Legislature(1999 - 2000)
04/16/1999 03:23 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 16, 1999
3:23 p.m.
MEMBERS PRESENT
Representative Norman Rokeberg, Chairman
Representative Andrew Halcro, Vice Chairman
Representative John Harris
Representative Tom Brice
Representative Sharon Cissna
MEMBERS ABSENT
Representative Jerry Sanders
Representative Lisa Murkowski
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 48(HES)
"An Act relating to health insurance provided by and provisions
relating to the Comprehensive Health Insurance Association."
- MOVED CSSB 48(HES) OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: SB 48
SHORT TITLE: STATE HEALTH INSURANCE
SPONSOR(S): SENATOR(S) MACKIE
Jrn-Date Jrn-Page Action
1/28/99 109 (S) READ THE FIRST TIME - REFERRAL(S)
1/28/99 109 (S) HES, L&C
2/24/99 (S) HES AT 1:30 PM BUTROVICH ROOM 205
2/24/99 (S) MOVED CS (HES) OUT OF COMMITTEE
2/24/99 (S) MINUTE(HES)
2/25/99 363 (S) HES RPT CS 2DP 2NR SAME TITLE
2/25/99 363 (S) DP: MILLER, ELTON; NR: WILKEN, PETE
2/25/99 363 (S) KELLY
2/25/99 363 (S) ZERO FISCAL NOTE (DCED)
3/16/99 (S) L&C AT 1:30 PM
3/16/99 (S) MOVED CS (HES) OUT OF COMMITTEE
3/16/99 (S) MINUTE(L&C)
3/17/99 583 (S) L&C RPT (HES) CS 3DP 2NR
3/17/99 583 (S) DP: MACKIE, TIM KELLY, DONLEY;
3/17/99 583 (S) NR: HOFFMAN, LEMAN
3/17/99 583 (S) PREVIOUS ZERO FN (DCED)
3/18/99 (S) RLS AT 11:40 AM FAHRENKAMP 203
3/23/99 (S) MINUTE(RLS)
3/24/99 662 (S) RULES TO CALENDAR AND 1 OR 3/24/99
3/24/99 664 (S) READ THE SECOND TIME
3/24/99 664 (S) HES CS ADOPTED UNAN CONSENT
3/24/99 665 (S) ADVANCED TO THIRD READING UNAN
3/24/99 665 (S) CONSENT
3/24/99 665 (S) READ THE THIRD TIME CSSB 48(HES)
3/24/99 665 (S) PASSED Y20 N-
3/24/99 670 (S) TRANSMITTED TO (H)
3/25/99 567 (H) READ THE FIRST TIME - REFERRAL(S)
3/25/99 567 (H) HES, L&C
4/06/99 (H) HES AT 3:00 PM CAPITOL 106
4/06/99 (H) MOVED OUT OF COMMITTEE
4/06/99 (H) MINUTE(HES)
4/07/99 668 (H) HES RPT 4DP
4/07/99 668 (H) DP: GREEN, MORGAN, COGHILL, DYSON
4/07/99 668 (H) SENATE ZERO FISCAL NOTE (DCED)
4/07/99 668 (H) 2/25/99
4/07/99 668 (H) REFERRED TO L&C
4/16/99 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
DAVID GRAY, Legislative Assistant
to Senator Jerry Mackie
Alaska State Legislature
Capitol Building, Room 427
Juneau, Alaska 99801
Telephone: (907) 465-3844
POSITION STATEMENT: Presented SB 48 on behalf of the bill sponsor.
ROSS BLAKER, Established Business
Aetna U.S. Healthcare;
Board Member, Comprehensive Health Insurance Association
711 "H" Street, Suite 150
Telephone: (907) 787-2207
POSITION STATEMENT: Answered questions on SB 48.
JOHN FERENCE, Deputy Director
Division of Insurance
Department of Commerce and Economic Development
P.O. Box 110805
Juneau, Alaska 99811-0805
Telephone: (907) 465-2560
POSITION STATEMENT: Testified in support of SB 48.
