Legislature(2009 - 2010)BUTROVICH 205
03/11/2009 01:30 PM Senate HEALTH & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB11 | |
| SB27 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 11 | TELECONFERENCED | |
| *+ | SB 27 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 11-DEPENDENT HEALTH INSURANCE; AGE LIMIT
CHAIR DAVIS announced consideration of SB 11.
1:33:34 PM
TOM OBERMEYER, staff to Senator Davis, read the sponsor
statement for SB 11 as follows:
1:34:00 PM
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 school
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 Senate Bill 11 requires offering
family health insurance coverage to dependent children
up to age 26.
1:38:12 PM
SENATOR DYSON said he had hoped someone from the insurance
industry would testify and said he is glad that it is not Chair
Davis's intention to move the bill today.
CHAIR DAVIS said this bill has been heard before and thinks it
would be quite helpful to the young people of this state; she
intended to hold it to give people more opportunity to speak for
or against it.
SENATOR DYSON asked if the term "enrolled" in higher education
has been defined for the purposes of this bill.
CHAIR DAVIS replied that she believes a student has to be
enrolled full time, which would mean at least 12 credits, but
she will verify that.
MR. OBERMEYER said that language on page 2, AS 21.42.345(e)(5)
says the person must be enrolled "as a full-time student at an
institution of higher education accredited by the regional or
national accrediting agencies recognized by the Council for
Higher Education Accreditation or the U. S. Department of
Education." The fiscal note indicates that the University of
Alaska currently has 200 non-active dependents between the ages
of 24 and 26 who would become re-eligible for health care
insurance if this bill were to pass; the expected annual
increase in cost to UA would be approximately $1.2 million.
SENATOR DYSON admitted that he had not read that portion of the
bill carefully. He wondered whether, if a kid enrolls and gets
coverage and then quits school or flunks out, if a process is in
place to let the insurer know the student is no longer eligible.
1:42:12 PM
SENATOR THOMAS joined the meeting.
CHAIR DAVIS responded that it depends on who your coverage is
with; but in her experience the insurer will carry the student
to the end of that school year, but will not renew coverage if
the student does not enroll for the following school year.
SENATOR DYSON said that he probably knows far more scoundrels
than Senator Davis does, who are looking for a way to scam the
system.
MR. OBERMEYER remarked that the increased cost to continuing
coverage for these children has not been very high. It was
anticipated that if the parents want to keep their children on a
health care plan, they could do so until age 26; this is a
relatively healthy population group, so it hasn't greatly
increased the cost to private insurers. He said he would try to
get some figures from other states.
SENATOR PASKVAN observed that this would help a person who is
18, joins the military for a few years, gets out and then wants
to go back to school full time.
1:44:32 PM
SENATOR DYSON added that will be true only if the person meets
the criteria of being a dependent child.
MR. OBERMEYER pointed to the second page of the National
Conference of State Legislatures (NCSL) Legislative Brief in the
members' packets. Under State Action, it says:
Expanded coverage for young adults may be structured
as an insurance policy rider with supplements et
cetera... More commonly, coverage is extended to all
policies and the young adult is simply covered by the
family premium. Some experts predict that the latter
strategy may increase employer premiums by about 5
percent to 9 percent.
That may not be significant, he said, but it depends upon what
population sample one is looking at, and other options are
available like keeping students on the plan but perhaps
requiring a small rider. He mentioned this because those
students who are forced to accept college plans sometimes find
they are paying $1800 or more per year for coverage; if they can
stay on their parents' plan, it's far cheaper than anything
else.
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