SENATE BILL NO. 313 An Act relating to the Comprehensive Health Insurance Association and to health insurance provided to residents of the state who are high risks; and providing for an effective date. Co-chair Pearce directed that SB 313 be brought on for discussion. She noted that the bill was heard by both Senate Labor and Commerce and Senate Health and Social Services and that a majority of the committee had discussed it in earlier committees. CAROL CARROLL, aide to Senator Kerttula, came before committee. She explained that the bill amends legislation relating to a high risk health insurance pool established in 1992. It responds to problem areas identified by the comprehensive health insurance association and would extend existing legislation to health maintenance organizations. Sections 3 and 4 provide additional forms of deductibles, copayments, and maximums. After a year of experience, the Association has indicated that some individuals would purchase high risk insurance if it could be applied to catastrophic illness and entail a large deductible. Section 5 broadens Association power to offer policies to groups that maintain healthy lifestyles. Section 6 further defines eligibility for the state plan. It would disqualify residents eligible for coverage under small employer health reinsurance association legislation passed last year. Sections 7 and 8 require payment of the premium with the request for insurance. Section 9 explicitly gives the director of insurance ability to formulate policy and adopt regulations. Section 10 provides Association board members immunity from civil or criminal liability for acts and omissions. This is especially important for public members. Section 11 allows the director to accept an application for coverage in cases where two denials of coverage seem to be superfluous. Ms. Carroll further directed attention to the sponsor statement (Attachment B) and sectional analysis (Attachment C). Co-chair Pearce queried members regarding disposition of the legislation. Senator Kerttula attested to benefits of both this and past legislation to small business owners. Co- chair Frank MOVED that SB 313 pass from committee with individual recommendations and the accompanying zero fiscal note. Senator Sharp seconded the motion, voicing support for passage. No objection having been raised, SB 313 was REPORTED OUT of committee with a zero note from the Dept. of Commerce and Economic Development. Co-chairs Pearce and Frank and Senators Kerttula and Sharp signed the committee report with a "do pass" recommendation. All other members had left the meeting and did not sign the report. RECESS Co-chair Pearce announced that the meeting would be recessed at this time and scheduled to reconvene at 5:30 p.m. The meeting was recessed at approximately 10:30 a.m.