Coalition for Reliable Medical Access Stands Firmly Against Repeal of Alaska's 80th Percentile Rule

The Coalition for Reliable Medical Access, a collective of healthcare advocates and providers committed to ensuring fair and accessible healthcare for all Alaskans, strongly opposes the repeal of Alaska's 80th Percentile Rule. The coalition stands united in support of the rule and its crucial role in protecting patients and promoting transparency within the insurance marketplace.

The 80th Percentile Rule, which has been instrumental in fostering collaboration between providers and insurers, promoting fair contracting practices, and shielding patients from exorbitant out-of-pocket costs and balance billing, is under threat of repeal at the insistence of Alaska’s largest, lower-48 based insurance provider.

In a recent statement from Alaska Health Services, a network of general surgeons in the Anchorage-area that includes 9 offices and more than providers, CEO Cinderella Tollefsen expressed Alaska Health Services opposition to the repeal of the 80th Percentile Rule:

“…WE OPPOSE the proposed changes.  The 80th Percentile Rule encourages providers and insurers to work together in good faith for fair and transparent contracting to benefit patients and helps protect patients from balance billing and out-of-pocket costs for healthcare in Alaska.  Our practice participants in all major local networks including Medicare, Medicaid, VA/Tricare, etc.  Most of the providers in our region are in network and we have all seen our negotiated contractual reimbursement rates remain flat or decrease all while facing historic inflation. At the same time, as a purchaser or local Alaska based private health insurance for my providers and staff, we have faced year over year increases in our premiums and have seen deductibles increase. “

The repeal of the 80th Percentile Rule would have dire consequences for healthcare in Alaska and would jeopardize the recruitment and retention of high-quality healthcare providers, who are already in short supply, says Tollsefsen. Additionally, it would severely limit patients' access to care across the state, exacerbating existing healthcare disparities and compromising the well-being of Alaskans.

“Repealing the 80th Percentile Rule will only benefit insurance companies, all of whom are based in the lower-48 and enjoy substantial profits.  Repealing the 80th Percentile Rule will affect Alaska’s ability to recruit and retain high quality healthcare providers, which are already in short supply and will greatly reduce patient’s access to care in Alaska.  As stated above, we respectfully OPPOSE the repeal of 3AAC26.110, aka the 80th Percentile Rule,” Tollefsen wrote in public opposition to repealing the 80th Percentile Rule.