<DOC> [108 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:86420.wais] S. Hrg. 108-62 INDIAN HEALTH CARE ======================================================================= HEARING BEFORE THE COMMITTEE ON INDIAN AFFAIRS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS FIRST SESSION ON S. 556 TO AMEND THE INDIAN HEALTH CARE IMPROVEMENT ACT TO REVISE AND EXTEND THAT ACT __________ APRIL 2, 2003 WASHINGTON, DC 86-420 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2003 ____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpr.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 COMMITTEE ON INDIAN AFFAIRS BEN NIGHTHORSE CAMPBELL, Colorado, Chairman DANIEL K. INOUYE, Hawaii, Vice Chairman JOHN McCAIN, Arizona, KENT CONRAD, North Dakota PETE V. DOMENICI, New Mexico HARRY REID, Nevada CRAIG THOMAS, Wyoming DANIEL K. AKAKA, Hawaii ORRIN G. HATCH, Utah BYRON L. DORGAN, North Dakota JAMES M. INHOFE, Oklahoma TIM JOHNSON, South Dakota GORDON SMITH, Oregon MARIA CANTWELL, Washington LISA MURKOWSKI, Alaska Paul Moorehead, Majority Staff Director/Chief Counsel Patricia M. Zell, Minority Staff Director/Chief Counsel (ii) C O N T E N T S ---------- Page S. 556, text of.................................................. 2 Statements: Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado, chairman, Committee on Indian Affairs...................... 1 Davis-Wheeler, Julia, chairperson, National Indian Health Board...................................................... 351 Grim, M.D., Charles, interim director, Indian Health Service, Department of Health and Human Services.................... 345 Kashevaroff, Don, representative, Tribal Self-Governance Advisory Committee, president and chairman of the Alaska Native Tribal Health Consortium............................ 354 Murkowski, Hon. Lisa, U.S. Senator from Alaska............... 357 Appendix Prepared statements: Benjamin, Melanie, chief executive, Mille Lacs Band of Ojibwe 361 Davis-Wheeler, Julia......................................... 362 3Grim, M.D., Charles (with attachments)...................... 365 Kashevaroff, Don............................................. 392 National Kidney Foundation, Inc., New York, NY............... 400 INDIAN HEALTH CARE IMPROVEMENT ACT REAUTHORIZATION OF 2003 ---------- WEDNESDAY, APRIL 2, 2003 U.S. Senate, Committee on Indian Affairs, Washington, DC. The committee met, pursuant to notice, at 10 a.m. in room 485, Senate Russell Building, Hon. Ben Nighthorse Campbell (chairman of the committee) presiding. Present: Senators Campbell, Inouye, and Murkowski. STATEMENT OF HON. BEN NIGHTHORSE CAMPBELL, U.S. SENATOR FROM COLORADO, CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS The Chairman. The committee will be in session. Good morning and welcome to the Committee on Indian Affairs hearing on Secretary Thompson's proposed reorganization of the Department of Health and Human Services. This proposal, known as the One-HHS Initiative, is being vigorously debated on Capitol Hill, in Indian Country and elsewhere. Today, we will hear how the One-HHS Initiative will impact health delivery to Native people. We are focusing on this One-HHS Initiative today, but in a sense this hearing is the first in a series this committee will be holding on legislation to reauthorize and extend the Indian Health Care Improvement Act that I introduced, along with my friends and colleagues Senator Inouye and Senator McCain. Effort to consolidate Federal programs are not new and at times have proven very successful, such as the employment and training program known as the 477 Program. We are trying to achieve the same success with alcohol, drug and mental health programs, and will hold a hearing on that bill next week. Nevertheless, the Tribes have expressed concerns with the One- HHS proposal, and today we will hear about some of those concerns. [Text of S. 556 follows:] <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> The Chairman. Senator Inouye will not be able to be here today. He is in a defense appropriations hearing. As you might know, that is extremely important now, so we will just go ahead with the testimony. We will start with the first panel, Charles Grim, interim director of the Indian Health Service. He will be accompanied by Mr. Lincoln, Craig Vanderwagen, and Gary Hartz. Dr. Grim, before I start, I also wanted to congratulate you. I understand 2 days ago we received official papers from the White House nominating you to be the permanent director of the IHS, and we will schedule a hearing on your nomination right after the Easter break, and we look forward to your service in that capacity. Congratulations. Mr. Grim. Thank you, Chairman Campbell. The Chairman. Go ahead and proceed. STATEMENT OF CHARLES GRIM, M.D., INTERIM DIRECTOR, INDIAN HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN SERVICES Mr. Grim. It is a pleasure to be here before you and the committee, Mr. Chairman. I would like to request that my written statement that has been submitted be entered to the record. The Chairman. Your complete statement will be in the record. Mr. Grim. Thank you. I am Dr. Charles W. Grim, interim director of the Indian Health Service. I am accompanied today by several of my staff, Michel Lincoln, deputy director for the Indian Health Service; Craig Vanderwagen, acting chief medical officer for the Indian Health Service; Gary Hartz, acting director for the Office of Public Health; and Bob McSwain, director for the Office of Management Support. Today we are here to speak about the reauthorization of the Indian Health Care Improvement Act. There is no single piece of legislation that will affect the future health status of the American Indians and the Alaska Natives more than the Indian Health Care Improvement Act Reauthorization of 2003, S. 556. In the intervening 28 years since it was first authorized, achievements in tribal self-determination, decisions by this committee and other authorizing and appropriations committees of Congress, and the Indian Health Service Programs have improved the health status of Indian people. To continue the momentum of improvement and to achieve the goals shared by Indian country, this committee and the Administration, to eliminate health disparities between all Americans, it is critical that the Indian Health Care Improvement Act reflect the health and world realities of today, and not those of 28 years ago. From the beginning of the tribal-Federal relationship, the provision of health care services to Indians has been a key component of the Federal Government's trust responsibility. Two major pieces of legislation are at the core of the Federal Government's responsibilities for meeting the health needs of American Indians and Alaska Natives--the Snyder Act of 1921, Public Law 67-85 and the Indian Health Care Improvement Act, Public Law 94-437. The Snyder Act authorized regular appropriations for relief of distress and conservation of health of American Indians and Alaska Natives. It remains the basic authority for appropriations for major Indian programs. The Indian Health Care Improvement Act was originally authorized in 1976, and was enacted to implement the Federal responsibility for the care and education of the Indian people by improving the services and facilities of the Federal Indian health programs, and encouraging maximum participation of tribes in such programs. Like the Snyder Act, the Indian Health Care Improvement Act provided the authority for the programs of the Federal Government to deliver health services to Indian people, but it also provided additional guidance in several areas. The Indian Health Care Improvement Act contained specific language that addressed the recruitment and retention of a number of health professionals serving Indian communities. It focused on health services for urban Indian people and addressed the construction, replacement and repair of health care facilities. S. 556 is the product of extensive consultation that the Indian Health Service undertook during 1999 with Indian country. In anticipation of the reauthorization of the act and the changes in the health care environment of the country, IHS wanted to consult with Indian country to ascertain how these changes have impacted on the ability of tribes and urban Indian health programs to deliver high quality and much-needed services. During consultation with Indian country, we learned that tribes were anxious to discuss the impact of managed care and other changes in the health care field that affected their ability to administer quality health programs and services. Based on this consultation, the