Legislature(1993 - 1994)

05/09/1994 09:50 PM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                 HOUSE RULES STANDING COMMITTEE                                
                           May 9, 1994                                         
                            9:50 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Carl E. Moses, Chair                                          
  Representative Jerry Sanders, Vice Chair                                     
  Representative Mark Hanley                                                   
  Representative Gail Phillips                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Pat Carney                                                    
  Representative Ramona Barnes                                                 
  Representative Fran Ulmer                                                    
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SB 362:   Relating to insurance, to the licensing,                           
            accreditation, examination, regulation,                            
            and solvency of persons engaged in the                             
            insurance business, including insurers,                            
            nonadmitted insurers, purchasing groups,                           
            risk retention groups, and United States                           
            branches of alien insurers; relating to                            
            the management of and the filing of                                
            reports by persons licensed or otherwise                           
            doing business under the insurance code;                           
            amending Alaska Rule of Civil Procedure                            
            45 and providing for an effective date.                            
                                                                               
            HCS CSSB 362(RLS) PASSED OUT OF COMMITTEE WITH                     
            INDIVIDUAL RECOMMENDATIONS                                         
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  PAUL FUHS, Commissioner                                                      
  Department of Commerce & Economic Development                                
  P.O. Box 110800                                                              
  Juneau, AK  99811-0800                                                       
  Phone:  465-2500                                                             
  POSITION STATEMENT:  Explained the two changes in the                        
                       proposed work draft and then advised                    
                       members that the Governor would prefer                  
                       not to have the changes, and would                      
                       suggest passage of the CSSB 362 (L&C)                   
                                                                               
  CHARLIE MILLER, Lobbyist                                                     
  Alaska Regional Hospital                                                     
  P.O. Box 102286                                                              
  Anchorage, Alaska  99510                                                     
  Phone:  561-4773                                                             
  POSITION STATEMENT: Spoke in support of the two changes                      
                      made in the proposed work draft for                      
                      CSSB 362 (L&C)                                           
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  SHORT TITLE: OMNIBUS INSURANCE REFORM                                        
  BILL VERSION: CSSB 362(L&C)                                                  
  SPONSOR(S): LABOR & COMMERCE BY REQUEST                                      
  JRN-DATE     JRN-PG                    ACTION                                
  03/18/94      3268    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/18/94      3269    (S)   L&C, JUD                                         
  03/29/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/29/94              (S)   MINUTE(L&C)                                      
  04/05/94      3447    (S)   L&C RPT  CS  2DP 1NR SAME TITLE                  
  04/05/94      3447    (S)   ZERO FN TO SB & CS PUBLISHED                     
                              (DCED)                                           
  04/11/94              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  05/02/94      4211    (S)   JUD RPT  1DP 2NR   (L&C)CS                       
  05/02/94      4211    (S)   PREVIOUS ZERO FN (CORR)                          
  05/05/94      4355    (S)   RULES RPT 3CAL 2NR   5/5/94                      
  05/05/94      4372    (S)   READ THE SECOND TIME                             
  05/05/94      4372    (S)   L&C  CS ADOPTED UNAN CONSENT                     
  05/05/94      4372    (S)   MOTION TO ADVANCE WITHDRAWN                      
  05/05/94      4372    (S)   THIRD READING 5/6 CALENDAR                       
  05/06/94      4426    (S)   READ THE THIRD TIME  CSSB 362                    
                              (L&C)                                            
  05/06/94      4427    (S)   PASSED Y20 N-                                    
  05/06/94      4427    (S)   COURT RULE CHANGE VOTE SAME AS                   
                              PASSAGE                                          
  05/06/94      4427    (S)   EFFECTIVE DATE  SAME AS PASSAGE                  
  05/06/94      4450    (S)   TRANSMITTED TO (H)                               
  05/08/94      4169    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  05/08/94      4170    (H)   LABOR & COMMERCE                                 
  05/08/94      4209    (H)   L&C WAIVED PUBLIC HRNG NOTICE,                   
                              RULE 23(A)                                       
  05/09/94              (H)   L&C AT 07:30 PM CAPITOL 17                       
  05/09/94              (H)   RLS AT 09:35 PM CAP 102                          
  05/09/94      4239    (H)   L&C RPT HCS(L&C) 2DP 2NR 1AM                     
  05/09/94      4240    (H)   DP:  PORTER, HUDSON                              
  05/09/94      4240    (H)   NR:  GREEN, WILLIAMS                             
  05/09/94      4240    (H)   AM:  MULDER                                      
  05/09/94      4240    (H)   -PREVIOUS SENATE ZERO FN (DCED)                  
                              4/5/94                                           
  05/09/94      4240    (H)   REFERRED TO RULES                                
  05/09/94      4246    (H)   RLS WAIVED PUBLIC HEARING                        
  NOTICE,                                                                      
  05/09/94      4246    (H)   ...RULE 23(A)                                    
  05/09/94      4249    (H)   RLS RPT HCS(RLS) 1DP 3NR                         
  05/09/94      4250    (H)   DP:  MOSES                                       
  05/09/94      4250    (H)   NR:  SANDERS, HANLEY, PHILLIPS                   
  05/09/94      4250    (H)   -PREVIOUS SENATE ZERO FN (DCED)                  
                              4/5/94                                           
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-2 SIDE A                                                             
  Number 001                                                                   
  CHAIRMAN CARL MOSES called the meeting to order at 9:50                      
  p.m., noted the members in attendance and informed the                       
  committee that SB 362, "Relating to insurance, and the                       
  licensing and accreditation of those involved in the                         
  insurance business," was on the calendar.                                    
                                                                               
