SL&C 2/15/96 SB 197 INSURANCE FOR DOMESTIC VIOL. VICTIMS  SENATOR KELLY announced SB 197 to be up for consideration. SENATOR DONLEY, sponsor of SB 197, said it prohibits discrimination against victims of domestic violence in medical insurance matters. It is a national trend and ten other states have adopted similar legislation; it is also pending in Congress. The proposed CS expands the protections in the original bill to include cancellation, denial, increasing premiums, and refusal to issue a new premium. Number 402 GORDON EVANS, Health Insurance Association of America, opposed SB 197 that requires health insurers presumptively to ignore physical or mental conditions attributable to domestic violence. Underwriting should not depend on a condition's underlying cause, but rather on the physical and mental condition of the patient at the time of application regardless of the underlying cause. Coverage of injuries or conditions resulting from domestic abuse or violence should be subject to the same conditions, limitations, exclusions, deductibles, and co-payments applied to any other injury or condition. They have no objection that prohibits the use of specific exclusions or benefit caps for claims resulting from domestic violence or legislation that prohibits questions on applications that are designed specifically to elicit evidence of domestic violence or abuse. MR. EVANS reiterated that they believe that contractual limitations such as waiting periods for preexisting conditions or that which is proposed in this bill should relate to the person's physical or mental condition at the time of application regardless of the condition's underlying cause. Number 430 JOHN GEORGE, American Counsel of Life Insurance and National Association of Independent Insurers, said he wasn't concerned with the bill as amended. This could potentially carry on to life insurance, automobile insurance, home owners, etc. An insurer likes to underwrite based on the conditions at the time of application. MARSHA MCKENZIE, Program Coordinator for the Counsel on Domestic Violence and Sexual Assault, strongly supported SB 197. Although there doesn't seem to be a real problem with insurance related to domestic violence, here it is an issue in the lower 48. Passage of this bill will help to protect victims in Alaska. In 1994 an informal survey done by a subcommittee of the U.S. House Judiciary Committee showed that eight of the 16 largest insurers in the country were using domestic violence as a factor in deciding whether to issue insurance and how much to charge for it. Since insurers in the past haven't been required to tell why they are being denied, victims or former victims might not know why they are being denied coverage. Knowing insurance might be denied could stop victims from getting medical attention they need. MARIANNE BURKE, Director, Division of Insurance, testified in favor of the bill. She said there is one word in this bill that is absolutely critical and is the bill's major strength. That word is "only." The fact that a person is a victim of domestic violence should not be reason to deny a claim, deny coverage, cancel coverage, or increase the premium for the coverage. If the person has other medical problems, they would still be considered as they have been in the past. SENATOR KELLY said since the committee substitute is considerably different from the original bill, he would let it circulate and bring it up again at next Tuesday's meeting. SENATOR SALO said she assumed Senator Donley's concern mostly has to do with insurance companies canceling victims of domestic violence more as a preventative measure than the question hovering of pre-existing conditions. SENATOR DONLEY said the committee substitute avoids the pre-existing condition issue on page l, line 9 by inserting that it would be the "only" prohibition.