tribes and urban Indian health programs determined that they would draft a legislative proposal reflecting their concerns and issues. S. 556 contains a variety of new, expanded and strengthened provisions, activities and services. The Department supports the reauthorization of this cornerstone legislative authority, and Secretary Thompson has made Indian health care a priority of the Department. In the Department's review of the proposed language, to ascertain its relationship to its policies and budget priorities during this time in our Nation's history, there are certain provisions in S. 556 that generate some concern. Key provisions in S. 556 are inconsistent with current Medicare and Medicaid provider payment practices and could inappropriately increase costs. As an example, the bill proposes a new provider type called Qualified Indian Health Provider for IHS, tribal and urban Indian providers participating in Medicare and Medicaid programs. The most problematic aspects of the QIHP are the structure and operation of the payment provisions, which are not only burdensome, but more importantly would not be feasible to administer. In addition to the burden and feasibility issues, on a more fundamental level, the full cost, plus other costs of the QIHP payment approach would be contrary to the way that Medicare generally pays providers. The bill also expands the current 100 percent Federal matching rates to States for Medicare and SCHIP services provided through IHS facilities to include services provided to American Indians and Alaska Natives by non-Indian health care providers. This proposed change would substantially increase the Federal program and administrative costs, with no guarantee and little likelihood of increasing access to services for Indian beneficiaries or better payments to Indian providers. We are also concerned that S. 556 would appear to broadly mandate the use of negotiated rulemaking to develop all regulations to implement the act. Negotiated rulemaking is very resource-intensive for both Federal and non-Federal participants. While it can be effective and appropriate in certain circumstances, it may not be the most effective way to obtain the necessary Indian input in the development of the Indian Health Care Improvement Act rules and regulations in every given case. In addition to our expressed concerns with S. 556, I would like to present a little bit of an explanation of the Secretary's One-Department Initiative and its benefits to the Indian Health Service. The Secretary's One-Department Initiative has been of great benefit to the IHS, as well as the Native American constituents of the Department. The fundamental premise of the initiative is that the Department of Health and Human Services must speak with one consistent voice. Nothing is more important to our success as a Department. With regard to our tribal constituents, the Secretary observed on his first trip to Indian country that tribal programs were often stovepiped and that their existed within HHS an assumption that the Indian Health Service has sole responsibility for the health issues facing tribes. In the 2 short years since the Secretary launched this initiative, he has reestablished the Intradepartmental Council for Native American Affairs. The membership on this council is comprised of the heads of all HHS operating and staff divisions, with the IHS director serving as the vice-chair. This council serves as an advisory body to the Secretary and has the responsibility to assure that Indian policy is implemented across all divisions. The council provides the Secretary with policy guidance and budget formulation recommendations that span all divisions of HHS. The profound impact of this council on the IHS is the revised premise within HHS that all agencies bear responsibility for the government's responsibility and obligation to the Native people of this country. I want to assure you and the committee that we are committed to working with you to ensure that this key legislative authority can be reauthorized. We will be happy to answer any questions that you may have regarding the Department's view on S. 556. Thank you. [Prepared statement of Mr. Grim appears in appendix.] The Chairman. Thank you, Dr. Grim. I was listening very carefully to your explanation about the One-HHS, and we are getting quite a bit of uncomfortable feelings back from the tribes. Is it still on track? Has it been revised to reflect the comments and recommendations from the review group or from tribes themselves? Mr. Grim. The Indian Health Service at the current time is also going through a reorganization of its own, as part of the President's management agenda. This is an initiative that we started prior to the President's management agenda, which asked agencies to de-layer their bureaucracies and try to become more effective and efficient. As part of the IHS HQ reorganizatiobn process, we have been taking input for the Department relative to some of the One-HHS initiatives. We received numerous comments from tribes, as well as resolutions. Primarily the comments have been around the consolidation efforts of the Human Resources Department. We have made those informations known at all departmental meetings on such consolidations. The Indian Health service has had a seat at the table. We have been involved in all of the planning sessions that the Department is holding relative to the HR consolidations. We are making all of our unique considerations known in those meetings. The Chairman. I see. Well, as I understand it, the initiative is going to involve the transfer of $838,000 from the IHS to the HHS. Clearly, that is one of the tribal concerns, that they are going to lose their tribal shares. I think you can understand their worry. How do you propose to preserve the tribal shares? Mr. Grim. One of the initial issues that you brought up, Senator, on the $838,000 transfer of funds from Indian Health Service into the Department was actually dealt with by the Congress. That was restored to the Indian Health Service budget. One of the things that we are trying to do to ensure that Indian country and Indian Health Service needs are dealt with is that our staff, both in legislative and public affairs and in HR, have been in attendance at all of the meetings that the Department has called relative to having public affairs, legislative affairs and other departments try to speak with one voice. The Chairman. I understand that sometimes when they speak with one voice, though, it is a majority voice that leaves a lot of people out in the cold. If that money was transferred, can the functions that they are now used for under IHS and the dollars that are going to be associated with it, are they still be contractable once they are consolidated with the HHS? Mr. Grim. One of the things we have been making the Department aware of are the special needs relative to our budget around tribal shares. A large portion of our headquarters and regional office budgets, as well as 100 percent of our service unit budgets, are contractable and compactable for tribal shares. One of the things that the Department is looking at right now in these consolidation efforts are just those issues. Many of these things are still in the planning phases, and as I said, we do attend those meetings. One of the things the Department is aware of, though, is that the Indian Health Service HR budget, parts of the legislative and public affairs budget, are eligible for tribal shares. Should a tribe who is not currently taking those shares come in and ask for said shares, then we would--make those moneys available. So those issues have been made known to the Department. The Chairman. And I further understand that you believe the IHS will realize a cost of $21.3 million from the reduction of 195 FTEs and $9.3 million from information technology. Your testimony says that every effort will be made to minimize the impact at the service delivery level of the organization. I can tell you, Indian people from the health standpoint, they do not have an awful lot of slack. A lot of them are right on the edge, and I would be interested in knowing the specific impacts that, if you foresee any now, that it is going to have on service delivery because of the reduction of those FTEs. Mr. Grim. One of the things that we have always tried to do, Senator, in the past when the agency has been asked to take any sort of budget reductions or FTE reductions, a primary policy of the agency has been to take those in the administrative realm, to try to reduce the impact on the care delivery level. The 195 