HOUSE COMMITTEE ON

AUDIT & HUMAN SERVICES BUDGET REFORM

 

 

January 29, 2003   Hearing Room 50

3:00 PM Tapes  10 - 11

 

MEMBERS PRESENT:            Rep. Ben Westlund, Chair

Rep. Steve March, Vice-Chair

Rep. Susan Morgan, Vice-Chair

Rep. Alan Bates

Rep. Jeff Kruse

 

GUEST MEMBERS:               Rep. Billy Dalto

                                                Rep. Gordon Anderson

                                                Rep. Laurie Monnes-Anderson

                                                Rep. Carolyn Tomei

 

MEMBER EXCUSED:            Rep. Randy Miller

Rep. Jeff Merkley

 

 

 

STAFF PRESENT:                  Rick Berkobien, Committee Administrator

Kelly Fuller, Committee Assistant

 

 

ISSUES HEARD:                     Informational Meeting

                                                Rocky King, Insurance Pool Governing Board

“Health Insurance Resource Manual 2003”

 

 

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 10, A

005

Chair Westlund

Introduces Rocky King of the Insurance Pool Governing Board and opens the informational meeting.

INFORMATIONAL MEETING

010

King

Introduces himself and begins the presentation.

180

Rep. Kruse

Asks if one could have a private sector plan that covers everything and then have OMIP.

188

King

Explains the issues about having both insurances and continues presentation.

225

Chair Westlund

Asks what the difference is from the first bullet and the second Bullet in (EXHIBIT A 1/28/03)

240

Rep. March

Asks what are the limits on pre-existing conditions.

248

King

Answers the question about pre-existing conditions and continues presentation.

284

Rep. Kruse

Asks for the dollar figures on moving from three to two.

300

King

Answers question to the best of his knowledge and will get more information later.  Shared an example.  Continues with age rating only.

399

Chair Westlund

Asks for clarification on a figure that was stated previously.

405

King

Gives clarification, and continues

TAPE 11, A

 

 

106

Rep. Monnes Anderson

Asks if he can describe the ERISA Waiver.

115

King

Give a description of the waiver and continues.

129

Rep. Morgan

Makes a comment that this is then killing the employer mandate.

131

King

Answers and continues.

152

Berkobien

Asks if he is going to go over how this shift in occurring.

155

King

Comments that he will get to that soon and continues.

186

Chair Westlund

Asks questions on the chart in (EXHIBIT A 1/28/03).

190

King

Elaborates and continues.

208

Rep. March

 

Asks questions about HMO’s.  Are they able to control utilization and therefore keep the costs down

216

King

Refers to Rep. Bates to answer the question.

218

Rep. Bates

Answers question about the HMO and keeping costs down.

240

Chair Westlund

Asks if conventional is another word for commercial.

250

Rep. Kruse

Asks if we wiped out mandates would idemntity be a valuable product?.

252

King

Answers and makes additional comments about indemnity plans.

265

Chair Westlund

Asks if a PPO is a preferred provider organization?

267

King

Yes that is true.

270

Rep. Bates

Elaborates on his knowledge on PPO’s.

289

Chair Westlund

Makes additional comments.

291

Berkobien

In 1996 we saw a fall of HMO’s, asks if this trend continuing.

310

King

Gave his opinion about the current HMO’s out there.  Continues presentation.

362

King

Turn over is a huge complicating factor in this whole thing.

365

Chair Westlund

Asks how long on average, does it take for an employee to research new insurance.

391

King

Describes how the system works in Oregon currently.

392

Chair Westlund

Asks if he can have this kind of information within a day.

395

King

Elaborates on new technology, that makes the process faster.

398

Chair Westlund

Asks if the rate that you pay the agent front loaded.

 

King

Responds to the questions.

TAPE 10, B

 

 

010

Chair Westlund

Talks more about Agency commissions.

022

King

Gives his information about Agency commissions.

036

Rep. Bates

Small employers barriers against them.

050

King

Elaborates on the small group market verses the large group market.

058

Rep. March

Asks if these factors are specifically controlled for higher wages and what variable would fall out as being sectioned out.

071

King

Responds to the question on higher wages.

199

Chair Westlund

Asks what period of growth there is going from 4% to 45% just going straight to OMIP.

203

King

Answers and continues presentation.

210

Rep. March

Asks question about rejection rates.

213

King

Replies that there is no cost for that.

223

Rep. March

Comments that you just said that the real rejection rates are much higher and we are giving this credit where the rates are being kept artificially low.

225

King

We agree with you and will look into that.  He continues presentation.

234

Rep. Bates

Asks for an OMIP assessment definition.

255

King

Gives a quick review of an OMIP assessment.  Comments that we will cover that at tomorrow’s meeting.

263

Rep. Monnes Anderson

Asks if those funds have a lot in them or do the rates go up.

315

King

If you wait till tomorrow, I will get this all laid out

376

Chair Westlund

Asks if it is 200 a month for an individual in OMIP.

378

Rep. Bates

Comments that it is high risk

380

Chair Westlund

If it is $200/month , 2500 per year for a high risk individual.

387

King

Explains the costs.

390

Chair Westlund

Makes comments that he would like everyone to be in the meeting at 3:00.  Meeting adjourned at 4:32 PM.

 

 

EXHIBIT SUMMARY