Legislature(1999 - 2000)

03/22/2000 03:20 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                          
                         March 22, 2000                                                                                         
                            3:20 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Norman Rokeberg, Chairman                                                                                        
Representative Andrew Halcro, Vice Chairman                                                                                     
Representative Lisa Murkowski                                                                                                   
Representative John Harris                                                                                                      
Representative Tom Brice                                                                                                        
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Jerry Sanders                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 298                                                                                                              
"An Act requiring  that health care insurers provide  coverage for                                                              
treatment of diabetes."                                                                                                         
                                                                                                                                
     - MOVED CSHB 298(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 303                                                                                                              
"An Act relating to the method of  payment of fees and adoption of                                                              
regulations under AS 21; relating  to orders under AS 21 regarding                                                              
risk based capital instructions;  relating to accounting standards                                                              
for insurance  companies; amending the definitions  of 'creditable                                                              
coverage'  and   'late  enrollees'   in  AS  21.54;   relating  to                                                              
requirements   for   small   employer    insurers;   relating   to                                                              
requirements  for   issuance  of  new  voting  securities   by  an                                                              
insurance company;  requiring health  care insurance  coverage for                                                              
reconstructive surgery following  mastectomy; requiring guaranteed                                                              
renewability  of and certification  of coverage regarding  certain                                                              
individual  health  insurance  policies;   and  providing  for  an                                                              
effective date."                                                                                                                
                                                                                                                                
     - MOVED HB 303 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 298                                                                                                                  
SHORT TITLE: REQUIRE HEALTH INS COVERAGE FOR DIABETES                                                                           
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/21/00      1961     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/21/00      1961     (H)  HES, L&C, FIN                                                                                       
 1/24/00      1996     (H)  COSPONSOR(S): PHILLIPS                                                                              
 2/22/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 2/22/00               (H)  Moved CSHB 298(HES) Out of Committee                                                                
 2/22/00               (H)  MINUTE(HES)                                                                                         
 2/25/00      2315     (H)  COSPONSOR(S): CISSNA                                                                                
 2/28/00      2327     (H)  HES RPT CS(HES) 6DP 1DNP                                                                            
 2/28/00      2328     (H)  DP: GREEN, MORGAN, DYSON, WHITAKER,                                                                 
 2/28/00      2328     (H)  KEMPLEN, BRICE; DNP: COGHILL                                                                        
 2/28/00      2328     (H)  ZERO FISCAL NOTE (DCED)                                                                             
 2/28/00      2328     (H)  REFERRED TO LABOR & COMMERCE                                                                        
 3/17/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/17/00               (H)  Heard & Held                                                                                        
 3/17/00               (H)  MINUTE(L&C)                                                                                         
 3/20/00      2620     (H)  COSPONSOR(S): KERTTULA                                                                              
 3/22/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 303                                                                                                                  
SHORT TITLE: MISC. INSURANCE PROVISIONS                                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/21/00      1967     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/21/00      1967     (H)  L&C, HES                                                                                            
 1/21/00      1967     (H)  ZERO FISCAL NOTE (DCED)                                                                             
 1/21/00      1967     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 3/20/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/20/00               (H)  Heard & Held                                                                                        
 3/20/00               (H)  MINUTE(L&C)                                                                                         
 3/22/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-33, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN  NORMAN  ROKEBERG called  the  House Labor  and  Commerce                                                              
Standing Committee meeting to order  at 3:20 p.m.  Members present                                                              
at  the  call to  order  were  Representatives  Rokeberg,  Halcro,                                                              
Murkowski,  Harris and  Brice.  Representative  Cissna arrived  as                                                              
the meeting was in progress.                                                                                                    
                                                                                                                                
[For minutes on the overview regarding industry involvement in                                                                  
workforce development, see minutes for portion of meeting begun                                                                 
this date at 3:32 p.m.]                                                                                                         
                                                                                                                                
HB 298-REQUIRE HEALTH INS COVERAGE FOR DIABETES                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG  announced the first order of  business would be                                                              
HOUSE BILL  NO. 298, "An Act  requiring that health  care insurers                                                              
provide  coverage  for  treatment   of  diabetes."    [Before  the                                                              
committee  was CSHB  298(HES),  as amended  (Amendment  1) at  the                                                              
hearing  on 3/17/00.    There  also had  been  a motion  to  adopt                                                              
Amendment 2.]                                                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG  made a motion  to withdraw Amendment 2.   There                                                              
being no objection, Amendment 2 was withdrawn.                                                                                  
                                                                                                                                
Number 0112                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  made a motion  to adopt Amendment  3, which                                                              
read [original punctuation provided]:                                                                                           
                                                                                                                                
     Page 2, Line 1, insert new subsection (b) to read:                                                                         
                                                                                                                                
     (b)  The amount  of coverage  for the  cost of  diabetes                                                                   
     outpatient  self  management  training or  education  is                                                                   
     limited to $1,500.00 per person per year.                                                                                  
                                                                                                                                
     Re-letter following subsection.                                                                                            
                                                                                                                                
