SENATE COMMITTEE ON HEALTH POLICY

 

 

April 08, 2005                                                                               Lifewise Building, Bend, Oregon

1:00 P.M.                                                                                                                      Tapes 55 - 56

Corrected 10/25/2005

MEMBERS PRESENT:         Sen. Laurie Monnes Anderson, Chair

Sen. Peter Courtney

Sen. Bill Morrisette

 

GUEST MEMBER:               Sen. Ben Westlund

 

MEMBER EXCUSED:          Sen. Jeff Kruse, Vice-Chair

Sen. Gary George

 

STAFF PRESENT:                 Rick Berkobien, Committee Administrator

Brittany Kenison, Committee Assistant

 

MEASURES/ISSUES HEARD:

SB 880 – Public Hearing and Work Session

Healthcare Savings Accounts – Informational Meeting

SB 429 – Public Hearing

SB 618 – Public Hearing and Work Session

SB 936 – Public Hearing and Work Session

SB 962 – Public Hearing and Work Session

SB 783 – Work Session

SB 784 – Work Session

SB 195 – Public Hearing

SB 541 – Public Hearing and Work Session

SB 819 – Public Hearing and Work Session

SB 976 – Public Hearing

 

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 55, A

003

Chair Monnes Anderson

Calls the meeting to order at 1:12 p.m.  Asks Rick Berkobien to make opening comments.

018

Rick Berkobien

Committee Administrator. Makes opening comments.

024

Chair Monnes Anderson

Introduces herself.

028

Sen. Morrisette

Introduces himself.

030

Sen. Courtney

Introduces himself

031

Sen. Ben Westlund

Senate District 27.  Introduces himself.

035

Chair Monnes Anderson

Opens a public hearing on SB 880.

SB 880 – PUBLIC HEARING

 

Rick Berkobien

Committee Administrator.  Introduces the -2 amendments (EXHIBIT A), the -3 amendments (EXHIBIT B) and the -4 amendments (EXHIBIT C) to SB 880.

037

Chair Monnes Anderson

Provides overview of the -2 amendments and the -4 amendments to SB 880.

077

Berkobien

Provides overview of the -3 amendments to SB 880.

085

Chair Monnes Anderson

Explains why the -3 amendments will not be considered.  Asks Berkobien for further explanation of the -4 amendments to SB 880.

093

Berkobien

Provides overview of the -4 amendments to SB 880.

100

Chair Monnes Anderson

Discusses SB 708 (2003) and the purpose of SB 880.  States why she would like the -2 amendments and the -4 amendments to be amended to the bill.

111

David Coutin

M.D., Practicing Physician.  Trustee, Oregon Medical Association (OMA).  Submits and presents written testimony in opposition to SB 880 (EXHIBIT D).

137

Chair Monnes Anderson

Discusses what was deleted from SB 880 with the -2 amendments and the -4 amendments.

142

Sen. Courtney

Asks if the OMA would change their position if the -2 amendments and the -4 amendments were amended to SB 880.

147

Coutin

Responds.

187

Brian DeLashmutt

Oregon Nurses Association.  Testifies in support of SB 880 with the -2 amendments and the -4 amendments.

214

Chair Monnes Anderson

Discusses why she supports SB 880 with the -2 amendments and the -4 amendments.

244

Coutin

Acknowledges nurse practitioners scope of practice.

252

Chair Monnes Anderson

Continues to discuss why she supports SB 880 with the -2 amendments and the -4 amendments.  Closes the public hearing and opens a work session on SB 880.

SB 880 – WORK SESSION

262

Sen. Morrisette

MOTION:  Moves to ADOPT SB 880-2 amendments dated 4/7/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 – George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

264

Sen. Morrisette

MOTION:  Moves to ADOPT SB 880-4 amendments dated 4/7/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

266

Sen. Morrisette

MOTION:  Moves SB 880 to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

SEN. MONNES ANDERSON will lead discussion on the floor.

271

Chair Monnes Anderson

Closes the work session on SB 880 and opens an informational meeting on Healthcare Savings Accounts.

HEALTHCARE SAVINGS ACCOUNTS – INFORMATIONAL MEETING

278

Jack McRay

Senior Vice President, Lifewise Health Plan.  Introduces himself.  Presents overview of the presentation.

283

Farah Loudermilk

Lifewise Health Plan.  Submits and presents slide presentation on Health Savings Accounts (HSA) (EXHIBIT E).