FTE reduction that is being proposed in the Indian Health Service budget is because of savings that are being requested in that amount for the Indian Health Service. The way that the Indian Health Service plans on dealing with those is that we will be looking at any sorts of economies and efficiencies that we can achieve in the way of administrative operations of the agency, as well as consolidating and streamlining certain functions like IT and the HR consolidations that are occurring within the Health and Human Services Department. We do not have specific information yet because it is a fiscal year 2004 budget proposal on exactly where those 195 FTEs might come from. What we will be looking at, however, will be administrative vacancies that currently exist. We are at both the headquarters and regional levels being very careful now about the administrative vacancies that we are filling. Also the Department is going forward with some early-out and buyout authority requests that were granted in the Homeland Security Act. We will make wise and judicious use of buyout and early-out authorities targeted at areas where we may have overages in certain areas. And then, as a last resort, we would touch the service unit or the health care delivery level, if necessary. The agency will look very, very closely, though, at our administrative ranks to ensure that what is left will be able to fulfill our fiduciary and accountability standards that are expected of us. The Chairman. Well, I appreciate your answering, but they are somewhat broad terms for me. Do you foresee the elimination of any existing programs or disease prevention or health promotion activities that now tribes avail themselves to? Mr. Grim. No, sir; we do not. The Chairman. I did not ask all the way. I should have. Would any of the other people that are accompanying you--were they going to make statements, too? Mr. Grim. They do not have any initial statements, no sir. The Chairman. Okay. Tell me about the consultation that has taken place, if any, with tribes on this proposal. Mr. Grim. On the One-HHS? The Chairman. Yes. Mr. Grim. As I said, the Indian Health Service, as part of our own internal reorganization, had a restructuring initiative work group that was put together well over 1 year ago--about 1 year ago January. They had a series of meetings, and in those meetings--and that was a group composed of primarily tribal leaders from all regions of Indian Health Service--with four Federal representatives. In that process, they dealt extensively in discussions about the One-HHS Initiative. They provided both an interim and a final report to the director of Indian Health Service. As part of the restructuring initiatives that we are doing at headquarters of Indian Health Service, we put together then a final team that developed essentially the organizational charts, functional statements and things like that, that took into account all of the comments that came in from the restructuring initiative work group. Further, we sent comments after that out to Indian country to each of our regions and asked that they hold meetings with their tribes in whatever format they used to do tribal consultation. They would then take a look at the restructuring of Indian Health Service headquarters as currently proposed in draft. We have also been making the Department aware, as we and other of the operating divisions have meetings on the HR consolidation, of the issues that the tribes have brought forward relative to their concerns about HR consolidation. The Chairman. How long has this been going on--the consultation process? Mr. Grim. The consultation process started, I believe it was in January 2002 for the restructuring of Indian Health Service. The Chairman. Well, my own personal view is that I would want to know a lot more about any specific impacts, particularly if they are going to adversely affect tribes, before the 2004 money is going to be triggered. I would think that Senator Inouye would be equally interested in that. Over the years, the success of tribes with 638 contracts and self-governance compacts has resulted in the reduction of the IHS headquarters and area staff offices. Are there administrative functions that are essentially Federal in nature that they cannot be contracted-out to tribes now? Mr. Grim. Yes, sir. The Chairman. What are a couple of those? Mr. Grim. We take a lot of these from an OMB circular that talks about inherently Federal functions. One, for example, is doing a Federal budget, proposing a Federal budget; dealing with Federal contracting; supervising Federal employees--things like that. If you would like, I could submit to the record a further list. The Chairman. Would you please submit that for the record? Now that the RIW final report is completed, what is your next step in meeting the goals of this One-HHS program? Mr. Grim. The agency is almost ready to make some final decisions on an organizational structure for the Indian Health Service. The Chairman. Will there be any further consultation with tribes before that report is issued? Mr. Grim. What we had indicated to tribes was that at the same time we submitted our reorganization plan to the Department, we would be submitting it out to Indian country for a final look at the plan. At that point, there is still time for very minor adjustments in the plan, but the majority of the comments received back from Indian country relative to the headquarters reorganization itself were relatively minor sorts of changes that were requested. We think we have got most of those incorporated into the final changes. So we will send it out at the same time. I think the Department would be willing to allow us to make minor adjustments as it is going through its approval process there. The Chairman. In Alaska for a number of years, the health care has been delivered under one compact. In a sense, they have already consolidated for literally a unified health system. Have you looked at that consolidation process in Alaska to see if there is anything you can apply to this One-HHS program? Mr. Grim. I think we always try to learn from some of the things that the tribes are doing. Many times they have flexibilities, as you are aware, that we do not, when they take over their programs under that act. It frees them from some of the constraints that we have as a Federal program. The Alaska region and some of those tribes have been making us aware of some of the efficiencies they have realized. As an example, regarding their human resources that are being managed up there, they have a more efficient HR employee to total employees ratio now than we are trying to achieve as a Department. So I think we do have some things that we can learn from looking at the way things are done by some of our compact tribes. The Chairman. Okay. Well, I have no further questions, Dr. Grim, but I may submit some and request an answer in writing. Senator Inouye may also, or other members of the committee. With that, I appreciate your appearing today and thank you very much. We will now move to the second panel, which will be Julia Davis-Wheeler, the Chairperson for the National Indian Health Board, from Denver; and Don Kashevaroff, who is the Representative of the Tribal Self-Governance Advisory Committee from Anchorage, AK. We will go ahead and start with you, Julia, if you would. And just as the former panel, you are welcome to submit your complete written testimony. That will be included in the record if you would like to just summarize. STATEMENT OF JULIA DAVIS-WHEELER, CHAIRPERSON, NATIONAL INDIAN HEALTH BOARD Ms. Davis-Wheeler. Yes; thank you, Senator Campbell. It is good to see you this morning. Good morning, everyone. It is a pleasure to be here to testify on behalf of the National Indian Health Board. I would like to state that I have two Board members with me in the audience. I would request Buford Rolin from Nashville and Everett Vigil from Albuquerque, stand please with our NIHB staff. Thank you. I also represent the Northwest Portland Area Indian Health Board. I serve as chair for that. I am also the secretary for the Nez Perce Tribal Council. So it is a pleasure to appear before you today to make comments on the Indian Health Care Improvement Act, which is important authorizing legislation for the care of all of our American Indians and Alaska Natives. In June 1999, the director of the Indian Health Service at that time, Dr. Michael Trujillo, convened a National Steering Committee composed of representatives from tribes and national Indian organizations to provide assistance and advice regarding the