MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session January 30, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Monday, January 30, 1995, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Randolph J. Townsend, Chairman Senator Ann O'Connell, Vice Chairman Senator Sue Lowden Senator Kathy M. Augustine Senator Raymond C. Shaffer Senator Jack Regan Senator Joseph M. Neal, Jr. STAFF MEMBERS PRESENT: Scott Young, Senior Research Analyst Molly Dondero, Committee Secretary OTHERS PRESENT: R. Keith Schwer, Director, University of Nevada Las Vegas, Center of Business and Economic Research R. Keith Schwer, Director, University of Nevada Las Vegas, Center for Business and Economic Research presented Exhibit C (a survey of Health Insurance Coverage of Nevadans). Dr. Schwer discussed Exhibit C which consisted of the findings of a survey taken on health insurance coverage. He stated the research conducted was in unison with a technical advisory committee. They helped throughout the study giving a great deal of assistance. He stated most of the findings came from a mail questionnaire. They sent 13,000 surveys and received a 37 percent response rate from the surveys. He stated the national average is a response of 17 percent. They were very pleased with the response. Dr. Schwer began the presentation with the first flowchart in Exhibit C. He explained they used a technique called "post stratification" to correlate the research. He stated the numbers reflect the national economic condition. He explained the difference between the first and second flowchart was in the size of firms where people are employed. Senator Shaffer asked if there was a way to update the charts with a simple formula for the year. Dr. Schwer stated only with the size of the population. Dr. Schwer discussed page 10, table 1 of Exhibit C. Senator Townsend questioned the total listed at the bottom of page 10. It was clarified the first two flowcharts include those under 18 and those over 65 years of age. Senator Townsend stated there were 130,709 between the ages of 18 and 65 years who were working either temporary, seasonal, or permanent jobs who are not covered. He stated those are the people the committee has jurisdiction over. Senator Regan asked how the survey dealt with those who are working, but who do not want insurance because they do not think they need it because of their age or lifestyle. Dr. Schwer stated they did not address the issue of the person who chooses not to be insured. The survey covered those who were uninsured due to their job. Senator Augustine commented the 65 years and older workers were not included in the survey because it is assumed they are on Medicare. She asked why they were not included in the uninsured chart if they have Medicare. Dr. Schwer stated they were included as covered. He referred to flowchart 1 and 2. He stated there are 67,000 uninsured children and 194,000 uninsured adults. Senator Lowden asked if the survey indicates how many women who are employed and covered by their husband's insurance. Dr. Schwer stated the question was asked in the survey. He continued with a page by page overview of the survey. Senator Neal stated the survey shows if there is a choice to be made between buying insurance and buying food, the people will eat. Dr. Schwer referred to table 7 of Exhibit C. This survey was made by telephone. Senator Neal asked how many people in the racial groups were interviewed. Dr. Schwer stated there were 400 responses from the black and Hispanic groups. Senator Augustine questioned table 6 and asked if those in the higher income brackets have been given the option of insurance and have chosen not to take insurance. Dr. Schwer stated he would assume that since high paying jobs bring health insurance, there are individuals who are self-insured. Table 9 discussed percentage of households covered. This table showed the lack of coverage for households with children. He continued his discussion of the survey. Senator Regan asked if there was a category for the totally uninsurable. Dr. Schwer stated there was a series of questions asking why someone did not have insurance. Dr. Schwer discussed page 31 and 32 of Exhibit C covering insurance for children and continued his presentation of each chart in Exhibit C. Senator Regan asked about the information on table 14 and if there was a change coming in the future regarding the 17.4 percent figure. Dr. Schwer stated choice of physician is an important part of a health care program. Senator Townsend asked if those interviewed justified choosing their own physician when the state was paying for the treatment. Dr. Schwer was not certain as to the answer. He said it was difficult to focus on that issue during the survey. He stated the basic point may be who is paying for it. Is it the employer, the employee, or the state system. Fringe benefits rise in cost each year. The survey was limited by what it was able to do in that area. Senator Neal commented on page 57 of the survey. He observed the insured and uninsured had similar feelings about health insurance. Dr. Schwer stated there was a deep feeling among all people about health care. Senator Shaffer referred to page 47 of the survey asking if Nevada is less healthy than other states. Dr. Schwer stated he did not have that information. Senator O'Connell asked if Dr. Schwer had any information about the health care situation in Oregon. He stated it is a new system and they do not have results of the program as of yet. Senator Neal stated the majority of people in Nevada get their insurance from a union or a job. Dr. Schwer agreed. Senator Augustine stated students at the university receive free health care. Dr. Schwer stated the survey did not cover that question. Many students are covered by their parents' insurance programs. Senator Townsend asked for an update of the survey. Dr. Schwer stated it would take several months to complete. He stated the telephone surveys are quicker to tabulate but not as effective. Senator Townsend asked to have a survey by May 1. Senator Regan asked if there would be any information available through the federal health and services. Dr. Schwer stated he has a source where he might be able to obtain information pertinent to Nevada. Senator Townsend closed the hearing at 11:00 a.m. RESPECTFULLY SUBMITTED: Molly Dondero, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor January 30, 1995 Page