Legislature(2015 - 2016)SENATE FINANCE 532
04/14/2016 08:00 AM Senate FINANCE
Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
Audio | Topic |
---|---|
Start | |
SB130 | |
HB314 | |
SB130 | |
HCR4 | |
HB77 | |
SB130 | |
SB206 | |
SB130 | |
SB55 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 130 | TELECONFERENCED | |
+= | HB 247 | TELECONFERENCED | |
+= | HB 77 | TELECONFERENCED | |
+ | HCR 4 | TELECONFERENCED | |
+ | SB 55 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | HB 314 | TELECONFERENCED | |
+= | SB 206 | TELECONFERENCED | |
SENATE BILL NO. 206 "An Act relating to a reinsurance program for residents who are high risks and insurer assessments to cover the costs of the reinsurance program; relating to application for state innovation waivers for health care insurance; relating to definitions of 'residents who are high risks' and 'covered lives'; and providing for an effective date." 8:57:27 AM FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT, discussed SB 206. The individual insurance market for health insurance in the state was in crisis. He remarked that there were only two carriers, and one carrier was currently in weakened financial condition. He stressed that both carriers were losing money in the individual market. He pointed out that the pool was too small and the costs were two high. Senator Dunleavy queried the factors the Division of Insurance considered when requesting a waiver. LORI WING-HEIER, DIRECTOR, DIVISION OF INSURANCE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, explained that the application process was intense, and required public hearings. She remarked that there was an examination of the individual mandate as to when individuals should be allowed to participate. She stated that there would be a determination to eliminate the tax or penalty for not participating in the employer or individual mandate. She remarked that there would be point of restrictive or too great a burden to participate in the individual plans. She shared that there was also an examination of the subsidies to "smooth the curve." She remarked that the current curve for subsidies was stark, with a "line in the sand" for subsidy qualification. Senator Dunleavy asked what type of opposition to the bill the department had encountered. Mr. Parady relayed that the bill had two key components: the assessment process; and the Section 13.32 innovation waiver. He stated that there was no opposition to the waiver process. He furthered that AETNA had expressed opposition to the assessment plan. Senator Dunleavy asked to hear the pros and cons of leaving the federal plan. Mr. Parady believed the pros outweighed the cons, because there were 22,000 insured lives in Alaska's individual insurance market who generated financial losses due to the requirement to cover all individuals. 9:04:19 AM Senator Olson queried the benefits of those in the IHS system. Mr. Parady deferred to Ms. Wing-Heier. Ms. Wing-Heier replied that it had not impact on IHS beneficiaries. 9:04:48 AM Vice-Chair Micciche referred to page 2 of a document entitled "SB 206 - Best Estimate Consumer Impacts," (copy on file), and noted that the cost would be spread to other covered. Ms. Wing-Heier agreed Vice-Chair Micciche queried the 15 to 18 percent premium impact. Mr. Parady shared that the bill allowed the division authority to set premiums, and work through the process. He remarked that there would be a $55 million estimated impact on insurance premiums with $19.30 projection, resulting in an 18 percent reduction. He remarked that over the recent two years there was a 36 to 40 percent increase, and the following year was expected to see a similar increase. He stressed that the numbers were estimates based on the actuarial studies. Vice-Chair Micciche asked if there was a significant fiscal note, because the state would cover its own insurance costs. Mr. Parady replied in the negative, because the state did not carry stop loss premium. The state was self-insured. The affected groups were listed on page 1, but it excluded state employees. Therefore, there was no fiscal note. Ms. Wing-Heier remarked that since the state was self- insured, so those employees were not included in the plan. SB 206 was HEARD and HELD in committee for further consideration.