SENATE COMMITTEE ON HEALTH AND HUMAN SERVICES

February 28, 2001 Hearing Room B

1:00 PM Tapes 40 - 41

MEMBERS PRESENT: Sen. Bill Fisher, Chair

Sen. Margaret Carter, Vice-Chair

Sen. Gary George

Sen. Frank Shields

Sen. Ken Messerle

STAFF PRESENT: Rick Berkobien, Administrator

Andrew Morris, Committee Assistant

MEASURE/ISSUES HEARD: SB 267 Public Hearing and Work Session

SB 235 Public Hearing and Work Session

Distribution of funds plan (SB 288, 1999 Session)

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 40, A
004	Vice-Chair Carter	Calls meeting to order at 1:12 P.m. and opens a public hearing on SB 267.
SB 267 PUBLIC HEARING
008	Rick Berkobien	Explains SB 267 to the committee.
021	Joel Ario	Administrator, Insurance Division. Comments on the -1 amendments.
030	Vice-Chair Carter	Asks the reasons for the proposed capital increase requirements.
040	Ario	Responds it is to update the statute.
048	Vice-Chair Carter	Asks about costs.
053	Charlie Nicaloff	Insurance Division. Explains the costs of solvency.
066	Vice-Chair Carter	Asks how funds are raised.
067	Nicaloff	Responds it is up to the company.
082	Sen. Messerle	Asks if there is opposition.
083	Nicaloff	Responds no.
092	Vice-Chair Carter	Calls a recess on SB 267 and opens a public hearing on SB 235.
SB 235 PUBLIC HEARING
095	Berkobien	Explains SB 235 and the proposed amendments.
111	Brian DeLashmut	Oregon Nurses Association. Explains the –1 amendments.
123	Vice-Chair Cater	Asks about the language.
125	DeLashmut	Responds by explaining the completion of death certificates.
150	Vice-Chair Cater	Calls a recess on SB 235 and opens an informational meeting.
SB 288 (1999 REGULAR SESSION) DISTRIBUTION OF FUNDS
172	Berkobien	Explains the background behind SB 288 (1999 Session).
186	Doug Wilson	Department of Human Services. Explains SB 288 (1999 Session) that changed workers compensation for disabled workers. Comments on the transfer of funds. Explains the changes that will be made in the distribution of funds.
211	Sen. Carter	Asks about refunds to facilities.
216	Wilson	Responds they were able to refund a portion of the money to non-profit organizations. Explains the make up of the work. Explains the plan that was developed (EXHIBIT A). Describes the self-insurance pool option that was developed.
247	Sen. Carter	Asks for clarification.
255	Wilson	Explains the self-insurance pool. States the pool would follow the Department of Consumer and Business Affairs rules for self-insurance.
378	Sen. Shields	Asks about the affect of option two in (EXHIBIT A).
281	Wilson	States the work group made the decision on the funds that would be incorporated.
295	Sen. Shields	Asks about the cost-effectiveness of the self-insurance pool.
304	Wilson	Responds each case would have to be looked at and the insurance pool would be beneficial for some companies and not for others.
322	Chair Fisher	Provides personal opinion on self-insurance pools.
355	Jerry Manaham	Rehabilitation Division. Explains the risks of self-insurance and that when entering into the pool, the businesses would be aware of the risks.
390	Chair Fisher	Asks about the savings to companies.
393	Manaham	Explains the savings companies could have.
414	Chair Fisher	Comments on different companies’ practices. Asks about the savings companies would have.
427	Manaham	Responds he is unsure of specific dollar amounts.
TAPE 41, A
013	Wilson	States the program is voluntary for companies to use.
035	Tim Kral	Oregon Rehabilitation Association. Presents (EXHIBIT B). Comments on the requirements to participate in the insurance pool. Explains the original legislation.
079	Chair Fisher	Asks how the rate is set.
081	Kral	Responds the worker’s compensation board sets the rates. Discusses worker’s compensation for volunteers.
121	Chair Fisher	Gives personal viewpoint.
133	Kral	Comments on injury rates for people with disabilities. Describes the loss ratio for human services workers.
192	Chair Fisher	Closes the informational meeting on SB 288 (1999 Session) and opens a work session on SB 267.
SB 267 WORK SESSION
200	Sen. Shields	MOTION: Moves to ADOPT SB 267-1 amendments dated 02/14/01.
		VOTE: 5-0 AYE: 5 – Carter, George, Messerle, Shields, Fisher
205	Chair Fisher	The motion CARRIES.
213	Sen. Shields	MOTION: Moves SB 267 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 5-0 AYE: 5 – Carter, George, Messerle, Shields, Fisher
220	Chair Fisher	The motion CARRIES. SEN. SHIELDS will lead discussion on the floor.
222	Chair Fisher	Closes the work session on SB 267 and opens a work session on SB 235.
SB 235 WORK SESSION
225	Sen. Carter	MOTION: Moves to ADOPT SB 235-1 amendments dated 02/27/01.
		VOTE: 5-0 AYE: 5 – Carter, George, Messerle, Shields, Fisher
228	Chair Fisher	The motion CARRIES.
229	Sen. Carter	MOTION: Moves SB 267 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 5-0 AYE: 5 – Carter, George, Messerle, Shields, Fisher
238	Chair Fisher	The motion CARRIES. SEN. CARTER will lead discussion on the floor.
242	Chair Fisher	Closes the work session on SB 235 and adjourns the meeting at 1:59 p.m.

Submitted By, Reviewed By,

Andrew Morris, Rick Berkobien,

Committee Assistant Administrator

EXHIBIT SUMMARY

A – SB 288 (1999 Session), Written testimony, Doug Wilson, 4 pp.

B – SB 288 (1999 Session), Statistics, Tim Kral, 2 pp.