health care facility to accommodate their growing number of patients. ...
Robert Evans Robert Evans has been a practicing attorney in Alaska since his admission to the Alaska Bar Association in 1979.
40 Mr. Evans completed his undergraduate education at Mankato State University and obtained his Juris Doctor degree from Gonzaga University in 1979.
41 After completing his education, Mr. Evans also served as Deputy Chief of Staff and Legislative Liaison to former Governor Steve Cowper
41 who served as Alaska's governor from 1986 until 1990.
42 During his time under former Governor Cowper, Mr. Evans developed the Governor's Legislative Package. In addition to his political achievements, Mr. Evans was also employed by the Alaska Attorney General's Office where he enforced Alaska's Unfair Trade Practices Act.
Currently Mr. Evans serves as an attorney with Patton Boggs LLP law firm. Mr. Evans provides counsel on issues ranging from local government to marine transportation to health care, and represents small businesses, large multinational corporations, and public sector clients. Mr. Evans is also associated with several professional affiliations including the National Association of State Lobbyists, Gonzaga University Legal Clinic Board of Advisors, and the University of Alaska Anchorage Small Business Development Corporation Board. During his service under former Governor Cowper, Mr. Evans began his lobbying career. From 2005 through 2009, Mr. Evans received a total of $3,415,900.31 in lobbying earnings with a high point of $855,353 in 2007.
9,13 Current clients of Mr. Evans include Alaska Marine Pilots LLC, Alaska Surgery Center, Altria Client Services Inc. and its Affiliates, Cook Inlet Housing Authority, Copper Valley Electric Association Inc, Data Recognition Corporation, Flint Hill Resources Alaska LLC, Golden Valley Electric Association, Kodiak Electric Association, Neeser Construction Inc, Ormat Technologies, Pfeffer Development LLC, and United Companies Inc. While Mr. Evans currently only represents two health care related organizations, his total 2009 health care earnings were one-fifth of his total lobbying earnings. One could venture to say that Mr. Evans' health care related clients sit at opposite ends of the spectrum with one client providing major medical care and the other client providing tobacco related products.
6 The Alaska Surgery Center was first organized and built by a group of eight physicians and dentists in 1977.
43 Over the last thirty-three years, ASC has grown to include thirty-two local physicians providing a long list of procedures in orthopedics, podiatry, pain management, ear, nose and throat care, ophthalmology, neurosurgery, obstetrics and gynecology, urology, general surgical services, and plastic surgery. The ASC has provided care to over 140,000 cases since its inception and recently became part of Surgical Care Affiliates in 2007. Mr. Evans presently receives annual compensation totaling $60,000 for services provided to the Alaska Surgery Center.
6 Altria Client Services is a subsidiary of Altria that provides services to Altria Group in the following areas: compliance, corporate affairs, finance, government affairs, human resources, information technology, legal, procurement, regulatory affairs, research, development, and engineering.
44 Altria (Altria Group) is the parent company of Phillip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates, and Phillip Morris Capital Corporation. Phillip Morris USA has become a household name in recent decades as the country's leading cigarette manufacturer. Phillip Morris USA is based in Richmond, Virginia, where it manufactures well-known cigarette brands Marlboro, Basic, L & M, Parliament and Virginia Slims.
Over the past twenty-seven years, Phillip Morris USA has ranked number one in revenue, income, volume, and market share within the United States cigarette industry. Alongside Phillip Morris USA is the nation's leading marketer and producer of smokeless tobacco products. U.S. Smokeless Tobacco Company began in 1822 and has formulated the two leading U.S. premium smokeless tobacco brands, Copenhagen and Skoal. U.S. Smokeless Tobacco Company is also headquartered in Richmond, Virginia, and owns manufacturing plants in three communities across the United States where they also manufacture Red Seal and Husky brand smokeless tobacco.
In the area of cigars and pipe tobacco is Altria Group's operating company John Middleton. John Middleton was founded in 1856 in Philadelphia, Pennsylvania, and is well known for its Black & Mild brand machine-made cigar. John Middleton's Black & Mild five-cigar pack is the nation's best selling cigar pack. John Middleton's pipe tobacco brands include Prince Albert, Carter Hall, Middleton's, and Kentucky Club. Middleton's manufacturing plants are location in King of Prussia, Pennsylvania, and Limerick, Pennsylvania.