     Page 2, Line 6, add new Sec. 2 to read:                                                                                    
                                                                                                                                
     *Sec. 2. AS 21.42.390(b) is repealed January 1, 2003.                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG objected.                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI explained  that a  cap was discussed  at                                                              
the previous meeting.  She said:                                                                                                
                                                                                                                                
     The discussion  that we had heard was that  education is                                                                   
     a  real key  component to  diabetes care,  and they  had                                                                   
     agreed to  a cap, that  they would  like to see  the cap                                                                   
     higher to make  it a more realistic cap.  And  so we are                                                                   
     presenting to  the committee a cap of $1,500  per person                                                                   
     per year,  ... with  the repealer  January 1, 2003,  for                                                                   
     the cap,  giving the insurance companies  hopefully some                                                                   
     time to  make sure that  this works, run their  numbers,                                                                   
     do what it is that they feel that they have to do.                                                                         
                                                                                                                                
     We feel  that this  is a workable  compromise.   I will,                                                                   
     for  the record, state  that Mr.  Evans' [Gordon  Evans,                                                                   
     who had  proposed Amendment  2] clients aren't  entirely                                                                   
     satisfied with it; and I think  some are looking at this                                                                   
     as that  this may  be the lesser  of the evils,  because                                                                   
     otherwise ...  there's a possibility that this  would go                                                                   
     forward without a cap at all.   But I think that it is a                                                                   
     fair  compromise at  this point, and  I would  encourage                                                                   
     the members to support it.                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG stated:                                                                                                       
                                                                                                                                
     I would prefer  the entire amendment at a  lower amount,                                                                   
     because I think in the spectrum  of the public costs and                                                                   
     with  the  sunset  provision,  they will  be  given  the                                                                   
     opportunity  to review  and  see if  that was  adequate,                                                                   
     inadequate,  and  also, with  the  testimony  we had,  I                                                                   
     believe the rough estimates  - as I recall the testimony                                                                   
     -  were  between,   say,  $3,000  and  $6,000   a  year,                                                                   
     depending on the severity of  the disease.  And what has                                                                   
     to be provided to the patient  does vary, of course, but                                                                   
     this  is only  a component  of the  total benefits  that                                                                   
     would be mandated.                                                                                                         
                                                                                                                                
REPRESENTATIVE  HALCRO  referred to  previous  testimony by  Young                                                              
Shin,  Registered Dietician,  who  had stated  that  the cost  for                                                              
management training  and education would be anywhere  between $500                                                              
to  $2,000.   He  wondered  if  the amendment  only  pertained  to                                                              
management training and education.                                                                                              
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  clarified  that  the  cap  specifically                                                              
refers to management training and education.                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO  explained that  he did not support  the cap                                                              
at the previous  hearing on HB 298 because he  thinks training and                                                              
education is the  foundation of treating diabetes.   He noted that                                                              
he will support the [present] amendment.                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG withdrew his objection to Amendment 3.                                                                        
                                                                                                                                
Number 0536                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HALCRO  made  a   motion  to  move  HB  298  [CSHB
298(HES)],   as  amended,   out  of   committee  with   individual                                                              
recommendations and  the attached zero fiscal notes.   There being                                                              
no objection,  CSHB 298  (L&C) moved  out of  the House  Labor and                                                              
Commerce Standing Committee.                                                                                                    
                                                                                                                                
HB 303-MISC. INSURANCE PROVISIONS                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG  announced the next  order of business  would be                                                              
HOUSE BILL NO. 303,  "An Act relating to the method  of payment of                                                              
fees and adoption  of regulations under AS 21;  relating to orders                                                              
under AS  21 regarding risk  based capital instructions;  relating                                                              
to  accounting standards  for  insurance companies;  amending  the                                                              
definitions of  'creditable coverage'  and 'late enrollees'  in AS                                                              
21.54;  relating  to requirements  for  small  employer  insurers;                                                              
relating to requirements for issuance  of new voting securities by                                                              
an insurance  company;  requiring health  care insurance  coverage                                                              
for  reconstructive   surgery   following  mastectomy;   requiring                                                              
guaranteed   renewability  of   and   certification  of   coverage                                                              
regarding  certain  individual  health   insurance  policies;  and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG  explained that  this bill makes  some technical                                                              
corrections  including   the  federally  mandated   reconstructive                                                              
surgery  following  a  mastectomy.     He  commented  that  it  is                                                              
important to make these technical  corrections to state statute in                                                              
order  to retain  primacy  of the  Division  of  Insurance on  the                                                              
health insurance in Alaska with respect to affordability.                                                                       
                                                                                                                                
Number 0647                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HALCRO  made  a  motion  to move  HB  303  out  of                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal note.   There being no objection,  HB 303 moved  out of the                                                              
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG  called an at-ease  to prepare for  the overview                                                              
regarding  industry involvement  in workforce  development.   [For                                                              
that  portion of  the meeting,  see  minutes for  this date,  3:32                                                              
p.m.]                                                                                                                           
                                                                                                                                
                                                                                                                                

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