Legislature(1993 - 1994)

03/23/1994 03:00 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  TAPE 94-60, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIR BUNDE  called the meeting to order at 3:10 p.m., noted                 
  members present and announced the calendar.  He brought HB
  414 to the table.                                                            
                                                                               
  HB 414 - COMPREHENSIVE HEALTH CARE                                           
                                                                               
  CHAIR BUNDE indicated that the committee substitute (CS) was                 
  dated 3/22/94 version J (8-GH2024\J).  He said the committee                 
  would continue addressing amendments and taking public                       
  testimony.  He noted that COMMISSION USERA, COMMISSIONER                     
  LOWE, and COMMISSIONER WALSH were present.                                   
                                                                               
  REP. B. DAVIS said she could not find the amendments that                    
  she submitted.                                                               
                                                                               
  Number 087                                                                   
                                                                               
  CHAIR BUNDE directed the committee's attention to Amendment                  
  16 that was tabled from the last meeting.  He brought                        
  Amendment 16 to the table for discussion.                                    
                                                                               
  REP. TOOHEY made a motion to adopt Amendment 16.                             
                                                                               
  CHAIR BUNDE objected for discussion purposes.  He then asked                 
  DON KOCH to address Amendment 16.                                            
                                                                               
  REP. B. DAVIS said she did not have Amendment 16.  She then                  
  located the amendment.                                                       
                                                                               
  Number 162                                                                   
                                                                               
  DON KOCH, Marketing Surveillance, Division of Insurance,                     
  Department of Commerce and Economic Development, testified                   
  on HB 414.  He stated that in current statute there is a                     
  fairly well structured set of requirements that address the                  
  payment of all insurance claims.  He said a number of                        
  statutes apply directly to the type of insurance being                       
  addressed in HB 414.  He explained that there are                            
  requirements within the regulation that certain responses                    
  occur within certain time frames and penalties are also                      
  outlined in the statutes.  He further indicated that there                   
  are time frames for acknowledgement of correspondence.  He                   
  said, "You have 15 days on any piece of correspondence that                  
  appears to be structured in a way that requires response to                  
  get a response."  There is a 30 day period in which an                       
  insurer must pay the claim or have an explanation available                  
  to the insured person as to why the extra time is warranted.                 
  He expressed that the department felt the statutes are                       
  working.  Although, he said, he felt the 15 days provided                    
  for in HB 414 may not be able to meet all situations.  He                    
  felt the time period was too short.                                          
                                                                               
  Number 262                                                                   
                                                                               
  REP. TOOHEY asked if there is a 10.5% charge for unpaid                      
  claims.                                                                      
                                                                               
  MR. KOCH said he was unaware of any state that has that type                 
  of requirement on disability insurance.  He stated that the                  
  charge would be an added cost feature included by the                        
  drafters.  He guessed that a penalty would come through the                  
  unfair claims practice regulations.                                          
                                                                               
  Number 290                                                                   
                                                                               
  REP. TOOHEY asked Mr. Koch if there would be any benefits to                 
  the fiscal note if any of the changes in Amendment 16 were                   
  adopted.                                                                     
                                                                               
  MR. KOCH said no.  He explained that the interest provision                  
  is not in the fiscal note.  He said, "I think as far as the                  
  consumer protection angle goes, we cover this as well as the                 
  amendment."                                                                  
                                                                               
  CHAIR BUNDE observed that whatever is accomplished, health                   
  care should be user friendly.  He asked for further                          
  testimony.  Hearing none, Chair Bunde called for the vote.                   
  Reps. Toohey, Bunde, G. Davis, Vezey, Olberg, B. Davis, and                  
  Brice voted Nay.  There were no Yea votes.  Amendment 16                     
  failed to be adopted.                                                        
                                                                               
  CHAIR BUNDE then asked Rep. Brice to move his Amendment 24.                  
                                                                               
  Number 352                                                                   
                                                                               
  REP. BRICE made a motion to adopt Amendment 24.                              
                                                                               
  REP. TOOHEY objected.                                                        
                                                                               
  CHAIR BUNDE asked Rep. Brice to speak to the amendment.                      
                                                                               
  REP. BRICE explained that the bill has no teeth.  He felt                    
  the amendment expressed his feeling that the legislation                     
  does not provide for decisive measures.  He then withdrew                    
  his amendment.                                                               
                                                                               
  Number 397                                                                   
                                                                               
  CHAIR BUNDE brought Amendment 25 to the table for                            
  discussion.                                                                  
                                                                               
  REP. B. DAVIS made a motion to adopt Amendment 25.                           
  CHAIR BUNDE objected for discussion purposes.                                
                                                                               
  REP. B. DAVIS stated that in order to give more credence to                  
  the bill she felt Amendment 25 would be appropriate to                       
  ensure the availability of universal health care for all                     
  residents of Alaska.                                                         
                                                                               
  CHAIR BUNDE asked Rep. B. Davis to expound on her amendment.                 
                                                                               
  REP. B. DAVIS asserted that the amendment would allow for a                  
  process that would provide health care.  She said she knows                  
  that the committee has seen the proposal before and is                       
  almost positive it will not pass.  She said she did not want                 
  to go through a line by line analysis.  She offered to                       
  answer any specific questions a committee member might have.                 
  She explained that the proposal addresses statewide health                   
  care, targets, and data systems, all of which she believes                   
  will help the state come on-line with universal health care                  
  for Alaskans before the national health care plan is passed.                 
                                                                               
  Number 466                                                                   
                                                                               
  CHAIR BUNDE referred to Rep. B. Davis' request for specific                  
  questions and said it was a point well taken.                                
                                                                               
