Legislature(2011 - 2012)BARNES 124
02/23/2011 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 164 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 23, 2011
3:25 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
MEMBERS ABSENT
Representative Mike Chenault
COMMITTEE CALENDAR
HOUSE BILL NO. 164
"An Act relating to insurance; relating to health care
insurance, exemption of certain insurers, reporting, notice, and
record-keeping requirements for insurers, biographical
affidavits, qualifications of alien insurers assuming ceded
insurance, risk-based capital for insurers, insurance holding
companies, licensing, federal requirements for nonadmitted
insurers, surplus lines insurance, insurance fraud, life
insurance policies and annuity contracts, rate filings by health
care insurers, long-term care insurance, automobile service
corporations, guaranty fund deposits of a title insurer, joint
title plants, delinquency proceedings, fraternal benefit
societies, multiple employer welfare arrangements, hospital and
medical service corporations, and health maintenance
organizations; and providing for an effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 164
SHORT TITLE: INSURANCE: HEALTH CARE & OTHER
SPONSOR(s): LABOR & COMMERCE
02/18/11 (H) READ THE FIRST TIME - REFERRALS
02/18/11 (H) L&C, FIN
02/21/11 (H) L&C AT 3:15 PM BARNES 124
02/21/11 (H) Heard & Held
02/21/11 (H) MINUTE(L&C)
02/23/11 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
LINDA HALL, Director
Division of Insurance
Anchorage Office
Department of Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 164.
ACTION NARRATIVE
3:25:58 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:25 p.m. Representatives Olson,
Johnson, Saddler, Thompson, Miller, and Holmes were present at
the call to order.
HB 164-INSURANCE: HEALTH CARE & OTHER
3:26:33 PM
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 164, "An Act relating to insurance; relating to
health care insurance, exemption of certain insurers, reporting,
notice, and record-keeping requirements for insurers,
biographical affidavits, qualifications of alien insurers
assuming ceded insurance, risk-based capital for insurers,
insurance holding companies, licensing, federal requirements for
nonadmitted insurers, surplus lines insurance, insurance fraud,
life insurance policies and annuity contracts, rate filings by
health care insurers, long-term care insurance, automobile
service corporations, guaranty fund deposits of a title insurer,
joint title plants, delinquency proceedings, fraternal benefit
societies, multiple employer welfare arrangements, hospital and
medical service corporations, and health maintenance
organizations; and providing for an effective date."
3:27:02 PM
LINDA HALL, Director, Division of Insurance, Anchorage Office,
Department of Community & Economic Development (DCCED), stated
she had some additional comments on HB 164.
MS. HALL referred to page 49, to proposed Section 78, of HB 164.
She recalled prior discussions, noting that Representative
Johnson previously had questions on this proposed section. She
asked to readdress this proposed section, relating that she has
since discussed this bill with her actuarial and believes she
could better explain what this proposed change will accomplish.
Under current Alaska Statutes (AS), an employer cannot cancel
his/her group health insurance policy and make contributions to
an individual employee's health insurance costs. She recalled a
scenario she previously used, in which an employer cancelled
his/her group insurance and offered $200 per month to his/her
employee use to purchase health insurance. That activity would
violate the current AS, the small group insurance laws, and
would be an action taken to get around the guarantee issue and
rating guarantees contained in the small group health insurance
laws.
MS. HALL provided a brief history, which she thought dated back
to early 1990s when the definitions of group insurance were
enacted. This proposed provision would allow an employer, under
certain circumstances, to do what she just described as not
allowed under the current statutes. Proposed Section 78 would
allow employers who have never offered health insurance to their
employees, but who wanted to start health reimbursement accounts
(HRA) for their employees to do so. The employers could
contribute money to their employees' HRA accounts.
Additionally, if an employer had a break in health insurance and
six months later wanted to do something similar in establishing
HRA accounts, it would be allowed. She added the caveat that
employers could not simply cancel their health insurance because
employees had preexisting conditions nor could an employer pay a
monthly allowance towards an employee's health insurance. This
proposed section would also allow employers a means to help part
time and seasonal employees obtain health insurance. Often this
class of employee is not eligible for group health insurance due
to limited hours or because the employee could not meet other
eligibility requirements for health insurance. This proposed
change would allow an employer to contribute to an HRA for the
part time or temporary employee. She reiterated that this
proposed section literally "opens this up" to make more
opportunities for employers and employees.
3:31:45 PM
REPRESENTATIVE JOHNSON asked whether she was sure.
MS. HALL answered that she is as sure as she can be. She then
reaffirmed and answered yes.
REPRESENTATIVE JOHNSON said he would accept that.
REPRESENTATIVE HOLMES commented she was still wading through 70
pages of insurance language.
MS. HALL offered to answer any additional questions that may
arise. She acknowledged that HB 164 is complex. She reiterated
that she would be happy to discuss the bill.
3:33:20 PM
CHAIR OLSON left the public testimony open on HB 164.
[HB 164 was held over.]
3:33:53 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:33 p.m.
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