HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES

May 27, 2003 Hearing Room D

9:00 A.M. Tape 113 – 114

MEMBERS PRESENT: Rep. Jeff Kruse, Chair

Rep. Billy Dalto, Vice-Chair

Rep. Carolyn Tomei, Vice-Chair

Rep. Gordon Anderson

Rep. Jeff Barker

Rep. Laurie Monnes Anderson

MEMBER EXCUSED: Rep. Ben Westlund

STAFF PRESENT: Sandy Thiele-Cirka, Committee Administrator

Mara McGraw, Committee Assistant

ISSUES HEARD: Statutory Framework in Developing Health Care Coverage for Prioritized Populations: Holly Robinson, Deputy Legislative Counsel

MEASURES HEARD: HB 2189 – Work Session

HB 2537 – Work 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 113, A
004	Chair Kruse	Calls meeting to order at 9:18 A.M. and opens informational meeting.
INFORMATIONAL MEETING
011	Holly Robinson	Deputy Legislative Counsel, Office of Legislative Counsel. Submits proposed 2511-1 amendments, dated 5/23/03 (EXHIBIT A) and Population Prioritization Draft Plan (EXHIBIT B). Details implementation plan.
073	Rep. Monnes Anderson	Inquires on impact to reinstate children before other populations.
081	Robinson	Discusses fiscal impact related to Children’s Health Insurance Program (CHIP). Discusses implementation plan as it relates to federal regulations. Highlights current services provided under Medicaid as they differ from proposed service categories. Discusses benefits of service matrix. Addresses use of federal poverty line to implement services.
186	Chair Kruse	Discusses subsets of service in regard to use of service matrix.
200	Robinson	Notes definition used to modify services is that specific to Oregon Health Plan (OHP).
213	Rep. Anderson	Requests clarity on proposal.
218	Robinson	Details addition of populations to chart.
225	Chair Kruse	Notes intent of chart (EXHIBIT B) currently discussed in Senate Health Policy Committee.
249	Rep. Anderson	Inquires if changes can be made as revenue becomes available.
253	Chair Kruse	Discusses intent regarding laying a framework for future expansion and flexibility in reshuffling priorities.
266	Robinson	Notes current draft does not allow for flexibility.
277	Chair Kruse	Notes future legislature can work on changes as they see fit.
287	Robinson	Discusses need for clarity in future flexibility.
294	Rep. Merkley	Inquires on impact to specific populations.
301	Robinson	Notes chart (EXHIBIT B) is merely a guide to generate the questions, not the actual proposal.
304	Rep. Merkley	Inquires on non-citizen clause as it relates to chart (EXHIBIT B).
319	Robinson	Notes group will be added to chart.
332	Rep. Anderson	Inquires on potential to temporarily redistribute funding from children to medically needy program.
350	Chair Kruse	Notes other proposed benefits packages regarding children and medically needy.
385	Rep. Monnes Anderson	Requests clarity on other legislation impacting hospitals.
395	Robinson	Does not know of any legislation to address issue.
399	Chair Kruse	Notes proposed amendments are draft issues. Closes information meeting and opens work session on HB 2189.
HB 2189 – WORK SESSION
317	Sandy Thiele-Cirka	Administrator. Summarizes bill.
434	Rocky King	Administrator, Insurance Pool Governing Board, Oregon Medical Insurance Pool (OMIP). Submits written testimony related to bill and proposed amendments (EXHIBIT C).
TAPE 114, A
010	King	Summarizes program and billing process. Notes fiscal impact.
042	Rep, Monnes Anderson	Inquires on funding for Family Health Insurance Assistance Program (FHIAP) and OMIP.
046	King	Differentiates funding between two programs. Notes intent of bill to assess and replace funds. Summarizes proposed amendments regarding fund splitting and benchmarks.
123	Chair Kruse	Points out focus on group market.
135	King	Continues presentation on proposed amendments regarding specific definitions.
198	Chair Kruse	States intent regarding bill and proposed amendments. Closes work session on HB 2189 and opens work session on HB 2537.
HB 2537 – WORK SESSION
205	Thiele-Cirka	Summarizes bill and -2 amendments, dated 3/20/03 (EXHIBIT D).
217	J. L. Wilson	National Federation of Independent Businesses (NFIB). Notes membership concerns regarding premium increases. Presents insurance coverage data. Discusses mandated coverage as it impacts small business. Notes employer flexibility to implement specific coverage.
297	Lisa Trussell	Associated Oregon Industries (AOI). Notes similar cost issues in private sector as compared to Oregon Health Plan (OHP) regarding mandates.
341	Rep. Anderson	Inquires on relief from mandates.
346	Wilson	Discusses basic health plan for small group market.
358	Rep. Dalto	Inquires on amendments.
360	Wilson	Notes position on -2 amendments.
371	Rep. Monnes Anderson	Inquires on difference between large and small employers cooperation with mandates.
374	Wilson	Notes regulation and impact to small employers.
387	Rep. Tomei	Inquires on impact of mandates to premiums.
391	Wilson	Presents figures.
406	Trussell	Notes insurance division report with current data.
412	Chair Kruse	Comments on small business perspective.
434	Mark Nelson	Public Affairs Counsel, Oregon Society of Clinical Social Workers. Testifies in support of -2 amendments. Discusses impact of elimination of mental health and alcohol and drug treatment benefits. Notes long term cost reduction when alcohol and drug and mental health benefits are included in basic health package.
509	Rep. Tomei	Requests data.
514	Nelson
TAPE 113, B
035	Rep. Monnes Anderson	Notes ability for small business owners to add provisions at will.
038	Nelson	Notes plan is offered as a package reducing flexibility in coverage. Reiterates need for alcohol and drug and mental health in basic are packages.
055	Chair Kruse	Notes bill does allow for supplemental coverage.
061	Michael Morter	Analyst, Insurance Division, Department of Business and Consumer Services. Expresses agency reservations with bill. Discusses removal of two specific provisions in bill.
081	Chair Kruse	Requests further clarity regarding changes.
083	Morter	Addresses impact of changes on department. Offers to submit information regarding mandates at future date.
096	Chair Kruse	Notes policy decision to separate mandates and benchmarks.
102	Rep. Tomei	Inquires on pregnancy coverage.
104	Morter	Explains pregnancy is not mandated and would need to be an employer add-on.
113	Chair Kruse	Comments on employer flexibility regarding pregnancy coverage.
124	Morter	Notes addition is possible.
131	Rep. Tomei	Comments on family planning issues.
135	Chair Kruse	Orders committee to stand at ease. Reconvenes meeting and closes work session on HB 2537. Adjourns meeting at 10:19 A.M.

EXHIBIT SUMMARY

A – Informational, draft 2511-1 amendments, dated 5/23/03, Holly Robinson, 3 pp.

B – Informational, Population Prioritization Draft Plan, Holly Robinson, 1 p.

C – HB 2189, written testimony, Rocky King, 5 pp.

D – HB 2537, -2 amendments, dated 3/20/03, staff, 1 p.