MINUTES OF THE

                                       BUSINESS AND LABOR INTERIM COMMITTEE

Wednesday, June 16, 2004 – 2:00 p.m. – Room W135 House Building

Note:      A list of others present and a copy of materials can be found at or by contacting the committee secretary, Tracey Fredman, at 538-1032.

1.   Committee Business

Chair Bryson called the meeting to order at 2:21 p.m.

MOTION: Rep. Adams moved to approve the minutes of the May 19, 2004 meeting. The motion passed unanimously. Sen. Davis, Rep. Biskupski, and Rep. Morley were absent for the vote.

2.   Health Insurance Mandate Review

Mr. Steinagel referred to the "Review of Mandatory Obligations on Health Insurers Status of Review," from the mailing packet. He explained the statutory requirement that health insurance mandates be reviewed by both the Health and Human Services Interim Committee and the Business and Labor Interim Committee. He indicated that the chairs of both committees sent a letter to the Legislative Management Committee requesting that the Health and Human Services Interim Committee be allowed to conduct these reviews and to forward the results to the Business and Labor Interim Committee. Mr. Steinagel briefly reported on the reviews that have been conducted to date.

3.   Insurance Customer Information and Billing Practices

Rep. Bennion reported on specific problems related to customer information and billing practices of insurance companies.

4.   Health Provider Reimbursement Policies

Mr. Steinagel overviewed health provider reimbursement policies. He distributed and explained "Health Provider Reimbursement 'Any Willing Provider' Laws." He noted that one purpose for the development of managed care was to help employers control the cost of health care.

Sen. Hellewell introduced S.B. 216 "Health Provider Reimbursement Amendments," from the 2004 General Session for discussion.

Mr. Kelly Atkinson, Utah Health Insurance Association, distributed on disc and discussed "Provider Reimbursement." He said that any willing provider legislation would increase health care costs to an unaffordable level for small businesses and consumers.

Mr. Dee Brewer, Altius Health Plans, distributed his written comments and briefly discussed ways any willing provider provisions would be a disadvantage to the Altius network.

Dr. Wendell Gibby presented background and examples supporting the viewpoint that any willing provider legislation would not increase the cost of healthcare.

Dr. Bryan Turner, said that any willing provider legislation would not raise insurance costs to consumers.

Mr. Tom Bingham, President, Utah Manufacturers Association, said any willing provider legislation creates an environment that will reduce employers' choice of the types of plans they can offer their employees, and might eliminate the ability of some employers to afford health insurance benefits for their employees.

Dr. Richard Labasky, President, Utah Medical Association, said any willing provider legislation addresses a physician's privilege to have fair and reasonable access to patients.

Mr. Larry Bunkall commented that this is an issue that needs to be studied.

5.   Other Items/Adjourn

MOTION: Rep. Ferry moved to adjourn the meeting. The motion passed unanimously. Sen. Bramble, Sen. Eastman, Sen. Hellewell, Rep. Adams, Rep. Alexander, Rep. Biskupski, Rep. S. Clark,

Rep. Duckworth, Rep. Hansen, and Rep. Webb were absent for the vote.

Chair Bryson adjourned the meeting at 5:00 p.m.