Bill Summary for Bill Number HB09-1012

Date: 01/21/2009

Final
BILL SUMMARY for HB09-1012

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved amendment L.001 (Attachment B). The motion Moved amendment L.002 (Attachment C). The motion Moved amendment L.003 (Attachment D). The motion Moved to refer House Bill 09-1012, as amended, to	Pass Without Objection Pass Without Objection Pass Without Objection PASS

10:38 AM -- House Bill 09-1012

Representative Rice and Representative Stephens, prime sponsors, presented House Bill 1012 concerning incentives provided by health insurance carriers to encourage voluntary participation in programs to promote health. This bill allows insurance carriers that provide individual and group health insurance plans in Colorado, to offer incentives for participation in wellness and prevention programs. Carriers are given flexibility in determining the types of programs offered as long as:

program participation is not a condition of coverage;
participation in the program is voluntary;
participants are not required to achieve a specific outcome to receive the incentive; and
the incentive is not used as a marketing device for the insurance plan.

10:46 AM -- Sheryle Hutter, representing the Colorado-Cross Disability Coalition, testified in support of the bill. She said she would like to make sure the bill does not discriminate against persons with disabilities.

10:47 AM -- Steve Dodder, representing the Colorado State Association of Health Underwriters, testified in support of the bill. He talked about wellness programs and the importance of incentives. Mr. Dodder responded to the prior witness' concern about persons with disabilities stating that the programs are based on participation not outcomes. There was a question as to why this is being placed in statute. Representative Rice explained that per state statute, insurance companies are limited as to what they can use to determine rates so it needs to be changed to allow this.

10:51 AM -- Ben Price, Executive Director for the Colorado Association of Health Plans, testified in support of the bill. He distributed a handout from the Metro Denver Health and Wellness Commission about incentive programs (Attachment A).

10:53 AM -- James Sugden, representing the Colorado State Association of Health Underwriters, testified in support of the bill.

10:54 AM -- Kelly Shanahan testified on the bill. She expressed some concerns, including her concern that premiums would increase in the short term to compensate for those enrolled in these types of programs until eventually utilization decreases and rates go down. Ms. Shanahan said she would like to see transparency, evaluation, and oversight of these programs. Her last concern dealt with privacy issues and whether those types of programs would comply with the federal Health Insurance Portability and Accountability Act (HIPPA). She gave an example of a mental health program that a person might not want his or her employer to know about.

10:59 AM -- Tony Gagliardi, representing National Federation of Independent Businesses, testified on the bill and believes it is a step in the right direction. He talked about small businesses with two to five employees and said a wellness program for them might be a local hospital staffer that comes and talks to the employees during lunch.

11:01 AM -- Marcy Morrison, Colorado Insurance Commissioner, testified on the bill and stated that the division would like to help with HIPPA concerns.

11:04 AM

Representative Rice explained and distributed the following amendments to the bill:

Amendment L.001 (Attachment B) talks about existing state or federal laws that may overlap;

Amendment L.002 (Attachment C) adds mental health to the list of programs; and

Amendment L.003 (Attachment D) adds the words "or rewards" after "incentives" throughout the bill because some companies use reward rather than incentive.


BILL:	HB09-1012
TIME:	11:06:44 AM
MOVED:	Rice
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi	Excused
	Liston	Excused
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1012
TIME:	11:07:02 AM
MOVED:	Rice
MOTION:	Moved amendment L.002 (Attachment C). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi	Excused
	Liston	Excused
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1012
TIME:	11:07:15 AM
MOVED:	Rice
MOTION:	Moved amendment L.003 (Attachment D). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi	Excused
	Liston	Excused
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection

11:07 AM

Representative Rice addressed some concerns that came up in testimony and said he would be happy to work with them and the insurance commissioner. Representative Stephens also said she would like to work on those issues and stated that with the increase in insurance rates this will help small business.


BILL:	HB09-1012
TIME:	11:10:20 AM
MOVED:	Rice
MOTION:	Moved to refer House Bill 09-1012, as amended, to the Committee of the Whole. The motion passed 9-0.
SECONDED:	Stephens
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Excused
	Liston	Excused
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Yes

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS