CONFERENCE COMMITTEE ON SB 782

 

 

July 12, 2005 Hearing Room D

4:45 P.M.      Tapes 1 - 2

 

MEMBERS PRESENT:            Sen. Bill Morrisette, Chair

Sen. Jeff Kruse

Sen. Laurie Monnes Anderson

Rep. Deborah Boone

Rep. Tom Butler

Rep. Billy Dalto

 

STAFF PRESENT:                  Rick Berkobien, Committee Administrator

Erin Seiler, Committee Assistant

 

MEASURES/ISSUES HEARD:

                                                SB 782B – 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 1, A

001

Chair Morrisette

Opens the meeting at 4:50 p.m. Opens a work session on SB 782B.

SB 782B – WORK SESSION

005

Rick Berkobien

Committee Administrator. Explains SB 782B, which requires Department of Human Services to inform former recipients of public assistance who have been terminated from programs due to ineligibility or termination of program that former recipient may reapply if circumstances affecting eligibility change. Submits and summarizes     –B7 amendments (EXHIBIT A). Submits and summarizes –B8 amendments (EXHIBIT B). Submits –B9 amendments (EXHIBIT C).

015

Lynn Reed

Administrator, Office of Medical Assistance Programs. Summarizes how –B7 amendments effect the administrative responsibilities of DHS.

032

Sen. Kruse

Questions whether a former recipient must “come current” before reapplying for assistance. 

035

Reed

Explains that eligibility criteria for recertification are dealt with via the administrative rulemaking process.

041

Sen. Kruse

States that recertification needs to be contingent on whether an individual is current on payments.

045

Bruce Goldberg

Administrator, Office of Health Policy. States that an individual “has a six month period to make six months of payment.”

060

Sen. Kruse

Questions the application of the grace period and whether recertification is effected.

065

Reed

Addresses how grace period effects recertification.

070

Goldberg

Clarifies a recipients' payment responsibility during and after grace period.

077

Rep. Butler

Asks if it is possible for a recipient to retain certification if that person is eleven months behind in payments.

085

Goldberg

Explains why it is not possible for an individual to be eleven months behind and remain certified.

105

Sen. Kruse

Referring to –B7 amendments, asks why is it “suddenly better” to deal with payment premium for 10 percent federal poverty after a previous attempt failed.

110

Sen. Monnes Anderson

Asks if SB 824 was moved to Senate Budget Committee.

114

Berkobien

Verifies that SB 824 was sent to Senate Budget Committee.

117

Sen. Kruse

Asks that if SB 824 needed to go to the Budget Committee, why the same issues are being discussed in this Committee and not in Budget.

120

Reed

Speaks to the fiscal statement, explaining how losing the revenue from payment premiums will affect the ability of DHS to serve people below 10 percent federal poverty level. 

136

Sen. Kruse

States that cutting more people off from services is not good public policy.

144

Rep. Dalto

Clarifies the analysis of the fiscal statement and asks if DHS is collecting any payment from the zero to 10 percent poverty population.

154

Reed

Confirms the accuracy of the fiscal assessment and explains that DHS is collecting premium payments from individuals at the zero to 10 percent poverty level.

165

Rep. Dalto

Questions ascertain made by DHS that people are going to lose spots, stating that DHS could absorb the costs.

169

Reed

Acknowledges the potential that DHS expenditures could be less, but current estimates indicate the likelihood that DHS will have to serve fewer people.  

177

Goldberg

Explains why the policy choice is where and how “we lose people.”

199

Rep. Dalto

Asks where the zero to 10 percent population falls on the poverty level.

206

Reed

Believes that most of the people are at zero percent of the poverty level.

211

Rep. Dalto

Explains how the decrease in clients is a result of program attrition.

225

Sen. Kruse

Summarizes how the reduction of revenue will affect the budget and the ability of DHS to maintain specific programs.

260

Rep. Butler

Asks what is the current DHS workload and when will the 300 plus individuals go off the program.

270

Reed

Summarizes the number of clients that DHS serves and what DHS anticipates the attrition rate will be for the biennium.

298

Rep. Butler

Expresses concern that DHS intends to reduce the number of clients served by 3000 over the next 24 months.

317

Reed

Speaks to the rate of attrition since the program closed in July 2004 and why DHS anticipates that the number of clients will drop below 23,300.

330

Rep. Butler

Confirms that those numbers can be reached with –B7 amendments.

337

Goldberg

Explains what budgetary options DHS will have if attrition does not continue at the anticipated rate.

355

Rep. Butler

Expresses concern that all families involved in the program maybe in danger if DHS misjudges rate of attrition.

368

Chair Morrisette

Asks if the entire program would be lost if attrition rate is misjudged.

374

Reed

Explains why DHS does not anticipate that outcome.

380

Chair Morrisette

In reference to private organizations that collect money and pay premiums, asks if these organizations keep a percentage of what is collected.

391

Reed

Explains that DHS has a contract with a vendor to bill and collect premiums.

398

Chair Morrisette

Asks if contracts would be affected if the bottom 10 percent were eliminated from premiums.

402

Reed

Speculates what the impact would be if the bottom 10 percent of the paying group were eliminated.

412

Sen. Kruse

Explains why excusing the bottom 10 percent from paying premiums would be a disincentive to attrition and force DHS to “kick people off” of the program.

TAPE 2, A

018

Goldberg

Explains why rate of attrition will be determined more by who and why people leave, not obligation to pay premium. 

036

Sen. Kruse

Comments how it would be hard to differniante between someone at 10 percent federal poverty and 15 percent federal poverty.

038

Goldberg

Agrees that 10 percent and 15 percent cut-off percentages are arbitrary.

046

Chair Morrisette

Citing DHS statistics on poverty, states satisfaction in the ability of DHS to absorb costs and will support the bill.

061

Berkobien

Summarizes –B9 amendments.

084

Richard

Representative, Johnson & Johnson. Explains why –B9 amendments give DHS the flexibility to use either the generic or brand name drug.  

0125

Sen. Kruse

Asks for opinion of DHS on –B9 amendments.

134

Tom Holt

Executive Director, Oregon State Pharmacy Association (OSPA). Summarizes OSPA concerns with –B9 amendments.

169

Chair Morrisette

Asks if OSPA was involved in discussions of budget note.

171

Holt

Summarizes the directives in the budget note.

178

Reed

Explains what the budget note specifically directs DHS to accomplish with a task force.

194

Sen. Kruse

Citing the permissive language in –B9 amendments, questions why does DHS would need to conduct a study.

210

Reed

Cites the need to study the administrative issues to make sure it works.

212

Sen. Kruse

States that with –B9 amendments DHS would not have to wait for the Emergency Board, DHS would have the statutory authority to go forward with program.

219

Holt

Agrees that –B9 amendments are permissive. Summarizes why OSPA would want the flexibility to work with DHS.

244

Rep. Dalto

Asks whether DHS anticipates a fiscal impact with –B9 amendments.

249

Reed

States that DHS will not know if there will be a fiscal impact unless the department engages all stakeholders and determines if the saving off-set administrative costs.

258

Rep. Dalto

Asks how the concerns of OSPA could be alleviated.

265

Holt

Identifies the key issues that OSPA would need assurance from DHS on if OSPA is to support –B9 amendments.

287

Chair Morrisette

Discusses how to proceed with the different amendments.

298

Sen. Kruse

Speaks in support of moving forward with –B9 amendments.

334

Sen. Monnes Anderson

Expresses concern that the administrative costs would be higher than the amount of money saved in drug costs.

351

Rep. Butler

Discusses the flexibility that –B9 amendments give DHS to study the program while at the same time moving forward with the program. 

391

Chair Morrisette

Expresses struggle with how to move forward on the bill.

406

Sen. Kruse

States that the budget note allows for study and amendment changes the statute.

431

Holly Robinson

Deputy Legislative Counsel, Office of Legislative Counsel. Confirms the need for –B9 amendments.

TAPE 1, B

008

Robinson

Summarizes the protection provided the statute and how additional concerns can be resolved through rulemaking process.

030

Robinson

States the burden and affirmative duty is on DHS to notify a pharmacy that they may dispense a brand.

036

Chair Morrisette

Asks if –B9 amendments were passed would DHS make the necessary administrative rules.

041

Reed

Confirms that DHS would go through rulemaking process.

044

Holt

Asks if DHS would be agreeable to notifying pharmacy in time to clear product out of pharmacies.

057

Sen. Kruse

Questions that if a generic drug becomes available, nobody else is ever going to buy the brand name drug.

073

Berkobien

Clarifies the effect of –B9 amendments.

081

Sen. Monnes Anderson

Expresses being uncomfortable moving forward on –B9 amendments.

093

Rep. Butler

Clarifies the difference between –B7 amendments and –B9 amendments.

097

Berkobien

Restates what the differences are in –B7 amendments, -B8 amendments, and -B9 amendments.

107

Chair Morrisette

Comments on satisfaction with moving forward with –B9 amendments.  

114

Sen. Kruse

MOTION:  Moves SB 782B to the floor with the recommendation that the Senate CONCUR in House amendments dated 06/27/05 and that the bill be FURTHER AMENDED by –B9 amendments dated 07/12/05 and the measure be REPASSED.

127

Sen. Monnes Anderson

States objection to –B9 amendments.

133

Sen. Kruse

States support for –B9 amendments.

141

 

VOTE:  5-1-0

AYE:            5 - Rep. Boone, Rep. Butler, Rep. Dalto, Sen. Kruse, Sen. Morrisette

NAY:            1 - Sen. Monnes Anderson

 

Chair Morrisette

The motion Carries.

REP. DALTO AND SEN. MORRISETTE will lead discussion on the floor.

146

Chair Morrisette

Closes the work session on SB 782B. Adjourns the meeting at 6:01 p.m.

147

Chair Morrisette

Opens the meeting at 6:05 p.m. Opens a work session on SB 782B.

SB 782B – WORK SESSION

149

Rep. Butler

MOTION:  Requests unanimous consent that the rules be SUSPENDED to allow SEN. MONNES ANDERSON to CHANGE vote from NAY to AYE on the "MOTION:  Moves SB 782B to the floor with the recommendation that the Senate CONCUR in House amendments dated 06/27/05 and that the bill be FURTHER AMENDED by –B9 amendments dated 07/12/05 and the measure be REPASSED”.

 

 

VOTE:  6-0-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Morrisette

The motion CARRIES.

REP. DALTO AND SEN. MORRISETTE will lead discussion on the floor.

155

Chair Morrisette

Closes the work session on SB 782B.  Adjourns the meeting at 6:10 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 782B, -B7 amendments, staff, 2 pp
  2. SB 782B, -B8 amendments, staff, 2 pp
  3. SB 782B, -B9 amendments, staff, 6 pp