reauthorization of the Indian Health Care Improvement Act. Over the course of 5 months, the National Steering Committee drafted proposed legislation. In October 1999, the National Steering Committee forwarded their final proposed bill to the Director of the Indian Health Service and to each authorizing committee in the House and Senate. I have testified on the Indian Health Care Improvement Act before and I once again want to express my appreciation to you. Last year, the Northwest Portland Area Indian Health Board, with the Billings tribes, California tribes, and the Nashville tribes, hosted a meeting at Portland, OR on May 28 to 30, to talk about the recommendations on the changes for the current legislation, S. 212. The purpose of the meeting was to address concerns expressed in the September 27, 2001 letter that Senator Inouye received from the Secretary of the Department of Health and Human Services Tommy Thompson. These concerns focused on the large cost of the bill, and it raised legitimate questions about what we were trying to achieve in the bill. The participants at the Portland meeting also discussed concerns raised about high-cost elements from the score on S. 212, prepared by the Congressional Budget Office, CBO, in March 2001. I am very glad you have chosen to introduce S. 556 this year. The bill has very few apparent changes to S. 212, so we look forward to bringing you up to date on some of the changes recommended by the National Steering Committee. The National Steering Committee is also working this year on a House bill that is expected to be introduced soon that will reflect the 2002 Portland meeting changes, and the changes discussed in subsequent meetings with House legislative counsel, and other legislative staff meetings at the March 20 and 21, 2002 National Steering Committee meeting at Portland. A lot of good things are possible if we pass the bill with our recommended changes. The titles have exciting new authorities. I want to briefly review the titles contained in the Indian Health Care Improvement Act. Time only permits mentioning highlights in each title, but I am ready to answer your questions of any of the titles to the best of my ability. Although I have worked on the bill these past 4 years, there are only three or four experts who know everything in the bill and I may have to look to them for assistance in answering some of your questions. The preamble section of the Act has been revised, including sections on findings, declaration of Nation policy, and definitions. Emphasis has been placed on the trust responsibility of the Federal Government to provide health services and the entitlement of Indian tribes to these services. Title I, covering the Indian health human resources and development has been substantially rewritten, primarily to shift priority setting and decisionmaking to the local area levels where appropriate. The importance of education is highlighted by changes proposed in this Act. Title II, the health services, represents a collection of diverse sections addressing issues related to the delivery of health services to American Indians and Alaska Native populations. Diabetes programs and epidemiology centers are just two of the many health programs authorized by this title. Title II also offers us the opportunity to improve the long- term care needed for Indian elders. As you know, there has never been specific authority for long-term care in the Indian Health Care Improvement Act. Nursing homes are only a small part of the long-term care needs of what we want to accomplish with home and community-based health care for our elders. Title III, facilities, proposes that tribal consultation be required for any and all facility issues, not just facility closures. It protects and projects on the current priority list, while moving toward a new method of selecting facility projects. This title gives permanent authority to small ambulatory facility construction. Title IV, access to health services, seeks to maximize recovery from all third-party coverage, including Medicaid, Medicare and State children's health insurance programs, and any new federally funded health care programs. It also will contain protection against estate recovery proceedings, to make heirs pay the Medicaid bills of deceased American Indians and Alaska Natives. This was the title that resulted in the largest dollar total in the CBO score, but the National Steering Committee has agreed to some modifications to the provisions in the first tribal bill, and this has resulted in billions less in costs to the Federal Government. Title V, the health services for urban Indians, addresses facility construction authority and coverage by the Federal Tort Claims Act for the 35 urban programs. Urban representatives were very active members of the leadership group on the National Steering Committee, and they feel that the changes in Title V will result in millions of dollars in new funding for urban programs. Title VI, the organizational improvements, includes very few changes, including the elevation of the Indian Health Service Director to Assistant Secretary in the Department of Health and Human Services. Although tribes are generally very satisfied with the relationship that Interim Director Dr. Charles Grim has with top policymakers in the Department of Health and Human Services, we want to institutionalize this access with this change. Title VII, the newly titled behavioral health title, with major revisions, specifically to integrate alcohol and substance abuse provisions, with mental health and social services authorities. I know the committee is having a hearing next week on consolidation of alcohol and substance abuse programs, and I think this title can be complementary to the goals of that legislation. Title VIII, miscellaneous, was largely rewritten. It now includes a proposal to establish an Entitlement Commission to study and make recommendations on making Indian health an entitlement in the same manner as Medicaid and Medicare. Ten sections were moved out of Title VIII to more appropriate sections in the Indian Health Care Improvement Act. All the CHS provisions were moved to Title II, a majority of the free- standing and severability provisions from other titles were incorporated into Title VIII. I pray that this Act will pass this year, with Congress hearing from tribes that it is a priority for us in 2003. The National Indian Health Board and tribes nationwide are renewing their efforts to make this happen. The National Steering Committee, working with the National Congress of American Indians, the tribal leaders Self-Governance Advisory Committee, and the National Council on Urban Indian Health, stand ready to work with this committee to make necessary changes and improvements to craft a bill that will assist us in our goal of raising the health status of American Indians and Alaska Natives. I hope this hearing can be the final kick-off of the renewed effort to reauthorize the Indian Health Care Improvement Act. The Indian Health Service is no longer able to assist the National Steering Committee as it did in 1999, with support for travel and staff expenses. So it is a challenge to the tribes and the national Indian organizations, including the National Indian Health Board, to move this effort forward. We will meet this challenge and the continued support of this committee is a critical element of our efforts to pass this bill in this session of this Congress. Just a note, I would like to support the confirmation of Dr. Grim. I was pleased to hear the announcement by Senator Campbell regarding his confirmation. I would also like to comment, as a tribal leader, that the One-DHHS Initiative that my counterpart here is going to comment on, needs to be reviewed thoroughly by tribal governments. Speaking as a tribal leader, having the head offices in Baltimore is a concern that we have as tribal leaders. The other concern is keeping the government-to-government relationship intact that we have with the Federal Government. Thank you for this time and I would be happy to answer any questions that you have. [Prepared statement of Ms. Davis-Wheeler appears in appendix.] The Chairman. Thank you, Julia. We will now move to Chairman Kashevaroff. STATEMENT OF DON KASHEVAROFF, REPRESENTATIVE, TRIBAL SELF- GOVERNANCE ADVISORY COMMITTEE; PRESIDENT AND CHAIRMAN OF THE ALASKA NATIVE TRIBAL HEALTH CONSORTIUM Mr. Kashevaroff. Thank you, Mr. Chairman. I would also request that my written testimony be put in the record. The Chairman. Yes; it will be included in the record. Mr. Kashevaroff. Thank you. And I would