325

Chair Monnes Anderson

Asks a question regarding income and HSA.

TAPE 56, A

005

McRay

Responds.

009

Sen. Westlund

Asks to explain the chart in EXHIBIT E, page 6.

013

McRay

Provides explanation.

017

Sen. Westlund

Clarifies McRay’s explanation.

024

McRay

Re-clarifies his statement regarding income levels and healthcare insurance.

026

Loudermilk

Continues presentation regarding HSA.

033

Sen. Morrisette

Asks a question regarding the chart in EXHIBIT E, page 6.

036

McRay

Responds.

038

Sen. Morrisette

Clarifies that McRay is referring to the “$0-15,000” income category.

039

McRay

Answers, yes.

040

Sen. Morrisette

Asks McRay about the phrase “stand alone.”

041

McRay

Answers, yes.

042

Sen. Morrisette

Asks if Lifewise Health Plan provides prescription drug insurance.

043

Laudermilk

Answers, yes.  Elaborates.

047

Sen. Morrisette

Asks if Lifewise Health Plan does not require clients to take the prescription drug plan.

048

Loudermilk

Responds.

051

Sen. Morrisette

Explains the state prescription drug plan.  Asks a question regarding combining health plans and prescription drug plans from different companies.

058

Loudermilk

Asks Sen. Morrisette if he is specifically referring to HSA.

059

Sen. Morrisette

Answers, yes.

060

Loudermilk

Responds to question.  Continues presentation regarding HSA.

069

Chair Monnes Anderson

Asks Loudermilk for total numbers instead of percentages for Lifewise Health Plan of Oregon.

075

Loudermilk

Answers that percentages are national.  Defers to later in her presentation for specific statistics.  Continues presentation regarding HSA.

088

Chair Monnes Anderson

Verifies statistics in EXHIBIT E, page 9.

091

Loudermilk

Adds that statistics assume that $2,000 is deposited each year.

092

Chair Monnes Anderson

Asks if employees make contributions to the HSA.

094

Loudermilk

Responds.  Continues presentation regarding HSA.

116

Sen. Morrisette

Asks if statistics on EXHIBIT E, page 11 are specific to Oregon.

117

Loudermilk

Answers that they are for Oregon during 2004.  Continues presentation regarding HSA.

127

Chair Monnes Anderson

Notes that Sen. Westlund needs to leave to attend another meeting.  Asks Loudermilk how long HSA have been available.

143

Loudermilk

Responds.

149

Chair Monnes Anderson

Comments on average balance of HSA after 18 months.

150

McRay

Comments on the number of HSA in relation to the HSA bank.

155

Sen. Morrisette

Asks Loudermilk to define HSA.

158

Loudermilk

Responds, Healthcare Savings Accounts.

161

Chair Monnes Anderson

Closes the informational meeting on Healthcare Savings Accounts and opens a public hearing on SB 429.

SB 429 – PUBLIC HEARING

165

Rick Berkobien

Committee Administrator.  Provides overview of SB 429.  Submits written testimony on behalf of Jean Thorne, Administrator, Public Employees’ Benefit Board (PEBB), regarding SB 429 (EXHIBIT F).

180

Chair Monnes Anderson

Reviews PEBB’s concerns of SB 429.  Asks Lifewise employees to address PEBB’s concerns.  States why she likes HSA.

208

Mark Charpentier

Chief Executive Officer, Lifewise Health Plan of Oregon.  Addresses concerns as stated in EXHIBIT F by PEBB.

220

Chair Monnes Anderson

States that PEBB has a proposal request for medical plans effective in 2006.  Asks Charpentier to confirm her interpretation of contracting with healthcare provides who offer HSA.

230

Charpentier

Responds.

240

Loudermilk

Discusses the advantages of HSA’s for healthcare groups.

248

Charpentier

Discusses why transparency and evidence based medicine are needed.

256

Chair Monnes Anderson

Comments on PEBB’s statement regarding why there are short term advantages but long-term issues are not addressed with HSA's.  States that she believes that they are two separate issues.

260

Charpentier

States agreement with the Chair.  Elaborates.

268

Chair Monnes Anderson

Discusses why unions would not agree with HSA.  States that a work session will not be held on SB 429 until further discussions are held with PEBB.

275

Sen. Morrisette

States why he opposes SB 429.

283

Chair Monnes Anderson

Discusses why she supports SB 429.

