Legislature(1993 - 1994)
03/23/1994 03:00 PM House HES
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HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES
STANDING COMMITTEE
March 23, 1994
3:00 p.m.
MEMBERS PRESENT
Rep. Cynthia Toohey, Co-Chair
Rep. Con Bunde, Co-Chair
Rep. Gary Davis, Vice Chair
Rep. Al Vezey
Rep. Harley Olberg
Rep. Bettye Davis
Rep. Tom Brice
MEMBERS ABSENT
Rep. Kott
Rep. Nicholia
COMMITTEE CALENDAR
HB 414: "An Act creating the Alaska Health Commission;
relating to the delivery, quality, access, and
financing of health care; relating to health
insurers, health maintenance organizations, and
medical service corporations; relating to certain
civil actions against health care providers and
health insurers; amending Alaska Rules of Civil
Procedure 26 and 27 and Alaska Rules of Evidence
802, 803, and 804; repealing Alaska Rule of Civil
Procedure 82.1; and providing for an effective
date"
PASSED OUT OF COMMITTEE
WITNESS REGISTER
DON KOCH
Marketing Surveillance
Division of Insurance
Department of Commerce and Economic Development
P.O. Box 110805
Juneau, Alaska 99811-0805
Phone: (907) 465-3422
Position Statement: Testified on HB 414
NANCY USERA
Commissioner
Department of Administration
P.O. Box 110200
Juneau, Alaska 99811-0200
Phone: (907) 465-2200
Position Statement: Opposed Amendment 25 to HB 414
THELMA SNOW WALKER
Deputy Director
Division of Insurance
Department of Commerce and Economic Development
800 E. Dimond Blvd., Ste. 3-560
Anchorage, Alaska 99515-2045
Phone: (907) 349-1230
Position Statement: Addressed Amendment 27 to HB 414
PREVIOUS ACTION
BILL: HB 414
SHORT TITLE: COMPREHENSIVE HEALTH CARE
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
01/28/94 2182 (H) READ THE FIRST TIME/REFERRAL(S)
01/28/94 2182 (H) HES, JUDICIARY, FINANCE
01/28/94 2182 (H) -2 FISCAL NOTES (GOV, DCED)
1/28/94
01/28/94 2183 (H) GOVERNOR'S TRANSMITTAL LETTER
02/15/94 (H) HES AT 03:00 PM CAPITOL 106
02/15/94 (H) MINUTE(HES)
03/04/94 (H) HES AT 03:00 PM CAPITOL 106
03/04/94 (H) MINUTE(HES)
03/09/94 (H) HES AT 03:00 PM CAPITOL 106
03/09/94 (H) MINUTE(HES)
03/12/94 (H) HES AT 01:00 PM CAPITOL 106
03/12/94 (H) MINUTE(HES)
03/16/94 (H) HES AT 03:00 PM CAPITOL 106
03/21/94 (H) HES AT 03:00 PM CAPITOL 106
03/23/94 (H) HES AT 03:00 PM CAPITOL 106
ACTION NARRATIVE
TAPE 94-60, SIDE A
Number 000
CHAIR BUNDE called the meeting to order at 3:10 p.m., noted
members present and announced the calendar. He brought HB
414 to the table.
HB 414 - COMPREHENSIVE HEALTH CARE
CHAIR BUNDE indicated that the committee substitute (CS) was
dated 3/22/94 version J (8-GH2024\J). He said the committee
would continue addressing amendments and taking public
testimony. He noted that COMMISSION USERA, COMMISSIONER
LOWE, and COMMISSIONER WALSH were present.
REP. B. DAVIS said she could not find the amendments that
she submitted.
Number 087
CHAIR BUNDE directed the committee's attention to Amendment
16 that was tabled from the last meeting. He brought
Amendment 16 to the table for discussion.
REP. TOOHEY made a motion to adopt Amendment 16.
CHAIR BUNDE objected for discussion purposes. He then asked
DON KOCH to address Amendment 16.
REP. B. DAVIS said she did not have Amendment 16. She then
located the amendment.
Number 162
DON KOCH, Marketing Surveillance, Division of Insurance,
Department of Commerce and Economic Development, testified
on HB 414. He stated that in current statute there is a
fairly well structured set of requirements that address the
payment of all insurance claims. He said a number of
statutes apply directly to the type of insurance being
addressed in HB 414. He explained that there are
requirements within the regulation that certain responses
occur within certain time frames and penalties are also
outlined in the statutes. He further indicated that there
are time frames for acknowledgement of correspondence. He
said, "You have 15 days on any piece of correspondence that
appears to be structured in a way that requires response to
get a response." There is a 30 day period in which an
insurer must pay the claim or have an explanation available
to the insured person as to why the extra time is warranted.
He expressed that the department felt the statutes are
working. Although, he said, he felt the 15 days provided
for in HB 414 may not be able to meet all situations. He
felt the time period was too short.
Number 262
REP. TOOHEY asked if there is a 10.5% charge for unpaid
claims.
MR. KOCH said he was unaware of any state that has that type
of requirement on disability insurance. He stated that the
charge would be an added cost feature included by the
drafters. He guessed that a penalty would come through the
unfair claims practice regulations.
Number 290
REP. TOOHEY asked Mr. Koch if there would be any benefits to
the fiscal note if any of the changes in Amendment 16 were
adopted.
MR. KOCH said no. He explained that the interest provision
is not in the fiscal note. He said, "I think as far as the
consumer protection angle goes, we cover this as well as the
amendment."
CHAIR BUNDE observed that whatever is accomplished, health
care should be user friendly. He asked for further
testimony. Hearing none, Chair Bunde called for the vote.
Reps. Toohey, Bunde, G. Davis, Vezey, Olberg, B. Davis, and
Brice voted Nay. There were no Yea votes. Amendment 16
failed to be adopted.
