(JUNEAU) - The Alaska House of Representatives approved House Bill 195 by a vote of 27 to six on Thursday. Sponsored by Representative Norman Rokeberg (R-Anchorage), HB 195 allows health insurance companies to offer individual health care plans that do not contain some state mandated coverage. Rokeberg says that this provision allows insurance companies to offer less expensive individual health plans.

"Alaskans are being asked to contribute a greater percentage of their disposable income to the increasing costs of health care insurance," Rokeberg said. "Part of the Legislature's responsibility is to contain these costs."

HB 195 will make mandates an optional part of individual health insurance. Some examples of state health insurance mandates are: coverage for services of midwives, substance abuse treatment, and acupuncture. Current law requires that all insurance plans include these types of coverage; however, individual insurance underwriting is different from group insurance plans, which are not included in HB 195. Individual plans have higher premiums and are tailored to the person's circumstances; therefore, a single man who buys individual health care does not need coverage for services of midwives. Rokeberg says that Alaskans who must pay for individual health care should not be held to mandates.

"A person or family who pays for individual health insurance does not have the benefit of an employer who pays for part or all of the premium," Rokeberg said. "HB 195 allows a health insurance company to offer an individual plan without covering these mandates, thus giving Alaskans a more affordable health insurance option."

HB 195 also amends the Alaska Comprehensive Health Insurance Association (ACHIA) statutes to make certain Alaskans eligible for health care assistance under the federal Trade Adjustment Assistance Reform Act of 2002 (TAA). The TAA will provide a 65-percent credit from the U.S. Department of Treasury for health insurance to Alaskans who lose their jobs because of foreign imports, such as oil or salmon.

HB 195 moves to the Senate.

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05-08-03: House Rules Committee Chair Rep. Norman Rokeberg explains why insurance companies should be able to offer individual health coverage without state health insurance mandates and explains how HB 195 will also provide some Alaskans with federal help for their health insurance.

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