SB 18-HEALTH CARE SHARE MINISTRY NOT INSURANCE  1:31:45 PM VICE CHAIR GIESSEL announced the consideration of SB 18. She noted that the bill was first heard 4/2/15 and public testimony was closed. 1:32:19 PM JORDAN SHILLING, Staff, Senator John Coghill, summarized that SB 18 defines health care sharing ministries and exempts them from insurance statutes. They are currently not regulated because the Division of Insurance does not view them as insurance. VICE CHAIR GIESSEL questioned the need for the legislation. MR. SHILLING replied it is to prevent the regulation of something that is not regarded as insurance. It is a faith-based community of individuals who have agreed to share medical costs. He noted that the Affordable Healthcare Act provides a specific exemption from the individual mandate for existing health care sharing ministries. 1:33:52 PM SENATOR STEVENS asked what services are provided. MR. SHILLING said the medical costs they would cover are the same that insurance would normally cover. He noted the packets contain a summary of what constitutes a health care sharing ministry. VICE CHAIR GIESSEL welcomed Senator Meyer to the committee. She highlighted the distinguishing characteristic is that health care sharing ministries aren't actually insurance so there is no guarantee the medical costs will be covered. MR. SHILLING agreed; the participants know up-front that this is not insurance and there is no guarantee of payment. VICE CHAIR GIESSEL added that there is a pooling of resources to share expenses as opposed to guaranteeing coverage. MR. SHILLING agreed. SENATOR ELLIS asked if there is any disclosure or notice to participants that there is no guarantee of coverage. 1:35:51 PM MR. SHILLING explained that the disclosure is on the application. SENATOR ELLIS asked what the decision-making process is to determine what services are covered. MR. SHILLING explained that when a member needs health care, a letter is sent to all the members in the pool outlining the specific need and the suggested contribution. Members then voluntarily send in their contribution. He didn't know which procedures are excluded under each health care sharing ministry. VICE CHAIR GIESSEL asked Ms. Wing-Heier if the division supports the legislation. LORI WING-HEIER, Director, Division of Insurance, Department of Commerce, Community and Economic Development (DCCED), explained that health care sharing ministries that were in existence before 1999 were a carve-out of the Affordable Care Act (ACA). They must be a 501(c)(3), members must share common ethical or religious beliefs, they cannot discriminate based on the state or resident's employment, and a member cannot lose their membership if they develop a medical condition. The organization is subject to an annual audit by an independent certified public accountant (CPA). Last year, health care sharing ministries had a nationwide membership of about 375,000 and this year membership has grown to about 550,000. MS. WING-HEIER said the only potential concern, which is based on social media, is that people are looking to health care sharing ministries instead of looking at the ACA. If there were complaints or the division thought a ministry was soliciting members outside their religious belief or ethics, the attorney general would have the authority to look at the ministry under trade practices provisions. 1:39:53 PM SENATOR STEVENS asked how many of these ministries are in Alaska and their names. MS. WING-HEIER replied there were just under 4,000 members in Alaska last year and the main ministries in Alaska and nationwide are Medi-Share and Samaritan Ministries. SENATOR MEYER asked where the bulk of the ministries are located MS. WING-HEIER answered they're operating in all 50 states. 1:41:56 PM SENATOR STEVENS moved to report SB 18, labeled 29-LS0107\H, from committee with individual recommendations and attached fiscal note(s). VICE CHAIR GIESSEL announced that without objection, SB 18 is reported from the Senate Labor and Commerce Standing Committee.