290

Don Clipness

Independent Agent.  Third Party Administrator.  Testifies regarding SB 429.

340

Chair Monnes Anderson

States that she will address the issues of the bill.

345

Sen. Morrisette

Discusses concerns brought up by Clipness.

350

Chair Monnes Anderson

Closes the public hearing on SB 429 and opens a public hearing on SB 618.

SB 618 – PUBLIC HEARING

355

Rick Berkobien

Committee Administrator.  Provides an overview of SB 618 and introduces the -2 amendments (EXHIBIT G).

385

Chair Monnes Anderson

Discusses that the -2 amendments were a result of the collaboration of the proponents and opponents. 

TAPE 55, B

005

Chair Monnes Anderson

Closes the public hearing and opens a work session on SB 618.

SB 618 – WORK SESSION

010

Sen. Morrisette

MOTION:  Moves to ADOPT SB 618-2 amendments dated 4/7/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

012

Sen. Morrisette

MOTION:  Moves SB 618 to the floor with a DO PASS AS AMENDED recommendation.

015

Sen. Courtney

Points out that there is no designated area in the Oregon State Capital for nursing mothers.  States that he and Speaker of the House, Karen Minnis will find an appropriate area whether or not the bill becomes law.

020

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

SEN. BURDICK will lead discussion on the floor.

024

Chair Monnes Anderson

Closes the work session on SB 618 and opens a public hearing on SB 936.

SB 936 – PUBLIC HEARING

025

Rick Berkobien

Committee Administrator.  Presents overview of SB 936 and introduces the -2 amendments (EXHIBIT H).

The following material is submitted for the record without public testimony:

 

Kathleen Haley

Executive Director, Board of Medical Examiners.  Submits written testimony in support of SB 936 with the -2 amendments (EXHIBIT I).

045

Chair Monnes Anderson

Provides explanation of the word “demonstrate” in line 18 of the -2 amendments for acupuncturists that are not licensed in Oregon.  Closes the public hearing and opens a work session on SB 936.

SB 936 – WORK SESSION

053

Sen. Morrisette

MOTION:  Moves to ADOPT SB 936-2 amendments dated 4/4/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

056

Sen. Morrisette

MOTION:  Moves SB 936 to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

SEN. MORRISETTE will lead discussion on the floor.

062

Chair Monnes Anderson

Closes the work session on SB 936 and opens a public hearing on SB 962.

SB 962 – PUBLIC HEARING

064

Rick Berkobien

Committee Administrator.  Provides overview of SB 962 and introduces the -5 amendments (EXHIBIT J), and the -8 amendments (EXHIBIT K).

070

Chair Monnes Anderson

Provides further explanation of SB 962.  Stands the committee at ease.

090

Chair Monnes Anderson

Reconvenes the meeting.  Provides explanation of the -5 amendments and the -8 amendments.

100

Sen. Courtney

Asks who will be creating the report.

102

Chair Monnes Anderson

Responds that the Oregon Department of Human Services will be.

107

Sen. Morrisette

Asks the Chair about her research regarding SB 962.

112

Chair Monnes Anderson

Responds.

113

Sen. Morrisette

Re-clarifies question.

115

Chair Monnes Anderson

Responds.

120

Sen. Morrisette

Commends the Chair for her work regarding SB 962.

122

Berkobien

Reminds the committee that the bill has a referral to the committee on Ways and Means.  Notes that the Legislative Fiscal office has issued a minimal fiscal impact.

130

Chair Monnes Anderson

Closes the public hearing and opens a work session on SB 962.

SB 962 – WORK SESSION

133

Sen. Morrisette

MOTION:  Moves to ADOPT SB 962-8 amendments dated 4/7/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

135

Sen. Morrisette

MOTION:  Moves SB 962 to the floor with a DO PASS AS AMENDED recommendation and the SUBSEQUENT REFERRAL to the committee on Ways and Means BE RESCINDED.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

SEN. MONNES ANDERSON will lead discussion on the floor.

146

Chair Monnes Anderson

Closes the work session on SB 962 and opens a work session on SB 783.

SB 783 – WORK SESSION

155

Rick Berkobien

Committee Administrator.  Provides an overview of SB 783 and introduces the -2 amendments (EXHIBIT L).

165

Sen. Morrisette

Discusses the intent of the bill and the amendments.

175

Chair Monnes Anderson

States her support of SB 783 with the -2 amendments.