Altria Group actively advocates on issues pertaining to their subsidiaries and companies. Altria Group holds strong opinions regarding legislative issues that affect the sale and use of their products.
44 Because there is a multitude of legislation that pertains to the companies of Altria Group, Altria Client Services has developed its own website to educate the public on their views. Top legislative issues of interest to Altria Group include excise taxes, retail sales bans, and smoking restrictions.
In regard to excise taxes, Altria Group feels that these taxes place an unfair burden on adult tobacco consumers, cost retailers and wholesalers additional money, and create avenues for contraband and counterfeit tobacco product trafficking. Retail sales bans have been enacted in at least two cities in the United States including San Francisco and Boston. These bans restrict the sale of cigarettes in pharmacies, grocery stores, and chain stores. Altria's tobacco operating companies strongly oppose this legislation as they feel that it would deny businesses the option of selling a legal product and would inflict unnecessary inconvenience on adult tobacco consumers. Altria Group further believes that this legislation would serve no public policy benefit while forcing consumers to change their tobacco purchasing habits.
Many states have begun and passed legislation banning smoking in public places such as bars, restaurants and workplaces. In addition to these places, some states have expanded the smoking ban to include apartment buildings and vehicles. Altria Group does not agree and feels that these smoking bans have gone too far. Altria believes that the public should make their own decisions on whether or not to expose themselves to secondhand smoke based on public health officials' findings. Phillip Morris USA has vowed to continue their legislative [participation] to ensure that reasonable solutions are created.
45 In order to ensure that Altria Client Services is represented in Alaska, Mr. Evans has entered into a contract with Altria in the amount of $72,000.
6 Mr. Evans is actively engaged in lobbying for issues affecting his thirteen clients. During the 26th Alaska Legislature, many pieces of legislation were introduced that directly affected one of Mr. Evans recognized clients. Altria Group has made no qualms about who and what they represent so it came as no surprise [that] when legislation involving tobacco, pricing, and taxes was proposed, Mr. Evans responded. Four bills were put before the Alaska Legislature in 2009 and 2010. Of those four bills, three [died in] committee. Those bills include: HB 17, which would [have prohibited] tobacco use until age 21; HB 188, which would [have imposed] a tax on moist snuff; and HB 304, which would [have banned] smoking in public places.
46 Senate Bill 117 passed and became effective on September 28, 2010.
Senate Bill 117 requires that the Department of Revenue set a minimum sales price for cigarettes sold by wholesalers and retailers. This bill also prohibits wholesalers and retailers from setting a sales price below the minimum price set by the Department of Revenue. The reasoning behind this proposed legislation is to close a loophole provided by the current law. [Former] Alaska law allow[ed] high volume cigarette sellers to price their cigarettes lower than the state minimum as long as they [had received] an exception from the Department Revenue. Determining which sellers warrant an exception is a time consum[ing] and costly process. Senate Bill 117 [requires] that the Department of Revenue set a minimum price for all sellers regardless of their unique circumstances. Passage of this bill [levels] the playing field between cigarette sellers because it would require everyone to adhere to the minimum price.
Mr. Evans, representing Altria, was a vocal advocate of this bill during public testimony. Mr. Evans also served as a portal of information pertaining to price changes and shipping times of cigarettes. Although Governor Parnell did not agree with governmental regulation of market commodities, he felt that he was required to choose from either continuing to allow the loophole in the current law or allowing SB 117 to become law, thus eliminating the administrative burden on the Department of Revenue.
47 House Bill 17 and House Bill 304 [were never] opened for public testimony
46 and there is little doubt that additional pertinent legislation will be introduced next year [2011]. Due to the nature and possible implications of these bills, it is evident that Mr. Evans will play an active role in their passage or their failure.
