Insurance & Commerce - Senate

US eighty five Senator Irvin when you are ready feel free to present your bill thank you Mr chairman of the committee that the Senate bill eighty five all this what this bill does is it clarified the definition of eligible an active retiree and modifies that eligibility of those retirees to participate in the State and Public School Life and Health Insurance program. Okay do we have questions from members. I believe all of us have read through this in the resolution and now the bill. All set. Once or twice I want to not want to be prompt but I don't want to push an act like we're in a hurry here so again all I ask does anybody have any questions pertaining to Senate bill eighty five. We have no one to speak for it. Or to speak against that in my correct in the audience. Any members. Have anything else before I ask Senator Irvin to close for a bill. Centerman would you like to close for your bill and close ten percent a good vote. Okay and I assume you want to bring with that a committee member to motion do pass okay we have a motion from senator Ervin on Senate bill eighty five do I have a second Senator Hickey is the second. one last question for any comment. Seeing none we have a motion do pass on bill Senate eighty five all in favor say aye hi same sign opposed we got a it passed with the well. It's on the tape recording it's not on record it's a voice vote Senate bill eighty five the has a do pass we will now your bill has passed Senator Ingram thank you very much we will now proceed on to Senate bill eighty six senator Hickey that would give you the end of the table. For. You are recognized to present your bill. Thank you Mr members I know that we've been over this multiple multiple times but I'm gonna do it one more okay this is a the funding the funding mechanism of a that we've been working on. What the. Again as I told you all yes the you know what I like to like to refer this to is the bill which forces a conversation between a B. B. days financial support annually with the legislative body he B. D. and all other stakeholders. The way that we've done this is required to be day to maintain certain reserve balances and report those to the legislature to Radio City on an annual basis the legislature within have certain options available to it in setting this up we work with our with Siegel our consultant that we hired to have it what type of reserves would be deems sufficient. This gets a little confusing right here if you don't follow it but the range that we're going to try to maintain is somewhere between twelve and sixteen percent of course we couldn't use a range we had to have an exact same exact numbers so what we decided is that that fourteen percent would be what we would consider an optimal optimal optimal amount to try to keep. And then. What we try to make sure that we had no less than twelve percent which would be acceptable. but but if it's lessons give me if is less than twelve percent the now what we have to do is that would require a B. D. to vote notify you'll see of the need for additional funding AOC will review and you can see on the page I think it's the same I was I've been looking at the the old bill right here but the only Page three line seventeen through twenty six I hope my right now sixteen percent okay what what can happen at that point is I can recommend that we are we can recommend to the governor Coliseum from for special session to address take further action. Are not act at all if the legislature fails to act. In what the B. day director at that time which will be in statute is required to initiate a process to collect the needed funds through employee premium increases reducing benefits or both. We also have a provision in here in the bill that it preserves warding seeds sixteen percent the director may apply the extra to actually lower premium rates for the next year if the be the director doesn't offer to lower those rates they must come to report as the wind and the reason that they're not doing it. I guess the chair would start off to thank you to Senator Hickey no Senator Dismang and others have been heavily involved this was not an easy deal to get to with the financial matters Can you explain how this bill I think you to lead to an so my question is explain how this bill would prevent us from having the situation we found with our EBT coming into the need for this bill sure what is transpired over the years and again this bill is going to dovetail with us some of the other bills one that Senator Rice has. Couple that he has but to what this is going to do is in years in the past you. In the past there's really been no one as far as from the legislature this by monitoring this we actually had a an old board that was appointed which we dissolve them last time because what it would have been transpiring is whenever you're in plans like this which are basically just a self self self insured plan is what we are you have to maintain these reserves to be able to maintain your solvency so what this is going to do again on an annual basis is going to require us to keep those and whenever they do drop below it then there has to be action has to be reporting every year so this this should keep us I'm not saying that either we will have to find more money for that premiums will have to end in court you know increase however it'll be be done incrementally smaller amounts because of the annual look. Look at it thank you senator Hammer for question. Thank you Mr I was wondering on on page three down there between lines twenty two and twenty seven. Where it talks about if it to it seems like that accumulates a bounce Director shall report Legislative Council for not lowering the premium rate if they choose not to lower the premium rate. And the money is there to do that what's our recourse other than wait till the next session maybe to deal with that then or is there any. Well. We all know is legislature since we can correct control the purse strings and control the salaries of the. The individuals that run this thing in the and that I wouldn't think that would be real wise however thanks to its affairs it's a fair question. I think maybe I should say why we put the money in there instead of the shall because we kinda wrestled around with that. But the reason that we put the money in there is