Download Zipped File WP 6.1 0422HHSM.ZIP 6,457 Bytes

Health and Human Services Interim Committee

MINUTES OF THE

HEALTH AND HUMAN SERVICES INTERIM COMMITTEE

April 22, 1998 - 2:00 p.m. -- Room 405 State Capitol



Members Present:    
    Rep. Nora B. Stephens, House Chair
    Sen. Robert F. Montgomery
    Sen. Millie M. Peterson
    Sen. Pete Suazo
    Rep. Mary Carlson
    Rep. Gene Davis
    Rep. Margaret Dayton
    Rep. Bryan D. Holladay
    Rep. Robert H.M. Killpack
    Rep. Carl R. Saunders
    Rep. Raymond W. Short


    
Members Excused:
    Sen. Nathan C. Tanner, Senate Chair
    Rep. Loretta Baca

Members Absent:
    Sen. Craig Taylor
    Rep. J. W. "Bill" Hickman
    
Staff Present:
    Mr. Mark D. Andrews
     Research Analyst
    Ms. Janetha W. Hancock
     Associate General Counsel
    Mr. R. Chet Loftis
     Associate General Counsel
    Ms. L. Kaye Clark
     Secretary

Note:    A list of others present and a copy of materials distributed in the meeting are on file in the Office of Legislative Research and General Counsel.
    

1.    Call to Order and Approval of Minutes -- Chair Stephens called the meeting to order at 2:05 p.m. and welcomed members of the committee.

     MOTION: Sen. Montgomery moved to approve the minutes of the November 19, 1997 meeting. The motion passed unanimously. Rep. Short was absent for the vote.
    
2.     Individual and Small Group Health Insurance Reform - Mr. Mark Andrews explained that since 1994, the Legislature has enacted numerous pieces of legislation designed to reform health care by improving access, containing cost, and enhancing quality. He said the committee would review the impact of this legislation on the individual and small group insurance markets.

The Legislature has charged the Health Policy Commission with developing recommendations for reform and reporting on the implementation and effectiveness of changes adopted by the Legislature.

    Chair Stephens introduced members of the Health Policy Commission for their report and noted that next month the committee will hear from small business employers and insurers.

    Patrick Johnson, Health Policy Commission, introduced the commission's presentation Impact of Health Reform on the Individual and Small Group Markets and reviewed the reform process. He identified cost, quality, and access as the factors that have motivated health care reform.

    Commissioner Merwin Stewart, Department of Insurance, gave an overview of the Utah health insurance market and the affect of reform on the market. He said the health insurance market is in a period of adjustment due to new legislation and market situations. The Insurance Department will continue to hold meetings with the major companies to address issues.

    Chad Westover, Health Policy Commission, briefed the committee on specific state and federal reforms impacting the individual and small group markets. He summarized the following state initiatives: (1) S.B. 158, Health Reform II, 1994; (2) H.B. 305, Health System Improvement Act, 1995; (3) S.B. 60, Open Enrollment Amendments, 1997; and (4) H.B. 137, Children's Health Insurance Program, 1998. He reported that 84 percent of all Utah employees work in the private sector and 55 percent of private sector employees have employer-based insurance. Of those who have employer-based insurance, 43 percent of the employees' plans are exempt from state regulations under ERISA.

    Dr. Roberta Herzberg, Utah State University faculty and Health Policy Commission member, reviewed factors that affect market trends and identified those that have increased costs in Utah including: mandates , desire for plans with more choices, state and federal reform, and limited competition. She said the market needs time to adjust to these changes before evaluating the need for further change.

3.    Genetic Testing Privacy Act - Chair Stephens, sponsor of H.B. 271, Genetic Testing Privacy Act , informed the committee that after hearing public testimony and amending the bill, the House Standing Committee recommended genetic testing privacy issues be studied further by the Health and Human Services Interim Committee.

    Dr. Stephanie Hallam, Assistant Director, DNA Diagnostic Laboratory, University of Utah, explained that it is now possible to perform DNA-based diagnostic testing for many genetic disorders permitting timely intervention and often allowing individuals to make informed decisions about their medical management. She said that because genetic testing is a relatively new field, there are many complex issues regarding protection of individual and family rights. She then addressed some of the issues including: information access, informed consent, and sample retention and destruction. She believes the majority of the genetics community supports legislation for genetic testing privacy.
    Mr. Loftis presented background information on genetic testing issues. He reported that appoximately13 genetic testing bills have been introduced in Congress, at least 27 states have enacted genetic testing laws, and NCSL has created a legislative task force and a blue ribbon committee to study this issue. The Utah Health Department has also formed a committee to study genetic issues.

4.    Tobacco Litigation Update - Mr. Loftis reviewed the material titled Tobacco Litigation Update Handout which provided an update on the status of Utah's lawsuit and the impact of recent federal and state developments on the lawsuit. Utah filed a complaint against the tobacco industry on September 30, 1996. On June 20, 1997, Utah, along with 40 other states, reached a settlement agreement with the tobacco industry. The tobacco industry has sought the dismissal of Utah's lawsuit. He added that the National Conference of State Legislatures has taken the position that federal legislation (1) should not permit the federal government to recoup medicaid funds from settlement monies, and (2) should preserve the discretion of states to use settlement monies as they see fit. He noted that Sen. McCain's bill is contrary to NCSL's position on these points.

    Melanie Bowen, State Director for Senator Hatch, answered questions prepared by staff regarding the impact of recent federal and state developments on Utah. She predicted that the McCain bill, as passed out by the Commerce Committee, will not pass because it lacks some key provisions. She reported that Sen. Hatch favors giving states flexibility in controlling revenues. Ms. Bowen listed what Sen. Hatch believes are the key facts about tobacco use: 1) tobacco causes cancer and other diseases, 2) tobacco is addictive, 3) tobacco companies have marketed their products to youth, and 4) tobacco companies have lied about these facts. She discussed Sen. Hatch's bill which includes the creation of a three person expert panel to assure that all attorney fees will be reasonable.

    Jan Graham, Utah Attorney General, discussed the tobacco industry's motion to dismiss Utah's case including Utah's racketeering claim. She believes that Utah's case is very strong and expects a spring 1999 trial date. Ms. Graham urged committee members to only support federal legislation that bans marketing tobacco to children. She said that money should go to states to compensate for states' losses and not to fund federal programs.

    The committee discussed possible action they could take to support appropriate federal legislation.

    MOTION: Rep. Saunders moved to compose and send to the appropriate persons a letter from the Health and Human Services Committee expressing its view that tobacco settlement funds should be allocated to the states and that Utah be allowed to receive its portion of those funds. The motion passed unanimously. Rep. Short was absent for the vote.

5.    1998 Interim Study Agenda - Mr. Andrews provided to the committee a list of potential study items for the interim. He noted that the committee is not limited to studying items included on the list or in the Master Study Resolution. He said the committee has been directed by the Legislative Management Committee to limit its study to five major issues. Chair Stephens asked that committee members select and prioritize five issues they wish to study during the interim and return the survey to staff.             
    
6.    Other Business - There was no other business discussed.

7.    Adjournment--

    MOTION: Sen. Peterson moved to adjourn the meeting at 4:45 p.m. The motion passed unanimously.

[Back to the Interim Directory][Back to the Monthly Schedule][Back to the Committee Listing] Utah State Legislature