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Minutes for HB2055 - Committee on Insurance
Short Title
Making certain self-funded association health plans subject to the jurisdiction of the commissioner.
Minutes Content for Mon, Jan 28, 2019
Chairperson Vickrey opened the hearing for HB 2055
Mark Dugan testified in support of the bill. He said he didn't have additional comments other than what was said in testimony about the previous bill and in his written testimony (Attachment 16).
Kevin Robertson testified he was in support of the bill (Attachment 17).
Jason Watkins testified in support of the bill. He said his previous testimony stood (Attachment 18).
Curtis Sneden provided written testimony in support of the bill. He said their Chamber had nearly 1,000 members in Topeka. The bill, as part of a package of legislation, created a tremendous solution to one of the members' most chronic issues: how to make sure their employees get the health coverage they and their families need (Attachment 19).
Ken White provided written testimony in support of the bill. He said their association had been working with insurance agents to try and find a way that trade associations such as his could provide health coverage with significant savings to their members. They were interested in being able to offer an association-sponsored, full-insured health insurance policy as a benefit to their members (Attachment 20).
The chairperson asked if there were any other proponents. There were none. He asked if there were any opponents.
Dana Bacon offered written testimony in opposition to the bill. He said their concerns were that further deregulation of AHPs could result in the proliferation of lower-quality coverage options, and could destabilize the individual market as healthier individuals left. He added any efforts to increase access to AHPs must be matched by careful state-level regulation in order to not erode or remove oversight (Attachment 21).
Jordan Feuerborn provided written testimony in opposition of the bill. She said they have opposed federal initiatives to encourage the growth of Association Health Plans because: they promote products that do not provide comprehensive coverage, could damage the non-AHP individual and small group markets, and inadequately addressed issues of plan solvency and regulatory oversight. (Attachment 22).
Debra Zehr provided written testimony in opposition to the bill. She said they established a self-funded employee welfare plan under KSA 40-2222, 40-222a and 40-2222b to provide health coverage. She said the bill would essentially outlaw self-funded associations, except those specifically grandfathered in, and could have the effect of terminating their successful plan (Attachment 23)
Chairperson Vickrey asked if there were any other opponents. There were none. He asked if their were any neutral conferees.
Lee Modesitt, testified the Insurance Department was neutral on the bill. He said neither the Commissioner nor the department intended to weigh in on policy decisions. He provided documentation outlining the different types of AHPs (Attachment 24.1) (Attachment 24.2).
Terry Holdren testified the Bureau's position was neutral on the bill. He said their members lived in all 105 counties in Kansas and more than 30,000 of the families were directly connected to agriculture. The cost of health insurance was important to farmers and that insurance cost was the most significant expense in the family budget. He added that most did not qualify for federal ACA subsidized products because their income was above the qualifying point (Attachment 25).
Mr. Holdren asked that an amendment be made to allow the Bureau to develop member health care coverage specifically and solely for their members, to address their access and affordability concerns.
Will Larson provided written testimony that the Kansas Association of Insurance Agents was neutral on the bill. He said the association's governmental affairs committee had not had an opportunity to review the bills and determine what position, if any, they should take (Attachment 26).
Chairman Vickrey asked if there were any other persons who wished to testify. There were none. He opened the meeting for questions.
The members questioned the conferees and were answered regarding: the ability of non-farmers to join the Farm Bureau Association, whether coverage would be guaranteed and who would govern the plan. The committee further asked if association members could be individually rated by the underwriter, if an insured's rate could change if they became healthier, if an association could "cherry pick" members and what happened if the collected premiums were more than the cost of the coverage.
Having no more questions, the chairperson closed the hearing on HB 2055.
Chairperson Vickrey adjourned the meeting at 4:35 p.m.
