HOUSE COMMITTEE ON

 VETERANS' AFFAIRS

 

March 3, 2005 Hearing Room C

8:30 A.M.  Tapes 34 - 35

 

MEMBERS PRESENT:            Rep. Donna Nelson, Chair

Rep. Phil Barnhart, Vice-Chair

Rep. Debi Farr, Vice-Chair

Rep. Brian Boquist

Rep. Scott Bruun

Rep. Dave Hunt

Rep. Betty Komp

 

STAFF PRESENT:                  Jim Stembridge, Committee Administrator

Erin Seiler, Committee Assistant

 

MEASURES/ISSUES HEARD:

                                                Introduction of Committee Measures – Work Session

                                                Veterans’ Issues – Informational Meeting

 

 

TAPE/#	Speaker	Comments
TAPE 34, A
002	Chair Nelson	Opens the committee meeting at 8:39 a.m. Opens a work session for the introduction of committee measures.
INTRODUCTION OF COMMITTEE MEASURES – WORK SESSION
037	Jim Stembridge	Committee Administrator. Summarizes the legislative drafts for introduction as committee measures.
079	Rep. Barnhart	Asks, regarding LC 3125, what the effect of reconnecting to the federal definition of taxable income and how it will affect Oregon taxable income.
099	Rep. Boquist	Estimates that revenue will decrease by $1.6 million dollars over the biennium.
110	Chair Nelson	Confirms that LC 3125 is the measure that exempts veterans’ death benefits from Oregon taxable income.
115	Rep. Boquist	States that this is a decrease in state revenue of $31,000 dollars over the biennium.
122	Rep. Farr	MOTION:  Moves the following list of LC drafts: BE INTRODUCED as committee bills.                      LC 3125 (EXHIBIT A)                      LC 3201 (EXHIBIT B)                                                                                                                                                                                                                      LC 3202 (EXHIBIT C)                      LC 3204 (EXHIBIT D)                      LC 3207 (EXHIBIT E)                      LC 3228 (EXHIBIT F)                      LC 3229 (EXHIBIT G)                      LC 3424 (EXHIBIT H)                      LC 3425 (EXHIBIT I)                      LC 3426 (EXHIBIT J)                      LC 3427 (EXHIBIT K)                      LC 3206 (EXHIBIT L)                      LC 3429 (EXHIBIT M)                      LC 3232 (EXHIBIT N)                      LC 3434 (EXHIBIT O)
		VOTE:  6-0-1 EXCUSED:  1 - Hunt
	Chair Nelson	Hearing no objection, declares the motion CARRIED.
131	Chair Nelson	Closes the work session on the introduction of committee measures. Opens an informational meeting on Veterans’ Issues.
VETERANS’ ISSUES – INVITED TESTIMONY – INFORMATIONAL MEETING
147	Alfred Brandt	Director of Government Affairs and Marketing United Concordia Companies, Inc.  Addresses issues regarding dental support for Oregon Military National Guard and Reservists.
171	Brandt	Introduces Richard Panepinto and Ty Obenoskey. Clarifies that he does not speak officially for the military, but will provide antidotal information on most issues.
182	Brandt	Discusses the background of the dental program. Addresses why it has not been a successful program.
214	Brandt	Explains that only 3 percent of eligible Reservists nationally and 4 percent of eligible Oregon Reservists participate in the dental program.
242	Brandt	Speaks to the problems with dental coverage and reviews the additional dental programs that take care of the unmet dental needs of Reservists.
271	Brandt	States that the “big question” is how to these individuals to make sure that they have dental needs met.
284	Brandt	Speaks to the responsibility of United Concordia (UC), as the contractor and administrator of the dental program, for marketing the program. Explains that the dental benefits are the same as active duty and are comparable to benefits offered in private industry.
297	Chair Nelson	Asks what UC marketing and advertising plan is for the dental program.
317	Brandt	Responds that the Reserve Affairs Office has put out the message, including putting brochures in all of their offices, establishing links to local guard websites.
334	Brandt	Acknowledges the difficulties associated with administering the system and the breakdown in chain of communication between UC and soldiers.
354	Brandt	Speaks to the restrictions within UC contract with the DOD that are preventing them from reaching out to soldiers. Explains that the current contract prevents UC from contacting soldiers during boot camp and requires that Reservists pay the dental premium up front.
