Bill Summary for Bill Number HB09-1256

Date: 02/18/2009

Final
BILL SUMMARY for HB09-1256

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved amendment L.001 (Attachment J). The motion Moved to refer House Bill 09-1256, as amended, to	Pass Without Objection PASS

03:02 PM -- House Bill 09-1256

Representative Acree, prime sponsor, presented House Bill 09-1256 concerning the ability of the commissioner of insurance to enter into multi-state agreements with other states for the purpose of allowing Colorado consumers to purchase out-of-state health insurance products. This bill authorizes the Commissioner of Insurance to enter into a multi-state agreement with another state designated by a health insurance company doing business in that state to offer, sell, or issue an individual health plan in Colorado. Prior to entering into a multi-state agreement, the commissioner must determine that the plan has an adequate network of providers for Colorado consumers. The agreement must specify that the primary state for the plan has sole jurisdiction and responsibility to enforce the primary state’s laws in both the primary state and Colorado. Companies are required to pay applicable Colorado premium taxes, and comply with Colorado laws regarding fraud and unfair claims settlement practices. Plans must include written notice to consumers that the health plan is governed by laws of another state, and is not subject to mandated coverages under Colorado law.

03:16 PM

Representative Acree talked about her experience with a chronic illness and the barriers it created for her when obtaining health insurance. She listed some statistics on health insurance coverage in Colorado and the cost of insurance in other states versus Colorado. Representative Acree talked about the barriers to interstate trade for health insurance. She talked about six states that have introduced similar legislation this year. Representative Acree talked about amendment L.001 that would require the insurance commissioner to undertake a review of the existing laws and rules pertaining to the business of health insurance in this state and in other states to determine how to allow Colorado residents the ability to purchase health insurance products sold in other states by carriers not otherwise subject to Colorado insurance laws and rules (Attachment J). The amendment also requires the commissioner to submit a report to the General Assembly by December 1, 2009, on what changes to Colorado laws and rules would be necessary in order to enable Coloradans to purchase out-of-state health insurance products.

03:31 PM -- Aeok Saroval, representing the Colorado Asian Health Education and Promotion, testified in support of the bill. He said by allowing the consumer make the choice it will benefit them in the long run. Representative Ryden asked why the Asian population is a special needs population. Mr. Saroval explained that it is due to language barriers.

03:36 PM -- James Sugden, representing the Colorado State Association of Health Underwriters, testified in support of the bill. He said when the bill was introduced there were consumer protection concerns, but they have since been addressed.

03:41 PM -- Kurt Schlegel, a small business owner, testified in support of the bill. He talked about his high deductible health plan with an HSA and said consumers need more choice.

03:43 PM -- Michael McGuire, representing the AARP, testified against the bill. He said they are concerned that the bill would cause consumers to seek health plans that offer the lowest standards and will cause consumers to be underinsured. Mr. McGuire said the bill would take away the legislature's ability to provide consumer protection on these plans. Representative Liston asked if he was opposed to the study as well. Mr. McGuire said that they do not support the study.

03:54 PM -- Nita Bradford, representing the National Alliance on Mental Illness - Jeffco, testified against the bill. She said there are consumer protection issues with these policies. Ms. Bradford did not have an opinion on the amendment.

03:56 PM -- Fran Coleman, representing the Brain Injury Association of Colorado, testified against the bill.

03:59 PM -- Steve Bieringer, representing the American Diabetes Association, testified against the bill and distributed a handout (Attachment K). He said some health insurance policies do not cover diabetes. Mr. Bieringer said the bill will undermine the consumer protections offered in Colorado. He said they also oppose the strike below for the study.

04:03 PM -- Lacey Berunen, the Executive Director of the National Alliance of Mental Illness, testified against the bill. She talked about her experience as an insurance consumer with a policy in Georgia. Ms. Bernun said they are not supportive of a study.

04:08 PM -- Stephen Konopas, representing the Mental Health Association of Colorado, testified against the bill. He said competition helps the healthy in the state and that the bill could reduce mandates in Colorado.

04:11 PM -- Kelly Shanahan, representing the Colorado Consumer Health Initiative (CCHI), testified against the bill. She said the bill only pertains to the individual insurance market.

04:14 PM -- Ben Price, representing the Colorado Association of Health Plans, testified against the bill. He said they agree with the sponsor that there are too many mandates, but they are against the bill as it is now. Mr. Price said they agree with the previous concerns over consumer protection. He said they would rather see changes to Colorado's law rather than telling Coloradoans to go to another state for health insurance.

04:16 PM -- Ms. Shanahan returned to the table to state that CCHI would not support the study in the strike below.

04:19 PM -- Jo Donlin, representing the Colorado Department of Regulatory Agencies, testified against the bill and distributed a handout (Attachment L). She said there are 341 companies in the individual market. Ms. Donlin says the state of regulation is chosen by the insurance carrier and not the insurance commissioner. She pointed out some consumer protections that would not apply to these plans. Ms. Donlin said the Insurance Commissioner is opposed to the concept and said she just received the strike below and hasn't been able to read it yet.

04:24 PM -- Dayle Axman, representing the Consumer Affairs section in the Division of Insurance, testified against the bill and addressed some technical questions that were brought up in earlier testimony.


BILL:	HB09-1256
TIME:	04:26:59 PM
MOVED:	Balmer
MOTION:	Moved amendment L.001 (Attachment J). The motion passed without objection.
SECONDED:	Priola
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

04:28 PM

Representative Acree talked about the benefits of exploring the option of out of state plans. She addressed the concerns of the witnesses and gave some closing remarks.


BILL:	HB09-1256
TIME:	04:34:54 PM
MOVED:	Balmer
MOTION:	Moved to refer House Bill 09-1256, as amended, to the Committee on Appropriations. The motion passed 7-3.
SECONDED:	Stephens
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Excused
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	No
	Soper	Yes
	Stephens	Yes
	Casso	No
	Rice	No

Final YES: 7 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS