House of Representatives

SB 1048

residential utility consumer office; functions

Sponsors: Senators Mitchell, Nichols, Cirillo:  Blanchard, Verkamp

 

DP

Committee on Energy, Utilities and Technology
DPA

S/E

Committee on Appropriations

X

Caucus and COW

 

 

As Passed the House

 

SB 1048 allows the Residential Utility Consumer Office (RUCO) to represent residential utility consumers at regulatory hearings before federal regulatory agencies and commissions where rates are established and federal court proceedings involving rates, tariffs, changes or terms of service, and requires the Director of RUCO to adopt a consumer outreach and education program.

 

The Appropriations Committee adopted a strike-everything amendment.  The strike-everything amendment:

 

Beginning September 30, 2000, the strike-everything to SB 1048 removes the demonstration project status of the Arizona Health Care Cost Containment System (AHCCCS) Premium Sharing health care benefits program and continues the project as a statewide program.  The strike-everything amendment increases Premium Sharing eligibility requirements from 0-200% of Federal Poverty Level (FPL) to 0-250% of FPL.  The adjusted eligibility considers the participants who will be covered under the Proposition 204 initiative and expands eligibility for new populations from 200 to 250% FPL.  Funding for HealthCare Group is also provided.

History

The Premium Sharing Program was established as a three year pilot program in 1997 (Laws 1997, Chapter 186, Section 3, as amended by Laws 1997, second special session, Chapter 1, Section 1). The program enables families who do not meet AHCCCS requirements but who have an income of less than 200% of the federal poverty level, to obtain low cost health care.  Participants pay a monthly premium based on a percentage of gross monthly income and copayments for services. The program currently operates in Maricopa, Pima, Pinal and Cochise counties. 

Enrollment for services as of February 1, 2001 includes 7,342 members, 182 who have chronic illnesses such as hemophilia or Hodgkins disease.  The current enrollment in the demonstration project is Cochise County 11.5%, Maricopa County 47.1%, Pima County 33.4% and Pinal County 7.8%.  Premium Sharing has been funded with $20 million annually from the medically needy fund.

 

Provisions

·                      Continues and expands the Premium Sharing Program statewide.

·                      AHCCCS shall withdraw five million dollars from the tobacco tax in FY 2001-2002 and $26.2 million beginning July 1, 2002 for the program fund. 

·                      Costs associated with the healthcare group plans shall be included in the premium sharing program fund.

·                      Expands administration costs from four to five percent to cover HealthCare Group.

·                      Requires AHCCCS to use seven million dollars to provide reinsurance to HealthCare Group plans.  The amount is increased from six to seven million dollars.

·                      Monies that are collected pursuant to the tobacco litigation master settlement agreement that are designated for the program and shall be deposited in the program fund.

·                      Increases, from 200% FPL to 250% FPL, the income eligibility threshold for applicants who do not have a specific chronic disease.

·                      Increases the percentage of gross monthly income of a member that may be used to contribute to the premium contribution from four to six percent.

·                      Requires the administration to use up to one-half of one percent of the annual appropriation on marketing and outreach.

·                      Changes the word addiction to abuse when referring to substance abuse and grounds for denial into the program. 

·                      Provides the director of AHCCCS an exemption from rule making for one year to implement the legislation.

·                      Changes voluntary loss of insurance provision from 30 to 90 days for application into the program.

·                      Repeals session laws pertaining to the premium sharing demonstration project.

·                      Requires AHCCCS to apply for a federal waiver to cover low-income parents of children enrolled in KidsCare.

·                      Effective date of legislation is September 30, 2001.

·                      Makes numerous conforming and technical changes.

 

 

 

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45th Legislature                       

First Regular Session    2          April 18, 2001

 

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