Legislature(2009 - 2010)BUTROVICH 205
03/18/2009 01:30 PM Senate HEALTH & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| Confirmation of Governor's Appointments | |
| SB11 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 11 | TELECONFERENCED | |
| += | SB 27 | TELECONFERENCED | |
SB 11-DEPENDENT HEALTH INSURANCE; AGE LIMIT
2:41:38 PM
CHAIR DAVIS announced consideration of SB 11.
TOM OBERMEYER, staff to Senator Davis, sponsor of SB 11, read
the sponsor statement into the record as follows:
SB 11 requires an insurer to enroll, and prohibits
taking off the rolls or eliminating health care
insurance coverage without the consent of the insured,
for a person less than 26 years old who is related to
the insured, unmarried, financially dependent on the
insured, does not have dependents, enrolled in an
institution of higher education, and not insured under
another policy. SB 11 changes the age that a person
is considered a child from 23 years of age to 26 for
purposes of determining who may be insured under the
same policy of health insurance.
Young adults, ages 19-29, are one of the largest
growing segments of the U.S. population without health
insurance. In 2004 almost 14 million young adults
lacked coverage, an increase of 2.5 million since
2000. This rapid change is due in part to their
losing coverage under their parents' policies at 19,
or Medicaid, or State Children's Health Insurance
Program, or graduation from high school or college.
Almost half of college graduates and high graduates
will be uninsured for a substantial time after
graduation.
Age 19 is a crucial year in health insurance
coverage. Both public and private insurance plans
treat this age as a turning point for insurance
coverage. Even if youth go on to college, parents'
insurance plans often stop before graduation. Almost
all private universities and about one fourth of
public universities require health insurance as a
condition of enrollment. Forty percent of part-time
students and non-students, and 20 percent of full-time
students ages 19-23 are uninsured.
Insurance coverage is important for this generally
healthy group of young adults who should be encouraged
to start taking responsibility for their own health
care. It has been found that 14 percent of adults 18-
29 are obese, an increase of 70 percent in the 1990s,
- the fastest rate of increase among all adults. There
are 3.5 million pregnancies each year among the 21
million women ages 19-29. One-third of all diagnoses
of HIV are made among young adults. Emergency room
visits are far more common among young adults than
children or older adults. Most young adults have no
regular doctor, no link to the health care system, and
more than one-third of those who do require medical
attention are often saddled with debt and collection
agencies.
States are taking action to mandate coverage for young
adults, often allowing for targeted policy options.
For example, in 2006 New Jersey required most group
health plans to cover single adult dependents up to
age 30. Massachusetts as part of its expanded health
insurance law in 2006 considered dependents for
insurance purposes up to age 25 or for two years after
they are no longer claimed on their parents' tax
returns. Since 1994 Utah has required coverage through
age 26, and New Mexico provides coverage for unmarried
dependents up to age 25, regardless of school
enrollment. Texas in 2003 allowed full-time students
up to be covered by their parents' insurance plans to
age 25. It is not uncommon, or unreasonable,
therefore, that SB 11 requires offering family health
insurance coverage to dependent children up to age 26.
2:44:59 PM
MR. OBERMEYER explained that states are taking action to mandate
coverage for young adults often allowing for targeted policy
options. For example in 2006, New Jersey required most group
health plans to cover single adult dependents up to age 30;
Massachusetts considered dependents up to age 25 or for two
years after they are no longer claimed on their parents' tax
returns. Since 1994, Utah has required coverage through age 26
and New Mexico provides coverage through age 25 regardless of
school enrollment. Texas in 2003 allowed full-time students to
be covered to age 25. It is not unreasonable that this bill
requires offering family health plans to dependent children up
to age 26.
SENATOR DYSON asked Mr. Obermeyer if state schools no longer
offer health coverage for students.
MR. OBERMEYER answered that most still offer it, but it has
become prohibitively expensive for a lot of students; it might
be $1,800/yr. or more. Schools require it because liabilities
are involved in having students on campus. It has been found
that it is less expensive to retain students on their parents'
policies.
2:47:55 PM
SENATOR DYSON asked if anyone from the insurance industry has
addressed that issue or how much it would cost to carry the kids
longer.
MR. OBERMEYER answered the insurance industry last indicated
that the cost to continue coverage under those existing plans
would not be prohibitive. It might go up several percentage
points.
SENATOR DYSON asked if SB 11 allows an insurance company to
increase the rates as necessary to extend the coverage.
TOM OBERMEYER answered yes, but this bill says that kids cannot
be deleted from a policy.
SENATOR DYSON asked if they've had any feedback from the
insurance companies.
CHAIR DAVIS replied that the only dissenting view came from the
Small Business Association.
2:51:51 PM
SENATOR PASKVAN moved to report SB 11 from committee with
individual recommendations and accompanying fiscal notes. There
being no objection it was so ordered.
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