Bill Summary for Bill Number SB09-159

Date: 03/18/2009

Final
BILL SUMMARY for SB09-159

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved a substitute motion to postpone Senate Bill Moved amendment L.003 (Attachment B). The motion Moved amendment L.004 (Attachment C). The motion Moved to refer Senate Bill 09-159, as amended, to	PASS Pass Without Objection PASS TIE

10:47 AM -- Senate Bill 09-159

Representatives McGihon and Benefield, prime sponsors, presented Senate Bill 09-159 concerning the mandatory offer of dependent coverage to an unmarried child. The reengrossed bill changes the age of a individual for which a health insurance carrier is required to offer dependent coverage from 25 to 30. It also prohibits insurance carriers from terminating coverage for dependents who take a medical leave of absence from an institution of higher education. The carrier may terminate the coverage one year after the leave of absence begins or the date the coverage would otherwise terminate.

In 2005, House Bill 05-1101 required all individual and group health insurance policies that offer dependent coverage to offer such coverage for unmarried children under 25 year of age even if they are not students. These adult children must have the same legal residence as the parent or be financially dependent upon the parent. Coverage may be offered by rider or supplemental policy with the additional premium paid by the parent. SB09-159 expands this provision to adult children up to age 30, and other requirements remain the same.

10:52 AM

Representative Benefield talked about her son who was placed on her insurance while in college after the law was changed to 25. She said now he is 26 and in the same predicament as he was back then. Representative McGihon talked about an amendment that was added in the Senate at the request of the Division of Insurance that added language conforming Colorado law with federal law. The sponsors were asked to address the fiscal note. The sponsors responded to questions regarding reasons 25 to 30 year-olds do not buy individual insurance. There was a discussion about the role of CoverColorado.

11:20 AM -- Donnah Moody, representing the Colorado Association of Commerce and Industry, testified against the bill. She talked about the potential increase in cost and discussed the affordability and availability of private health insurance to persons aged 25 to 30. Ms. Moody responded to questions regarding how the bill will increase the costs and whether any data is available relating to the impact of House Bill 05-1101.

11:26 AM -- James Helgoth, President of Elward Construction, testified against the bill. He said his company insures 103 employees and talked about the impact the bill would have on the cost of health insurance for his business and employees. Mr. Helgoth said that no matter the number of dependents, everyone pays the same premium. Mr. Helgoth responded to questions from the committee about the impact the bill would have on the cost of health insurance.

11:40 AM -- Jerry McElroy, representing Kaiser Permanente, testified against the bill. He talked about Kaiser Permanente's experience since the age was raised from 21 to 25 in 2005. Mr. McElroy stated that the employers did not want the additional coverage and contemplated self-insuring to get out from under the mandates. Mr. McElroy asked to change the bill to apply to policies issued or renewed after the effective date (January 1, 2010).

11:45 AM -- Patrick Boyle, representing the Colorado Group Insurance Association, testified against the bill. He talked about community rating and the various markets that will be affected by the bill.

11:49 AM -- Jamie Scholl, an insurance broker, chair of the National Association of Health Underwriters, representing the Colorado State Association of Health Underwriters, testified against the bill. He talked about the options for 25 to 30-year-olds and said they have many affordable options. Mr. Scholl listed the cost of insurance for ages 25 to 30 in each of the markets. Mr. Scholl said employers cut back their contribution to dependent coverage following the 2005 law that raised the age to 25. Mr. Scholl responded to questions from the committee.

12:04 PM -- Tom Gosselin and Rebecca Weiss, representing Anthem Blue Cross and Blue Shield, testified against the bill. Ms. Weiss responded to the earlier question of why health insurance companies cannot raise premiums. Mr. Gosselin talked about the potential increase in cost the bill may create. The witnesses responded to questions from the committee and talked about the various health insurance options that are currently available for 25 to 30-year-olds.