like to thank you for the opportunity to testify here on the reauthorization of the Indian Health Care Improvement Act and on the One-HHS proposal that is going through. Since Ms. Davis-Wheeler touched a lot on the Indian Health Care Improvement Act, I would just like to add a few things from my viewpoint. First, I also represent the Tribal Self-Governance Advisory Committee. This committee is of tribal leaders, convened by the Indian Health Service, to address the health care needs of all eligible American Indian and Alaska Natives, especially those served by tribal health programs operated through self- governance compacts. Even though we have somewhat compacted and separated and started to do our own direct operations apart from the IHS, we are still very concerned and take both the Indian Health Care Improvement Act Reauthorization and the One- HHS proposals--we take them both seriously. The Indian Health Care Improvement Act, as stated before, was worked out in 1999, 4 years ago, and a lot has happened since then. We have been going through and making modifications. We have been making compromises to some of the requests that came down. I think even though we have some compromises, we have a much better bill that the House side again is working up, and we would ask that that bill when it becomes available in the next couple of weeks be substituted for the current bill on the Senate side. There were a couple of criticisms that we heard back on the 1999 bill that took immediate offense. There was discussion about the high score of the bill, and looking at the Medicaid- Medicare provisions and the amount of costs that they will require. My viewpoint is that the Indian Health Service and the U.S. Government should fully fund the tribes in this country. We do not get fully funded. We are basically forced to go out and find the funding on our own. As compacted tribes, we have taken that on as our own responsibility and have been trying to run our hospitals, our clinics, like a private organization. Private organizations, go out and bill for everything they can bill. They bill private insurance. They bill Medicaid. They bill Medicare. We have been doing that also. It would be nice if we did not have to. It would be nice if we were 100 percent fully funded, but knowing that is not the case, I do not think it should be an issue that we are doing the same thing the rest of the country does in health care. I think we should be allowed to do that. There are also some demonstration projects that were underway that we think should be made available to all tribes, and I think contributed somewhat to the high score also. So when the substitute bill comes, we hope, or when the House bill comes, we hope that that can be substituted and we look forward to working with this committee and taking on any extra questions or extra concerns, and working with this committee to make sure that we have a good bill for you. [Prepared statement of Mr. Kashevaroff appears in appendix.] The Chairman. Okay. Thank you, Mr. Kashevaroff. You have a major job, Alaska being so big, and I am delighted to see Senator Murkowski has just arrived. I am sure you know that your new Senator is doing a great job, just like her Dad did when he was here. I note with interest that neither one of you talked very much, or in fact almost not at all, about the One-HHS proposal. Would either one of you like to comment on that? If you don't, I would like to ask you to give us some feedback, some written explanation or evaluation of the proposal, if you could. Mr. Kashevaroff. Thank you, Mr. Chairman. I will comment on that. In my written testimony, we have a couple of pages on it. Basically, I understand that HHS is a very large Department, and in a large Department there should be efficiencies that can be obtained. Change is not bad. Change is usually good. I would have no problem, actually. I applaud Secretary Thompson for trying to make change, trying to create efficiencies, and trying to do a better service. What I think is missing is the understanding that IHS is a unique agency. IHS provides direct health service, and by providing direct health service, that brings a whole host of other parts that you need. You need a better HR system. You need an HR system that looks at the nursing shortage in America, and says, how can we compete for the same nurses that the private sector is competing for? Now, that is somebody you need there at the hospital, getting those nurses to come to your hospital, not somebody back in Baltimore who is out of the loop, away from the local level, not knowing what is going on. Similarly, on the information technology--on IT, we need data systems of patients that have clinical data; we need information systems. We need those type of systems. The rest of HHS does not really need those type of systems. We also have what we call the RPMS, or Resource Patient Management System, that collects data from all of IHS and the tribes, combines it together to provide data to the Congress. That is unique among HHS also, and that is something that takes a lot of work to keep going. It was an antiquated system. We have proposals on the IHS side, the tribes have been putting forth proposals, IHS has put forth proposals--around $36 million for a better centralized system that looks at a business perspective of what a hospital needs to be efficient and be successful. So we are looking for a $36-million increase. At the same time, HHS has come out and said that we need to reduce the $54 million IT budget by $9 million. At the same time, the IHS hospitals and clinics are very far behind the private sector, we cannot be reducing the budget. We need to be increasing that. As I said again, I do not mind HHS combining a lot of things. I am sure they can combine like agencies that just do a lot of granting, but when you turn over to the IHS and see the unique status of it, it needs to stand out by itself and be recognized for that. If they want One-HHS, they should have One-HHS. They should look at the disparities in health for the American Indians and Alaska Natives, and see that we have the worst statistics across the country. One-HHS should come together and say, we are going to handle the Indian population, we are going to bring them up to the rest of the population, that would be our One-HHS mission, and that is what we are going to do first. When they do that, then we can talk about all being equal again, and then putting everybody back together. The Chairman. Julia? Ms. Davis-Wheeler. Yes; thank you, Senator Campbell. As a tribal leader and participating in the One-HHS restructuring initiative with Indian Health Service, one of the concerns that came forward many times and was a very hot issue at the very beginning of our meetings with certain tribal leaders was the down-sizing of the Indian Health Service again. I can truly say that in a couple of those meetings, we had some tribal leaders just almost walk out on the whole process, because they felt that down-sizing the Indian Health Service any more was just a catastrophe for us to take care of our people. The one other big concern that came forward, and I appreciate Dr. Grim's response to you on the question of consultation, was that the timeframe for proper consultation on the One-DHHS Initiative was very short. We had basically seven months to try to consult with all the tribes across the United States. We did the best that we could under the circumstances, but I think in all reality it really needs to be like hearings or field hearings or that type of issue. I know that the Department of Health and Human Services was really putting a lot of pressure on the Indian Health Service agency to do this. So as a tribal leader, we worked very hard to help the Indian Health Service meet that deadline. It does need some more reviewing. Thank you. The Chairman. Okay. Well, since Dr. Grim is still here, I might say in his presence that if you think that some of the tribes have not had an adequate voice in that, we probably ought to ask him to extend that consultation process at least a few more months, Dr. Grim. Senator Murkowski, did you have an opening statement or any questions of our witnesses? STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR FROM ALASKA Senator Murkowski. Thank you, Mr. Chairman. With your permission I would like to submit my opening remarks for the record. I did have some questions, just general questions, that I will also submit for the record. I would like to take the opportunity to welcome my constituent, Mr. Kashevaroff. We had a little bit of a chance yesterday