A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE STUDY COMMITTEE ON HIGH‑RISK HEALTH INSURANCE pools, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON THE RISING COST OF HEALTH CARE.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  There is established the Study Committee on High‑Risk Health Insurance Pools.  The Committee shall study the establishment of a high‑risk health insurance pool regulated by the State in order to make health insurance available and affordable to individuals who have been denied health insurance coverage due to a high‑risk health condition.  In conducting the study, the Committee shall examine in‑depth, the following:
(1)	Key issues relating to regulatory oversight of the high‑risk pool.
(2)	Funding sources and methods for start‑up expenses of the high‑risk pool.
(3)	Pricing and eligibility for high‑risk pool coverage.
(4)	Financing mechanisms that assure ongoing high‑risk pool solvency and affordability of coverage.
(5)	Terms and provisions of high‑risk pool coverage.
(6)	The benefits and limitations of high‑risk pools in operation in other states.
(7)	The impact of a high‑risk pool on the operations of health insurance companies resulting from potential risk shifting of the most expensive policyholders to other insuring entities.
SECTION 1.(b)  The Study Committee on High‑Risk Health Insurance Pools shall consist of 15 members, appointed as follows:
(1)	Six appointed by the General Assembly upon the recommendations of the Speakers of the House of Representatives.
(2)	Six appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate.
(3)	Two appointed by the Governor.
(4)	The Commissioner of Insurance, or his designee, shall serve ex‑officio.
Members shall serve for two-year terms and may be reappointed for one additional term. Vacancies in membership shall be filled by the original appointing authority. The Committee, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4. The Committee may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
SECTION 1.(c)  Subject to the approval of the Legislative Services Commission, the Committee may meet in the Legislative Building or the Legislative Office Building.  The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical support staff to the Committee, and the expenses relating to clerical employees shall be borne by the Committee.  Members of the Committee shall receive subsistence and travel expenses at the rates set forth in G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 1.(d)  The Committee shall report to the 2005 General Assembly upon its convening, and shall make its final report to the 2006 Regular Session of the 2005 General Assembly upon its convening.  Progress and final reports of the Commission may include recommended legislation. The Committee shall terminate upon the convening of the 2006 Regular Session of the 2005 General Assembly.
SECTION 2.  Of the funds appropriated to the General Assembly, the Legislative Services Commission shall allocate funds for the expenses of the Committee established by this act.
SECTION 3.  This act is effective upon ratification.