  REPRESENTATIVE SANDERS MOVED to adopt the work draft of HCS                  
  CSSB 362(), dated 5/7/94 by Ford, numbered 8-LS1757\J.                       
                                                                               
  REPRESENTATIVE HANLEY objected.  He said he had voted                        
  against the amendment in the Finance Committee, and would                    
  rather have the version without the amendment.                               
  CHAIRMAN MOSES asked if there were people who wanted to                      
  testify.                                                                     
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT, noted that "the main thrust of the bill changes                 
  the way we look at solvency of insurance companies to make                   
  sure that we don't end up with a Savings and Loan or an                      
  executive life type situation.  The two provisions that are                  
  different from what came to you from Labor and Commerce is                   
  1) any willing provider, that means any provider who is                      
  willing to provide the service at the same price an                          
  insurance company, will be required to allow their patients                  
  to go to that provider without any penalty on payment of                     
  those services.  The other one is appointment of independent                 
  council.  It's a codification of a court case                                
  (indiscernible) in which the policyholder is entitled a                      
  representation independent of the council, proposed by the                   
  insurer defending the case on behalf of the insured.  On                     
  both of these, while we're neutral on the substance of the                   
  provisions, you have a letter here from Governor Hickel and                  
  we ask that these amendments not be included, and that you                   
  use the Labor and Commerce committee substitute."                            
                                                                               
  Number 082                                                                   
                                                                               
  CHAIRMAN MOSES asked if there were questions.  There were                    
  none.                                                                        
                                                                               
  CHARLIE MILLER, LOBBYIST, ALASKA REGIONAL HOSPITAL, advised                  
  members that he would first address the "any willing                         
  provider" portion of the legislation that "deals with a                      
  problem that we've run into being excluded without any form                  
  of bid process for these PPOs (Preferred Provider                            
  Organizations) and so we've not had an opportunity to share                  
  in some of them.  Currently the Aetna PPOs that we deal with                 
  pay full price without any problem."                                         
                                                                               
  He further stated that "the Medical Service Corporations in                  
  the area we deal with doesn't allow us to bid either, and                    
  we'd just like to make sure that we have access to the                       
  patients and the physician referrals for our facility in                     
  Anchorage.  The doctors and dentists in the community also                   
  support it, I can speak to that a little bit.  For them,                     
  it's more of an access issue as far as they don't want to                    
  lose patients that they have or patients that want to                        
  utilize their services because the patient is put into one                   
  of these PPO's, most people that have insurance don't chose                  
  their insurer.  It's provided at the work place and they are                 
  put into one of these.  They don't have a choice if they're                  
  in a PPO, they're just given that option, I mean they're in                  
  there.  If they don't get the doctor they like, that's, they                 
  either have to pay a penalty, or its just not available to                   
  go there.  So the doctors would rather see this provision                    
  in."                                                                         
                                                                               
  Number 086                                                                   
                                                                               
  MR. MILLER then noted that "our understanding is that                        
  medical insurers, other than medical service corporations                    
  now already have language similar to this in law, in AS 21.                  
  So they're covered already.  This would just bring the rest                  
  of the medical insurance community under the same                            
  provisions.  We feel that if that if there were competitive                  
  bidding allowed, that that would foster much more                            
  competition and bring the market forces to bear a lot more                   
  than the current situation where discounts under these                       
  programs but without the competitive bid you don't really                    
  know how big a discount is available in the community.  So                   
  we don't think this will hurt the cost and we think it will                  
  help access.  We'd hope that you would include this measure,                 
  include this provision in the measure.  If there are any                     
  questions, I'd be happy to answer them."                                     
                                                                               
  Number 136                                                                   
                                                                               
  CHAIRMAN MOSES asked if there were questions. There were                     
  none.                                                                        
  REPRESENTATIVE PHILLIPS reminded members that there was a                    
  motion on the floor to adopt the HCS CSSB 362(RLS), and that                 
  Representative Hanley had objected.                                          
                                                                               
  CHAIRMAN MOSES asked that a roll call vote be taken.                         
  REPRESENTATIVES PHILLIPS, SANDERS AND MOSES voted `YEA'.                     
  REPRESENTATIVE HANLEY voted `NAY.'  So the HCS CSSB 362(RLS)                 
  was adopted.                                                                 
                                                                               
  REPRESENTATIVE HANLEY MOVED to pass HCS CSSB 362(RLS) FROM                   
  COMMITTEE with individual recommendations.  IT WAS SO                        
  ORDERED.                                                                     
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN MOSES adjourned the meeting at 10:00 p.m.                           

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