ACTION NARRATIVE
TAPE 99-40, SIDE A
Number 0001
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce
Standing Committee meeting to order at 3:23 p.m. Members present
at the call to order were Representatives Rokeberg, Halcro, Brice
and Cissna. Representative Harris arrived at 3:26 p.m.
CSSB 48(HES) - STATE HEALTH INSURANCE
CHAIRMAN ROKEBERG announced the committee would address CSSB
48(HES), "An Act relating to health insurance provided by and
provisions relating to the Comprehensive Health Insurance
Association." He invited the sponsor's representative forward.
Number 0055
DAVID GRAY, Legislative Assistant to Senator Jerry Mackie, Alaska
State Legislature, came forward to present SB 48 on behalf of the
bill sponsor. Mr. Gray spoke from the sponsor statement:
"The Alaska Legislature created the Comprehensive Health
Insurance Association, popularly called CHIA, in 1992 to
provide a health insurance pool, a safety net if you
will, for ... any individual Alaskan whose health
condition was considered uninsurable or who could not
otherwise find adequate health coverage. The legislation
mandated that all providers of health insurance in the
state must participate in the pool. The association then
makes health insurance directly available to Alaskan
residents who are high risk or are federally defined
eligible individuals. These people typically suffer the
most severe health conditions and face insurmountable
costs of medical treatment and care.
"In addition to operating the health insurance pool, the
board of directors of CHIA, which include[s] two consumer
advocates, ... is directed to periodically report on the
effectiveness of the association in promoting rate
stability, product availability, and affordability of
coverage and to make recommendations on further
legislative or administrative improvements. Senate Bill
48 is the direct result of this effort by the association
to make the program work better and more efficiently.
The legislation has the support of the Division of
Insurance.
"Senate Bill 48 amends the Title AS 21.55 which
established the association ... and the rules and duties
that it operates under. The bill amends the title to
1. Allow the board greater flexibility to design more
cost effective health insurance plans for individuals ...
2. To increase the number of potential administrators of
the CHIA by eliminating the requirement that the
administrator be an insurer
3. To allow greater flexibility in evaluating an
administrator ... and in setting the terms of the
administrative contract
4. Simplifying administration by decreasing the number of
declinations required for eligibility
5. Make technical corrections relating to the
determination of premium rates, terminology, premium
payment modes, board members' terms and voting at ...
board meetings ...
6. To give the director of insurance a more effective and
appropriate mechanism to enforce the requirements that
members pay their share of the CHIA assessment on a
timely basis.
"This legislation will allow the board to manage the CHIA
in a more cost effective and efficient ... manner. Also,
the legislation is particularly important in light of new
federal requirements and the use of CHIA as the mechanism
to guarantee portability of health insurance coverage to
federal eligible individuals."
MR. GRAY noted there were teleconference witnesses available to
speak to the legislation's technical provisions.
Number 0313
REPRESENTATIVE HALCRO asked how this program is similar to other
states', if other states have this type of program.
MR. GRAY replied he really couldn't answer to what other states
have, adding, "But I know that this legislation was a result ... of
the legislature's previous concern trying to find a statewide
health care system ...." Mr. Gray indicated this issue had been
struggled with and different plans had been brought up. This was
one of the direct results: anybody should be able to get health
insurance somewhere. There is no way an insurer can take someone,
for example, who has terminal cancer as a preexisting condition.
Therefore, this was a way the legislature at that time essentially
forced everyone selling insurance to pool together and take care of
that small group of people. Mr. Gray commented someone could make
himself/herself poor and receive some assistance in that manner.
However, he noted there is a dignity issue. As the committee would
hear from the testimony, these people want to be able to buy the
insurance and be taken care of for radically expensive health care.
Number 0431
REPRESENTATIVE HALCRO explained this was the first time he has
heard of the program. He noted, then, any company offering health
insurance in Alaska has to participate in this pool, and if he
falls under the category he can go this pool and receive a policy.
