HOUSE COMMITTEE ON

AUDIT & HUMAN SERVICES BUDGET REFORM COMMITTEE

 

 

February 12, 2003   Hearing Room 50

3:00PM Tapes  24 - 25

 

MEMBERS PRESENT:            Rep. Ben Westlund, Chair

Rep. Steve March, Vice-Chair

Rep. Susan Morgan

Rep. Jeff Kruse

Rep. Jeff Merkley

Rep. Alan Bates

 

MEMBER EXCUSED:             Rep. Randy Miller

 

STAFF PRESENT:                  Rick Berkobien, Committee Administrator

Kelly Fuller, Committee Assistant

 

 

ISSUES HEARD:                     Informational Meeting - Invited Testimony

                                                “Developing a New Framework for the Oregon Health Plan”

                                                Barney Speight, Director of Government Relations, Kaiser

                                                Permanente Health Plan

 

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 24, A

001

Chair Westlund

Calls informational meeting to order, introduces Barney Speight, Kaiser Permanente Health Plan and opens the informational meeting.

INFORMATIONAL MEETING

012

Speight

Kaiser Permanente Health Plan.  Offers chart and written outline and summarizes information regarding the Oregon Health Plan (EXHIBIT A):

  • Goals
  • Components
  • Comparisons
  • Processes

299

Berkobien

Asks if he sees this as a dropping trend.

302

Speight

Answers and explains the six year cycle.

TAPE 25 A

064

Chair Westlund

Asks how much is utilization and how much is medical inflation.

070

Speight

Indicates they both play a role and gives the percentages of each.

107

Chair Westlund

Points out the utilization and inflation are interrelated.

112

Speight

Refers to a chart and prepared materials and continues to explain.

124

Rep. Bates

Asks for comments about inflation in other countries and new technology, high prescriptions costs, and high hospital costs in our country.

165

Speight

Responds to comments and offers information in these areas and reasons for them.

337

Berkobien

Asks if satellite hospitals have added to the costs.

350

Speight

Answers some components of hospitals are located in other areas.

TAPE 24 B

001

Speight

Continues and offers information on hospitals and health care centers.

200

Chair Westlund

Comments that if you don’t address standard eligibility and cost shifting it will have a spiral downward effect.

211

Speight

Refers to page 11 of exhibit and comments on cost shifting, safety netting and delivery mechanisms.

291

Chair Westlund

Offers that the state sets the price and negotiations and reevaluations are needed.

293

Speight

Answers negotiations are made and if the prices are not accepted the product is not delivered.

302

Berkobien

Asks if there is a drop that is picked up by the provider does the state reimburse and has it been attempted with the Oregon Health Plan (OOHP).HP.

330

Speight

Answers to the risks and what has been attempted by the OHP.

362

Rep. Bates

Asks about a system with a federal draw down.

370

Speight

Answers to the need of locating the state sources of funding to be able to get the drawdown.

TAPE 25 B

010

Rep. Kruse

Asks about the money coming back to where it belongs and the legislative process in all of this.

020

Speight

Answers in time it will be seen as a lower rate of increase not as a premium decrease.

041

Rep. March

Inquires of federal waivers.

044

Speight

Responds that he does not know but states we need to understand what the implications are about waiver requirements and maintenance of effort.

119

Berkobien

Asks if Price Waterhouse is who we need to speak with and discuss how costs are established.

136

Rep. Kruse

Comments on the need to know the assumption base that they use to come to their conclusions.

155

Speight

Expresses that this is a very volatile environment and we need to be a part of positioning the state.

183

Chair Westlund

Comments the need for a baseline to start building this upward.

190

Speight

Comments that he looks forward to working on the stakeholder group and expresses that it will be a daunting task.

200

Chair Westlund

Answers it will be a very critical time and very intensive.

208

Rep. Merkley

Asks for comments on how Oregon’s tax revenue will be affected and would like to see any materials he may have on this subject.

226

Speight

Answers there has been some modeling done on these issues and he will supply them for the committee if they have been published.

260

Chair Westlund

Meeting adjourned 4:50pm

 

 

EXHIBIT SUMMARY

 

A – Informational – OHP, Developing a New Framework, Barney Speight, 17 pp