03/04/2008 09:00 AM Senate FINANCE

SENATE BILL NO. 170                                                                                                           
                                                                                                                                
     "An Act requiring that health care insurers provide                                                                        
     insurance coverage for well-baby exams."                                                                                   
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT  Work Draft for SB  170, 25-                                                                   
LS0868/K. There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
SENATOR LESIL MCGUIRE, SPONSOR,  explained that the Committee                                                                   
Substitute changes  the coverage for  well baby exams  from a                                                                   
mandated  coverage to  a mandated  offering.   She  explained                                                                   
that the National  Federation of Independent  Business (NFIB)                                                                   
expressed some concern that smaller  businesses may not see a                                                                   
benefit to providing well baby  coverage.  The changes in the                                                                   
Committee Substitute represent  a compromise to address those                                                                   
concerns.                                                                                                                       
                                                                                                                                
Co-Chair Stedman  pointed out a letter form  NFIB withdrawing                                                                   
their previous  opposition to the  bill.  He also  noted that                                                                   
Senator Huggins  had requested the Sponsor submit  the income                                                                   
guidelines for Denali Kid Care (copy on file).                                                                                  
                                                                                                                                
PAT  SHIER, DIRECTOR,  DIVISION OF  RETIREMENT AND  BENEFITS,                                                                   
DEPARTMENT  OF ADMINISTRATION,  testified in  support of  the                                                                   
Committee  Substitute.    He   informed  the  Committee  that                                                                   
Commissioner  Kreitzer had  just  signed a  memo adding  well                                                                   
baby coverage  for the  5,500 state  employees covered  under                                                                   
the  select benefits  plan.   The addition  of that  coverage                                                                   
was  the  result  of  part  of   an  extensive  cost  benefit                                                                   
analysis.  He  observed that consultants identified  a return                                                                   
of  $4.30 in  direct medical  costs savings  for every  $1.00                                                                   
invested in routine child immunizations.                                                                                        
                                                                                                                                
Co-Chair Stedman  asked if  the Department  is in support  of                                                                   
the legislation.   Mr.  Shier said  the Department  could not                                                                   
comment  on  what  the  effects  may  be  for  the  insurance                                                                   
industry.   He maintained that  for the State's  self-insured                                                                   
plan, the bill makes fiscal sense.                                                                                              
                                                                                                                                
Co-Chair  Hoffman  MOVED to  REPORT  CSSB  170 (FIN)  out  of                                                                   
Committee  with individual recommendations  and the  attached                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
There  being  NO OBJECTION,  CSSB  170  (FIN) version  K  was                                                                   
moved  from  Committee with  individual  recommendations  and                                                                   
attached fiscal notes.