ARIZONA STATE LEGISLATURE

 

Healthcare Group Study Committee

 

Minutes of the Meeting

Monday, December 17, 2007

9:30 a.m., Senate Hearing Room 109

 

 

 

Members Present:

Senator Barbara Leff, Co-Chair

Representative Kirk Adams, Co-Chair

Senator Carolyn Allen

Representative Andrew Tobin

Senator Pamela Gorman

Kathleen Oestreich

Sandra Gibson

Chad Snow

Thomas Kelly

Christina Urias

Kevin Nolan

 

 

Members Absent:

Senator Meg Burton Cahill

Representative Rich Crandall

Senator Ken Cheuvront

Representative Steve Farley

 

Representative Phil Lopes

 

Staff:

 

Heather Owens, Senate Health Committee Analyst

Dan Brown, House Health Committee Analyst

 

Chairman Leff called the meeting to order at 9:40 a.m. and attendance was noted.

 

OPENING REMARKS

 

Kevin Nolan, Deputy Director, Healthcare Group of Arizona, provided the Committee with information regarding a letter dated December 12, 2007 from Healthcare Group to the three health plans regarding the plans’ willingness to accept full risk.  Mr. Nolan further discussed what Healthcare Group hopes to achieve from this communication and answered questions posed by the Committee members.

 

Tom Betlach, Deputy Director, Arizona Health Care Cost Containment System (AHCCCS), answered questions posed by the Committee members regarding capitation costs, hospital rates and administration costs.

 

DEPARTMENT OF INSURANCE STATUS REPORT ON FINANCIAL EXAMINATION OF HEALTHCARE GROUP

 

Christina Urias, Director, Arizona Department of Insurance, provided a financial examination of Healthcare Group, referring to two handouts entitled “Arizona Heath Care Cost Containment System Healthcare Group Summary of Operations” (Attachment A) and “Arizona Health Care Cost Containment System Health Care Group Summary of Operations for the Year Ended June 30, 2007” (Attachment B).  Ms. Urias also answered questions posed by the Committee members.

 

Tom Betlach, Deputy Director, AHCCCS, answered questions regarding Healthcare Group’s financial losses.

 

Steven Ferguson, Assistant Director, Financial Affairs Division, Arizona Department of Insurance, answered questions regarding financial projections for Healthcare Group.

 

PUBLIC TESTIMONY

 

Stan Aronovitch, Chief Executive Officer, Mercy Care Plan, explained the effect rate increases and hospital costs are having on Mercy Care Plan.            Mr. Aronovitch also answered questions posed by the Committee members.

 

MEMBERS’ PROPOSED SOLUTIONS AND COMMITTEE DISCUSSION

 

Representative Adams provided information regarding his high risk pool proposal, referring to a handout entitled “Arizona High Risk Pool Comments on Challenges and Opportunities” (Attachment C).  Representative Adams also answered questions posed by the Committee members.

 

Jeff Gennaro, representing self, testified in support of Representative Adams’ proposal and answered questions posed by the Committee members.

 

There being no further business, the meeting was adjourned at 12:15 p.m.

 

Respectfully submitted,

 

 

 

Bill Ritz

Committee Secretary

 

 

(Audio recordings and attachments on file in the Secretary of Senate’s Office/Resource Center, Room 115).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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           Healthcare Group Study Committee

December 17, 2007

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