12:13 PM -- Travis Berry, representing the Colorado Competitive Council, testified against the bill. He said health insurance premiums have not gone down or stabilized since the passage of the 2005 law. Mr. Berry stressed that employers are not required to offer health insurance and said the bill may result in employers dropping dependent coverage.

12:18 PM -- Danny Talley, representing himself, and HUB International, a consulting firm representing employers, testified against the bill. He talked about the effects the bill will have on the individual market and the current options available for 25 to 30-year-olds. Mr. Talley said the bill may result in healthy individuals leaving employer-provided plans and finding their own individual insurance, leaving sick individuals in the employer-provided market.

12:22 PM -- Suzanne Bragg-Gamble, representing CoverColorado, testified neutrally on the bill and gave some background information on Cover Colorado and who is covered under the program. She gave some examples of the premiums 25 to 30-year-olds are charged. Ms. Bragg-Gamble was asked to talk about the eligibility requirements for CoverColorado.

12:28 PM -- Deborah Colburn, representing the Colorado Coalition for the Medically Underserved, testified in support of the bill and distributed a handout (Attachment A).

12:31 PM -- Dominic Sulley, representing himself, testified in support of the bill. He talked about his experience receiving a heart transplant at a young age and said he may need another one which would cost $800,000 to $1.4 million. Mr. Sulley also advised the committee that he already spends about $1,000 a month on medication.

12:33 PM -- Dawn Sulley, representing herself, Dominic's mother, testified in support of the bill and talked about her experience taking care of her son. She said she would like the option of paying for her son's health care coverage rather than having him on Cover Colorado. Ms. Sulley said under the bill, the family pays the additional costs for the dependent. She said her son has had the same doctors since he was 13 and she would like him to continue to stay with those doctors. Ms. Sulley was asked who her employer is and what would happen when her son reaches the age of 30. Ms. Sulley responded that the bill bridges the gap between college and her son getting a job and receiving coverage under an employer.

12:42 PM -- Mark Randall, representing himself, testified in support of the bill and talked about the effect the bill would have on his family and his son, who also received a heart transplant at a young age. He said his son does not have the option to be uninsured. Mr. Randall said right now his son's only option is CoverColorado.

12:45 PM -- Kelly Stahlman, representing Family Voices Colorado, testified in support of the bill and talked about individuals who have chronic conditions, including asthma. She said people without insurance get medical care through emergency rooms. Ms. Stahlman discussed pre-existing conditions. Ms. Stahlman responded to questions from the committee.


BILL:	SB09-159
TIME:	01:06:04 PM
MOVED:	Gagliardi
MOTION:	Moved amendment L.003 (Attachment B). The motion passed without objection.
SECONDED:	Soper
		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


BILL:	SB09-159
TIME:	01:06:28 PM
MOVED:	Gagliardi
MOTION:	Moved amendment L.004 (Attachment C). The motion passed 7-4.
SECONDED:	Soper
		VOTE
	Balmer	No
	Bradford	No
	Gagliardi	Yes
	Liston	Yes
	Priola	No
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	No
	Casso	Yes
	Rice	Yes

Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:12 PM

The sponsors asked the committee to think about adding a fifth tier to insurance on second reading. Ms. Stahlman returned to respond to an earlier question about the 208 Commission's recommendation on dependent health care coverage.


BILL:	SB09-159
TIME:	01:22:26 PM
MOVED:	Gagliardi
MOTION:	Moved to refer Senate Bill 09-159, as amended, to the Committee on Appropriations (see substitute motion below to postpone the bill indefinitely).
SECONDED:	Soper
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: SEE BELOW


BILL:	SB09-159
TIME:	01:36:59 PM
MOVED:	Gagliardi
MOTION:	Moved a substitute motion to postpone Senate Bill 09-159 indefinitely. The motion passed 10-1.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	No
	Stephens	Yes
	Casso	Yes
	Rice	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:37 PM

The committee recessed.