Representative Halcro asked who his insurer would be.
MR. GRAY replied the association.
REPRESENTATIVE HALCRO commented, then, if he is an insurance
company he contributes to this pool. Representative Halcro
questioned the method by which the companies contribute: Does the
company pay a premium, and what is that premium based on?
Number 0469
MR. GRAY answered, "They offer different kinds of premium copayment
plans and whatever else like that, ... but you're insured by the
association. Your medical costs will be borne by the association,
... and the individual member will contribute ... to your medical
expenses, if you will medical costs, in proportion to the amount of
the insurance that they sell ... in the state. So, you have bigger
insurance companies, smaller insurance -- everybody essentially
pays a fair share of your costs."
REPRESENTATIVE HALCRO noted, then, it is based on market share and
the larger companies contribute more to this pool.
MR. GRAY agreed on both points.
CHAIRMAN ROKEBERG informed the committee both Mr. Ference, of the
Division of Insurance, and Mr. Blaker, representing the plan
administrator, were online via teleconference.
Number 0541
REPRESENTATIVE CISSNA referred to Section 7 of CSSB 48(HES), on
pages 5 and 6.
* Sec. 7. AS 21.55.120(c) is amended to read:
(c) The [EXCEPT AS PROVIDED IN (e) OF THIS SECTION,
THE] sum of the deductible and copayments required in any
calendar year under a plan may not exceed a maximum limit
of $1,500 plus the deductible [$2,000 PER COVERED
INDIVIDUAL]. Covered expenses incurred after the
applicable maximum limit has been reached shall be paid
at the rate of 100 percent of usual, customary,
reasonable, or prevailing charges, except that expenses
incurred for treatment of mental and nervous conditions
shall be paid at the rate of 50 percent. [THE $2,000
MAXIMUM SHALL BE ADJUSTED YEARLY TO CORRESPOND WITH THE
CHANGE IN THE MEDICAL CARE COMPONENT OF THE CONSUMER
PRICE INDEX AS ADJUSTED BY THE DIRECTOR.]
REPRESENTATIVE CISSNA questioned why the coverage for mental and
nervous conditions is half of the other coverage.
MR. GRAY believed that is current law, deferring to the Division of
Insurance for a more detailed answer.
REPRESENTATIVE CISSNA noted, then, it is Mr. Gray's understanding
that the percentage is locked in.
Number 0611
REPRESENTATIVE BRICE explained it is not locked in; it is in
current statute and this bill does not change that, although it
could.
CHAIRMAN ROKEBERG pointed out that this is the insurance pool of
last resort for those who cannot obtain insurance anywhere else.
The premiums are extremely high. If some additional parity like
the mental health insurance was added, the chairman stated, "It
would blow the premium off the map." Chairman Rokeberg compared
learning about this pool to "Health Insurance 101" regarding how
health insurance works in Alaska.
Number 0696
ROSS BLAKER, Established Business, Aetna U.S. Healthcare (Aetna);
Board Member, Comprehensive Health Insurance Association (CHIA),
testified next off-network via teleconference from Anchorage. Mr.
Blaker indicated he is present to answer questions.
CHAIRMAN ROKEBERG indicated he wished Mr. Blaker to provide the
committee with a brief overview of CHIA ["CHIRPA (ph)" stated on
tape], how it works, some premium examples, and the reason this
legislation is necessary.
Number 0739
MR. BLAKER explained the premiums are basically set up by statute.
The premiums are supposed to be up to 200 percent of the average
individual premium. The problem is that there are very, very few
individual carriers in Alaska; there are primarily group insurance
carriers doing group business. Mr. Blaker noted the board has
apparently somewhat targeted towards 150 to 160 percent of the
individual premium rates. They try to make the insurance as
affordable as possible to the individual. There has been one
premium increase during the period of the pool's operation; Mr.