Charles Miller Charles Miller began his adult career miles away from the political and government arena (oral communication, November 2010). After seventeen years as a construction worker and truck driver, Mr. Miller made the decision to begin college at the age of 34. While attending San Diego State University, Mr. Miller majored in journalism and eventually received his Bachelor's degree from the University of Alaska Anchorage. Interestingly enough, while obtaining his last nine units at UAA, Mr. Miller interned for Ashley Reed, also a well-known lobbyist, at Northwest Strategies (oral communication, November 2010). Northwest Strategies is a jack of all trades communications agency providing services related to strategic marketing, public relations, web design, media planning and placement, sponsorship sales, and event planning.
48 After college, Mr. Miller went on to work with former Senator Lloyd Jones from Ketchikan who was a member of the Senate Transportation Committee (oral communication, November 2010). After working with former Senator Jones, Mr. Miller began working with his father who was an Alaska lobbyist. Since his father's passing, Mr. Miller has been lobbying on his own (oral communication, November 2010) for clients such as Alaska Regional Hospital, Psychiatric Solutions Inc, Alaska National Insurance, and Express Scripts.
6 Current and recent client issues range from eye care to worker's compensation insurance to pharmacy benefit management.
6 Mr. Miller is a well-known lobbyist among legislators and was a 2009 top earner in health care lobbying income. From 2005 through 2009 Mr. Miller received lobbying compensation totaling $1,094,200 with a peak of $240,900 in 2008.
9,12-16 Mr. Miller's current list of clients is not as diverse as other Alaska lobbyists. A current client list includes Alaska National Insurance Company, Alaska Regional Hospital, American International Group Inc, Express Scripts, and LensCrafters/Pearle Vision.
6 Of these clients, Alaska Regional Hospital, Express Scripts, and LensCrafters/Pearle Vision all hold a vested interest in health care related legislation. Mr. Miller's 2009 health care related lobbyist earnings were $109,200, which makes up approximately 46% of his total lobbyist income.
9 Alaska Regional Hospital is a 250-bed licensed and accredited institution. In 1994, Alaska Regional joined the Hospital Corporation of America.
49 The Hospital Corporation of America (HCA), based in Nashville, Tennessee, is the largest private operator of health care facilities in the world. As of year-end 2006, HCA managed 280 hospitals and freestanding surgery centers in twenty U.S. states and England.
49 [As of the 26th Legislature,] legislative issues of interest to Alaska Regional Hospital included legislation related to their budget, SB 12 and SB 13. During the 26th legislation session, Alaska Regional Hospital representatives did not provide any public testimony or documentation related to budgetary issues but Mr. Miller noted (oral communication, November 2010) that they [did] monitor the legislation closely. ... SB 12 is a bill that would [have limited] overtime for registered and licensed practical nurses in health care facilities,
7 and Mr. Miller reported that Alaska Regional Hospital opposed this particular piece of legislation (oral communication, November 2010).
During public testimony, Alaska Regional Hospital's Human Resources Director and Critical Care Services Director both testified that Alaska Regional Hospital currently had a "weekend flex program" that allowed certain nurses to work two shifts per weekend while still receiving full-time compensation and benefits. The language of SB 12 would interfere with this current work schedule. Robin Richardson, Critical Care Services Director, further explained that there had been no increase in reports of errors during this program implementation.
As of April 15, 2009, SB 12 was held in the Senate Finance Committee51 but very similar legislation, HB 50, [became law without the governor's signature] in July 2010.
7 According to Mr. Miller (oral communication, November 2010), Alaska Regional Hospital was also in full support of SB 13. If passed, SB 13 would have restored the qualifying income eligibility level for the Denali KidCare Program to 200% of the Federal Poverty Line.
52 This was a very popular piece of legislation drawing extensive public testimony. After passing both the House of Representatives and Senate, this bill was vetoed by Governor Parnell on the basis that this legislation would increase eligibility and state government funding for abortions. Governor Parnell did not feel that passage of this bill was in the best interest of Alaskans.
