02/15/1996 01:34 PM Senate L&C

 SL&C 2/15/96                                                                  
                                                                               
          SB 197 INSURANCE FOR DOMESTIC VIOL. VICTIMS                         
                                                                              
 SENATOR KELLY announced  SB 197  to be up for consideration.                  
                                                                               
 SENATOR DONLEY, sponsor of SB 197, said it prohibits discrimination           
 against victims of domestic violence in medical insurance matters.            
 It is a national trend and ten other states have adopted similar              
 legislation; it is also pending in Congress.                                  
                                                                               
 The proposed CS expands the protections in the original bill to               
 include cancellation, denial, increasing premiums, and refusal to             
 issue a new premium.                                                          
                                                                               
 Number 402                                                                    
                                                                               
 GORDON EVANS, Health Insurance Association of America, opposed SB
 that requires health insurers presumptively to ignore physical            
 or mental conditions attributable to domestic violence.                       
 Underwriting should not depend on a condition's underlying cause,             
 but rather on the physical and mental condition of the patient at             
 the time of application regardless of the underlying cause.                   
                                                                               
 Coverage of injuries or conditions resulting from domestic abuse or           
 violence should be subject to the same conditions, limitations,               
 exclusions, deductibles, and co-payments applied to any other                 
 injury or condition.                                                          
                                                                               
 They have no objection that prohibits the use of specific                     
 exclusions or benefit caps for claims resulting from domestic                 
 violence or legislation that prohibits questions on applications              
 that are designed specifically to elicit evidence of domestic                 
 violence or abuse.                                                            
                                                                               
 MR. EVANS reiterated that they believe that contractual limitations           
 such as waiting periods for preexisting conditions or that which is           
 proposed in this bill should relate to the person's physical or               
 mental condition at the time of application regardless of the                 
 condition's underlying cause.                                                 
                                                                               
 Number 430                                                                    
                                                                               
 JOHN GEORGE, American Counsel of Life Insurance and National                  
 Association of Independent Insurers, said he wasn't concerned with            
 the bill as amended.  This could potentially carry on to life                 
 insurance, automobile insurance, home owners, etc.  An insurer                
 likes to underwrite based on the conditions at the time of                    
 application.                                                                  
                                                                               
 MARSHA MCKENZIE, Program Coordinator for the Counsel on Domestic              
 Violence and Sexual Assault, strongly supported SB 197.  Although             
 there doesn't seem to be a real problem with insurance related to             
 domestic violence, here it is an issue in the lower 48.  Passage of           
 this bill will help to protect victims in Alaska.                             
                                                                               
 In 1994 an informal survey done by a subcommittee of the U.S. House           
 Judiciary Committee showed that eight of the 16 largest insurers in           
 the country were using domestic violence as a factor in deciding              
 whether to issue insurance and how much to charge for it.  Since              
 insurers in the past haven't been required to tell why they are               
 being denied, victims or former victims might not know why they are           
 being denied coverage.  Knowing insurance might be denied could               
 stop victims from getting medical attention they need.                        
                                                                               
 MARIANNE BURKE, Director, Division of Insurance, testified in favor           
 of the bill.  She said there is one word in this bill that is                 
 absolutely critical and is the bill's major strength.  That word is           
 "only."  The fact that a person is a victim of domestic violence              
 should not be reason to deny a claim, deny coverage, cancel                   
 coverage, or increase the premium for the coverage.  If the person            
 has other medical problems, they would still be considered as they            
 have been in the past.                                                        
                                                                               
 SENATOR KELLY said since the committee substitute is considerably             
 different from the original bill, he would let it circulate and               
 bring it up again at next Tuesday's meeting.                                  
                                                                               
 SENATOR SALO said she assumed Senator Donley's concern mostly has             
 to do with insurance companies canceling victims of domestic                  
 violence more as a preventative measure than the question hovering            
 of pre-existing conditions.  SENATOR DONLEY said the committee                
 substitute avoids the pre-existing condition issue on page l, line            
 9 by inserting that it would be the "only" prohibition.