CHAIR BUNDE then asked Rep. Brice to move his Amendment 24.
Number 352
REP. BRICE made a motion to adopt Amendment 24.
REP. TOOHEY objected.
CHAIR BUNDE asked Rep. Brice to speak to the amendment.
REP. BRICE explained that the bill has no teeth. He felt
the amendment expressed his feeling that the legislation
does not provide for decisive measures. He then withdrew
his amendment.
Number 397
CHAIR BUNDE brought Amendment 25 to the table for
discussion.
REP. B. DAVIS made a motion to adopt Amendment 25.
CHAIR BUNDE objected for discussion purposes.
REP. B. DAVIS stated that in order to give more credence to
the bill she felt Amendment 25 would be appropriate to
ensure the availability of universal health care for all
residents of Alaska.
CHAIR BUNDE asked Rep. B. Davis to expound on her amendment.
REP. B. DAVIS asserted that the amendment would allow for a
process that would provide health care. She said she knows
that the committee has seen the proposal before and is
almost positive it will not pass. She said she did not want
to go through a line by line analysis. She offered to
answer any specific questions a committee member might have.
She explained that the proposal addresses statewide health
care, targets, and data systems, all of which she believes
will help the state come on-line with universal health care
for Alaskans before the national health care plan is passed.
Number 466
CHAIR BUNDE referred to Rep. B. Davis' request for specific
questions and said it was a point well taken.
REP. TOOHEY referred to page 2, line 5, and asserted that
the intent of the legislation addresses Rep. B. Davis'
concerns.
REP. B. DAVIS said, "It says findings, but there is nothing
in statute that could make it happen. So therefore, I
maintain my amendment." She reiterated her previous motion.
REP. TOOHEY objected.
CHAIR BUNDE asked for further discussion.
REP. BRICE commented that if the administration and the
legislature was concerned about addressing the health care
issue, they should support the amendment. He maintained
that HB 414 does nothing more than establish three job
positions of a commission and asks that "they might" look
into certain areas. He felt the amendment would provide the
teeth that HB 414 needs to be effective.
Number 530
NANCY USERA, Commissioner, Department of Administration,
testified on HB 414. She stated that the administration
opposes Amendment 25.
CHAIR BUNDE said, "I would say that if we wanted to pass the
Senate bill, I guess we would have passed that Senate bill."
He asked for further discussion. Hearing none, Chair Bunde
called for the vote. Reps. B. Davis and Brice voted Yea and
Reps. Toohey, Bunde, G. Davis, Vezey, and Olberg voted Nay.
Chair Bunde declared that Amendment 25 failed to be adopted.
CHAIR BUNDE brought Amendment 26 to the table.
Number 556
REP. BRICE made a motion to adopt Amendment 26.
REP. TOOHEY objected.
CHAIR BUNDE asked Rep. B. Davis or Rep. Brice to address the
amendment.
REP. B. DAVIS explained that it was a proposal that had been
given prior consideration. She said if there were members
who felt that there were valuable points, she would be happy
to discuss it.
REP. BRICE reiterated that he felt it was important that the
legislature take proactive measures this year regarding the
health care issue and Amendment 26 fulfills that obligation
to the state.
CHAIR BUNDE asked for further discussion. Hearing none, he
called for the vote. Reps. B. Davis and Brice voted Yea and
Reps. Toohey, Bunde, G. Davis, Vezey and Olberg voted Nay.
Chair Bunde announced that Amendment 26 failed. He brought
HB 27 to the table. Chair Bunde indicated that the
amendment was submitted by the Division of Insurance.
Number 623
REP. TOOHEY made a motion to adopt Amendment 27.
CHAIR BUNDE objected.
Number 624
THELMA SNOW WALKER, Deputy Director, Division of Insurance,
Department of Commerce and Economic Development, testified
on HB 414. She referred to page 20, line 21, and indicated
that the Division of Insurance would have to implement a
uniform claim form by 7/1/95. She then referred to page 16,
Section 44.19.628 and said the provision indicates that the
division shall adopt by regulation uniform claim forms,
uniform standards, and uniform procedures for the processing
of data relating to billing for payment of health care
services provided to state residents.
MS. WALKER said the division does not know what is meant by
uniform standards and uniform procedures. She said the
division has no basis upon which to build those definitions.
She said the amendment proposes to insert the phrase "the
uniform claim form described by" on page 20, line 21, after
the word "implement." She said the division anticipates
that they will adopt regulations to formulate the uniform
claim form, but not uniform standards or procedures for the
collection of the billing data.
Number 697
REP. TOOHEY assumed that the amendment would not change the
fiscal note.
MS. WALKER said it would not.
CHAIR BUNDE asked for other questions. He reminded the
committee that the amendment had been moved and objected to.
He then called for the vote. Reps. Toohey, Bunde, G. Davis,
Vezey, Olberg, B. Davis, and Brice voted Yea. No one voted
Nay. Chair Bunde stated that Amendment 27 was so moved.
CHAIR BUNDE asked if there was further testimony on HB 414.
He asked the pleasure of the committee.
REP. TOOHEY made a motion to pass the CS for HB 414 out of
committee with individual recommendations and attached
fiscal note.
REP. BRICE objected.
CHAIR BUNDE asked for further discussion. Hearing none, he
called for the vote. Reps. Toohey, Bunde, G. Davis, Vezey,
and Olberg voted Yea and Reps. B. Davis and Brice voted Nay.
Chair Bunde declared that HB 414 was so moved.
CHAIR BUNDE then noted the committee's calendar for the
remainder of the week.
Seeing no further business before the committee, CHAIR BUNDE
adjourned the meeting at 3:32 p.m.
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