House Committee on Health, Insurance, & Environment (03/31/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH, INSURANCE, & ENVIRONMENT

Date:	03/31/2015	ATTENDANCE

Time:	10:41 AM to 11:59 AM	Brown	X
		Esgar	X
Place:	HCR 0107	Humphrey	X
		Joshi	X
This Meeting was called to order by		Landgraf	X
	Representative McCann	Lontine	X
		Mitsch Bush	X
This Report was prepared by		Primavera	*
	Amanda King	Ransom	X
		Ryden	*
		Sias	X
		Ginal	X
		McCann	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1297		Witness Testimony and/or Committee Discussion Only

10:41 AM -- HB 15-1297

Representative Ginal and Representative Joshi presented House Bill 15-1297. The bill prohibits insurance carriers who offer health plans that cover optometric services from engaging in certain activities, including:

• establishing or limiting the fee an optometrist may charge for eye care services or corrective lenses that are not covered by the health plan;
• requiring that an optometrist participate in any other plan or network as a condition of participating in one of the carrier's health plans or networks;
• requiring an optometrist to participate in credentialing standards that are different from those that apply to other health care professionals;
• requiring the use of specific sources of corrective lenses or optical laboratory services from which an optometrist may recommend when treating covered persons;
• limiting the payment or reimbursement for eye care services or corrective lenses to nominal or de minimis amounts.

The Division of Insurance in the Department of Regulatory Agencies may promulgate rules necessary to implement these prohibitions. Violations of these provisions constitute an unfair method of competition and unfair or deceptive practice in the business of insurance. Under current law, an insurance carrier found to have committed an unfair or deceptive practice by the Commissioner of Insurance may face a range of potential disciplinary actions, including a fine of up to $30,000 per act and up to $750,000 in aggregate per year for knowingly committing such violation; suspension or revocation of a company's license; and the mandated payment of contractual claims, if the violation resulted in failure to pay. Three information sheets were provided to the committee members (Attachments A through C).

150331 AttachA.pdf

150331 AttachB.pdf

150331 AttachC.pdf

10:45 AM -- Dr. Deanna Alexander, Eyecare Associates, testified in support of the bill. She discussed similar legislation in other states and requirements of vision plans for optometrists. Dr. Alexander answered questions about whether optometrists have a choice in participating in vision plans, anti-trust laws, and the harm to optometrists and patients caused by the vision plans.

10:57 AM -- Dr. Jon Pederson, Colorado Optometric Association, testified in support of the bill. He discussed mandated discounts required by vision plans. He relayed a story about a patient who needed glasses under a time constraint and was unable to use his vision benefits due to the requirements of his vision plans. Dr. Pederson answered questions about Medicaid and Medicare vision benefits and vision plans. In response to a question, Dr. Pederson discussed how the bill will impact optometrists, patients, and vision plans. Committee members dialogued with Dr. Pederson about vision plans.

11:12 AM -- Dr. Michael Bollenbacher, representing himself, testified in support of the bill. He discussed credentialing standards for optometrists required by vision plans. Dr. Bollenbacher answered questions about requirements of vision plans for optometrists to sell eye glasses.

11:20 AM -- Dr. Steven Loomis, Mountain Vista Eyecare, testified in support of the bill. He discussed the evolution of vision plans. He stated that most vision plan labs are located outside of Colorado and discussed the problems that this causes for patients. Dr. Loomis answered questions about the quality of the glasses provided by out-of-state labs. In response to a question, he discussed how vision plans differ from health insurance. Committee members dialogued with Dr. Loomis about vision plans.

11:31 AM -- Dr. Lindsay Wright, Colorado Optometric Association, testified in support of the bill. She discussed being a small-business owner. Dr. Wright answered questions about increased staffing needs due to vision plans and what would happen if she decided not to accept certain vision plans. In response to a question, Dr. Wright discussed the different vision plan requirements for ophthalmologists and optometrists. Committee members dialogued with Dr. Wright and Representative Ginal about vision plans.

11:41 AM -- Dr. Zoey Loomis, Kiowa Eye Care Center, testified in support of the bill. She shared her experience being an optometrist in a rural part of the state. She discussed being required to be credentialed through a vision plan to be able to accept a medical plan. Dr. Loomis answered a question about whether passage of the bill could increase costs to patients.

11:47 AM -- Ben Price, Colorado Association of Health Plans, testified in opposition to the bill. He discussed the need for clarity in the bill to disentangle the health insurance carriers. He discussed possible amendments to the bill. He outlined his concerns about the bill and discussed issues related to anti-trust laws.

11:55 AM -- Julian Roberts, National Association of Vision Care Plans, testified in opposition to the bill. He stated that he or a representative from his organization would be able to return on Thursday, April 2, 2015, to testify on the bill.

11:59 AM

Representative McCann laid the bill over to Thursday, April 2, 2015, for additional testimony. The committee adjourned.