180

Sen. Morrisette

MOTION:  Moves to ADOPT SB 783-2 amendments dated 4/5/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

185

Sen. Morrisette

MOTION:  Moves SB 783 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

 

192

Chair Monnes Anderson

Closes the work session on SB 783 and opens a work session on SB 784.

SB 784 – WORK SESSION

193

Rick Berkobien

Committee Administrator.  Presents an overview of SB 784 and introduces the -2 amendments (EXHIBIT M).

204

Sen. Morrisette

Thanks the Oregon Department of Human Services for their support of the bill.

206

Sen. Morrisette

MOTION:  Moves to ADOPT SB 784-2 amendments dated 4/6/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

210

Sen. Morrisette

MOTION:  Moves SB 784 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

213

Chair Monnes Anderson

Closes the work session on SB 784 and opens a public hearing on SB 195.

SB 195 – PUBLIC HEARING

214

Rick Berkobien

Committee Administrator.  Presents an overview of SB 195 and introduces the -1 amendments (EXHIBIT N).

225

Wayne Schumacher

BikePac – Oregon.  President, American Motorcyclist Association (AMA), District 28.  Submits and presents written testimony in support of SB 195 with the -1 amendments (EXHIBIT O), a fact sheet on SB 195 (EXHIBIT P), written testimony on behalf of Jim Stewart (EXHIBIT Q), and Brian Stovall (EXHIBIT R), in support of SB 195.

287

Mel Yeager

Member, BikePac – Oregon.  Submits and presents written testimony in support of SB 195 with the -1 amendments (EXHIBIT S).

314

Duane Calkins

Member, BikePac – Oregon.  Testifies in support of SB 195.

TAPE 56, B

015

Calkins

Continues testimony.

040

Chair Monnes Anderson

States why a work session will not be held.  Asks Berkobien for comments.

047

Berkobien

Discusses conversations by telephone with the Insurance Division.

058

Chair Monnes Anderson

Discusses preemptive legislation.

060

Schumacher

Addresses the Insurance Division’s concern.

070

Sen. Morrisette

Comments on using motorcycles for transportation.  Asks if other activities, like rock climbing and surfing would be covered.

075

Schumacher

Responds.

080

Sen. Morrisette

Provides recommendations for SB 195.

090

Schumacher

Clarifies that Sen. Morrisette would prefer that recreational activities be listed in the bill.

093

Sen. Morrisette

States concerns with SB 195.

099

Iris Yeager

Citizen, Oregon.  Asks that bicycles be included in the bill.

103

Sen. Morrisette

Agrees that bicycles should be included in the bill also.

108

Schumacher

Clarifies that the -1 amendments were included to cover transportation vehicles.

112

Calkins

Argues that alternative forms of transportation, including motorcycles and bicycles, should be passed into law.

120

Chair Monnes Anderson

Explains that the bill is a mandate and discusses why insurance companies need room for negotiations.

127

Calkins

States that SB 195 would be a guideline.

131

Sen. Courtney

States that he sees “modes of transportation” and “recreational use” as two separate issues.  Asks which issue came first in previous legislation.

139

Schumacher

Responds that it was transportation. Explains that this session, the Legislative Counsel office, put in recreational use only.

141

Sen. Courtney

Asks why the bill was drafted with recreational use.

142

Schumacher

Responds that he is not sure.  Speculates.

149

Sen. Courtney

Clarifies that testimony refers to means of transportation be addressed in the bill.

153

Schumacher

Answers, yes and adds that BikePac also represents other recreational activities.

163

Sen. Courtney

States that he now understands the issues at hand.

165

Chair Monnes Anderson

States that the issues will continue to be worked on.  Closes the public hearing on SB 195 and opens a public hearing on SB 541.

SB 541 – PUBLIC HEARING

170

Rick Berkobien

Committee Administrator.  Provides an overview of SB 541 and introduces the -1 amendments to SB 541 (EXHIBIT T).

(Note: Due to technical difficulties some of the audio can not be heard.)

179

Chair Monnes Anderson

Asks to confirm that the -1 amendments replaces the bill.

180

Berkobien

Replies, yes.

181

Chair Monnes Anderson

Closes the public hearing and opens a work session on SB 541.

SB 541 – WORK SESSION

183

Sen. Morrisette

MOTION:  Moves to ADOPT SB 541-1 amendments dated 4/6/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

185

Sen. Morrisette

MOTION:  Moves SB 541 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

187

Sen. Morrisette

Withdrawals his motion.

