This report originally appeared in the April 2010 issue of DOTmed Business News

H.B. 335, an act to establish a program for grants to support access to Medicare in shortage areas, has been introduced in the Alaska State legislature. The legislation is meant to facilitate increased access to primary health care services through expanding availability of nonprofit clinics that can provide cost-effective assistance for medical treatment. Representative Les Gara, who sponsored the act with Reps. Sharon Cissna and Lindsey Holmes, stated: "It's a major problem that requires action now, not later."

According to the legislative findings, persons of age for Medicare are experiencing increased difficulty finding medical providers who accept Medicare reimbursement; the State now has a shortage of health care providers accepting Medicare patients. The legislature notes that the Medicare reimbursement rates for some services are too low to be reasonable incentives to medical providers and that the State should provide additional incentives to increase Medicare recipients' access to health care. Although states cannot increase Medicare reimbursement, states may create Medicare clinics as an alternative.

The law would provide through a grant program supplemental funding to a health care facility that provides primary care services to needy persons and those 65 years or older receiving medical assistance or Medicare. The program would increase services where the Commissioner of Health and Social Services has determined a physician shortage exists. Grants under the program can be used for additional incentives to physicians to provide services at the health care facility. "So many seniors find themselves without access to primary care. Federal solutions seem far away, yet this bill brings action now on a serious local issue," Cissna said.

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