SENATOR KELLY announced SB 313 (HEALTH INS. FOR HIGH RISK RESIDENTS) to be up for consideration. CAROL CARROL, Staff for Senator Kerttula, said SB 313 amends his high risk health insurance bill that was passed in 1992. The amendments were requested by the High Risk Health Insurance Association that was set up at that time. One of the requirements of the insurance bill is that each member of the industry be a member of the Association in order to do business in the state by participating in the high risk health insurance pool. Sections 3 and 4 provide additional forms of deductibles, co- payments, and maximums. This responds to requests by residents seeking only catastrophic insurance with high deductibles. Section 5 broadens the ability of the association to offer policies to groups that maintain healthy lifestyles without changing the basic requirements that premium rates be based on age and geographic location. Section 6 further defines eligibility for the state plan. This would disqualify those residents who are eligible to be covered by a plan subject to the Small Employer Health Reinsurance Association. Sections 7 and 8 require payment of the premium with the request or the application. Section 9 gives the Director of Insurance the ability to formulate policy and adopt regulations. Section 10 provides a member of the Board of the Association with immunity from civil or criminal liability for an act or omission in good faith in the scope of the director's duties. Section 11 allows the director to accept an application for coverage in cases where 2 denials of coverage seem to be superfluous. This would allow the director to list those disabilities that are recognized as being high risk before they have to be rejected by an insurance company. SENATOR SALO asked how many people had taken advantage of the high risk insurance since the bill was passed. MS. CARROL said there were 70 people in the pool at the time. She said that number would expand, especially the catastrophic insurance. BOB NIEGRUGGE, Glennallen, supported SB 313 and said they could offer a reduced rate if there was a higher deductible which would make it more accessible to Alaska residents. BRENDA EVANS, Fairbanks, said she is a diabetic and has renal failure and she has no medical insurance and is not on any government sponsored program or medicaid. SENATOR KELLY asked Rudy Vetter, Vicki, Lahti, and Sybil Skelton, teleconferencing from Fairbanks, if they supported this legislation. They said yes they did. SENATOR KELLY asked Bonnie Nelson, Thelma Walker, and Nina Magnuson, teleconferencing from Anchorage, it they supported SB 313. They said they did. STELLA WALKER, Division of Insurance, said as of February 1, they had 71 people insured under this program. Since then, they have issued 24 new policies. SENATOR KELLY asked how this program is being financed. MS. WALKER replied that it is being financed through insurance premiums and that state money is not going into this program. SENATOR SALO moved to pass SB 313 with individual recommendations and the fiscal note. There were no objections and it was so ordered.