to speak, but I am pleased to have you here this morning and you have you answer the questions from this committee. You did address briefly in your comments here the issue of the merger and how that might affect, for instance, the IT end of things within the Indian Health Services. A more general and broad question for you this morning would be how tribal self- governance, with the Alaska Natives, has affected the Indian Health Service Program and the delivery of the health services. I am not looking for specifics, but if you can just briefly describe how is this all working with the tribal self- governance. Mr. Kashevaroff. Thank you, Senator Murkowski. Alaska looks forward to another long tenure of a Senator Murkowski, and keep adding the years to the same name. So that will be good. I appreciate your question. Alaska, as mentioned earlier by Dr. Grim, has pretty much, or is 100 percent contracted- compacted. The tribes all operate their own organizations themselves, and IHS has a residual there. The residual does have 10 HR people that will come over to the tribal side as the number of Federal employees dropped. So there are still some residual, plus some transition. But we think from Alaska, and think this because we have been told from around the country, and we have many people from around the country coming up to Alaska to see what was accomplished in our compacting. I think the shining example, the first thing that comes to our mind when we talk about what we accomplished, is we took 229 tribes and we built a consensus and built a working relationship amongst each other. We have been able to expand this relationship now to Federal partners, to do projects such as the telemedicine project. The idea of working together, cooperating is not unique among Indian Nations, but in Alaska, with so many tribes, it was amazing that we could come together, and we pretty much try to speak with one voice now. I think the power we gain by that can be shared across the Nation, not only among Indian tribes, but other groups, to say that if you can come together and work together, there is a lot that can be accomplished. What we have done for the Indian Health Service is we took over a system back in 1998, 1999--actually it was 1997--that was not meeting the needs of our customers, our owners. We call them customer-owners now because every one of the 115,000 Natives in Alaska own the health system now because we are compacted. We took over a system, and we have been steadily improving it. The reason we improve it now is that control has been passed from Rockville to the local villages, to Anchorage. I sit as Chair of that, the Tribal Health Consortium, but I am also President of my tribe. I am elected by 400-and-some tribal members. When those folks come to our hospital, I want to make sure that they get the best care possible. They are treated with the highest respect possible, because I know that my election depends on it. Every one of our tribal leaders now that are overseeing health care know that, and we have taken this to heart, that our people come first. Now that we have local control, we can see the needs at a local level and adjust to it. We are very agile now. We can make changes when needed. We can also go out and get more resources. We have been getting new grant funding we are bringing in to supplement what we have. Again, I know that you do not want specifics, but a quick example--my small tribe, IHS just refused to give us a clinic. They gave us contract health money. Unfortunately, with contract money, they would give us 2 or 3 percent a year. Our costs from the private doctor we went to were 14 to 15 percent increase every year. We are going in the red every year. By taking over our own services and doing it ourselves, we then have to go out and get grant money, and now we lease a clinic, and hopefully we are going to build a clinic here, too, pretty quick; but we are leasing a clinic; we are doing it ourselves; we are controlling our costs--something that IHS just would never have been in a position to do. So there are a lot of examples. I guess one last thing that I want to say about how IHS can work with the compactors, is they can take and look at the success the compactors have had all across the country, not just in Alaska. And they can pick out the items that we have been successful in and try to duplicate those, called best practices, looking at what one organization does best and taking that and spreading it across the rest of IHS. I think if IHS takes that mentality, and I know Dr. Grim, who I have had some work with the last year, I know he has come to the IHS with a business mind, wanting to do that. I do support his nomination. I think he is a great choice to take a government agency and try to mold it into a very efficient and top-rated health system. I think working with the tribes, he can probably accomplish that. Senator Murkowski. That is great. It is nice to hear that Alaska can be used as a model throughout the rest of the country. I am pleased to hear that. Mr. Kashevaroff. Thank you. The Chairman. Julia? Ms. Davis-Wheeler. Yes, Chairman Campbell, I would like to respond to Senator Murkowski's question on self-governance. The Nez Perce Tribe in Idaho, we just recently in 1999, 2000 went to compact. One of the things that we have done with the compacting process that we went through is we were able to build two clinics--one a small satellite clinic for our up- river people that live 70 or 80 miles away from the main headquarters, because they were in a community building. So we have one building for them. It is not a big one, but a small building where all the health programs are together. We did that with some of our compact money reserves that we had, and then other grants. Now, recently, we are working on the main tribal health clinic for the Nez Perce Tribe where the headquarters sits. So if we did not do the self-governance compact, we would not have been able to do that. So that shows that if tribes have the initiative or know how to do this, that they can get some things done. Whereas if we would have gone through the facilities priority selection process, we would have never gotten a new facility. So I just wanted to comment on that. Thank you. Senator Murkowski. Thank you. Mr. Chairman, I would just like to take the opportunity to thank you. With your assistance last week, we were able to bump up the number for the funding for IHS. I know it is not as much as some would have liked, but I think we agreed it was an attempt to address the need and we will work toward additional funding. I thank you for your initiative. The Chairman. It was a 10-percent increase, was it not? Senator Murkowski. 10 percent over the President's number. So every little bit, I think we all would agree, helps. Thank you for your assistance when we worked on that. The Chairman. Thank you. I appreciate your testimony and your support of S. 556. I have to tell you, I am really concerned about this One-HHS proposal. I understand that we need to streamline and consolidate and not duplicate efforts and make better, more efficient use of tax money and so on, but I have seen too many times in the past when Indian programs get folded into bigger programs, money that had formerly been designated for Indian programs somehow gets transferred or moved or something. The Indian people have never had a real strong voice in the Administrations, any Administration or here either, unfortunately. I am really concerned about that. When one out of every two Pimas on this earth, for instance, suffer from diabetes, and there are people who three out of their whole 7-day week and sometimes four is spent on a road somewhere just so they get dialysis, I sometimes worry that folding things into making things look more efficient sometimes is going to leave Indian people out. I would appreciate your looking at this One-HHS proposal in depth and giving the committee back some written guidance. We will look forward to that, too, and hopefully you can do that in the next few weeks if you could, Julia. I think Senator Inouye would be equally concerned about it. With that, I have no further questions, but we may have some that will be submitted in writing. Thank you for appearing. The committee is adjourned. [Whereupon, at 10:54 a.m., the committee was adjourned, to reconvene at the call of the Chair.] ======================================================================= A P P E N D I X ---------- Additional Material Submitted for the Record ======================================================================= Prepared