HOUSE COMMITTEE ON

AUDIT & HUMAN SERVICES BUDGET REFORM COMMITTEE

 

 

February 03, 2003   Hearing Room 50

3:00 pm Tapes  14 & 15

 

MEMBERS PRESENT:            Rep. Ben Westlund, Chair

Rep. Steve March, Vice-Chair

Rep. Alan Bates

Rep. Jeff Kruse

Rep. Jeff Merkley

 

 

MEMBERS EXCUSED:            Rep. Randy Miller

                                                Rep. Susan Morgan, Vice Chair

 

GUEST MEMBERS:               Rep. Laurie Monnes Anderson

                                                Rep. Gordon Anderson       

 

STAFF PRESENT:                  Rick Berkobien,  Committee Administrator

Kelly Fuller,  Committee Assistant

 

 

ISSUES HEARD: Informatioal - Invited Testimony Only

                                                Rocky King, Insurance Pool Governing Board

                                                “Private Market Health Insurance, Employer Sponsored Insurance –Family Health Assistance Insurance Program & Insurance Mandates”

 

 

 

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 14, A

006

Chair Westlund

Calls meeting  to order 3:13pm and introduces Rocky King, Administrator for the Insurance Pool Governing Board and opens the informational meeting.

INFORMATIONAL MEETING

015

Rocky King

Re-introduces himself and gives an overview of his presentation, answers questions from the previous day of testimony and begins presentation.  (EXHIBIT A 1/28/03)

065

Chair Westlund

Asks if the employer puts 2k in your MSA, does that money follow you.

070

King

Responds yes, and give more detailed explanation.

091

Rep. Bates

Asks if MSA’s are also know as cafeteria plans.

093

King

Answers questions about cafeteria plans and MSA’s.

095

Rep. Kruse

Asks what is the difference is between an MSA and a cafeteria plan.

096

King

Responds and defers to Peggy Anet, from the Health Insurance Association of America.

098

Rep. Merkley

Comments and elaborates his knowledge about these plans.

104

Peggy Anet

Gives an explanation of a cafeteria plan.

134

Rep. Kruse

Gives his clarification on  what he has heard to this point and

asks if he is correct.

143

Anet

Elaborates to give a better understanding of the plans.

160

Rep. Kruse

Comments that it sounds more like a defined contribution than a defined benefit.

163

Anet

Gives more explanation to make the topic more clear.

177

Chair Westlund

Asks for them to continue to explain, as this is unclear.

179

Anet

Continues to explain.

192

Rep. Merkley

Gives comments about his personal experience about a cafeteria plan.

210

Chair Westlund

Makes comments to Rep. Merkley to clarify his experience on his cafeteria plan.

217

Rep. Merkley

Continues to explain his personal experience.

226

Anet

Responds and follows up on Rep. Merkley’s comments.

236

Rep. Kruse

Gives an analogy to make sure he is clear in his understanding.

254

Anet

Continues to try to make these plans more clear.

270

Rep. Kruse

Expands on his analogy.

283

Anet

Expounds about coverage and benefit plans.

306

Rep. Kruse

Comments that he understand that as this is getting more sophisticated and complicated most companies offering cafeteria put a floor on it, saying you have to take the basic benefit package, but you will have some options.

322

Chair Westlund

Makes additional comments about the plans discussed above.

332

Rep. Anderson

Asks if there is a floor of protection there, but if someone used all the dollars available would he have the chance to come back in and buy the basic care.  Does he have the right to come back in and get the most basic that he needs.

337

Anet

Responds to Rep. Anderson with an answer to his question.

345

Rep. Anderson

Asks then if you are over the amount that you are originally allotted, the employee has to pay or the employer picks up the costs of the extra.

367

Rep. Kruse

Can you mix and have employee and employer contributions to MSA.

393

Anet

Comments about mixing contributions.

411

Rep. Kruse

Asks if an employer and employee can both contribute to a cafeteria plan, and elaborates his comments.

TAPE 15A

 

 

008

King

Gives an analogy for more defined detailed explanation.

045

Anet

Comments on what she thinks is confusing folks and offers to come up with something that will help with clarification.

050

Rep. Kruse

Asks what are the changes that will happen to the MSA’s.

053

King

Responds to the question about changes to MSA’s.

062

Anet

Makes comments about her experiences as a benefit manager.

065

Rep. Kruse

Comments that he is excited about removing the caps on MSA’s.

066

Rep. Merkley

Asks if you do not use your money does the employers get to keep it.

