Alaska Pediatric Surgery Opposes Repeal of the 80th Percentile Rule

Alaska Pediatric Surgery, LLC, a leading provider of pediatric surgical services in Alaska, firmly opposes the proposed repeal of the 80th Percentile rule as outlined in the Alaska Division of Insurance's proposed changes to 3AAC26.110. The proposed revisions have raised serious concerns among the medical and pediatric healthcare community.

“On behalf of Alaska Pediatric Surgery, LLC, I OPPOSE the proposed changes.  The proposed changes further unbalance the patient / provider / carrier relationship in the carrier’s favor. Our practice is already in-network with the major carriers serving the pediatric Alaska market, however, we are concerned that the proposed changes will negatively impact our negotiating position with these carriers in the future,” wrote Kristi Davis, FACMPE Chief Operating Officer for Alaska Pediatric Surgery in public testimony opposing the repeal of the 80th Percentile Rule.

Davis wrote that the eliminating the 80th Percentile rule would threaten the stability of pediatric subspecialties and put their continued existence at risk:

“Large provider groups and facilities have power in contract negotiations with carriers but smaller practices, are often given a “take it or leave it” approach. Without this rule in place, more and more practices, specifically pediatric subspecialties, will be at risk of closing and Alaska will lose the much-needed pediatric provider community we have worked hard to build. Pediatric subspecialities are difficult to recruit for and once the services leave Alaska, getting them back will take years.”  

In closing, Alaska Pediatric Surgery urged the Alaska Division of Insurance to reconsider its stance on the repeal of the 80th Percentile rule until they can provide additional language that includes assurances for small providers:

“Not only would our practice suffer from this proposed change, our patients in Alaska also suffer. The Division has a responsibility to regulate the insurance industry to protect Alaskan consumers. Proceeding with these changes does the opposite of that.   Please DO NOT proceed with changes to 3AAC26.110 until you can provide additional language with assurances for small providers that better reflect conditions in this market. If you have additional questions about how this change will impact pediatric subspecialties in Alaska, please feel free to contact me anytime,” Davis wrote.

About Alaska Pediatric Surgery, LLC:

Alaska Pediatric Surgery, LLC is a leading provider of pediatric surgical services in Alaska. Committed to excellence, they offer specialized care to children in need of surgical interventions, supporting their health and well-being. With a team of highly skilled surgeons and medical professionals, they strive to deliver outstanding healthcare services to our young patients.

Citation: https://www.commerce.alaska.gov/web/Portals/11/pub/80thPercentilePublicComments.2023.pdf

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Alaska Medical Professionals Oppose Repeal of 80th Percentile Rule