Coalition for Reliable Medical Access Announces Legal Action Against State Division of Insurance to Protect Healthcare Access for Alaskans
FOR IMMEDIATE RELEASE:
Anchorage, AK (November 21, 2023)— The Coalition for Reliable Medical Access, along with several prominent healthcare organizations, including the Alaska State Medical Association, the Alaska Medical Group Management Association, the Alaska Podiatric Medical Association, the Alaska Physical Therapy Association, Inc., and the Alaska Chiropractic Society, is taking legal action to challenge the recent decision by the Alaska Division of Insurance (ADOI) to repeal the 80th Percentile Rule.
“After months of attempting to communicate with the Alaska Division of Insurance on the dangers of repealing the 80th Percentile Rule without a replacement, we have reluctantly filed suit to protect the countless Alaska families, workers and patients impacted by this misguided regulatory repeal. Every downstream result of abolishing the 80th percentile rule and its consumer protections means less access to care, fewer doctors to see, bigger bills for patients, and the return of the predatory insurance practices that the rule successfully worked to eliminate,” said Dr. John Morris, Chair of the Coalition for Reliable Medical Access.
The ADOI's decision, which would take effect on January 1, 2024, has raised serious concerns among patients, healthcare professionals and professional organizations. The repeal of the 80th Percentile Rule, which was originally put in place to protect Alaskan patients from the predatory practices of insurance companies, could significantly impact consumer protection and access to healthcare services.
“Repealing the 80th Percentile Rule without a replacement turns back the clock on the significant progress Alaska has made in expanding our healthcare system over the last 20 years and hands complete control over to out-of-state insurance companies,” said Dr. Steven Compton, President of the Alaska State Medical Association. “This ill-conceived regulatory change only magnifies the control big, lower-48 insurance companies continue to hold over patients and their ability to choose the medical provider of their choice. Sadly, in their effort to quietly push this repeal forward, the Division of Insurance and their insurance industry allies continue to misinform Alaskans, misstate facts, and ignore the harm they’re doing to Alaska patients.”
The organizations behind this legal action believe that the ADOI's decision was arbitrary, unreasonable, and an abuse of discretion. They argue that it will reduce consumer protection for Alaskans and give out-of-state insurance companies an unhealthy amount of control over Alaska's healthcare system. The Order would also lead to limited access to critical healthcare services.
Furthermore, the ADOI's decision to repeal the 80th Percentile Rule, despite the existence of significant gaps in protection under the federal No Surprises Act, raises questions about the agency's commitment to safeguarding Alaska consumers.
The lawsuit seeks to compel the ADOI to reconsider its decision and protect the interests of the many Alaskans who receive out-of-network care, as well as those who see providers who stand to be forced out of network if this repeal goes unchallenged. The organizations assert that the ADOI's decision is inconsistent with the agency's stated mission and fails to consider important factors affecting Alaskans' access to healthcare.
The Coalition for Reliable Medical Access, Inc., and its partner organizations are committed to fighting for the rights of Alaskans and ensuring access to affordable and quality healthcare here at home. This legal action is a necessary step to protect consumers and ensure that the 80th Percentile Rule remains in place.
To view the CRMA demand letter to the State of Alaska, click here.
To view the filed complaint, click here.
The Coalition for Reliable Medical Access is made up of a group of diverse Alaska community leaders, small businesses, public and private sector employees, non-profits, medical professionals and concerned citizens with the shared focused of providing reliable access to medical care in Alaska. Together we will advocate for maintaining healthcare quality across our state by preserving the 80th Percentile rule, and emphasizing the positive impacts the rule has had on Alaska’s unique healthcare market and vulnerable populations.
The Coalition for Reliable Medical Access is a nonprofit with a mission to inform and educate Alaskans – including members of the public and policymakers – on issues relating to healthcare in Alaska, with a particular focus on the ramifications of repealing the 80th Percentile Rule without adequate and timely data, and a replacement that works for the Alaska healthcare ecosystem. The Coalition for Reliable Medical Access operates as a 501(c)(3) nonprofit.
Media Contact:
Dr. John Morris
info@reliablemedicalaccess.org