Legislature(2015 - 2016)BARNES 124
04/13/2016 03:15 PM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Alaska Gasline Development Corporation Board of Directors | |
| SB157 | |
| SB158 | |
| SB165 | |
| SB18 | |
| SB69 | |
| HJR28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 157 | TELECONFERENCED | |
| + | SB 158 | TELECONFERENCED | |
| + | SB 126 | TELECONFERENCED | |
| + | SB 165 | TELECONFERENCED | |
| + | HJR 28 | TELECONFERENCED | |
| + | SB 18 | TELECONFERENCED | |
| + | SB 69 | TELECONFERENCED | |
| + | SB 206 | TELECONFERENCED | |
SB 18-HEALTH CARE SHARE MINISTRY NOT INSURANCE
5:07:22 PM
CHAIR OLSON announced that the next order of business would be
SENATE BILL NO. 18, "An Act exempting a health care sharing
ministry from regulation as an insurer."
5:07:40 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, informed the
committee SB 18 is a bill that places in statute the current
practice of the Division of Insurance, Department of Commerce,
Community & Economic Development, to exempt health care sharing
ministries from regulation as insurance, because health care
sharing ministries are charitable organizations. Firstly, the
bill exempts health care sharing ministries from regulation, and
secondly, the bill further defines health care sharing
ministries, consistent with the definition of those ministries
in the Patient Protection and Affordable Care Act (PPACA), which
exempts said ministries from requirements of PPACA. Provisions
in the bill are consistent with PPACA in that ministries must be
26 U.S.C 501(c)(3) not-for-profit exempt from taxation, faith-
based, and participants must share a common set of ethical or
religious beliefs. In addition, a participant cannot lose
membership after developing a medical condition, the corporation
must have been in existence since 12/31/99, the organization
must have had medical expenses shared continuously and without
interruption since 12/31/99, and the organization must have an
annual audit. Currently, 30 states have safe harbor laws in
place, in response to threats that these organizations would be
regulated as insurance companies. Ms. Moss expressed her
understanding that between 250,000 to 400,000 Americans belong
to these ministries, and in 2015, over $340 million in medical
expenses were paid by members of the ministries.
5:10:13 PM
REPRESENTATIVE HUGHES asked how many Alaskans would be affected
by the proposed legislation.
MS. MOSS estimated between 3,400 and 3,500.
REPRESENTATIVE KITO inquired as to the services provided by the
ministries. For example, are services provided on an emergency,
fund-raising basis, or is there an expectation of regular health
care, such as preventative annual check-ups.
MS. MOSS explained that services depend upon the articles of
incorporation, bylaws, and policies of each ministry. There are
some with deductibles. She pointed out that the ministry does
not pay the bills, but acts as an administrator, notifying
members of medical costs, and members donate funds directly to
the patient.
REPRESENTATIVE KITO asked whether an individual member pays a
regular amount or determines the amount of their donation.
MS. MOSS advised there is no guarantee that any member will
contribute, therefore, the ministry is not insurance. Each
member of the ministry must be asked to contribute to pay a
patient's medical bill.
CHAIR OLSON asked whether payments are 100 percent.
MS. MOSS said the policies vary.
REPRESENTATIVE JOSEPHSON surmised the concept of the health care
ministries is discussed in PPACA, and is federal law.
MS. MOSS said correct. In further response to Representative
Josephson, she confirmed that members of health care ministries
are exempted from the PPACA requirement of obtaining insurance.
REPRESENTATIVE HUGHES questioned how well members are cared for.
5:14:35 PM
MS. MOSS related that in 1998, a state court determined that
health care ministries are not insurance based in part on that
the failure to pay rate was one-half of 1 percent. Because of
the members' faith-based beliefs, medical bills were paid.
REPRESENTATIVE KITO asked whether the ministries are registered
as corporations in Alaska, or if the pool of members is
nationwide.
MS. MOSS stated that health care sharing ministries are
nationwide, so Alaskan members belong to a nationwide pool. She
advised that the Division of Insurance supports the bill, and
restated that the division currently treats the ministries as
not insurance. The bill seeks to ensure that coverage is not
interrupted by a change in policy by the division of insurance.
5:16:51 PM
CHAIR OLSON opened public testimony. After ascertaining no one
wished to testify, public testimony was closed.
5:17:04 PM
REPRESENTATIVE HUGHES moved to report SB 18, Version 29-
LS0107\H, out of committee with individual recommendations and
the accompanying zero fiscal notes. There being no objection,
SB 18 was reported out of the House Labor and Commerce Standing
Committee