52 Mr. Miller continues to lobby for Alaska Regional Hospital and receives monthly compensation totaling $4,500.
6 Express Scripts is a pharmacy benefit management company headquartered in St. Louis, Missouri.
53 The mission of Express Scripts is to ensure that prescription medications are safe and affordable for consumers. They are able to accomplish this by developing, testing, and implementing industry-leading programs through thousands of employers, government, [and] union ... health plans. With more than 14,000 employees, Express Scripts operates throughout the United States and Canada.
53 In a piece of legislation sponsored by Senator Hollis French, Express Scripts is named as one of the three major pharmacy benefit managers. Senate Bill 38 is aimed at pharmacy benefit regulation and transparency. In his sponsor statement, Senator French states that under the current law, pharmacy benefit managers have the opportunity to engage in unfair business practices by negotiating with drug manufacturers and receiving cash kickbacks for placing the drug manufacturers' drugs on health insurance approved drug lists.
During public testimony, Dave Dederichs from Express Scripts expressed strong opposition to this bill as well as pointed out that allegations made against Express Scripts' business practices were "categorically untrue." Mr. Dederichs also denied the claim that Express Scripts practices the act of "switch[ing] brand name drugs into peoples' prescriptions so they [Express Scripts] can get money back on rebates." Mr. Dederichs ended his testimony by expressing his belief that transparency is already dictated by the market, thus this legislation is unnecessary. SB 38 was referred to the Labor and Commerce Committee in April 2009.
54 Mr. Miller stated that he will continue to lobby for Express Scripts regarding this legislation (oral communication, November 2010). Mr. Miller currently receives a monthly fee of $3,350 for his services.
6 LensCrafters and Pearle Vision are two optical retailers owned by an Italy-based parent company, Luxottica Group, S.p.A.
55 Mr. Miller stated (oral communication, November 2010) that HB 245 was of particular interest to LensCrafters and Pearle Vision because his bill would change the current licensing practices of optometrists in Alaska. Prior to this bill, Alaska had three different levels of licensure for optometrists with each level possessing its own restrictions regarding pharmaceuticals. The goal of HB 245 was to create one standard level of licensure for optometrists. LensCrafters
56 and Pearle Vision
57 mostly staff Doctors of Optometry in their stores so passage of this bill would alter their staffing practices. After hearing public and expert testimony, HB 245 was passed and signed into law by Governor Parnell.
58 For his lobbying and legislative monitoring services Mr. Miller receives an annual fee of $15,000 from LensCrafters and Pearle Vision.
6 Mr. Miller is currently involved in a myriad of lobbying activities for his clients. There have been many issues affecting Alaska Regional Hospital that have required the services provided by Mr. Miller. Examples include budgetary changes, private and state funded (Medicaid, Denali KidCare) health insurance issues, staffing issues, and compliance with the Federal Health Care Act (oral communication, November 2010). The main issue affecting Express Scripts is the possible changes to pharmacy benefit management disclosures. Mr. Miller has been spending his time providing education about what pharmacy benefit management companies actually do. Mr. Miller reported that he is not currently working on any active issues for LensCrafters and Pearle Vision, but he is continually monitoring all eye care legislation. During a conversation with Mr. Miller (oral communication, November 2010), Mr. Miller expressed that the unfolding fundamental health care reform issue is of utmost importance.
Mark Hickey Mark Hickey has been serving many Alaskan communities for decades. Mr. Hickey served the Alaska Department of Transportation and Public Facilities (DOT&PF) for ten years before advancing to the position of Commissioner of the Alaska DOT&PF. During his time with the DOT&PF, Mr. Hickey also worked as deputy commissioner for operations as well as transportation planner. Mr. Hickey's additional employment experience included head of the Alaska Railroad Transfer Team where he managed the monumental acquisition of the Alaska Railroad from the federal government.
Through the years Mr. Hickey has played an active role in state and federal legislation by providing policy support to the Alaska Railroad Corporation, the Alaska Land Use Council and the Alaska Power Authority. Mr. Hickey was also a key player in the Klondike Highway Agreement negotiations.
