Legislature(2015 - 2016)

2016-03-25 House Journal

Full Journal pdf

2016-03-25                     House Journal                      Page 1941
HB 374                                                                                                                        
HOUSE BILL NO. 374 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
    "An Act relating to a reinsurance program for residents who are                                                             
    high risks and insurer assessments to cover the costs of the                                                                
    reinsurance program; relating to application for state innovation                                                           
    waivers for health care insurance; relating to definitions of                                                               
    'residents who are high risks' and 'covered lives'; and providing for                                                       
    an effective date."                                                                                                         
was read the first time and referred to the Labor & Commerce                                                                    
The following fiscal note(s) apply:                                                                                             
1.  Zero, Dept. of Commerce, Community, & Economic Development                                                                  
The Governor's transmittal letter dated March 24, 2016, follows:                                                                
"Dear Speaker Chenault:                                                                                                         
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to residents who are high                                                       
risk and to the state health insurance plan.                                                                                    

2016-03-25                     House Journal                      Page 1942
The bill would make changes to the Alaska Insurance Code (code) for                                                             
assessments made under a reinsurance program established to reinsure                                                            
"residents who are high risks." As the code is currently written, a                                                             
member of the reinsurance program may offset 50 percent of the                                                                  
amount of the assessment made under the reinsurance program (and                                                                
other state health insurance programs) as a premium tax credit. The                                                             
bill would remove the assessments made in relation to the high risk                                                             
reinsurance program from the offset provision. The bill also would                                                              
amend the definition of "residents who are high risks." These changes                                                           
are intended to provide a mechanism to help insurers spread the risk of                                                         
high-cost claims in the individual health insurance market.                                                                     
The bill also would authorize legislation to allow the State to seek a                                                          
waiver of certain requirements under the Affordable Care Act in order                                                           
to implement innovations with respect to the provision of health                                                                
insurance coverage in the state. This would give the State the ability to                                                       
restructure the approach to health insurance reform by waiving and                                                              
proposing alternatives to applicable provisions of the Affordable Care                                                          
I urge your prompt and favorable action on this measure.                                                                        
Bill Walker