  REP. TOOHEY referred to page 2, line 5, and asserted that                    
  the intent of the legislation addresses Rep. B. Davis'                       
  concerns.                                                                    
                                                                               
  REP. B. DAVIS said, "It says findings, but there is nothing                  
  in statute that could make it happen.  So therefore, I                       
  maintain my amendment."  She reiterated her previous motion.                 
                                                                               
  REP. TOOHEY objected.                                                        
                                                                               
  CHAIR BUNDE asked for further discussion.                                    
                                                                               
  REP. BRICE commented that if the administration and the                      
  legislature was concerned about addressing the health care                   
  issue, they should support the amendment.  He maintained                     
  that HB 414 does nothing more than establish three job                       
  positions of a commission and asks that "they might" look                    
  into certain areas.  He felt the amendment would provide the                 
  teeth that HB 414 needs to be effective.                                     
                                                                               
  Number 530                                                                   
                                                                               
  NANCY USERA, Commissioner, Department of Administration,                     
  testified on HB 414.  She stated that the administration                     
  opposes Amendment 25.                                                        
                                                                               
  CHAIR BUNDE said, "I would say that if we wanted to pass the                 
  Senate bill, I guess we would have passed that Senate bill."                 
  He asked for further discussion.  Hearing none, Chair Bunde                  
  called for the vote.  Reps. B. Davis and Brice voted Yea and                 
  Reps. Toohey, Bunde, G. Davis, Vezey, and Olberg voted Nay.                  
  Chair Bunde declared that Amendment 25 failed to be adopted.                 
                                                                               
                                                                               
  CHAIR BUNDE brought Amendment 26 to the table.                               
                                                                               
  Number 556                                                                   
                                                                               
  REP. BRICE made a motion to adopt Amendment 26.                              
                                                                               
  REP. TOOHEY objected.                                                        
  CHAIR BUNDE asked Rep. B. Davis or Rep. Brice to address the                 
  amendment.                                                                   
                                                                               
  REP. B. DAVIS explained that it was a proposal that had been                 
  given prior consideration.  She said if there were members                   
  who felt that there were valuable points, she would be happy                 
  to discuss it.                                                               
                                                                               
  REP. BRICE reiterated that he felt it was important that the                 
  legislature take proactive measures this year regarding the                  
  health care issue and Amendment 26 fulfills that obligation                  
  to the state.                                                                
                                                                               
  CHAIR BUNDE asked for further discussion.  Hearing none, he                  
  called for the vote.  Reps. B. Davis and Brice voted Yea and                 
  Reps. Toohey, Bunde, G. Davis, Vezey and Olberg voted Nay.                   
  Chair Bunde announced that Amendment 26 failed.  He brought                  
  HB 27 to the table.  Chair Bunde indicated that the                          
  amendment was submitted by the Division of Insurance.                        
                                                                               
  Number 623                                                                   
                                                                               
  REP. TOOHEY made a motion to adopt Amendment 27.                             
                                                                               
  CHAIR BUNDE objected.                                                        
                                                                               
  Number 624                                                                   
                                                                               
  THELMA SNOW WALKER, Deputy Director, Division of Insurance,                  
  Department of Commerce and Economic Development, testified                   
  on HB 414.  She referred to page 20, line 21, and indicated                  
  that the Division of Insurance would have to implement a                     
  uniform claim form by 7/1/95.  She then referred to page 16,                 
  Section 44.19.628 and said the provision indicates that the                  
  division shall adopt by regulation uniform claim forms,                      
  uniform standards, and uniform procedures for the processing                 
  of data relating to billing for payment of health care                       
  services provided to state residents.                                        
                                                                               
  MS. WALKER said the division does not know what is meant by                  
  uniform standards and uniform procedures.  She said the                      
  division has no basis upon which to build those definitions.                 
  She said the amendment proposes to insert the phrase "the                    
  uniform claim form described by" on page 20, line 21, after                  
  the word "implement."  She said the division anticipates                     
  that they will adopt regulations to formulate the uniform                    
  claim form, but not uniform standards or procedures for the                  
  collection of the billing data.                                              
                                                                               
  Number 697                                                                   
                                                                               
  REP. TOOHEY assumed that the amendment would not change the                  
  fiscal note.                                                                 
                                                                               
  MS. WALKER said it would not.                                                
                                                                               
  CHAIR BUNDE asked for other questions.  He reminded the                      
  committee that the amendment had been moved and objected to.                 
  He then called for the vote.  Reps. Toohey, Bunde, G. Davis,                 
  Vezey, Olberg, B. Davis, and Brice voted Yea.  No one voted                  
  Nay.  Chair Bunde stated that Amendment 27 was so moved.                     
                                                                               
  CHAIR BUNDE asked if there was further testimony on HB 414.                  
  He asked the pleasure of the committee.                                      
  REP. TOOHEY made a motion to pass the CS for HB 414 out of                   
  committee with individual recommendations and attached                       
  fiscal note.                                                                 
                                                                               
  REP. BRICE objected.                                                         
                                                                               
  CHAIR BUNDE asked for further discussion.  Hearing none, he                  
  called for the vote.  Reps. Toohey, Bunde, G. Davis, Vezey,                  
  and Olberg voted Yea and Reps. B. Davis and Brice voted Nay.                 
  Chair Bunde declared that HB 414 was so moved.                               
                                                                               
  CHAIR BUNDE then noted the committee's calendar for the                      
  remainder of the week.                                                       
                                                                               
  Seeing no further business before the committee, CHAIR BUNDE                 
  adjourned the meeting at 3:32 p.m.                                           

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