077

Anet

Gives clarification about employers keeping the money.

080

Rep. Kruse

Comments that the employee will get some benefit, but it is aggregate and hard to define.

083

Anet

Comments about never seeing an employer do an individual distribution of the left over assets.

085

Rep. Kruse

Gives clarification of what he said and comments that if it rolls back in to finance the next year it is going to lower the costs, but it is in aggregate and so it would be hard for an employee to see what he was getting.

092

King

Comments about the left over money.

100

Rep. Merkley

Makes comments about related experiences.

111

Rep. Bates

Comments about all of these plans.

128

King

Comments about an article that he has provided.

136

Chair Westlund

Comments and talks to Rep. Bates and other members about these plans.

146

Rep. Bates

Agrees with Rep. Westlund and elaborates.

155

King

Begins presentation on the Family Health Insurance Assistance Program (FHIAP).  Page 52 of (EXHIBIT A 01/28/03)

315

Rep. Anderson

Asks what the definitions of CMMS.

318

King

Gives definition of (CMMS) is Center for Medicaid and Medicare Services and continues presentation.

TAPE 14 B

 

 

001

Rep. Monnes Anderson

Asks what that 5 percent was costing us.

004

King

Answers about the 5 percent.

012

Rep. Kruse

Assuming you are covering 20 thousand people, you are talking about 200 folks who were enrolled that should not have been that got weeded out

014

King

Answers about how those that shouldn’t be enrolled get weeded out and continues presentation.

026

Rep. Kruse

Asks if the audit has to be a random audit.

031

King

Comments and continues about random audits.

040

Rep. Kruse

Do you have a sense of how many, if you were not requiring tax returns, do you think they would still be able to catch the folks that should not be there.

046

King

Answers about catching the folks that should not be there and continues presentation.

187

Rep. Kruse

Asks if what you are needing considerably different than what workers comp requires.

190

King

Not sure what workers comp requires.

195

Rep. Kruse

Comments and relates personal experience forms and etc.

198

King

Makes comments and continues program.

322

Rep. Monnes Anderson

Asks if it is true even though you can get free immunizations through your local public health departments.

326

King

That is true in 90% of the state.  Continues presentation.

368

Rep. Kruse

Would you advocate for more flexibility than 50-50 in group and individual plans.

370

King

Answers questions about more flexibility in group and individual.

372

Rep. Kruse

Comments that if we get Medicaid match it will change.

377

King

Can you wait on this question, I will get to that soon.  Continues presentation.

TAPE 15 B

 

 

002

Rep. March

Asks if the male and female percentage include children.

006

King

Answers yes and continues.

071

Rep. March

Asks under OMIP do we pay an agent referral fees.

077

King

Yes, and explains the details.

089

Rep. Anderson

Asks if the agents you have trained recently, do they do this as a service for these folks.

095

King

They receive no commission for what they do.  Gives details.

104

Rep. Merkley

Asks if everything is a first come first serve arrangement for the waiting list or is there any preference given to those based on their condition.

116

King

Gives details of how the program works on the first come first serve basis.

131

Chair Westlund

Clarify the group verses individual waitlist.  Asks what is the dynamic that is creating the waitlist for the group and not the individual.

140

King

Gives clarification about the differences.

176

Chair Westlund

Makes comments about the market.  Could you go back to slide 68 and clarify what I am going to pay per month.

192

King

Explains what you will pay on average.  See page 43 of the (EXHIBIT A 1/28/03)

210

Chair Westlund

Lists figures for clarification.

215

King

Explains in more detail.

220

Rep. Anderson

Has questions about some advertisements he has seen lately.

235

King

Not sure what the packages are in those advertisements.

239

Rep. Anderson

Asks about national faith based plans and if those plans tend to effect your program.

257

King

Makes his comments about these advertisements.

276

Rep. March

Comment for Rick Berkobien:  I would like to look at the budgets in fair detail at a later date.  In particular, what is the turn over rate is in this program.

302

King

Responds that he will look into getting the information.

309

Chair Westlund

Makes comments about other qualifying businesses.

320

King

Comments by in large agents will put in large amounts of work to complete applications.

334

Chair Westlund

Questions private sector verses OMIP

353

Rep. Kruse

Makes comments about insurance agents.

400

Chair Westlund

Meeting adjourned 4:52 pm

 

 

 

 

EXHIBIT SUMMARY

 

A – Informational, Health Insurance Resource Manual, 368 pp (EXHIBIT A 1/28/03)

B – Informational, The Council for Affordable Health Insurance’s, 2 p