02/23/2023 03:30 PM Senate HEALTH & SOCIAL SERVICES

          SB 45-DIRECT HEALTH AGREEMENT: NOT INSURANCE                                                                      
                                                                                                                                
3:32:16 PM                                                                                                                    
CHAIR WILSON announced the consideration of SENATE BILL NO. 45                                                                  
"An Act relating to insurance; relating to direct health care                                                                   
agreements; and relating to unfair trade practices."                                                                            
                                                                                                                                
He noted that there was a committee substitute for the committee                                                                
to consider.                                                                                                                    
                                                                                                                                
3:32:44 PM                                                                                                                    
CHAIR WILSON solicited a motion.                                                                                                
                                                                                                                                
3:32:48 PM                                                                                                                    
SENATOR GIESSEL moved to adopt the committee substitute (CS) for                                                                
SB 45, work order 33-LS0211\U, as the working document.                                                                         
                                                                                                                                
3:32:59 PM                                                                                                                    
CHAIR WILSON found no objection and CSSB 45 was adopted.                                                                        
                                                                                                                                
3:33:11 PM                                                                                                                    
JASMIN MARTIN, Staff, Senator David Wilson, Alaska State                                                                        
Legislature, Juneau, Alaska, presented the summary of changes                                                                   
from version S to version U of SB 45.                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
          "An  Act   relating  to  insurance;   relating  to                                                                    
          insurance;   relating   to  direct   health   care                                                                    
          agreements;   and   relating   to   unfair   trade                                                                    
          practices."                                                                                                           
                                                                                                                                
          Version S to U                                                                                                        
                                                                                                                                
          5 changes from first V.S to V.U:                                                                                      
                                                                                                                                
          1) Technical changes, non-substantive:                                                                                
          a) Language is rearranged for clarity.                                                                                
          b) Definition of "direct health care agreement"                                                                       
             is moved to the definitions section.                                                                               
         c) Language is adjusted for consistency though                                                                         
             out.                                                                                                               
                                                                                                                                
          2)  Page   2,  line   15-18:  Language   is  added                                                                
          requiring  that  a  direct health  care  agreement                                                                    
          must   identify    a   contact   person    for   a                                                                    
          representative  of the  health care  provider that                                                                    
          is  responsible for  receiving  requests to  amend                                                                    
          the agreement, in addition to the person                                                                              
          responsible for receiving complaints.                                                                                 
                                                                                                                                
          3)  Page   3,  line  2-12:  Language   allowing  a                                                                
          provider  to immediately  terminate the  agreement                                                                    
          if  a patient  does  not comply  with a  treatment                                                                    
          plan is removed from  this section. A provider may                                                                    
          still cancel and agreement with 30 days' notice.                                                                      
                                                                                                                                
          4)  Page 3,  line 16-22:  In version  S, a  health                                                                
          care provider  may raise the periodic  fee no more                                                                    
          than once a  year and must provide  the patient 45                                                                    
          days' notice  that they plan  to do so.  Version U                                                                    
          has  language added  that  allows  the patient  to                                                                    
          cancel with  no penalties  if they decided  to not                                                                    
          continue  an agreement  when  the provider  raises                                                                    
          the fees.                                                                                                             
                                                                                                                                
          5)  Page  6,  line  9-21:  A  "false  advertising"                                                                
          clause  was   added.  This  section   prohibits  a                                                                    
          provider  from   false  advertising   regarding  a                                                                    
          direct  health  care  agreement.  It  specifically                                                                    
          prohibits   advertising    these   agreements   as                                                                    
          insurance or as an alternative to insurance.                                                                          
                                                                                                                                
3:35:17 PM                                                                                                                    
SENATOR KAUFMAN arrived at the meeting.                                                                                         
                                                                                                                                
3:35:29 PM                                                                                                                    
SENATOR TOBIN  asked whether the complaint  process should remain                                                               
in the Attorney General's office or  if it should be moved to the                                                               
Division of Insurance.                                                                                                          
                                                                                                                                
3:36:06 PM                                                                                                                    
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce,  Community  &  Economic  Development,  Juneau,  Alaska,                                                               
stated that  the division has worked  on SB 45 for  several years                                                               
and realizes  consumer protection  is a  concern. She  said there                                                               
had been good discussion regarding  the overlap between insurance                                                               
and contracts. She stated she  was upfront during discussions and                                                               
said  if oversight  came to  her division,  it would  not have  a                                                               
fiscal note. The division would  handle contracting and insurance                                                               
complaints in the same manner.                                                                                                  
                                                                                                                                
3:37:30 PM                                                                                                                    
CHAIR WILSON found no further questions and solicited a motion.                                                                 
                                                                                                                                
3:37:34 PM                                                                                                                    
SENATOR GIESSEL moved to report the  CS for SB 45, work order 33-                                                               
LS0211\U,  from  committee  with individual  recommendations  and                                                               
attached zero fiscal note(s).                                                                                                   
                                                                                                                                
3:37:57 PM                                                                                                                    
CHAIR WILSON  found no  objection and  CSSB 45(HSS)  was reported                                                               
from the Senate Health and Social Services Standing Committee.