Statement of Melanie Benjamin, Chief Executive, Mille Lacs Band of Ojibwe Mr. Chairman and members of the committee, this testimony is offered in support of Reauthorization of the Indian Health Care Improvement Act. The Mille Lacs Band of Qjibwe is a federally- recognized tribe with 3,570 enrolled members. Located in east central Minnesota, we operate three separate clinics offering services to more than 2,000 Mille Lacs Band members, as well as other non-members, through 20 different programs. When Congress first enacted the Indian Health Care Improvement Act (IHCIA) in 1976, one of the major policy reasons for doing so was to address the health disparities in Indian Country by raising the health status of the Indian population to a level consistent with that of the general population of the United States. Unfortunately, the overall health status of Indian people has improved very little, and those same disparities continue to exist in alarming numbers. Reauthorization of the IHCIA would greatly assist efforts to rectify the continuing health disparities in Indian country. One of the primary purposes of the IHCIA is to authorize appropriations for tribal health programs so that they may better satisfy their health care goals. Even so, federal funding levels have not kept pace with inflation or with the increasing needs that directly impact the costs of health care delivery. In fact, today's medical dollar is worth less than the funding received, making it very difficult to provide comprehensive health care. As is true for most tribal communities, the Mille Lacs Band is confronting an increased health care burden due to growing incidents of conditions such as diabetes, heart disease, and cardiovascular disease. These health conditions, which are approaching epidemic proportions, are impacting not only our adult population, but also our youth. This weighs heavy on our hearts as our children are our future. Factors such as poor diet and lack of exercise contribute greatly to the increase of these chronic health conditions. The Mille Lacs Band would like to develop preventative programs addressing these significant health deficiencies. Soaring treatment costs for chronic health conditions quickly drain program dollars, and the reality is that preventative programs are, in the long run, far more cost- effective. Our health care burden is impacted further by our ever-growing user population, which has increased by more than 30 percent in recent years. As a result, we have outgrown our current facilities. Inadequate space does not permit us to effectively address the existing needs of our members, much less those that continue to emerge each year. Presently, we are limited as to the services we are able to provide. While we currently employ one full-time dentist, two full-time physicians, and a handful of certified nurse practitioners, we are not capable of providing the comprehensive health care that our people rely upon, and frankly, deserve. Examples are programs targeted at substance abuse, mental health, and other behavioral health programs that contribute toward wellness beyond basic medical and dental care. We greatly need to expand our facilities and construct additional space to meet those growing demands for health services. Present funding levels are not sufficient to keep up with increasing health care needs and the associated costs. Level of need funding is designed to bring tribal health care programs to the equivalent of mainstream funding agencies throughout the United States. Our level of need funding is currently at 30 percent, an amount far below comparable non-tribal agencies. As a consequence, the Mille Lacs Band consistently faces a challenge in meeting the health care needs of our members and other tribal members who utilize our clinic services. The Mille Lacs Band makes every effort to access outside funding services to complement Federal funding. Third party billings are submitted to insurance providers and payments are sought from Medicare and Medicaid reimbursements. Regardless, these efforts are not sufficient to keep up with increased costs of health care delivery and frequently, the Mille Lacs Band must provide the difference. The problem with this is that it means other tribal programs and services are affected when dollars must be shifted. The impacts of non-reauthorization to the Mille Lacs Band of Ojibwe and other Tribes are numerous. Educational programs and campaigns may be eliminated, which will reduce health awareness. There will be an inability to provide comprehensive health care services to our clinic users, especially if clinic staff numbers are not increased. There will also be reduced access to the latest technology, a problem we already face with outdated technology that does not keep up with the latest medical advances. These are just some of the problems tribes will face without reauthorization of the IHCIA. Reauthorization of the Indian Health Care Improvement Act is beneficial to the Mille Lacs Band of Ojibwe and to all tribes who depend upon federal funding to provide comprehensive health care for our communities. Reauthorization will allow the Mille Lacs Band of Ojibwe to pursue our health care objectives and goals intended to rectify the significant health disparities that the United States acknowledges exist on our reservation and reservations across the United States. Underlying the Indian Health Care Improvement Act Reauthorization is the Federal trust responsibility of the United States. The Federal trust responsibility extends to all the federally-recognized tribes of the United States who have a government-to-government relationship with the United States. This trust obligation arises out of the government- to-government relationship that is articulated in article 1, section 8, clause 3, of the U.S. Constitution, the governing instrument of the United States. The trust responsibility also arises out of the numerous treaties, executive orders, court decisions and Federal laws of the United States, and frequently is acknowledged in the same. Reauthorization of the IHCIA is the means by which the United States can continue to fulfill its trust obligation to tribal nations. Encompassed within the government-to-government relationship is the United States' recognition of tribes' right to self-governance. The Mille Lacs Band of Ojibwe is a self-governance tribe under the Tribal Self-Governance Act of 1994. We were one of the first tribes to enter into a self-governance compact, and not long after, entered into an Annual Funding Agreement, an arrangement which allows the Mille Lacs Band to design its health care programs and services in a manner that best addresses goals and objectives we have identified in our community. The Mille Lacs Band has been able to prioritize its health care needs and attempts to meet those needs as best we can through sound policy decisions. However, our self-governance status does not interfere with the federal trust responsibility of the United States. Indian health care must be improved. Reauthorization of the Indian Health Care Improvement Act is essential to improving the lives of Indian people and the health care that they receive. Mii Gwetch. ______ Prepared Statement of Julia Davis-Wheeler, Chairperson, National Indian Health Board Chairman Campbell, Vice Chairman Inouye, and distinguished members of the Senate Indian Affairs Committee, I am Julia Davis-Wheeler, chairperson of the National Indian Health Board (NIHB). I am an elected official of the Nez Perce Tribe, serving as Secretary, and also Chair the Northwest Portland Area Indian Health Board. On behalf of the National Indian Health Board, it is an honor and pleasure to offer my testimony this morning on S. 556 to reauthorize the Indian Health Care Improvement Act, which is the most important authorizing legislation for American Indian and Alaska Native health delivery. As you recall, I stated in my recent testimony on the FY 2004 Budget that I looked forward to coming back and testifying on the Indian Health Care Improvement Act. I am pleased that this day has come and it demonstrates your commitment to American Indian and Alaska Natives as we work toward eliminating the unique health problems facing Indian Country. As you are well aware, the NIHB serves nearly all Federally Recognized American Indian and Alaska Native (AI/AN) Tribal governments in advocating for the improvement of health care delivery to American Indians and Alaska Natives. It is our mission to advance the level of health care in Indian Country and the adequacy of funding for health services that are