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ISAHU Response to HB1005 & SB 5 – Healthcare Price Transparency

On January 6, 2020, HB1005 was authored by Representative Donna Schaibley, District 24. Donna is a Friend of ISAHU & ISAHU has supported her in her past campaigns. ISAHU is in favor of Healthcare Price Transparency. At first glance, ISAHU supported HB1005. This Bill was referred to the House Public Health Committee & had it’s 1st Reading on January 6, 2020. On January 8, 2020, there was NO ACTION BY ISAHU.

On January 14, 2020, Representatives Matt Lehman, Martin Carbaugh & Robin Shackleford were added as Co-Authors to HB1005 & language was added to HB1005, “REQUIRED AN INSURANCE PRODUCER to DISCLOSE COMMISSION INFORMATION. ISAHU’s RADAR GOES OFF!

On January 22, 2020, HB1005 is scheduled for a Hearing in the Public Health Committee. The Public Health Committee recommends passage. HB1005, passes as amended, Yeas-8; Nays-0. Amendment adopted.

On January 24, 2020, SB 5 passed Senate Health & Provider Services Committee & forwarded to Full Senate.

I used our past relationship to schedule 3 separate meetings with Representative Schaibley to inform her that ISAHU is in favor of Healthcare Price Transparency, but don’t agree that INSUARANCE PRODUCER COMMISSIONS HAVE AN IMPACT ON HEALTHCARE PRICING! She didn’t understand & refused the logic in my argument! I tried everyway that I could to frame this logic & our FRIEND REFUSED TO MOVE. I then asked her what Health Insurance Products would be included: Group Medical; Group Life & AD&D; Group Dental; Group Long Term Disability; Group Short Term Disability; Other Group Ancillary Products; Individual Health Insurance; Medicare Supplement: Medicare Part D; Medicare Advantage? She didn’t know the answer, or, refused to answer. I asked her who would be require to disclose commission information? The Insurance Producer? or, the Insurance Company? I then shared with her that certain Groups were required to disclose commissions on Form 5500 to the Federal Government. She was unaware of this! I tried to educate her, but to no avail.

I heard through the Grapevine, that the next day, she was holding a meeting @ 2:30 p.m. with Stakeholders @ the State House. I called her Legislative Assistant to inform that I would attend the 2:30 p.m. Stakeholders meeting. Within a few minutes, I received a telephone call from Representative Schaibley, uninviting me from the Stakeholders meeting, but she would be happy to meet with me after the Stakeholders meeting @ 4:00 p.m. On my drive down to the State House @ 3:30 p.m., I received a telephone Call from Representative Schaibley’s Legislative Assistant, that her Stakeholder meeting was running long, could we meet @ 4:30 p.m. rather than 4:00 p.m.? I told her yes. At 4:55 p.m. Representative Schaibley met me & she looked like she had been through World War III (her Stakeholder Meeting was with the Indiana Hospital Association & with Anthem). It was not a good meeting & I thanked her for uninviting me. I brought with me all the information that I could pull off the internet to educate her about Form 5500. She finally threw her arms up in the air & asked, “Why didn’t Rep Lehman & Rep Carbaugh inform her about Form 5500?” They are in the INSURANCE BUSINESS & they are our INSURANCE EXPERTS! I could not answer for them! I actually received a telephone call from Representative Schaibley on Sunday, asking more questions on Form 5500.

Trenton Hahn, Lobbyist from Bose Public Affairs Group, Dwight Hall & I met with Representative Carbaugh, Chairman of the House Insurance Committee to see if he could help ISAHU with Representative Schaibley regarding INSURANCE PRODUCERS DISCLOSING COMMISSION INFORMATION. (I should note, that both Rep Lehman & Carbaugh are past winners of the ISAHU Legislator of the Year). He told us to forget about it. it was going to happen! We then asked him about Form 5500? He told us that he has never sold Group Medical Insurance, only INDIVIDUAL MEDICAL INSDURANCE. HE KNEW NOTHING ABOUT FORM 5500! Rep Lehman is a P& C Insurance Producer. He knew nothing about Form 5500.

In a surprise move, on the 3rd reading, Rep Ryan Hatfield (D-Evansville)introduced an Amendment to HB1005, Drug Importation from Canada. IT PASSED & was added to HB1005. The Republican Super Majority in the House did not want this Amendment added to HB1005 & they killed HB1005 on the House Floor!

The only option left, was to pass SB5 & put the language that the Governor & the Speaker of the House wanted in HB1005 into SB5. We start all over again. ISAHU received help & support from Senator John Ruckelshaus & Rep Lehman & Carbaugh!

On February 14, 2020, as House Bills that survived passed to the Senate & Senate Bills that survived passed to the House, SB5, was assigned to House Public Health Committee, & had an Amendment added that added “Establishes that the Insurance Producer has a Fiduciary Responsibility to the Client”. Dwight Hall & I met with Rep Lehman & Rep Carbaugh & they promised that they would make this more acceptable to ISAHU & their Members! They Did!

What we ended up with:

  1. Insurance Producers must disclose commissions or fees, unless reported on Form 5500.2).
  2. It would be the Insurance Company’s responsibility to report the commissions earned by the Insurance Producers.
  3. There is NO Fiduciary Responsibility on the Insurance Producer.

In the end, we did not get what we wanted, NO DISCLOSURE OF INSURANCE PRODUCERS’ COMMISSION INFORMATION, as this has no bearing to the cost of Healthcare! It didn’t before & it doesn’t now. ISAHU was able to get the responsibility to disclose commissions on the Insurance Companies, not the Insurance Producer. ISAHU was able to remove the Fiduciary Responsibility.

It could have been much worse than what ISAHU ended up with! The importance of having relationships with State & Federal Legislators, can not be misunderstood! As Members od ISAHU, we each have a responsibility to create & build these relationships! Please don’t rely on someone else! Do your part!

One last thought, this Healthcare Price Transparency was the idea of Al Hubbard, an Indianapolis Businessman who is a Big Republican contributor & has worked for President Bush & Governor Daniels. He brought this idea to Governor Holcomb & Governor Holcomb called Speaker Bosma. They decided to give this Bill to Rep Schabiley to be the Author of HB1005. This Healthcare Price Transparency would help the Governor to be re-elected. Rep Schaibley is facing a tough re-election & this would help her get re-elected. This is the reason when I questioned her, she could not or would not answer the questions, as she did not really write the Bill. Sometimes, it is difficult to do business with your friends, case in point!

Insurance Producers, Members of ISAHU, or, not, can rest assured that ISAHU is looking out for your best interest!

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Indiana State Association of Health Underwriters

Indiana State Association of Health Underwriters

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