Insurance & Commerce- House

When you're presenting okay we'll take Senate bill two ninety of representative Vaught is running that for Senator Leding. You're just identify yourself for the record and then you are free to present good morning Mister chair thank you Committee I'm representative DM Vaught non the co sponsor for your at Greg Leding spill from Senate bill two ninety under current law preventative screenings for breast cancer or free but about twelve percent of the women who undergo these screenings are told that they need a diagnostic exam as a follow up. I actually I'm one of those people that have to do that whenever I go and it's because it's the density of your breasts that causes that for you to have to have that extra done. And. But these exams can go as high as a thousand dollars and and a lot of times that will keep somebody from having that extra exam done and then that cancer. Will be growing and will become a lot more and. A lot less easy for them to fight Once they do realize that it is cancer growing so and. Because of this Senate bill two ninety sees that the diagnostic exam is a treatment that is a part. Preventative screening so there will be no cost to women for it so. That's what the bill does in a nutshell and I'm pretty sure representive Ferguson can help me out with what I messed up on. Okay. I'll take any questions members are there any questions. Representive fielding you're recognized. I have a motion at the proper time any any discussion members. Represent Ferguson yes. It sounds like this is going to pass without my input but yeah this happens all the time that people going for a screening mammogram which is an essential health benefit that's paid by insurance without a deductible or co pay in the end like to say this not just debts press but there other conditions where it what you when you say cancer of an X. ray it's white really opaque in if you have dense breast the whole field just looks white and okay can you can't tell if the woman has cancer but what happens is that these women come in office they have a screening mammogram and they go you really need to have an additional test it is not just everybody has the express to me there's a criteria that radiologist go through to determine if that happens and it's it's not all the time even with dense breast but then what happens the woman has twenty five hundred dollar deductible in she probably has kids or and does it go have the MRI in the in the case of gets more advanced so it's a it's a great bill for women and helping prevent I mean helping treat breast cancer early and would you agree. I would agree I said thank you. The members any other questions. Is there anyone in the audience who wishes to speak against the bill. For the bill. If not well represented feeling you're recognized for your motion. We have a motion of do pass members any discussion representative Ferguson you have anymore you want and okay you're fine okay good we have a motion do pass on the floor all those in favor of the motion do pass signify by saying aye. Any opposed no. Of course nine congratulations you thank you representative Vaught while you were there have you take up H. B. thirteen fifty seven thank you Mr chair thank you for the last vote committee. And this one is a little personal to me right now. You may go in with a cancer and you have to fight to get a pet scan it's something that usually is denied maybe once or twice while you're waiting for the insurance to approve it a lot of times that cancer is growing. Why this is so personal to me is even our friend miss Martha Jiro in the house of representatives has to fight for a pet scan every time she needs one we all know that she's a cancer survivor and his Spain has survived a couple of different cancers and it's sad to think that people's lives are being held captive by a pet scan and they need those pet scans those doctors do not order pet scans just to order on they need on for diagnostics so they can diagnose. At my daughter's father in law. Died waiting for a pet scan with the insurance company would not and I pray if. And then my mother in law died. Waiting for a pet scan. I have a woman in my district. But if this would've been a preventative type medicine. She was thirty two years old two very young children. Died of skin cancer that was growing on the inside of her body instead of the outside of her body. She didn't know until it was absolutely too late. I beg you to please pass this bill most constituents do not know that they can call their wrap and bag their rep to try to get him help and they shouldn't have to call the roll up and beg for help to get a pet scan if you're paying that insurance you should be able to get that pet scan when needed those doctors again are not going to order it I've asked several they're not going to order it and less they need it and that's what this bill is about it's about providing that pet scan when the doctor orders it and with that I'll take any questions. members representative fielding All the please turn your microphone. Well here are the Senate. Read yes okay thank you what a doctor will not order it no they just want ordered and less they need it so what insurance on what the term with that need done now five dot the Senator determine what they need and that if they have cancer that's usually that is usually something that they use to detect cancer to actually see for all it is in the body rates at in the body and a lot of times they need that pets can so that they can figure out what chemo they need because of where that cancer started but a lot of times