because you know it may just be that it's a sixteen point one percent and then of our estimates of the are showing that will we're gonna have some extraordinary items or things of that nature in the following year it wouldn't it wouldn't make any sense for us to lower the premiums you know by that little small amount just to raise them again so it was a way that again to operate within the range so that to. You know but still you know try to use some of common sense as far as a. You know some of my or thing that would turn around there that were estimate is going to turn turn back immediately so this would be a smoothing effect instead of a cliff affect that it that by building up those reserves. We we could holder. That was an excellent way to say it okay I got it yes I do have any questions the questions from members. We have anyone in the audience would like to speak for the bill or against the bill. None of signed up. Yes and no other questions seen from the members would you like to close for your bill senator Ricky I'm closing I make a motion property okay the motion has been made. Are the go ahead so moved so moved to pass do I have a second for that motion Senator Teague with the second it has been moved and seconded that a do pass on Senate bill eighty six is there any final conversation seeing none all in favor please say aye same sign opposed motion is passed Senator Rice you are up. With us are you I assume you want to Senate bill eighty seven first. Yes okay members Senate bill eighty seven Senator Rice thank Mr in committee you heard the the bill or resolution yesterday I will. The brief filed on the regional program on a bariatric surgery has you know to is this bill says from coverage of diagnosis and treatment of morbid obesity including bariatric surgery of. I change my mind set over a number of years and have seen that and and the work that to the executive committee in Arkansas to is done in the last year of his reaffirm what I've seen in some different circumstances that has been in it's taken a mindset away from just a weight loss. Which does affect health but the way we're doing this in a way that the consultants recommend the the most outcome force cost savings in the best health it's been Jeremiah's to the across many other programs in the fact that if you get the right people with the right diagnosis. It has the most impact in as I stated yesterday the history shows that with correct diagnosis at least thirty five to forty five percent savings long term home the the insurance in the the greatest help out is for diabetics and those with certain heart conditions it's been very much and also that one of the doctor's testimony that he can cure diabetes about sixty percent of the time with this so it. Well it does have cost in there let me read this to you for for public record Keep your main concern that it would get out of bounds the bill not only reinstates program offering the coverage coverage of diagnosis and treatment mortgage mortgages obesity include very after surgery it allows the state board of finance subject to approval of the Legislative Council to discontinue the program are instituted an annual expenditure cap on the program if needed to ensure financial soundness of the program in and allow for the promulgation of rules to implement the provisions of the bill so we tried to think through that take the all the things from other states in excess successes that they've had in this and we're big saying we hope not only to lower the cost but have a healthier population with that I'd appreciate any questions of tried and true if not a good vote Senator Teague you're recognized for a question. To have to make it easier or harder I never did hear that this this will be easier for those with the correct diagnosis as I stated yesterday when when we had the pilot project funded three million dollars year it opened up at midnight in within ten minutes. It was maxed out in in that was from people that wanted served for good reason for themselves of a may not be in the best medical reason or medical outcomes for the people that that that type procedure is helpful with so this is going to allow the extreme put in that in with and will probably go spend more money it may not have the is much savings on the front end but it is proven they they testified again and again a long term more savings and healthier population. Thank you okay any other questions members. We have anybody in the audience who would like to speak for against this bill. Seeing none Senate race do you have any five calls which is a good vote Senator Rice as indicated that he's closed he is not on the Committee I've got a motion for do pass Senator Teague so what you're telling me I have a second I've got Senator Ingram with the second any comments. Seeing none all in favor please say aye. Same sign opposed Senate bill eighty seven has passed and will move on to Senate bill eighty eight Senator Rice you're recognized thank you and Mister and again Senate bill eighty eight to modifies the state contribution to the State and Public School Life and Health Insurance program removes a cap on the monthly state contribution and to the State and Public. School hello School Life and Health injured program for state employees budgeted positions and the current captain city of five fifteen U. C. that does away with that this. Also allows you look at the health index help help index CPI this will go through the governing board that was described yesterday if you remember and also through the board of finance in Nailsea it will allow savings also keeps you from having to change the statute every year. Thank you question are there any questions for members. Seeing no questions for members. Senator as anybody in the audience to speak for or against this bill. Seeing none Senator Rice pretty close for close pretty good vote Senator Rice as indicated that he's closed on Senate bill eighty eight I need a motion. I've got a motion from center a key a second Senator Elliot. any final comments seeing none all in favor please say aye. Same sign opposed Senate bill eighty eight passes you're both bills have passed thank you Mister Committee thank you members of the committee thank you for your promptness in attendance if you're an education please hurry to them they're waiting on you and we