2012-04-15                     House Journal                      Page 2541
HB 218                                                                                                                        
A message dated April 15, 2012, was read stating the Senate passed:                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 218(L&C)                                                                                             
     "An Act prohibiting an insurer from using a drug formulary                                                                 
     system of specialty tiers under certain circumstances; and                                                                 
     providing for an effective date."                                                                                          
                                                                                                                                
with the following amendment, and it is transmitted for consideration:                                                          
                                                                                                                                
     CS FOR HOUSE BILL NO. 218(L&C) am S                                                                                        
     "An Act prohibiting an insurer from using a drug formulary                                                                 
     system of specialty tiers under certain circumstances; relating to a                                                       
     reinsurance program reinsuring residents who are high risks; and                                                           
     providing for an effective date."                                                                                          
                                                                                                                                
     (SCR 41 - title change resolution)                                                                                         
                                                                                                                                
The message further stated that under Rule 43(b) of the Uniform Rules                                                           
engrossment had been waived and the following certified amendment                                                               
was attached:                                                                                                                   
                                                                                                                                
Certified Amendment No. 1:                                                                                                      
                                                                                                                                
Page 1, line 2, following "circumstances;" (title amendment):                                                                 
     Insert "relating to a reinsurance program reinsuring residents                                                           
who are high risks;"                                                                                                          
                                                                                                                                
Page 1, line 6, following "FINDINGS":                                                                                           
     Insert "FOR SECTION 3"                                                                                                     
                                                                                                                                
Page 2, line 14:                                                                                                                
     Delete "This"                                                                                                              
     Insert "Section 3 of this"                                                                                                 
                                                                                                                                
Page 2, following line 29:                                                                                                      
     Insert new bill sections to read:                                                                                          

2012-04-15                     House Journal                      Page 2542
"* Sec. 4. AS 21.55.220(c) is amended to read:                                                                                
         (c)  Each member of the association shall share the losses due                                                         
     to claims expenses of the state plans issued or approved for                                                               
     issuance by the association; each member of the association                                                            
     shall share the losses of a reinsurance program established by                                                         
     regulations adopted under AS 21.55.400 reinsuring residents                                                            
     who are high risks; [,] and each member of the association                                                         
     shall share in the operating and administrative expenses incurred                                                          
     or estimated to be incurred by the association incident to the                                                             
     conduct of its affairs. Claims expenses of the state plan that                                                             
     exceed the premium payments allocated to the payment of benefits                                                           
     shall be the liability of the members. Each member shall share in                                                          
     the claims expense of the state plans, the [AND] operating and                                                         
     administrative expenses of the association, and the losses of a                                                        
     reinsurance program established by regulations adopted                                                                 
     under AS 21.55.400 reinsuring residents who are high risks, in                                                         
     an amount equal to the ratio of the member's total major medical                                                           
     premiums, received from or on behalf of state residents, as divided                                                        
     by the total major medical premiums received by all members                                                                
     from or on behalf of state residents, as determined by the director.                                                       
   * Sec. 5. AS 21.55.400 is amended to read:                                                                                 
           Sec. 21.55.400. Duties of director. The director may                                                              
              (1)  approve the selection of the plan administrator by the                                                       
     association and approve the association's contract with the plan                                                           
     administrator, including the coverages and premiums to be                                                                  
     charged;                                                                                                                   
              (2)  contract with the federal government or another unit                                                         
     of government to ensure coordination of the state plans with other                                                         
     governmental assistance programs;                                                                                          
              (3)  undertake, directly or through contracts with other                                                      
     persons, studies or demonstration programs to develop awareness                                                        
     of the benefits of this chapter; and                                                                                       
              (4)  formulate general policy and adopt regulations,                                                          
     including regulations establishing a reinsurance program                                                               
     reinsuring residents who are high risks, that are reasonably                                                           
     necessary to administer this chapter."                                                                                     
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
CSHB 218(L&C) is under Unfinished Business.