insurance will make you go get a CT or an MRI even before they'll give you that pet scans. In this world it's all FOR it map representive Allen might can say that for me the topographical. Topographic well. Let me let me put it this way you're recognized I'm sorry okay Puppets can could be the difference in a person's life live and die because when you're battling cancer every minute counts SO if you wasted time trying to get it done the council can be very progressive and the pets can we give you a pretty much act that bills or whether the council is located in your body and then at that point in time the doctor an oncologist can decide what type of regimen they're going to use and that regiment that they use must be pretty accurate would you say represent the Ferguson to that person's diagnosis and this diagnosis with the pet scan will give them the information that they need. Thank you why do we have to force physicians to do. The right thing to help the patient it's not the for the insurance so this is not the doctor so whether or not it is I'm not doing it yeah members let me in okay sounds like a lot of we do have some good information for members that have experience but let's save that for discussion unless you have a specific question for the sponsor. A representative for is. Might the problem be that the pet scans that are used not just to diagnose cancer initially but also follow up exams after they've been treated might the problem be that insurance companies are requiring step therapies before you can get to the pet scan that the doctor wants and that they are also requiring prior authorizations to delay and deny care because that part of the problem yes ma'am and this I mean it still has to be off per prior authorization still has to take place by place but someone who is in stage four cancer stage three cancer as representative Allen says they don't have time to go backwards and do all these steps they need to figure out exactly what chemotherapy that thank you yes ma'am that. Representive wouldn't. Thank you Mr chairman I have a. Motion to appropriate time to comment okay thank you. Members any additional questions. Okay is there anyone in the audience who wishes to speak against the bill. For the bill. Representive you're recognized for your motion. Thank you Mr let me share first for personal privilege if I may I lost my wife to breast cancer she had in nineteen ninety then in two thousand eight it came back. And we just in a week's time everything was normal and then she passed away so my motion is a do pass okay. And I neglected in the last bill to allow you to close sometime those are not good I'd appreciate a good vote yes Sir okay members we do have a motion on the floor and representive Allen did you want to provided more information in the debate thank you Mr chairman I think this is a great deal of demography inmates and is very important especially when the patient is is fighting for the life I don't think they should have to fight for the life in the and fight with the insurance companies to pay for something that can save their life so I would ask all of you all to give give her yes vote no on this bill because as much to me the. Thank you very much. any other comments members. If not we have a motion on the floor from representive wouldn't have do pass all those in favor of the motion signify by saying aye. Any opposed say no and there are no congratulate each thank you Mister chair. Representive eleven we're going to take you a little out of order because actually by attrition I think we're finding out that you are yet. Take your time HB sixteen oh one. Thank you Mr thank you Mr chair with the permission chair I'd like to as Derek Smith to join me at the table is the legal questions at the regarding this bill sure if you'll identify yourself for the record as well as Mr Smith. Representative Brian Evans District forty three. Derek Smith with the Mitch Williams law firm here in Little Rock I am representing the Arkansas association of insurance companies and the American council of life insurers. Members you have in front of you a an information sheet from the American council of life insurers and Mr Smith as provided all of you it's very detailed information it covers most the notes they have this morning so I'll just try to briefly go through some of those to explain this bill a House bill sixteen oh one we're talking about deferred annuity rates on life insurance policies generally speaking the standard non forfeiture law which is within the insurance code requires that an individual deferred annuity provide the contract holder with the paid a cash surrender benefit and the minimum amount if the holder surrenders the policy in other words for example if they stopped making payments. The amount of the annuities accumulated value minus any prior withdrawals or loans against the contract that's what that value would be over the past several months market interest rates have fallen so low as to render unrealistic the old statutory rates that are currently in code to determine the amount to return the contract holder so under previous code Where the contracts are written today interest rates have fallen so low that it means if it's has made these rates unrealistic the current is right interest rate environment I believe all of you would agree is unprecedented in two thousand and twenty yields for five year and ten year treasuries has been as low as point one nine percent. The treasury department is also signal that it has no intention of raising those rates in the near future. The national association of insurance