House Committee on Business Affairs and Labor (03/07/2005)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	03/07/2005	ATTENDANCE

Time:	01:35 PM to 03:00 PM	Balmer	X
		Borodkin	X
Place:	HCR 0107	Butcher	*
		Carroll M.	X
This Meeting was called to order by		Coleman	E
	Representative Cerbo	Knoedler	X
		Liston	X
This Report was prepared by		Massey	X
	Todd Jorgensen	McCluskey	X
		Paccione	*
		White	X
		Cerbo	X
		Marshall	E
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB05-072 SB05-037 SB05-070		Witness Testimony Only Witness Testimony Only Witness Testimony Only

01:36 PM -- Senate Bill 05-072

Representative Witwer presented the bill which allows health insurance carriers to offer small group policies to include a premium discount of up to 10 percent for individuals who have maintained a healthy weight for more than 12 consecutive months. It requires the Insurance Commissioner to adopt rules establishing standards for healthy weight based on age and height. Representative Witwer responded to questions from the committee.

01:41 PM -- Peg Brown, representing the Colorado Association of Health Plans, testified neither for nor against the bill. Ms. Brown does not believe that federal law allows this type of discount to be offered. Ms. Brown responded to questions from the committee.

01:51 PM -- Carrie Curtiss, representing the Colorado Consumer Health Initiative, testified in opposition to the bill. Ms. Curtiss is concerned that the bill could indirectly create an incentive for a company to discriminate against overweight employees.

01:53 PM

Representative Cerbo announced that he will take the bill off the table. This hearing will be for witness testimony only. The committee will take action on the bill at its meeting on Wednesday, March 9, upon adjournment.

01:54 PM -- Senate Bill 05-037

Representative Hefley presented the bill which makes various changes to the current review process for denied health benefits. The changes include allowing a second-level internal review by a grievance panel composed of at least three health care professionals, the majority of whom will not be employees of the health coverage plan or have a financial interest in the outcome of this review. Representative Hefley responded to questions from the committee.

02:00 PM -- Peg Brown, representing the Colorado Association of Health Plans, testified neither for nor against the bill. Ms. Brown testified that the appeals process under current law is sufficient.

02:05 PM -- Paul Huckabee, representing himself and his family, testified in support of the bill. Mr. Huckabee shared his personal experience with his insurance company denying numerous claims in treating his son's medical condition and gave members a chart he compiled of the cash flow time line for cumulative treatment expenses involved with his son's care (Attachment A). Mr Huckabee testified that this bill is necessary to reform the appeals process under current law. Mr. Huckabee responded to questions from the committee.

02:15 PM -- Helena Huckabee, representing health care providers as a physician, testified in support of the bill. Ms. Huckabee testified that this bill encourages insured persons to maximize their health care coverage.

02:20 PM -- Christy Blakely, representing Family Voices Colorado, testified in support of the bill. Ms. Blakely believes that the current system of appeals needs to be reformed.

02:23 PM -- Carl Miller, representing Anthem Blue Cross Blue Shield, testified in support of the bill. Rocky Mountain Health Plans told Mr. Miller that it also supports the bill.

02:25 PM -- Amanda Bieber, representing Colorado Consumer Health Initiative, testified in support of the bill. Ms. Bieber testified that the bill creates a more consumer-friendly appeals process.

02:27 PM -- Eric Boyer, representing the Colorado Senior Lobby, testified in support of the bill. Mr. Boyer testified that the bill will help seniors with aggravated health problems.

02:29 PM

Representative Cerbo announced that he will take the bill off the table. This hearing will be for witness testimony only. The committee will take action on the bill at its meeting on Wednesday, March 9, upon adjournment.

3:00 PM

The committee adjourned.

02:33 PM -- Senate Bill 05-070

Representative Paccione presented the bill which prohibits an automobile insurer from determining rates or coverage based on the consumer's failure to maintain coverage when the consumer was on active duty in the United States military. The Division of Insurance implemented this provision in departmental regulations in 2004. The bill puts the provision in statute.

02:36 PM -- Doug Dean, Insurance Commissioner, made himself available for questions. Mr. Dean responded to questions from the committee.

02:43 PM -- Peg Brown, representing the Colorado Association of Health Plans, responded to questions from the committee regarding the possibility of extending this provision to health insurance. Ms. Brown does not believe that health plans make a rate determination based on the consumer's failure to maintain coverage when the consumer was on active duty in the United States military.

02:45 PM -- Jim Snook, representing himself as professional with auto insurance experience, testified that auto insurers made the decision to determine rates based on a consumer allowing the coverage to lapse because the insurers felt that such action on the part of a consumer demonstrated that the consumer may be a greater insurance risk. Mr. Snook responded to questions from the committee. Mr. Snook testified regarding extending this to apply to health insurance. Mr. Snook believes that the situation is different because a person's health can deteriorate while they are on active duty in the military.

02:57 PM

Representative Cerbo announced that he will take the bill off the table. This hearing will be for witness testimony only. The committee will take action on the bill at its meeting on Wednesday, March 9, upon adjournment.