Blaker guesses there will be another premium adjustment January 1
[2000].
CHAIRMAN ROKEBERG questioned how long the pool has been available
and some idea of the current premium amount.
MR. BLAKER answered that the pool was available in 1992. Regarding
the premiums, he noted they have a number of different deductibles:
from $200 to $10,000. They tried to structure it so a new member
could choose how much risk he/she wished to bear personally. There
are five or six different plans, including some Medicare supplement
plans.
Number 0847
CHAIRMAN ROKEBERG gave the example of a non-Medicare plan with a
$500 deductible.
MR. BLAKER responded that premium would be $388.50 per month for a
35 to 39-year-old individual. Mr. Blaker commented these rates
have been effective since July 1, 1996.
CHAIRMAN ROKEBERG questioned if that was 80 percent co-insurance up
to what.
MR. BLAKER replied $2,000 out-of-pocket.
CHAIRMAN ROKEBERG said that did not sound like too bad of a policy.
He questioned if the policy covered just basic medical.
MR. BLAKER answered that it is a comprehensive medical plan
covering doctor visits in and out of the hospital, inpatient and
outpatient hospital expenses, prescription drugs, X-ray and
laboratory. It is a very comprehensive plan, similar to an
individual plan. Mr. Blaker stated, "There's no particular
exclusions here, there would not be (indisc.) other plans out
there."
CHAIRMAN ROKEBERG asked about preexisting conditions.
MR. BLAKER replied that if someone had past coverage the person
could come into the CHIA plan with no preexisting limitation. He
gave the example of a person insured under an employer's group plan
who lost his/her employment or coverage. For someone without past
coverage, there would be a six-month waiting period on preexisting
conditions. After the six months, the person would receive the
same coverage as for any other condition. Mr. Blaker confirmed for
the chairman that this would apply to, for example, someone with
cancer who had no previous insurance. The person could enter the
CHIA plan and after six months the policy would cover that
condition.
Number 0992
REPRESENTATIVE CISSNA referred to the different coverage
percentages specified in Section 7 for medical conditions as
opposed to mental and nervous conditions. Noting this is an issue
the legislature has been debating, Representative Cissna commented
there seems to be some support for the idea that mental health
therapies often lower medical costs, especially in areas like pain
management. She has seen it happen. Representative Cissna
questioned whether Mr. Blaker had some statistics or an idea of the
potential increase in coverage costs if they were to change that
percentage to 75 or 100 percent, and if he sees any large
impediments to doing so. She noted she is simply brainstorming
here.
MR. BLAKER responded he did not know but could probably find that
out.
REPRESENTATIVE BRICE asked Mr. Blaker to explain the process by
which an individual would purchase the health insurance, indicating
these products are not just open to everyone.
MR. BLAKER replied the CHIA is only open to those people who have
been rejected by other carriers or who have a specified condition.
In response to Representative Brice's further question about the
six-month wait for a preexisting condition, Mr. Blaker clarified
that someone with prior coverage who, for example, had been
terminated from an employer and had gone through his/her extended
"COBRA" coverage could come into the pool without a preexisting
limitation.
Number 1162
CHAIRMAN ROKEBERG asked if the program had to be subsidized in any
way by the participating companies.
MR. BLAKER answered that the insurance carriers have to subsidize
fairly substantially. He does not see that there is way they could
structure this program to be self-supporting, given the medical
conditions they have.
CHAIRMAN ROKEBERG asked Mr. Blaker to provide the scope of the
number of insureds and the dollar subsidy.
MR. BLAKER responded he thinks there are approximately 220 plan
members and it has been in that range for some time. The current
assessment is $1.5 million. In response to the chairman's comment
about that being per year, Mr. Blaker answered he thinks this
amount will not provide a complete year now.
CHAIRMAN ROKEBERG noted, then, the insurance carriers doing
business in the state pay in excess of $1.5 million per year to
insure 220 people as a subsidy. The chairman confirmed from Mr.
