02/18/2015 01:30 PM Senate HEALTH & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB18 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 18 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE
February 18, 2015
1:32 p.m.
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator Cathy Giessel, Vice Chair
Senator Bill Stoltze
Senator Johnny Ellis
MEMBERS ABSENT
Senator Pete Kelly
COMMITTEE CALENDAR
SENATE BILL NO. 18
"An Act exempting a health care sharing ministry from regulation
as an insurer."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 18
SHORT TITLE: HEALTH CARE SHARE MINISTRY NOT INSURANCE
SPONSOR(s): SENATOR(s) COGHILL
01/21/15 (S) PREFILE RELEASED 1/16/15
01/21/15 (S) READ THE FIRST TIME - REFERRALS
01/21/15 (S) HSS, L&C
02/18/15 (S) HSS AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
JORDAN SHILLING, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 18 on behalf of the sponsor.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 18.
JAMES LANSBERRY, President
Alliance of Healthcare Sharing Ministries
Peoria, Illinois
POSITION STATEMENT: Provided information about SB 18.
BECKY HULTBERG, President/CEO
Alaska State Hospital and Nursing Home Association (ASHNHA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 18.
ACTION NARRATIVE
1:32:01 PM
CHAIR BERT STEDMAN called the Senate Health and Social Services
Standing Committee meeting to order at 1:32 p.m. Present at the
call to order were Senators Ellis, Kelly, Giessel, and Chair
Stedman.
SB 18-HEALTH CARE SHARE MINISTRY NOT INSURANCE
1:32:31 PM
CHAIR STEDMAN announced the consideration of SB 18. He said it
was the first hearing on the bill.
1:34:00 PM
JORDAN SHILLING, Staff, Senator John Coghill, presented SB 18 on
behalf of the sponsor. He related that SB 18 has two purposes;
to define health care sharing ministries and to exempt them from
insurance statutes because they are charitable organizations.
Health care sharing is a payment arrangement for health care
among persons of similar beliefs. It is administered by a non-
profit corporation.
He noted the three largest sharing ministries are Christian
Health Care Ministries, which was established in 1990,
MediShare, established in 1993, and Samaritan Ministries,
established in 1994. All three are biblically based and have
membership requirements, such as living a Christian lifestyle
and abstaining from tobacco.
He continued to explain that health care sharing ministries are
different from regular insurance. Insurance is the transfer of
risk from one entity to another in exchange for a guaranteed
payment. The sharing ministries are 501(c)(3)s and no member is
required by law to pay anyone's medical bills. They don't assume
or transfer risk, pool money or use actuaries, and they don't
purchase reinsurance policies. They are a group of people who
come together voluntarily and agree to share costs.
He stated that most states' Divisions of Insurance do not
considered sharing ministries a form of insurance, including
Alaska. There are about 3,400 Alaskans in sharing ministries. He
noted 30 states have passed laws similar to SB 18. If the state
were to regulate these sharing ministries as insurance
companies, they would likely cease to exist.
1:37:49 PM
CHAIR STEDMAN noted the arrival of Senator Stoltz.
SENATOR GIESSEL asked if SB 18 is a preventative measure to
secure the fact that sharing ministries would not be considered
insurance.
MR. SHILLING said yes.
CHAIR STEDMAN requested that Ms. Wing-Heier continue with an
explanation of the difference between health care sharing
ministries and insurance, as well as with background information
about how other states are dealing with this issue.
1:38:57 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), answered
questions related to SB 18. She said currently there are about
3,400 to 3,500 people participating in health care sharing
ministries in Alaska. There is a zero fiscal note and the bill
will have no impact on the tax revenue.
She explained that sharing ministries were a carve-out of the
Affordable Care Act (ACA) because they have existed for many
years in all 50 states. There is legislation regarding sharing
ministries in 29 other states.
CHAIR STEDMAN requested a definition of ACA and Ms. Wing-Heier
reiterated that it is the Affordable Care Act.
MS. WING-HEIER said ACA specifically addresses the exemption of
sharing ministries if they were in existence as of 1999. All of
the previously mentioned ministries were in existence in 1999.
Start-up sharing ministries are not allowed. She pointed out
that sharing ministries are not considered insurance because
there is no guarantee of payment. Members contribute a share
each month to another member's medical bills. There is no
guarantee that there will be enough money to cover medical
bills.
1:41:46 PM
SENATOR STOLTZE asked how it differs from a Lutheran insurance
company such as Thrivent.
MS. WING-HEIER assumed a Lutheran could be a member of one of
the health care sharing ministries. She said she does not know
how one would apply to become a member. Members must share
similar beliefs, not be a smoker, and live a Christian
lifestyle.
CHAIR STEDMAN opened public testimony.
JAMES LANSBERRY, President, Alliance of Healthcare Sharing
Ministries, provided information about SB 18. In response to
Senator Stoltze's question, he said all members must sign a
statement of faith; some are Lutherans. He stated that ACA
continues to allow health care sharing ministries to operate;
care ministries would like to continue to operate without any
repercussions from state insurance divisions. The bill removes
the potential ambiguity for a future insurance department to
regulate sharing ministries as insurance.
1:45:31 PM
BECKY HULTBERG, President/CEO, Alaska State Hospital Nursing
Home Association (ASHNHA), testified in support of SB 18. She
said her association is interested in people's ability to access
and pay for health care.
CHAIR STEDMAN asked if ASHNHA has a position on the bill.
MS. HULTBERG said ASHNHA has not taken a formal position on the
bill, but is supportive of people having the means to pay for
health care. Health care sharing ministries is one way to do
that.
CHAIR STEDMAN closed public testimony.
1:47:03 PM
CHAIR STEDMAN held SB 18 in committee.
1:47:41 PM
There being nothing further to come before the committee,
Chair Stedman adjourned the Senate Health and Social Services
Standing Committee at 1:47 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB18 Ver H.PDF |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 Sponsor Statement.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 Hearing Request Memo.PDF |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 HCSM Summary.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 ACA Exemption.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 Witnesses.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB018-DCCED-DOI-02-13-15.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |
| SB18 Newspaper of the Archdiocese of Anchorage.pdf |
SHSS 2/18/2015 1:30:00 PM |
SB 18 |