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.