CD No. 06-23&24

 

 

Health Access Oversight Committee

Special ESI Program Joint Meeting

 Approved

MINUTES

 

Date:  November 27, 2006

 

Members present: Sen. Jeanette White Co-Chair, Rep. Ann Pugh, Co-Chair, Sen. Claire Ayer, Sen. Ed Flanagan, Sen. Jane Kitchel, Rep. Thomas Koch, Rep. Mark Larson and Rep. Steve Maier

Absent:  Sen. Kevin Mullin and Rep. John Tracy

 

Meeting convened at 2:00 p.m. at the State House in room 11.

 

Legislative Charge

Ms. Robin Lunge from Legislative Council

In the report on Employer Sponsored Insurance (ESI) that was provided to the Health Access Oversight Committee and the Joint Fiscal Committee and Health Care Reform Commission, Ms. Lunge explained the criteria in the legislation (Act 191).  Ms. Lunge highlighted the areas most important for the committee’s consideration.  Ms. Lunge stated that there are two different populations that will be effected by the ESI option, VHAP Eligible or enrollees and individuals who would otherwise be eligible to enroll in Catamount Health.

 

The administration will determine the savings to the Medicaid budget for implementing an employer-sponsored insurance program for individuals currently enrolled or eligible for the Vermont Health Access Plan (VHAP).

 

The agency is charged to come forth to the committees and the report must include a plan for additional expenditures, a survey of who is eligible, sliding premium and cost sharing assistance amounts, a description and estimate of the benefits offered by VHAP that are likely to be provided as supplemental benefits, a plan to cover dependent children and the anticipated budgetary impact.

 

Sen. Leddy pointed out a technical correction of the section of what would qualify a person who has been uninsured for a year.  Sen. Leddy noted that the language is narrower than the legislators intended. Ms. Lunge responded by stating that the language was mirrored on the VHAP language and is currently in statute for VHAP.  

 

ESI Overview and Analytical Issues

Steve Kappel, JFO

Steve Kappel gave an ESI analytical overview of the issues.  Mr. Kappel explained to the members of the committee that the ESI is constructed to help employees buy into the employers’ health plan and that in almost every case it is a premium subsidy but may include additional benefits such as a wraparound to bring the employer benefits up to some other standard.

 

Sen. Kitchel pointed out a typo on page 11.  Mr. Kappel said that in the footnote on page 11, it should read 0-50 FPL.

 

Presentation of Report

Joshua Slen, Director, OVHA

Betsy Forrest, Health Care Affordability Project Coordinator, AHS

Mr. Slen introduced the ESI report stating that the numbers in the report are highly valid estimates.  They have taken the report that was done by Donald Dickey and narrowed down the trends so that we are well within the limitations of what other states have had for actual experience.  Mr. Slen stated that there are still millions of dollars in savings for implementing the ESI program and the savings will be a critical factor in funding Catamount Health and negotiating with the federal partner in including the expansion that is on the table as a waiver amendment.  Part of that negotiation will include the offsetting savings from moving to ESI for some portions of the population.

 

Mr. Slen also stated that Vermont is in a different place than other states.  Mr. Slen testified stating that we have 91% of the population currently insured and there is a large public insurance program in our Medicaid Program making it harder to get the next 1% insured.  Mr. Slen noted that if ESI gets more people insured, this will make it a valid public policy in reaching the 96% goal that the legislator put out for 2010 along with aggressive marketing and outreach plans.

 

Ms. Betsy Forrest walked through the sections of the ESI report answering detailed questions.

 

The next joint meeting with the Joint Fiscal Committee will be the actual vote on the ESI program and related discussion which is scheduled for December 12, 2006 from 9:00 a.m. – 11:00 a.m. in room 11 at the State House.  At 11:00 a.m. the Health Access Oversight will move to room 10 to continue with their regularly scheduled meeting.

 

Minutes respectfully submitted by:

Lynn Hegamyer