Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0144.01 Jery Payne SENATE BILL 06-011 SENATE SPONSORSHIP Tapia, Hagedorn, Keller, and Shaffer HOUSE SPONSORSHIP Butcher, Boyd, and Green Senate Committees House Committees Health and Human Services A BILL FOR AN ACT Concerning a study to analyze factors that drive the cost of health care within Pueblo county. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Health Insurance. Instructs the division of insurance to conduct a study of the factors that drive health insurance in the Pueblo area. Defines the parameters of the study and the data to be gathered and analyzed. Requires the commissioner of insurance to convene a meeting of all interested persons related to the study no later than June 15, 2006. Authorizes the division of insurance to contract with a nonprofit entity to analyze data collected by the division and prepare a report of the analysis of such data. Instructs the director of the division of registrations to conduct a survey of each health care professional concerning the charges billed in Pueblo county to health insurers. Instructs the department of public health and environment to survey all licensed health facilities in Pueblo county for charges billed to health insurers and consumers. Requires both sets of survey results to be forwarded to the division of insurance. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 1 of article 16 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 10-16-131. Study of health insurance premiums charged in Pueblo county - repeal. (1) (a) The division shall conduct an independent and objective study pursuant to subsection (2) of this section to gather and analyze data to identify: (I) The factors that drive health insurance costs for individuals and groups in Pueblo county; (II) The statistical interaction, relationships, and dependencies of the factors; (III) The demographic, health services, and other cost components of health insurance premiums for individuals and groups in Pueblo county; (IV) The role of modified community rating for Pueblo county; and (V) Whether health coverage for individuals and groups in Pueblo county is reasonably available. (b) The division may contract with a nonprofit entity to analyze data collected by the division and prepare a report of the analysis of such data. (2) (a) The commissioner shall convene a meeting of all interested persons related to the study no later than June 15, 2006. Interested persons include, but are not limited to, providers and consumers of health insurance, the chairs of the board of medical examiners and any other type 1 board that regulates a health care profession, the director of the division of registrations, and the executive director of the department of public health and environment. The meeting shall include a discussion of the exact data to be gathered, if any, in addition to the data specified in subsection (3) of this section, the method and time frames for collection of the data, and the objectives and standards for the analysis thereof. (b) Upon completion of the analysis, the division shall present a draft of the report to the commissioner for approval and transmission to the general assembly pursuant to paragraph (c) of this subsection (2). (c) The commissioner shall submit a report of the study containing conclusions and an analysis of the factors that drive the cost of health care, the cost of health insurance coverage on an individual and group basis, and the impact of modified community rating on Pueblo county to the president of the senate, majority leader of the senate, minority leader of the senate, speaker of the house of representatives, majority leader of the house of representatives, minority leader of the house of representatives, and chairs of the health and human services and business affairs committees of the senate and the house of representatives no later than January 15, 2008. (d) The commissioner shall aggregate data collected from the division of registrations within the department of regulatory agencies and the department of public health and environment pursuant to sections 24-34-102 (15) and 25-1.5-103 (5), C.R.S. If the commissioner contracts with a nonprofit entity to analyze data collected pursuant to this section, such aggregated data may be transmitted to such nonprofit entity for analysis. (e) Nothing in this section shall waive any claim to privileged or confidential information pursuant to federal or state law. (3) The data to be collected shall include the amount of claims paid by health insurers in Pueblo county for the period beginning _____ and ending ______; the rates charged for health insurance during this period; the charges billed by licensed, certified, or registered health care providers during this same period; the charges billed by all licensed heath care facilities during this period; the number of licensed, certified, or registered health care providers in Pueblo county during this period; the number of health insurers conducting business in Pueblo county during this period; whether the practice patterns of health care providers in the Pueblo community differ from accepted standards and guidelines; whether the health status of the Pueblo community drives health insurance costs; and any other information determined necessary by the commissioner. (4) This section is repealed, effective January 15, 2008. SECTION 2. 24-34-102, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 24-34-102. Division of registrations - creation - duties of division and department heads - definitions - license, registration, or certification renewal and reinstatement - repeal. (15) (a) Notwithstanding any type 1 transfer, as such transfer is defined by section 24-1-105, the director of the division of registrations shall conduct a survey of each licensed, certified, or registered health care professional concerning the charges billed to health insurers and consumers in Pueblo county for the period beginning ______ and ending ________. The director shall forward the survey results to the division of insurance pursuant to section 10-16-131, C.R.S., by _____ 200_. The director shall create the survey questionnaire after consultation with the insurance commissioner. (b) This subsection (15) is repealed, effective January 15, 2008. SECTION 3. 25-1.5-103, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 25-1.5-103. Hospitals and community mental health centers - powers and duties of the department - limitations on rules promulgated by the department - repeal. (5) (a) The executive director of the department shall survey all licensed health facilities in Pueblo county for charges billed to health insurers and consumers for the period beginning ______ and ending _______. The executive director shall forward the survey results to the division of insurance pursuant to section 10-16-131, C.R.S., by ___ 200_. The executive director shall create the survey questionnaire on consultation with the insurance commissioner. (b) This subsection (5) is repealed, effective January 15, 2008. SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.