House Committee on Business Affairs and Labor (04/06/2005)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	04/06/2005	ATTENDANCE

Time:	12:18 PM to 01:18 PM	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	E
This Report was prepared by		Massey	X
	Todd Jorgensen	McCluskey	X
		Paccione	X
		White	X
		Cerbo	*
		Marshall	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB05-1320 SB05-168 HB05-1312		Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole

12:20 PM -- House Bill 05-1320

Representative Jahn explained HB05-1320 which changes the conditions for allowing reinsurance to qualify as a credit or a reduction in liability for a domestic ceding insurer. Representative Jahn told the committee that most other states have adopted similar provisions regarding reinsurance and that this bill will make Colorado consistent with the National Association of Insurance Commissioners (NAIC) model legislation.

12:22 PM -- Marsha Cohen, representing the Reinsurance Association of America, testified in favor of the bill. Ms. Cohen testified that the bill will make Colorado's provisions governing reinsurance consistent with the NAIC model, and with most other states that have already approved similar legislation. Ms. Cohen responded to questions from the committee.

12:35 PM -- Julie Hoerner, representing the Division of Insurance, testified in favor of the bill. Ms. Hoerner testified that the division supports the bill.

12:45 PM

Representative Jahn distributed amendment L.001 (Attachment A) and asked the committee to support it. Representative Jahn told the committee that the Division of Insurance had requested the amendment in order to make the proposed language consistent with current law. The amendment includes nonprofit hospitals under the definition of insurer and reinsurer.


BILL:	HB05-1320
TIME:	12:45:30 PM
MOVED:	Marshall
MOTION:	Moved amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Paccione
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston	Excused
	Massey
	McCluskey
	Paccione
	White
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

12:47 PM

Representative Jahn made closing remarks.


BILL:	HB05-1320
TIME:	12:48:14 PM
MOVED:	Balmer
MOTION:	Moved that HB05-1320 be referred, as amended by L.001, to the Committee of the Whole with a favorable recommendation. The motion passed 12-0, with 1 excused.
SECONDED:	McCluskey
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Excused
	Massey	Yes
	McCluskey	Yes
	Paccione	Yes
	White	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:50 PM -- Senate Bill 05-168

Representative Boyd discussed SB05-168 which requires insurance carriers that offer health insurance to public entities to annually disclose, upon request, certain aggregate data regarding claims, coverage and premiums. Representative Boyd believes that this bill will help reduce health insurance costs for public employees by providing public employers such as school districts with information that will help them make informed decisions in the selection of health plans covering their employees.

12:56 PM -- Jerry McElroy, representing Kaiser Permanente, testified neither for nor against the bill. Mr. McElroy offered changes to the bill that would make it more agreeable for Kaiser Permanente. Mr. McElroy testified that the bill should apply to employers with greater than 250 employees. This would help reduce the data reporting his client would need to provide. In addition, Mr. McElroy offered that the bill should apply to all contracts issued after the effective date, rather than all contracts issued before or after the effective date.

01:00 PM -- Ryan Wulff, representing the Colorado Education Association, testified in favor of the bill. Mr. Wulff agrees with Representative Boyd that the bill allows for informed decisions by school districts, and ultimately in lower health premiums for school district employees. Mr. Wulff responded to questions from the committee.

01:03 PM

Representative Boyd distributed amendment L.002 (Attachment B). This amendment clarifies that the bill applies to contracts issued after the effective date.


BILL:	SB05-168
TIME:	01:04:13 PM
MOVED:	Marshall
MOTION:	Moved amendment L.002 (Attachment B). The amendment passed without objection.
SECONDED:	Coleman
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston	Excused
	Massey
	McCluskey
	Paccione
	White
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

01:04 PM

Representative Boyd distributed amendment L.003 (Attachment C). This amendment clarifies that the bill applies to those public employers with 100 or more employees. Representative Boyd responded to questions from the committee.


BILL:	SB05-168
TIME:	01:07:06 PM
MOVED:	Marshall
MOTION:	Moved amendment L.003 (Attachment C). The amendment passed 11-1, with 1 excused.
SECONDED:	Paccione
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	No
	Coleman	Yes
	Knoedler	Yes
	Liston	Excused
	Massey	Yes
	McCluskey	Yes
	Paccione	Yes
	White	Yes
	Cerbo	Yes
	Marshall	Yes
Not Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:08 PM

Representative Boyd distributed amendment L.004 (Attachment D). According to Representative Boyd, the amendment corrects drafting errors.


BILL:	SB05-168
TIME:	01:08:21 PM
MOVED:	Marshall
MOTION:	Moved amendment L.004 (Attachment D). The amendment passed without objection.
SECONDED:	Paccione
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston	Excused
	Massey
	McCluskey
	Paccione
	White
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB05-168
TIME:	01:08:49 PM
MOVED:	Butcher
MOTION:	Moved that SB05-168 be referred, as amended by L.002, L.003, and L.004, to the Committee of the Whole with a favorable recommendation. The motion passed 12-0, with 1 excused.
SECONDED:	Paccione
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Excused
	Massey	Yes
	McCluskey	Yes
	Paccione	Yes
	White	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:09 PM -- House Bill 05-1312

Representative Boyd presented HB05-1312 which requires the Commissioner of Insurance to develop a uniform application for health coverage which all small group insurance providers must use.

01:10 PM -- Bea Green, representing the Colorado State Association of Health Underwriters, testified in favor of the bill. Ms. Green testified that the uniform application will help maximize effective communication amongst insurance underwriters. Ms. Green responded to questions from the committee.

01:12 PM -- Peg Brown, representing the Colorado Association of Health Providers, testified neither for nor against the bill. Ms. Brown testified that her organization normally has a problem with such provisions that it considers create mandates, but that the benefits of the bill, including increased administrative ease and efficiency, outweigh the burden caused to providers.

01:13 PM -- Jerry McElroy, representing Kaiser Permanente, testified in favor of the bill. Mr. McElroy responded to questions from the committee.


BILL:	HB05-1312
TIME:	01:15:40 PM
MOVED:	Marshall
MOTION:	Moved amendment L.001 (Attachment E). This amendment corrects a drafting error by reinserting the word "application". The motion passed without objection.
SECONDED:	McCluskey
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston	Excused
	Massey
	McCluskey
	Paccione
	White
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

01:16 PM

Representative Boyd made closing remarks.


BILL:	HB05-1312
TIME:	01:16:32 PM
MOVED:	Butcher
MOTION:	Moved that HB05-1312, as amended by L.001, be referred to the Committee of the Whole with a favorable recommendation. The motion passed 12-1, with 1 excused.
SECONDED:	Paccione
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Excused
	Massey	Yes
	McCluskey	Yes
	Paccione	Yes
	White	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS