04/08/1993 08:20 AM Senate FIN

                                                                               
  SENATE BILL NO. 173                                                          
                                                                               
       An  Act   relating  to   health  insurance   for  small                 
       employers; and providing for an effective date.                         
                                                                               
                                                                               
  Co-chair  Pearce  directed that  SB  173 be  brought  on for                 
  discussion.                                                                  
  Senator Rieger explained that a version of the proposed bill                 
  moved most  of the way through the session last year.  Since                 
  that  time, a  number  of changes  were  recommended by  the                 
  National  Association  of  Insurance Commissioners.    Those                 
  changes have been incorporated within the legislation.                       
                                                                               
  Senator  Rieger said  the bill  would  allow the  pooling of                 
  small employer health insurance risk  into a group insurance                 
  pool for  risk which  exceeds the  limits of  any individual                 
  group  policy.   It  thus  allows  a number  of  small group                 
  insurance  policies  to  behave  more  like a  larger  group                 
  insurance policy.   The  net effect  is  to provide  greater                 
  availability  of  health  insurance to  small  employers and                 
  their employees.                                                             
                                                                               
  Senator Rieger next  directed attention to Amendment  No. 1,                 
  saying that it  provides a  definition of "gross  premiums."                 
  He further referenced  Amendment No. 2 which,  he explained,                 
  would change the  sunset date  from 1997 to  1998 to  better                 
  correspond  with  the  1993  effective  date  of  the  bill.                 
  Senator Rieger then formally MOVED for adoption of Amendment                 
  No. 1.  No objection having been raised, Amendment No. 1 was                 
  ADOPTED.    Senator  Rieger  next   MOVED  for  adoption  of                 
  Amendment No. 2.  No objection having been raised, Amendment                 
  No. 2 was ADOPTED.                                                           
                                                                               
  Co-chair Pearce called for additional testimony on the bill.                 
  Senator   Sharp  voiced   his  recollection   that  numerous                 
  amendments were proposed when the bill was before the Senate                 
  Labor and Commerce  Committee.  Senator Rieger  concurred in                 
  that understanding.  He explained  that many amendments were                 
  adopted for the  initial version of  the bill.   Legislation                 
  incorporating those amendments  was then  reintroduced as  a                 
  separate bill.                                                               
                                                                               
  Senator  Rieger  MOVED  that CSSB  173  (Finance)  pass from                 
  committee  with individual  recommendations.   No  objection                 
  having been  raised, CSSB 173 (Finance) was  REPORTED OUT of                 
  committee with a zero fiscal note from the Dept. of Commerce                 
  and Economic Development.   All  members present signed  the                 
  committee report with a "do pass" recommendation.  (Co-chair                 
  Frank and Senator Kerttula were absent and did not sign.)                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:20 a.m.