operated by the Indian Health Service, programs operated directly by Tribal Governments, and other programs. Our Board Members represent each of the twelve Areas of IHS and are elected at- large by the respective Tribal Governmental Officials within their regional area. I have been associated with the reauthorization effort since May 1999 when I first met with other tribal leaders and the Indian Health Service to explore how we, along with Congress and the Administration, could work together to pass this vital legislation. In June 1999, the director of the IHS, Dr. Michael Trujillo convened a National Steering Committee (NSC) composed of representatives from tribal governments and national Indian organizations to provide assistance and advice regarding the reauthorization of the IHCIA. Over the course of 5 months, the National Steering Committee drafted proposed legislation, which was based upon the consensus recommendations developed at four (4) regional consultation meetings held earlier in that year. The consensus recommendations formed the foundation upon which the National Steering Committee began to draft proposed legislation to reauthorize the IHCIA. In October 1999, the National Steering Committee forwarded their final proposed bill to the IHS Director and to each authorizing committee in the House and Senate and the President. Previously, the House and Senate introduced legislation based on the tribal bill, but neither passed. Last year the Northwest Portland Area Indian Health Board and other Area Health Boards hosted a May 28-30, 2003 Indian Health Care Improvement Act meeting. The purpose of the meeting was to consider changes and provide recommendations on the proposed legislation in response to concerns raised in a September 27, 2001 letter and memorandum from Health and Human Services Secretary Tommy G. Thompson to Senator Daniel Inouye. The primary issues raised in Secretary Thompson's correspondence focused on the high costs associated with some of the bill provisions, questions about what outcomes were sought in regards to certain sections of the bill, and it also included opposition to certain elements in the bill. The participants at the Portland meeting took a hard look at the high Congressional Budget Office (CBO) score on S. 212 and the other concerns and forwarded recommendations to the House and Senate in July 2002. I am very pleased you have introduced S. 556 early this year and have held prompt hearings. The Bill appears to be identical to S. 212 introduced during the 107th Congress, so we look forward to bringing you up-to-date on some changes recommended by the National Steering Committee. The National Steering Committee is currently working with House members and committee staff on a House bill that is expected to be introduced very soon that incorporates the recommendations developed at the 2002 NSC meeting in Portland, further changes discussed in subsequent meetings with House Legislative Counsel, other legislative staff meetings, and at the March 20 and 21, 2003 NSC meeting hosted by the Northwest Portland Area Indian Health Board just a couple of weeks ago. I should tell you that in December 2002 the NSC met in Rockville, MD and selected Lone Pine Paiute Shoshone Tribal Chairperson Rachel Joseph and me to cochair this year's effort. In addition, Don Kashevaroff representing the Tribal Self-Governance Advisory Committee, former Navajo Nation Vice President Taylor McKenzie, and Kay Culbertson of the National Council of Urban Indian Health make up this years NSC leadership group. The balance of members represent each of the 12 areas of the Indian Health Service and several national Indian organizations that I mention below. A lot of good things are possible if we pass the bill with our recommended changes. The titles have exciting new authorities. I want to briefly review the titles contained in the Indian Health Care Improvement Act. Time only permits mentioning highlights in each title, but I am ready to answer your questions on any of the titles to the best of my ability. Although I have worked extensively on the bill over the past 4 years, I may have to call upon one of the technical advisers who possess a detailed knowledge of the legislation to assist with my answers to your questions. The Preamble section of the act has been revised, including sections on Findings, Declaration of Nation Policy and Definitions. Emphasis has been placed on the trust responsibility of the Federal Government to provide health services and the entitlement of Indian tribes to these services Title I--Indian Health, Human Resources and Development, has been substantially rewritten primarily to shift priority setting and decisionmaking to the local Area levels, where appropriate. The importance of education is highlighted by changes proposed to the act. Title II--Health Services represents a collection of diverse sections addressing issues related to the delivery of health services to American Indian and Alaska Native populations. Diabetes programs and epidemiology centers are just two of the many health programs authorized by this title. Title III--Facilities, proposes that tribal consultation be required for any and all facility issues, not just facility closures. It shelters projects on the current priority list while moving toward a new method for selecting facilities projects. This title gives permanent authority to small ambulatory facilities construction. Title IV--Access to Health Services, seeks to maximize recovery from all third-party coverage, including Medicaid, Medicare, and the State Children's Health Insurance Program (S-CHIP) and any new federally funded health care programs. It also will contain new authority for long-term care and protection against estate recovery. This was a title that resulted in the largest dollar total in the CBO score, but the NSC has agreed to some modifications to the provisions in the first tribal bill and this has resulted in billions less in costs to the Federal Government. The main change is that States will not receive huge increases in reimbursements. Title V--Health Services for Urban Indians, adds facility construction authority and coverage by the Federal Tort Claims Act for the 35 urban programs. Urban representatives were very active members of the leadership group on the NSC and they feel that the changes in title V will result in million of dollars in new funding for urban programs. Title VI--Organizational Improvements, includes changes including the elevation of the Indian Health Service Director to Assistant Secretary in the Department of Health and Human Services. Although tribes are generally very satisfied with the relationship Interim Director Dr. Charles Grim has with top policymakers in the Department of Health and Human Services, we want to institutionalize this access with this role change. Title VII--Contains the newly named Behavioral Health title with major revisions, specifically to integrate Alcohol and Substance Abuse provisions with Mental Health and Social Service authorities. I know the committee is having a hearing next week on consolidation of alcohol and substance abuse programs and I think this title can be complementary to the goals of that legislation. Title VIII--Miscellaneous was largely rewritten. It now includes a proposal to establish an entitlement commission to study and make recommendations on making Indian Health an ``Entitlement,'' in the same manner as Medicaid and Medicare. Ten sections were moved out of title VIII to more appropriate sections in the IHCIA. All CHS provisions were moved to title II. A majority of the ``free-standing and severability'' provisions from other titles were incorporated into title VIII. Conclusion On behalf of the National Indian Health Board, I would like to thank the committee for its consideration of our testimony and for your interest in the improvement of the health of American Indian and Alaska Native people. I know that this act will not pass this year unless Congress hears from tribes that it is indeed a priority in 2003. The National Indian Health Board and tribes nationwide are renewing their efforts to make this happen. The National Steering Committee, working with the National Congress of American Indians, the Tribal Leaders Self-Governance Advisory Committee and the National Council of Urban Indian Health stand ready to work with this committee to make necessary changes and improvements to craft a bill that will assist us in our goal of raising the health status of American Indian and Alaska Natives. 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