Committee on Health Public Hearing on Nominees and Insurance Bills - June 15, 2026

On Monday, June 15, 2026, at 1:00 p.m., the Committee on Health, chaired by At-Large Councilmember Christina Henderson, held a hybrid public hearing in Room 500 of the John A. Wilson Building. The hearing considered three nominations for two boards and three pieces of insurance-related legislation. The record remained open until 5:00 p.m. on Monday, June 29, 2026.

Nominee Hearings for the Board of Pharmacy and Health Benefit Exchange Authority Board

• Dr. Jewel Redick, nominated to the Board of Pharmacy as a pharmacist (term ending March 12, 2028), testified about his dual background in pharmacy and law as an administrative law judge, and his work on the DC Opioid Fatality Review Board. He emphasized improving workplace conditions for pharmacists and balancing business needs with patient safety.
• Dr. Stephanie Johnikan, nominated to the Board of Pharmacy as a pharmacist (term ending March 12, 2029), shared her experience as a primary care clinical pharmacist at the Washington DC VA Medical Center and her vision to expand pharmacist scope of practice, increase access to care, and update Healthy DC 2020 statistics.
• John Auerbach, nominated to the Health Benefit Exchange Authority Executive Board (term ending July 6, 2030), drew on over 30 years of public health experience, including roles as Massachusetts Public Health Commissioner during the state's universal health insurance implementation. He highlighted lessons on affordability, clarity, and community connections for health coverage.
• Chairperson Henderson asked each nominee about time commitments; all three affirmed they could fulfill the requirements.

Public Comments & Testimony

• Tom Glassick, Executive Director of the DC Insurance Federation, testified on all three bills. On the short-term disability bill, he raised constitutional extraterritoriality concerns and noted no known harm from the existing temporary measures. On the cybersecurity bill, he supported the model-law approach and noted 25 states have adopted similar standards. On the captive insurance bill, he deferred to industry experts but highlighted DC's leading position.
• Jason Shupp, a whistleblower and longtime insurance compliance professional, urged rejection of secrecy provisions in the Captive Insurance Company Amendment Act. He argued that the bill would deepen a lack of transparency, enabling tax evasion and anti-money laundering schemes. He cited his research uncovering captive-linked tax abuses and called for disclosure of captive ownership and annual reports.
• Joseph Hollihan, President of the Captive Insurance Council of DC, supported the captive bill, stating it strengthens the existing strong regulatory framework. He argued that confidentiality of captive financial reports is standard across domiciles and necessary to retain business. He praised DISB's Risk Finance Bureau as among the best.
• Fritz Mulhauser, Co-chair of the Legal Committee of the DC Open Government Coalition, opposed the captive bill's blanket FOIA exemption for captive annual reports. He called the provision premature given pending litigation and urged the committee to require an annual aggregate report on captive financial soundness, as Vermont does.
• Alex Samuels, testifying on behalf of DC Jobs with Justice, supported the short-term disability bill, recounting an instance where an employer's private insurer threatened to deny benefits due to DC Paid Family Leave. She argued the permanent legislation is needed to prevent insurers from offsetting benefits.
• Laura Brown, Executive Director of First Shift Justice Project, also supported the short-term disability bill, explaining that offsets undermine the paid leave program's intent and harm workers, especially new mothers who rely on both programs for full wage replacement.

Discussion Items

1. Bill 26-427 – Cybersecurity and Accountability Act of 2025

• Deputy Commissioner Sharon Chip (DISB) testified that the bill establishes uniform data security standards for insurance licensees, requiring written information security programs, incident response plans, and reporting of cyber events affecting 250+ DC residents within 72 hours. The bill is based on an NAIC model adopted by 25 jurisdictions. DISB plans to implement details through rulemaking.
• Chairperson Henderson asked about coordination with OAG, employee thresholds, and penalties (up to $25,000). DISB confirmed no additional staff needed and that the bill exempts licensees with fewer than 10 employees from some provisions. The bill would close a gap where some insurers failed to report breaches to DISB.

2. Bill 26-18 – Short-Term Disability Insurance Benefit Protection Clarification Amendment Act of 2025

• Associate Commissioner Philip Barlow (DISB) explained that the bill would prohibit private disability insurers from reducing short-term disability benefits based on DC Paid Family Leave benefits, regardless of where the policy was issued. The current emergency/temporary measures have been in place since 2021, but enforcement is limited for policies issued outside DC.
• Chairperson Henderson noted few recent complaints and asked about any needed changes; DISB said no changes are necessary. The bill codifies existing temporary law.

3. Bill 26-588 – Captive Insurance Company Amendment Act of 2026

• Associate Commissioner Sean O'Donnell (DISB) detailed updates to the captive insurance law, including adding LLC formation options, clarifying capital requirements, creating an inactive captive status, expediting licensing for protected cells, and adding a blanket FOIA exemption for annual financial reports. He noted that 234 captives are currently active, and the bill aims to retain and attract captives by clarifying confidentiality.
• Chairperson Henderson questioned transparency, the inactive captive process, and the FOIA exemption. O'Donnell argued that the reports contain proprietary information on private companies' insurance programs and that existing FOIA exemptions (trade secrets/competitive harm) protect them, but the bill adds explicit statutory protection to avoid ambiguity. He offered to develop an aggregate public dashboard similar to Vermont's.
• Discussion also covered the number of captives, staffing (11 positions, one vacant, one in budget), and the bill's minor technical error (line 81 needing a “not” inserted).

Key Outcomes

• Nominees: The three nominations will be included in a markup on Wednesday, June 17, 2026, pending colleague availability.
• Bills: The committee plans to move the short-term disability and cybersecurity bills before the Council recess (July 15, 2026). The captive insurance bill will be taken up post-recess.
• Record: The hearing record remains open until June 29, 2026, for written testimony.
• Next Steps: DISB agreed to provide additional information on capital requirements and to explore aggregate reporting on captives. The committee will correct the technical error in the captive bill.