Date: 01/14/2010
Final
Colorado Association of Health Plans
COMMITTEE ON JOINT HEALTH AND HUMAN SERVICES
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03:18 PM -- Presentation by the Colorado Association of Health Plans
Ben Price, Executive Director of the Colorado Association of Health Plans, introduced himself and distributed a handout to the committee (Attachment F). He explained that the association is the trade association for health plans in the state. He listed the members of the association. He described the principles of the association, including that individuals should have access to health care, health care costs are high, that losing a job doesn't mean losing health care coverage, and that the status quo is unacceptable. He described legislation concerning health care reform that the Colorado Association of Health Plans has supported in the past year. Mr. Price described the association's partnership with the Department of Public Health and Environment regarding tobacco cessation activities.
03:25 PM
Marc Reece, Colorado Association of Health Plans, stated that insurance is a heavily regulated market and that health plans work closely with the State Division of Insurance. Mr. Reece described health care costs and waste in the system. He described the proportion of costs that account for health insurance payments. He stated that 13 percent of costs are considered administrative, which includes the costs of complying with government requirements and claims processing. It also includes insurer profits. He discussed health insurers' profit margins in the past year nationally and in Colorado.
03:32 PM
Michael Huotari, Rocky Mountain Health Plans, described Rocky Mountain Health Plans, the services the plan offers, the areas in the state in which it operates, and the clients the plan services.
03:38 PM
Susan Cox, Kaiser Permanente, introduced herself and distributed a handout to the committee (Attachment G). She gave an overview of the enrollment in the Kaiser Permanente, and the benefits offered by the plan. She relayed information regarding Kaiser Permanente's prescription drug program.
03:41 PM
Jairo Ramirez, Kaiser Permanente, further discussed Kaiser Permanente's drug program and prescription drug costs. He highlighted the importance of competition in the drug market, and the impact of generic drugs on drug costs. He highlighted Kaiser's efforts to evaluate the safety of prescription drugs.
03:45 PM
Senator Newell asked Mr. Huotari how Rocky Mountain Health Plans is sharing information regarding its innovative programs. Mr. Huotari responded to questions from Representative Gagliardi regarding CoverColorado, stating that Rocky Mountain Health Plans recently was awarded the contract to administer the program. Senator Sandoval and Senator Carroll asked for clarification on Mr. Reece's comments regarding health plan administrative costs and executive compensation. Mr. Price responded to questions from Senator Newell regarding methods to address the situation in which an individual loses health care coverage if they lose their employment. Senator Newell asked for additional information regarding waste in the health care system. Representative Kefalas asked for additional information on insurers' medical-cost ratios.
03:58 PM
The committee adjourned.