Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:02/16/2005
ATTENDANCE
Time:09:51 AM to 11:22 AM
Balmer
X
Borodkin
X
Place:HCR 0107
Butcher
X
Carroll M.
X
This Meeting was called to order by
Coleman
X
Representative Marshall
Knoedler
X
Liston
X
This Report was prepared by
Massey
X
Todd Jorgensen
McCluskey
X
Paccione
X
White
X
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB05-1225
HB05-1250		Amended, Referred to the Committee of the Whole
Witness Testimony Only

09:52 AM -- House Bill 05-1225

Representative Todd presented the bill which removes the requirement for long-term care insurance carriers to issue basic and standard long-term care policies. The bill's intention is to attract more insurance carriers to the state, and thus, reduce premiums. Representative Todd responded to questions from the committee.

09:54 AM -- Terry Hjelkrem, representing the Long-Term Care Forum, spoke in favor of the bill. Mr. Hjelkrem testified that insurance carriers can provide the same services provided by basic and standard long-term care policies under other policies that they currently provide. He also stated that there is a concern regarding the costs that insurance companies incur to provide these policies. Mr. Hjelkrem responded to questions from the committee.

10:00 AM -- Aaron Eisenach, representing Krieger and Associates, spoke in favor of the bill. Mr. Eisenach testified that the standards of the basic and standard long-term care policies have become outdated. He testified that the coverage is too little and creates confusion for consumers deciding upon levels of coverage. Mr. Eisenach responded to questions from the committee.


10:06 AM -- Carolyn Samuelson, representing COPIC Insurance, spoke in favor of the bill. Ms. Samuelson testified that consumers do not purchase basic and standard policies because the explanation of the coverage can be confusing. Ms. Samuelson testified that requiring this minimal coverage served an effective purpose at one time, but that this coverage has become outdated. Ms. Samuelson responded to questions from the committee.

10:13 AM -- Rich Gebhardt, representing American Health Plans, spoke in favor of the bill and provided the committee with an example of a document that is used by the insurance industry to explain basic and standard coverage (Attachments A and B). Mr. Gebhardt testified that there are many companies that have chosen not to market their plans in Colorado due to this requirement. Mr. Gebhardt responded to questions from the committee.

10:31 AM -- Julie Hoerner, representing the Department of Regulatory Agencies, spoke in favor of the bill. Ms. Horner distributed information to the committee regarding the issue (Attachment C).

10:40 AM -- James Hall, representing the American Council of Life Insurance, spoke in favor of the bill. Mr. Hall responded to questions from the committee.



10:45 AM

Representative Marshall asked for amendments.
BILL:HB05-1225
TIME: 10:47:49 AM
MOVED:Carroll M.
MOTION:Moved an amendment to the bill (Attachment D) which amends page 4 by reinstating the phrase on lines 8 to 9, "the commissioner shall adopt rules" and reinstating on line 12, "additional standards for marketing practices, producer training, and reporting practices for long-term care insurance. In addition, the commissioner may issue regulations to establish minimum standards concerning suitability." The amendment passed without objection. Representative Knoedler moved to amend Representative M. Carroll's amendment by replacing on page 4 of the bill, line 9, "shall" with "may". The motion was withdrawn.
SECONDED:Coleman
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




10:52 AM

Representative Todd made concluding remarks.
BILL:HB05-1225
TIME: 10:53:04 AM
MOVED:Balmer
MOTION:Moved HB05-1225, as amended, to the Committee of the Whole. The motion passed 13-0.
SECONDED:Knoedler
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:57 AM -- House Bill 05-1250

Representative Cloer presented the bill to the committee. The bill retains the requirement that medical payments coverage be primary to any health insurance coverage beyond July 1, 2005, the repeal date of this provision under current law. The bill also requires that insurers make certain disclosures to consumers regarding their choices for coverage. Representative Paccione distributed her amendment L.002 to the committee (Attachment E).

11:02 AM -- Bill Imig, representing Property Casualty Insurers' Association, spoke in favor of the bill as amended by amendment L.002. Mr. Imig responded to questions from the committee.

11:12 AM -- Eric Ask, representing Progressive Insurance, spoke in favor of the bill.


11:13 AM -- Don Mielke, representing the Colorado Chiropractic Association, spoke in favor of the bill. Mr. Mielke responded to questions from the committee.

11:14 AM -- Betsy Murray, representing the American Physical Therapy Association, spoke in favor of the bill.

11:15 AM -- Jerry Rhodes, representing the Colorado State Fire Chiefs, spoke in favor of the bill.

11:16 AM -- Julie Hoerner, representing the Department of Regulatory Agencies, responded to questions from the committee.


11:21 AM

Representative Marshall took the bill off the table in order for the sponsor to work out further details of an amendment with interested parties.