59 Mr. Hickey is currently the sole proprietor of Hickey & Associates in Juneau, Alaska.
60 Mr. Hickey's list of clients is quite diverse, ranging from transportation companies to health care associations to statewide municipal governments. Specific clients of Mr. Hickey include Alaska Mobility Coalition, Alaska Nurses Association, Alaska Ship & Drydock Inc, Aleutians East Borough, American Cancer Society Cancer Action Network, Apple Inc, Chenega Corporation, City of Akutan, City of King Cove, City of Sand Point, Harbor Enterprises Inc, Kodiak Island Borough, Lake and Peninsula Borough, OceansAlaska, Planned Parenthood of the Great Northwest, and The Washington Center for Internships and Academics.
6 Mr. Hickey's total lobbying earnings from 2005 to 2009 totaled $1,585,462.509,
12-16 with a high of $376,731.25 in 2009.
9 Of Mr. Hickey's current list of clients, the Alaska Nurses Association, the American Cancer Society Cancer Action Network, and Planned Parenthood of the Greater Northwest each require the services of Mr. Hickey for health care legislation.
The Alaska Nurses Association represents the voice of nurses in Alaska. The most recent bills concerning the Alaska Nurses Association were HB 50 and SB 12. These bills have been previously mentioned in connection with many Alaska health care institutions that opposed this legislation but the Alaska Nurses Association supported these bills. The Alaska Nurses Association wholeheartedly supported this legislation due to the fact that they actively promote patient safety and improved working conditions for nurses.
61 In order to advocate for the interests of the Alaska Nurses Association, Mr. Hickey is paid an annual fee of $19,000.
6 The American Cancer Society is a well-known public health organization. As an advocacy affiliate of the American Cancer Society, the Cancer Action Network is the nation's leading cancer advocacy organization. This advocacy organization's main goal is to make cancer [prevention and treatment] a national priority by holding lawmakers accountable for their actions and words. The Cancer Action Network is currently working on a multitude of legislative priorities including expanding cancer prevention, treatment and survivorship, ensuring access to quality care, and issues related to lung cancer and tobacco control.
Specific pieces of legislation supported by the American Cancer Society Cancer Action Network (ACS CAN) include SB 10, HB 130 and SB 101.
62 In short, SB 10 would [have required] insurance companies to provide health care insurance coverage for routine health care costs associated with cancer-related clinical trials. This bill was strongly advocated for and was signed into law by Governor Parnell on July 1, 2010.
63 House Bill 130 and Senate Bill 101 [would have provided] valuable information related to youth tobacco use through questionnaires and surveys administered to youth in public schools. Emily Nenon, Alaska Government Relations Director of ACS CAN, provided public testimony in support of this legislation as it would provide the American Cancer Society with information on where to focus their advocacy and educational efforts. As of April 10, 2009, HB 130 was referred to the House and Social Services Committee
64 and SB 101 was referred to the Finance Committee (April 5, 2010).
65 The American Cancer Society Cancer Action Network currently compensates Mr. Hickey $25,000 annually.
6 Planned Parenthood of the Greater Northwest (PPGNW)
66 is part of the Planned Parenthood Federation of America Inc. An important piece of legislation concerning PPGNW is HB 35.
67 This particular bill would require parent or guardian notice and consent for a minor's abortion. This bill has been highly debated among organizations and individuals supporting both sides of the issue. During public testimony, a representative from PPGNW strongly expressed opposition to this bill citing that it was unconstitutional. After extensive public testimony, HB 35 passed the House and was referred to the Senate for further consideration.
67 For lobbying services provided by Mr. Hickey, PPGNW provides annual compensation totaling $12,500.
6 Review of relevant health care legislation revealed a moderate amount of activity by Mr. Hickey. During public testimony of SB 12, Mr. Hickey provided information regarding Alaska Nurses Association's position on this bill.
51 Mr. Hickey has also been active in cancer awareness and education within the state of Alaska. Mr. Hickey has attended Health Care Cost Containment Committee Meetings of the Alaska Retirement Management Board and provided committee members and attendees with information in support of colorectal cancer screening coverage in the Public Employees' Retirement System and Teachers' Retirement System health plans.
68 Mr. Hickey continues to lobby for his clients' interests and will continue to maintain a prominent presence for years to come.
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