Blaker that is correct. The chairman indicated to Representative
Cissna this is why they do not want to increase the percentage for
mental and nervous condition coverage.
REPRESENTATIVE CISSNA indicated she believed this could bring the
cost down.
CHAIRMAN ROKEBERG expressed his doubt, requesting evidence.
Number 1260
REPRESENTATIVE HALCRO asked Mr. Blaker to describe the members'
medical conditions.
MR. BLAKER indicated there is broad range of conditions including
diabetes, heart problems, some kidney transplants, and quite a
number of what is termed the height-weight ratio. He said the
nurse case manager might be available to provide further
information.
CHAIRMAN ROKEBERG commented there is usually an annual report; this
will be distributed to the committee members when received. The
chairman noted this is important to understand because it helps put
the state's health insurance problem into perspective: why this
committee examines health insurance and spends so much time on it.
Chairman Rokeberg indicated this entire equation, what happens to
the consumer and the availability of health insurance, is the
reason they are looking for statistics with legislation like HB
158. The chairman confirmed from Mr. Blaker that the legislation
would allow the plan to hire a third-party administrator who is not
necessarily an underwriter in Alaska. The chairman questioned the
rationale for this, asking if it would help reduce costs or relieve
Aetna from this responsibility or if there is some other reason.
Number 1376
MR. BLAKER indicated the feeling is it would open the bidding to a
more competitive process. They have not been particularly
successful in getting bids in the past; he said bids have been
notably absent. In response to the chairman's comment about Aetna
being "stuck" with this duty from the beginning, Mr. Blaker
indicated he would not use the term "stuck;" he thinks Aetna has
done a pretty good job. Mr. Blaker noted, though, there might be
a TPA [third-party administrator] who could perform the function at
a lesser expense.
CHAIRMAN ROKEBERG emphasized he had not meant his comment
pejoratively, indicating he only meant Aetna volunteered or was put
in the position initially, and has maintained that position in the
absence of other bidders. The chairman pointed out to the
committee that Aetna has done a good job here, but it is something
that is perhaps semi-involuntary. He asked Mr. Blaker if that
would be fair to say.
MR. BLAKER answered in the affirmative, noting, "We stepped up to
the plate, ... being a major insurer up here, we wanted to ... take
the project and do it."
Number 1438
REPRESENTATIVE HALCRO, noting the testimony of the sponsor's
representative that [company] participation is based on market
share, asked if Aetna is the largest provider of health insurance
in the state and if that is why the company has the responsibility
for overseeing the program.
MR. BLAKER answered that is not correct. The administrator was
decided by competitive bid. Mr. Blaker appeared to indicate Aetna
is administering the association because there were no other bids.
He said that Blue Cross currently probably insures more members in
the state. Mr. Blaker reminded the committee they are strictly
speaking of insured contracts. Self-insured contracts are excluded
and cannot be assessed. This is one of the problems he thinks
these pools will have to address at some point.
CHAIRMAN ROKEBERG asked if ERISA-covered underwritten group plans
provide assistance to the pool.
MR. BLAKER noted they cannot assess the self-insured plans, but
they can assess the insured plans.
CHAIRMAN ROKEBERG said, for example, a large PPO [preferred
provider organization] group that could be exempt from insurance
mandates [of the state] would contribute here.
Number 1554
JOHN FERENCE, Deputy Director, Division of Insurance, Department of
Commerce and Economic Development, testified next off-network via
teleconference from California. Mr. Ference commented the two
previous speakers had done an admirable job of describing the
legislation, and the overall operation of the program. He stated
the Division of Insurance does support the legislation; it feels
these are worthwhile, necessary changes to CHIA's operating plan
and hopes the committee will pass the legislation on. He confirmed
for the chairman there is a board which sets some of the policy.
