House Status:
Senate Status:
Senate Status:
Minutes for HB2103 - Committee on Insurance
Short Title
Providing insurance coverage for amino acid-based elemental formula.
Minutes Content for Thu, Feb 2, 2017
Chairperson Vickrey opened the hearing on HB 2103.
Ms. Renick summarized the fiscal note for HB 2103 saying KanCare provided some of the coverage identified in in the bill. The KDHE indicated the State Employee Health Plan did not provide coverage and estimated the additional expenditures needed (Attachment 6)
Chairman Vickrey asked if there were any questions on mandated coverage.
Representative Eplee asked if the committee has seen what other states were doing regarding coverage and mandates.
Ms. Renick answered that she was gathering information on both amino acid-based formula and hearing aid coverage in other states and would have it next week.
William Sneed testified they opposed the bill saying that in general they oppose insurance mandate bills. He said insurance company typically did not cover non-prescription items such as food. He explained policies covered essential services as required by federal law and any additional costs associated with mandated bills may go back to the state (Attachment 7)
Taylor Schettler provided written testimony in opposition to the bill (Attachment 8).
Representative Parker asked Mr. Sneed if consumers of insurance had the same information about insurance that their employers do.
Mr. Sneed answered employers typically made the decisions about coverage and they were considered the consumer. On the individual side, coverage was dictated by federal essential services requirements.
Mr. Parker asked if employers had this information.
Mr. Sneed said employers were normally sophisticated buyers.
Mr. Hawkins asked how many mandates did Kansas have prior to ACA (Affordable Care Act).
Mr. Sneed said he believed there were 20 some.
Mr. Hawkins shared that prior to ACA they could sell individual policies in Kansas City and walk across the border to Missouri and purchase it for 30% less. He said one has to consider how mandates would increase premium cost.
Representative Cox asked Mr. Sneed what insurance would cover without the mandates.
Mr. Sneed replied in past years, insurance provided major medical care which covered major medical expenses, such as surgery. Then companies started to price other services. As a result, a hybrid was created where some things were covered and some not. Now, if something wasn't covered, they came to legislators and asked for additional services to be covered.
Representative Hawkins said a couple of years ago a mandated life policy passed the legislature but wasn't implemented because of the ACA. This caused an a la carte where people could pick and pay for what they wanted. Consequently, a policy was priced according to what the consumer wanted.
Representative Bishop said she would like to see how Kansas lined up with other states regarding essential benefits.
Mr. Sneed said what the state did was ask Kansas insureds what they wanted in a policy. The findings were similar to Blue Cross/Blue Shield's essential benefits policy.
Ms. Renick added that information was already in the mandate articles provided earlier. She referred to Page 6 of the blue book of other states' coverage and explained it was similar to Blue Cross / Blue Shield's Blue Choice policy.
Representative Eilliott asked Mr. Sneed if it wasn't a quality of life issue and that being able to hear was essential to a person's life.
Mr. Sneed responded that he didn't disagree.
Representative Eplee said regarding HB 2103, although weren't a lot of people suffering with amino-acid disorder it was a primary issue to look at as far as mandating coverage because it involved both quality and length of life. Regarding 2104 he said they needed to look at other states to see if they cover part of the cost.
Mr. Corbet said he was worried this was "more hay on the wagon" then can be paid for.
Representative Bishop said she not know the future for ACA but believed there was a trend to offer more preventative services and enable the patient to work with his or her doctor to prevent greater future costs. She hoped for continued wellness coverage.
Chairman Vickrey said he would leave both hearings open to allow Brad Smoot to provide testimony.
The meeting was adjourned at 9:43 a.m.