411	Ty Obenoskey	Dental Benefit Advisor, UC. Explains his responsibility is to travel throughout Oregon, giving briefings to all mobilizing National Guard Units and their family members or upon the request of a unit.
TAPE 35, A
014	Brandt	Submits UC Dental Marketing packet, which includes benefits booklet, PowerPoint presentation, TRICARE Dental Program information, enrollment form, and informational brochures (EXHIBIT P).  Explains the different co-pay structures for dental services.
032	Brandt	Clarifies that soldiers do have to get new coverage after they leave the Reserves or return to their civilian lives.
045	Rep. Komp	Confirms the premium costs for family enrollment.
051	Brandt	Clarifies the difference in the cost of the premiums for the families of active duty soldiers and families of Reserve soldiers.
060	Chair Nelson	Asks how quickly UC reimburses dental care providers.
064	Brandt	States that there has been good success with repayment schedules because they are required, as a condition of UC contract with DOD.
072	Rich Panepinto	Manager for Benefit Relations, UC. States that if reimbursement requirements are not met, there is a significant financial penalty. Explains the claims reimbursement schedule that UC.
081	Panepinto	Speaks to the primary way of distributing information on the program.
109	Rep. Farr	Asks if there are any areas in Oregon that do not have contracted dental providers.
119	Brandt	Discusses how many participating dentists there are in Oregon.
153	Brandt	Speaks to the primary difficulties that UC has contracting with dental providers.
184	Obenoskey	Explains the “35 mile rule”, which states that if there is no participating dentist within 35 miles of where a family resides and the company cannot locate a contracted provider, then the family can go to go a local dentist and the dentist is reimbursed at full cost.
211	Rep. Boquist	Questions the rational for requiring up-front payment for dental insurance as opposed to pay-roll deductions.
236	Brandt	States that the primary rationale is that many reservists do not always attend drills.
286	Rep. Boquist	Explains the administrative process when Reserve soldiers are activated for duty.
303	Brandt	Confirms that once a soldier is activated, DEERS is notified and they are then eligible for all active duty benefits.
363	Chair Nelson	Comments on the need for an Ombudsman for the National Guard.
TAPE 34, B
020	Rep. Farr	Comments on the high cost of dental services to Reservists (EXHIBIT P, Page 56).
034	Brandt	Acknowledges that the DOD has a critical shortage of dentists.
050	Rep. Barnhart	Asks who establishes the reimbursement rate for dental procedures (EXHIBIT P, Page 56).
059	Brandt	Explains that the company establishes the fee rates paid to dentist, but the contract with the DOD requires that the fees be paid at a specific percentile for participating providers and at a specific percentile for non-participating providers.
076	Rep. Barnhart	Asks for information on the formula that was used as the basis for establishing the cost for dental procedures.
079	Jim Stembridge	Committee Administrator. Submits list of participating dentists in Oregon (EXHIBIT Q).
089	Brandt	Explains that the DOD contracts for dental insurance are for five years and that the new contract will be awarded on March 31, 2005.
109	Rep. Boquist	Comments how the Oregon Military Department sends out a monthly to magazine to every soldier in the state, questioning if UC has considered placing an advertisement in the magazine.
121	Panepinto	States that every February the Times magazines includes a TRICARE supplement that details all medical, dental, and healthcare benefits, for soldiers.
132	Chair Nelson	Closes the informational meeting on Veterans’ Issues. Adjourns the meeting at 9:24 a.m.

 

 

EXHIBIT SUMMARY

 

1. Introductions, LC 3125, staff, 5 pp
2. Introductions, LC 3201, staff, 2 pp
3. Introductions, LC 3202, staff, 2 pp
4. Introductions, LC 3204, staff, 2 pp
5. Introductions, LC 3207, staff, 2 pp
6. Introductions, LC 3228, staff, 2 pp
7. Introductions, LC 3229, staff, 2 pp
8. Introductions, LC 3424, staff, 2 pp
9. Introductions, LC 3425, staff, 2 pp
10. Introductions, LC 3426, staff, 2 pp
11. Introductions, LC 3427, staff, 2 pp
12. Introductions, LC 3206, staff, 2 pp
13. Introductions, LC 3429, staff, 1 p
14. Introductions, LC 3232, staff, 2 pp
15. Introductions, LC 3434, staff, 2 pp
16. Healthcare, United Concordia Dental Program, marketing packet, Alfred Brandt, 77 pp
17. Healthcare, United Concordia Dental Program, provider list, staff, 11 pp