CHAIRMAN ROKEBERG referred to language in Section 9 of CSSB
48(HES), subsection (c), "... The premium for a state plan may not
exceed 200 percent of the standard risk premium rates determined by
the board [AVERAGE OF THOSE FIVE ESTIMATES]." The chairman
questioned whether the previous testimony that the premiums were at
about 150 to 160 percent of individual premium rates was correct.
MR. FERENCE answered in the affirmative, noting the division's
assessment is it is at approximately 175 percent but the
distinction is minor.
CHAIRMAN ROKEBERG confirmed, then, the board attempts to stay below
the 200 percent cap. However, since the board is made up of
underwriters, the chairman questioned that the new language would
have an impact on their self-assessment.
Number 1618
MR. FERENCE answered that was one of the past potential problems.
He indicated there was a potential for self-interest in the board
structure and the division felt it was important to strengthen the
public participation in the board. This is one of the areas the
legislation addresses. The legislation will alter the way the
board votes, giving more weight to the votes of the consumer
representatives - the board's public members. In response to the
chairman's request for this specific bill section, Mr. Ference
noted he did not have a copy of the bill but said it is in the
first section, where it states that the board members will cast
votes on a one vote, one member basis. The original and existing
enabling legislation allowed votes to be based on percentage of
health insurance writings in the state; this essentially precluded
an effective vote by the public members.
CHAIRMAN ROKEBERG questioned why this was done.
MR. FERENCE answered that the original legislation was cast in
terms of resting the operating authority on a proportionate basis
with insurers' activity levels within Alaska. Mr. Ference noted he
wasn't involved with this original founding, so he does not know
why they did not make an accommodation for effective voting by
public members. That is one of the items this legislation is
intended to correct.
Number 1720
CHAIRMAN ROKEBERG commented, then, there is the board of directors
and the association; the weighting is in the association but the
board is based on the five members. He asked if that was correct.
MR. FERENCE responded that the association itself is the collective
body of health insurers in the state. When the membership elects
board members, their votes are based on their proportion of the
writings in the state. In addition, the association membership
must select two public members. All of these nominations, both the
insurance company representatives and the public members, are
subject to the director of the Division of Insurance's veto. Under
the original legislation, once the members had been elected to the
board they were still authorized to vote based on their
proportionate writings. This legislation would change that: once
the board members have been elected, they would vote on a one
member, one vote basis.
CHAIRMAN ROKEBERG asked if the division had polled the association
members about this change and the loss of their (indisc.).
MR. FERENCE answered in the affirmative, noting the association and
the existing board are supportive of the change.
CHAIRMAN ROKEBERG indicated this put the association members at
some financial risk if the board chose to lower the percentage
level of the premium.
MR. FERENCE agreed that would put the carriers at greater risk.
CHAIRMAN ROKEBERG confirmed, then, there is greater potential for
that to happen, although the weighting [board member make-up] is
still five to two.
MR. FERENCE agreed. The insurer members are still a majority of
the board.
Number 1832
REPRESENTATIVE CISSNA confirmed Mr. Ference had heard her previous
question to Mr. Blaker regarding the 50 percent for mental and
nervous conditions opposed to the 100 percent for medical.
Representative Cissna said she is trying to understand the dynamics
here. She asked if there are rules the division abides by on this
or if it is just statutory.
MR. FERENCE indicated those coverage levels are set to be
equivalent to the minimum standards required under the federal
Health Insurance Portability and Accountability Act (HIPAA); those
are the thresholds required of group insurers under HIPAA.
CHAIRMAN ROKEBERG questioned if Representative Cissna was familiar
with HIPAA. He indicated the committee had done an 80-page bill
the previous session to conform state law with this federal law.
The chairman explained HIPAA was an endeavor to allow people to
carry their coverage from one place to another, or to establish
coverages, et cetera. He indicated one provision of HIPAA required
states to have a universal coverage type of health insurance
availability if the state did not have a high-risk pool. Alaska
already had the high-risk pool in place; the state met one of
HIPAA's major provisions by having this pool in place and ensuring
its viability.
