Insurance is looking for ways that might change the incentives somewhat and give everyone the
opportunity to obtain insurance at a reasonable cost.
Mr. Patrick Johnson, Executive Director, Utah Health Policy Commission, distributed a
booklet titled "Utah HealthPrint" which is predicated upon reforming health care within a market-
oriented environment. He discussed the commission's study plans for this year and framed the
issues before the committee as: 1) whether or not providing some avenue for insurance coverage for
uninsurable individuals is a public good; and 2) how it shall be paid for. During the current year,
the commission will be studying the following major issues: 1) rating according to lifestyle; 2) long-
term care coverage; 3) substance abuse; and 4) insurance issues.
Mr. Chad Westover, Policy Consultant, Health Policy Commission, stated that the
commission formed a technical advisory group to study the issue of uninsurables and how to
appropriately and adequately pay for it. The group recommended that the cost should be born by
the widest population possible which ultimately resulted in a general fund appropriation. Other
options considered by the group include: an assessment on individual insurers and providers; a
workers' compensation assessment; a premium assessment; and a hospital assessment. A new area
that has been used by the state of New York is a covered lives assessment which allows for an 8.1
percent assessment of all insurers for their public goods program to provide enough funding to cover
the uninsurables. Mandated student coverage was also suggested.
Sen. Poulton discussed whether nonprofit institutions like Intermountain Health Care are the
tool for providing health care to uninsurables. Mr. Johnson indicated that nonprofits are doing a
good job of taking care of as many people as they possibly can, but the magnitude of the problem
is such that it's unreasonable to expect a nonprofit institution to take care of all of the uninsurables.
Sen. Poulton requested that Mr. Johnson provide documentation.
Mr. Lloyd Carr, Member of the High Risk Pool Board, distributed a handout on uninsurables
which was prepared by Joan Ogden Actuaries. He reviewed the handout with the committee.
Mr. Todd Trettin, Executive Vice President over Actuary for Blue Cross/Blue Shield
discussed the issue of the insurables and how the HIP program helps stabilize the individual health
insurance market. He explained that the individual market is a price-sensitive market because people
coming in are expecting low rates and the healthy will leave the market if the rates go up. A small
population of uninsurables place a burden on the individual market which may drive carriers out of
the market if not addressed.
Mr. Larry Bunkall, Utah Manufacturers Association, told the committee that his association
has been informed that by July 1, 1997, its insurance carrier will no longer offer insurance to groups
of one. The open enrollment and small employer legislation may result in additional pressure on the
uninsurable groups, especially the groups of one.
Rep. Trish Beck, former vice chair of the Health Insurance Pool for Uninsurables, related a
personal story that occurred to one of her constituents with regard to this issue and stated that it's
time that families are free to direct their energies at caring for their families and not at having to take
care of staying insured.
Sen. Stephenson told the committee that he is going to recommend that the Health Policy
Commission include the funding of the HIP pool in its study of the lifestyle choices option and come
back before this committee later in the interim with a recommendation on how to handle this issue.
MOTION: Rep. Bush moved to turn this issue over to the Health Policy Commission to study and come back to the committee with a recommendation. The motion passed unanimously.
3. Funding and Adequacy of Capital Improvements - Rep. Hunsaker stated that the funding and adequacy of capital improvements has significant monetary impact on the state and human
resource expenditures. He raised concern about the Legislature's responsibility of funding certain
facilities; the adequacy of the formulas used; and the operating and maintenance funding of these
facilities.
Mr. John Massey, Office of Legislative Fiscal Analyst, said the issue is whether or not the
state takes care of the buildings that the state continues to add to the state inventory and if there is
adequate attention paid to the proper maintenance and improvements of the existing buildings. He
outlined the "Funding for Capital Improvement Projects" report with the committee.
Mr. Rich Byfield, DFCM, said the problem is escalating because most of the construction
has occurred in the last 20-25 years and as a result the accumulation of assets that are becoming aged
is increasing. Three issues facing the AR&I expenditures are: 1) the formula that is used in Risk
Management that is the asset value for insurance purposes does not include any of the infrastructure;
2) the definition needs to be increased by what is in the formula; and 3) if the $1 million cap is taken
off of the limit in AR&I, that would again emphasize large projects.
No action was taken on this issue.
Chair Poulton turned the chair over to Rep. Hunsaker.
4. Eviction Laws - Mr. Dale Zabrisky, Lobbyist for the Utah Manufactured Housing Association, presented some background information on HB 29.
Rep. Carl R. Saunders pointed out that the issue he brings to the committee deals strictly with
apartments and rental units. His primary concern is lack of uniformity throughout the state with
regards to the eviction process.
Mr. Dan Shipp, Vice President, Northern Utah Apartment Association, said his association's
frustration with the system in the Weber-Davis area has been that when a tenant has not paid the rent
as per the agreement and disregards the three-day pay or vacate notice, it is difficult to obtain timely
resolution in the courts. He raised three possible solutions to this problem: 1) set a uniform time in
statute for court proceedings; 2) simplify the system so the owner and tenant can understand the
process; and 3) give the clerk the authority to sign the complaint. Mr. Shipp also raised the
possibility of the sheriff finding that the inventory after eviction has no value.
Rep. Arent asked for a response from the courts on delegating judicial responsibility in one
area to clerks.
Mr. Rick Schwermer said the task force may want to look at whether this is an appropriate
delegation as a judicial function to a clerk. With respect to the time period issue, he indicated that
he will find out what the process is for locating judges. Most facilities that he is aware of have a
signing judge and it only takes a couple of hours in the third district to have a judge sign an order
such as this. He will look into these issues and report back to the task force.
Mr. Jim Boud, Attorney, said he has had judges take up to 30 days to sign complaints. He
recommended changing the three-day summons to a five-day summons and allowing the attorney
to sign the five-day summons.
Mr. Mike Crippen, Crippen and Cline, urged the task force to be careful in dealing with this
issue. Many times people are damaging property and not paying rent and there is a need to have
them evicted quickly, but there are times when a tenant is being wrongfully evicted.
Mr. Martin Blaustein, Attorney, said there is a process in place where judges can sign a five-
day or 20-day notice down to three days. There is also a process by which the clerk of the court,
with the authority of the judge, can issue a stamp in the judge's absence.
Mr. Les Cragan, owner of real estate in Northern Utah, indicated that he would like to see
the eviction process simplified to help tenants who are being evicted know when they have to move.
Mr. Crippen discussed the mobile home issue on behalf of mobile home owners. He
indicated that under the old mobile home park rules, if you owned a mobile home, paid your rent,
and abided by the mobile home park rules, you could not be evicted from the park. He stated that
he believes the new law allows termination of a lease without cause and inappropriately impacts
existing tenants.
Mr. Boud spoke in behalf of the landlords. Landlords are in the business of renting spaces
to mobile home tenants and collecting rent and do not make money evicting people. He said that
eviction without proving rule violations, etc. may be appropriate.
MOTION: Rep. Adair moved to adjourn the meeting at 12:05 p.m. The motion passed with Rep. Arent voting in opposition.