05/09/1998 03:08 PM Senate L&C

                  SB 359 - INSURANCE PREMIUM TAX                               
                                                                               
CHAIRMAN LEMAN announced SB 359 to be up for consideration.                    
                                                                               
MS. BARBARA HUFF TUCKNESS, Teamsters Local 959, said she supported             
SB 359.  The particular portion of the bill that impacts the                   
Teamster members they represent in the Anchorage school district,              
although it affects other school districts, as well as cities                  
around the State, is the two percent retaliatory tax that is                   
applied to insurance companies that are domiciled in the state of              
Washington.  Currently, in Alaska there is only one insurance                  
company that fits that particular criteria, Blue Cross, which has              
the health insurance policy for the Anchorage school district.  She            
asked for their support in passing this bill that would repeal that            
tax.  Their members are currently paying a little over $100 per                
year to cover the tax and it has nothing to do with the level of               
benefit coverage they are receiving.                                           
                                                                               
SENATOR KELLY asked if Blue Cross said they would actually return              
the premium tax back to the consumer.                                          
                                                                               
MS. HUFF TUCKNESS said that was her understanding.                             
                                                                               
SENATOR KELLY asked if they could get a letter from Blue Cross to              
that affect.                                                                   
                                                                               
MS. HUFF TUCKNESS said she would make that request.                            
                                                                               
SENATOR MACKIE moved CSSB 359(L&C) from Committee with individual              
recommendations.  There were no objections and it was so ordered.