commissioners has determined that this threatens the availability availability of annuity products for our constituents. In order for us to protect the valuable supplemental retirement investment as these annuities are we must make an adjustment to the code in regards to that surrender value. All current individual annuity contracts will not be affected by this change and will sustain the current one percent guaranteed minimum. All current contracts are secure and will not change the future of availability for life insurers to be able to offer these annuity products will be inhibited at the current rate of one percent. This bill makes one permanent change to existing code we're asking to lower the minimum non forfeiture amount to fifteen basis points or point one five this change will make the market competitive market sustainable but most importantly will make and market available to your constituents. You may ask the question what is deferred annuity it's an insurance contract promises to pay the owner a regular income at some future date basically supplemental retirement income with that I'll be happy to take any questions. Representive brown you're recognized. Thank you Mr chair Representative of are these just for fixed annuities is just meant District. Would just be on a fixed annuity strictly on the surrender value not on on the amount of the rate on the on the security is that correct yes but this would not pertain to a variable annuity no ma'am thank you. Representive Ferguson and then representative. At which are the surrender value will it be at least equal to the amount the person paid in. Going forward. What. One is the surrender value so. The surrender value it it is a calculation and there's a formula that said how much the surrender value is and it's includes how much paid in plus guaranteed interest minus any charges for providing product or any other agreed upon charges the way it works is there's a formula that set out in code is pretty complicated I could recite it if I tried. This is what this bill does is affects the floor so the way the law is written now you go through the formula you figure out what the minimums rendered with the minimum rate is and if it's whatever it is that's the rate if it's below this one percent floor then you have to guarantee at least one percent now that interest rates are well below that all we're doing is lowering the floor so if the formula comes out to a number above that floor you still get the formula percentage it's just that you can't it just changes the floor sort the floor says it's below one percent I mean if the formula gets to below one percent then you still go down you can go down to that point one five so would just change the floor not the form itself. Follow. Okay so there's a floor if we change this and interest rates go up how will that will the interest rates also go up in the annuity product. Yes the formula will still apply so form if the interest rates go up in the formula calls for gear for rate that's greater than the point five then you you get the formula right. Okay thank you. Representive Richardson and then brown. Thank you Mr I think you just kinda asked the question I was gonna ask you but with the floor is dropping down at a point one five is that correct that is so. In the never mind thank you senator Clark the young all the floor does is just guarantee that regardless of what interest rates do regardless of what the surrender it will not go below that where the where the floor is today obviously interest rates have been down here so in order to the insurers life insurers ability to continue to sell the product we've got to move the floor. Representative brown. Thank you Mr chair I wish I'd had a minute to visit with you about this This is just pertaining to Surrender value or does this pertain to once it is a new with past. It only applies to the surrender charge to this run so if somebody surrenders prior to maturity that's what this pertains to yes ma'am thank you and and within the surrender value only on the non forfeiture. Piece of the surrender. Okay I'm not quite sure I understand that but thank you okay members any other any other questions. Other questions from members is there anyone in the audience audience who wishes to speak against the bill. Before the bill. Representive you're welcome to close for your bill close for the bill in motion to pass okay we have a motion do pass is there any discussion by members. If not we have a motion do pass on the floor all those in favor signify by saying aye. Any opposed say no. And they're not congratulations thank you Committee. Members limited to just two little housekeeping we weren't going to be taking up today the habitability standards bill which was represented Gazaway as bill he is working if you remember representative McGrew came and spoke and representative had Gazaway it represent McGrew are working on Amendment language they anticipate that they will representative Gazaway will be able to take up the bill on Wednesday we had another bill that was scheduled for today but we were not able to take it up because it is still on a member's own there was an amendment so we ended up having and then I think representive Bentley was going to be re presenting a bill but because there's some members not here to vote. We're gonna skip over that so we will be pretty busy on Wednesday so I hope all of you can make it But as of right now that is our agenda for today thank you so much for being here I know it's a burden for you to be here on Monday morning but we're glad that you're here so without any