Number 1942
REPRESENTATIVE HALCRO referred to Section 4 of CSSB 48(HES), which
read as follows:
* Sec.4. AS 21.55.100(d) is amended to read:
(d) The association may make available to a person
eligible under this chapter [RESIDENTS WHO ARE HIGH RISKS
AND TO FEDERALLY DEFINED ELIGIBLE INDIVIDUALS] coverage
through a health maintenance organization or other
managed care arrangement if [AS] approved by the
director. Deductible, copayment, and calendar year
maximum limits provided through an organization or
arrangement are not subject to the limits described in AS
21.55.120, but the limits must be approved by the
director.
REPRESENTATIVE HALCRO questioned whether the new second sentence
regarding deductibles, et cetera, is an opportunity for arbitrary
fluctuations based on the director's whim. He asked if there were
safeties in place.
Number 1975
MR. FERENCE responded that the purpose of that language is to allow
flexibility in plan design; it was not intended to introduce an
arbitrary or capricious element.
CHAIRMAN ROKEBERG indicated there is an annual or periodic report
required by the division about the premiums and how CHIA works.
MR. FERENCE answered that the association provides an annual
report.
CHAIRMAN ROKEBERG asked when the last one had been issued.
MR. FERENCE deferred to Mr. Blaker.
Number 2011
MR. BLAKER believes they are currently working on another report,
indicating they are in the auditing process. He expressed
uncertainty about when this new annual report would be available.
CHAIRMAN ROKEBERG requested a copy of the most recent report.
MR. FERENCE indicated the committee would be provided with copies
on April 19, 1999.
Number 2056
MR. GRAY indicated he could provide an answer that had been given
in another committee to Representative Halcro's question. The feel
there was that a $200 deductible just did not fit the situation of
a person with these types of conditions. The participants wanted
a higher deductible because it was better for them financially.
Inserting the language in question would give CHIA more flexibility
to design the premium and copayment plan to better fit the
participants' medical situation. Mr. Gray noted he believes that
was Director Burke's answer [Marianne Burke, Director, Division of
Insurance].
CHAIRMAN ROKEBERG referred to language on page 5 of CSSB 48(HES),
in Section 7, "(c) The [EXCEPT AS PROVIDED FOR IN (e) OF THIS
SECTION, THE] sum of the deductible and copayments required in any
calendar year under a plan may note exceed a maximum limit of
$1,500 plus the deductible [$2,000 PER COVERED INDIVIDUAL]. ..."
The chairman asked if that actually increased the amount depending
on the deductible level. He questioned the purpose there.
Number 2109
MR. FERENCE answered that the purpose was to add flexibility so
that plans could be tailored more closely to the individual's
needs.
CHAIRMAN ROKEBERG noted, then, that if a person had a higher
deductible it would be the $1,500 plus the deductible: a person
could be over the former $2,000 limit depending on his/her
deductible. He confirmed from Mr. Ference that that was a correct
summarization. The chairman commented, "Then so it's geometric
...." He confirmed there were no further questions for Mr. Blaker
or Mr. Ference. The chairman expressed his desire to move the
legislation but to also educate the committee further. After some
brief discussion with Mr. Ference regarding his and Ms. Burke's
availability, and a suggestion from Representative Brice regarding
a work session to review the CHIA annual report, Chairman Rokeberg
announced his intention to have Mr. Ference and Ms. Burke speak on
this issue, and perhaps on health insurance in general, to the
committee at a later point in the session. The chairman thanked
the witnesses and closed the public testimony on SB 48.
Number 2196
REPRESENTATIVE HALCRO made a motion to move CSSB 48(HES) out of
committee with individual recommendations and the attached zero
fiscal note. There being no objection, CSSB 48(HES) moved out of
the House Labor and Commerce Standing Committee.
ADJOURNMENT
Number 2219
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing
Committee meeting at 4:03 p.m.
| Document Name | Date/Time | Subjects |
|---|