188

Chair Monnes Anderson

States that she thought the referral to the committee on Ways and Means was to be rescinded.  Asks Sen. Courtney about the referral.

190

Sen. Courtney

Advises that the Chair can make the request to rescind the referral, but will have to submit a letter for approval.

197

Sen. Morrisette

MOTION:  Moves SB 541 to the floor with a DO PASS AS AMENDED recommendation and the SUBSEQUENT REFERRAL to the committee on Ways and Means BE RESCINDED.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

SEN. MORSE will lead discussion on the floor.

205

Chair Monnes Anderson

Closes the work session on SB 541 and opens a public hearing on SB 819.

SB 819 – PUBLIC HEARING

213

Rick Berkobien

Committee Administrator.  Provides an overview of SB 819 and introduces the -1 amendments (EXHIBIT U).

222

Alison Hamway

Central Oregon Labor Council.  Testifies in support of SB 819.  States that she has not seen the -1 amendments.

The following material is submitted for the record without public testimony:

 

Jim Carlson

Oregon Health Care Association.  Submits written testimony in support of SB 819 with the -1 amendments (EXHIBIT V).

244

Chair Monnes Anderson

Discusses the -1 amendments to SB 819. Closes the public hearing on SB 819 and opens a work session on SB 819.

 

SB 819 – WORK SESSION

253

Sen. Morrisette

MOTION:  Moves to ADOPT SB 819-1 amendments dated 4/7/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - George, Kruse

 

Chair Monnes Anderson

Hearing no objection, declares the motion CARRIED.

256

Chair Monnes Anderson

Closes the work session on SB 819.  Opens a public hearing on SB 973.

SB 976 – PUBLIC HEARING

262

Rick Berkobien

Committee Administrator.  Provides overview of SB 976.  Submits written testimony on behalf of Ken Strobeck, Executive Director, League of Oregon Cities, in opposition to SB 976 (EXHIBIT W), and Jean Thorne, Administrator, Public Employees’ Benefit Board (PEBB) with a neutral position to SB 976 (EXHIBIT X).

290

Chair Monnes Anderson

Notes that written testimony was just received via fax.

291

Berkobien

Submits and reads written testimony on behalf of Mary Botkin, Oregon American Federal of State County and Municipal Employees Council 75 in support of SB 976 (EXHIBIT Y).

304

Sen. Morrisette

Discusses why he supports local groups to be permissive.

316

Chair Monnes Anderson

Closes the public hearing on SB 976.  Adjourns the meeting at 3:14 p.m.

 

EXHIBIT SUMMARY

 

A.     SB 880, -2 amendments, staff, 5 pp

B.     SB 880, -3 amendments, staff, 5 pp

C.     SB 880, -4 amendments, staff, 5 pp

D.    SB 880, written testimony, David Coutin, 8 pp

E.     Healthcare Savings Account, slide presentation, Farah Loudermilk, 13 pp

F.      SB 429, written testimony of Jean Thorne, staff, 1 p

G.    SB 618, -2 amendments, staff, 1 p

H.    SB 936, -2 amendments, staff, 1 p

I.       SB 936, written testimony, Kathleen Haley, 1 p

J.      SB 962, -5 amendments, staff, 1 p

K.    SB 962, -8 amendments, staff, 1 p

L.     SB 783, -2 amendments, staff, 4 pp

M.  SB 784, -2 amendments, staff, 5 pp

N.    SB 195, -1 amendments, staff, 1 p

O.    SB 195, written testimony, Wayne Schumacher, 2 pp

P.      SB 195, fact sheet, Wayne Schumacher, 1 p

Q.    SB 195, written testimony of James Stewart, Wayne Schumacher, 1 p

R.    SB 195, written testimony of Brian Stovall, Wayne Schumacher, 1 p

S.      SB 195, written testimony, Mel Yeager, 2 pp

T.     SB 541, -1 amendments, staff, 4 pp

U.     SB 819, -1 amendments, staff, 2 pp

V.     SB 819, written testimony of Jim Carlson, 1 p

W.   SB 976, written testimony, Ken Strobeck, 2 pp

X.     SB 976, written testimony, Jean Thorne, 3 pp

Y.     SB 976, written testimony, Mary Botkin, 1 p

Z.      SB 976, written testimony, Randy Tucker, 1p