03/22/2002 03:25 PM House L&C

HB 290-COMPREHENSIVE  HEALTH INSURANCE ASS'N                                                                                  
                                                                                                                                
CHAIR MURKOWSKI turned  to the next order of  business, HOUSE BILL                                                              
NO.  290, "An  Act  relating to  membership  in the  Comprehensive                                                              
Health Insurance Association."                                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG, Alaska State  Legislature, spoke  as the                                                              
sponsor of  HB 290.  He directed  attention to an overview  of the                                                              
committee  substitute  (CS) by  the  Division  of Insurance.    He                                                              
explained that  the CS  goes from  the premium percentage  payment                                                              
to  covered  lives.    The Division  of  Insurance  came  up  with                                                              
260,000  covered lives  over  which the  premium  will be  spread.                                                              
With the  $3 million  assessment that is  currently in  the Alaska                                                              
Comprehensive   Health   Insurance    Association   (ACHIA),   the                                                              
individual cost  per life  is decreased to  about $.96.   However,                                                              
there is a caveat  that when the program looks at  a family of say                                                              
five,  there are  five covered  lives  and an  adjustment is  made                                                              
such  that perhaps  they charge  each person  $2.   Representative                                                              
Rokeberg explained  that by using  this formula it will  be spread                                                              
over  the self-insureds,  which  is how  the stop  loss and  those                                                              
normally  covered   by  ERISA  are  addressed.     Moreover,  [the                                                              
formula] takes  in the state.   He informed the committee  that he                                                              
has an  amendment that  includes the employee's  of the  state and                                                              
one for transition.   He acknowledged that there  has been concern                                                              
with regard to the costs.                                                                                                       
                                                                                                                                
CHAIR  MURKOWSKI  announced  that  she  would hold  HB  290  until                                                              
Monday.