04/19/1994 08:30 AM Senate FIN

                                                                               
  SENATE BILL NO. 313                                                          
                                                                               
       An Act  relating to the Comprehensive  Health Insurance                 
       Association  and   to  health  insurance   provided  to                 
       residents  of  the  state  who   are  high  risks;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Pearce  directed that  SB  313 be  brought  on for                 
  discussion.    She noted  that the  bill  was heard  by both                 
  Senate  Labor  and  Commerce and  Senate  Health  and Social                 
  Services and that a majority of  the committee had discussed                 
  it in earlier committees.                                                    
                                                                               
  CAROL  CARROLL,  aide  to  Senator  Kerttula,   came  before                 
  committee.  She  explained that the bill  amends legislation                 
  relating to a high risk health insurance pool established in                 
  1992.  It  responds  to  problem  areas  identified  by  the                 
  comprehensive health insurance association and would  extend                 
  existing  legislation  to health  maintenance organizations.                 
  Sections 3 and  4 provide  additional forms of  deductibles,                 
  copayments,  and maximums.  After a  year of experience, the                 
  Association  has  indicated   that  some  individuals  would                 
  purchase  high  risk insurance  if  it could  be  applied to                 
  catastrophic illness and entail a large deductible.  Section                 
  5 broadens  Association power  to offer  policies to  groups                 
  that maintain healthy lifestyles.  Section 6 further defines                 
  eligibility  for  the  state  plan.    It  would  disqualify                 
  residents eligible for coverage under small  employer health                 
  reinsurance  association  legislation   passed  last   year.                 
  Sections 7 and  8 require  payment of the  premium with  the                 
  request  for  insurance.   Section  9  explicitly  gives the                 
                                                                               
                                                                               
  director of insurance ability to  formulate policy and adopt                 
  regulations.  Section 10 provides Association  board members                 
  immunity  from  civil  or criminal  liability  for  acts and                 
  omissions.  This is especially important for public members.                 
  Section 11  allows the director to accept an application for                 
  coverage in cases where  two denials of coverage seem  to be                 
  superfluous.   Ms. Carroll further directed attention to the                 
  sponsor statement  (Attachment  B)  and  sectional  analysis                 
  (Attachment C).                                                              
                                                                               
  Co-chair Pearce queried members regarding disposition of the                 
  legislation.  Senator Kerttula attested  to benefits of both                 
  this  and past  legislation to small  business owners.   Co-                 
  chair  Frank MOVED  that  SB 313  pass  from committee  with                 
  individual recommendations and  the accompanying zero fiscal                 
  note.  Senator  Sharp seconded  the motion, voicing  support                 
  for passage.   No objection having  been raised, SB 313  was                 
  REPORTED OUT of committee with a zero note from the Dept. of                 
  Commerce  and Economic  Development.   Co-chairs Pearce  and                 
  Frank and Senators  Kerttula and Sharp signed  the committee                 
  report with a "do pass"  recommendation.  All other  members                 
  had left the meeting and did not sign the report.                            
                                                                               
  RECESS                                                                       
                                                                               
  Co-chair Pearce announced that the meeting would be recessed                 
  at this time and  scheduled to reconvene at  5:30 p.m.   The                 
  meeting was recessed at approximately 10:30 a.m.