Declares an intent to reduce premiums for small employers by providing reinsurance services. Reinsurance will reduce the uncertainty that raises premiums across the small group market to: (1) Help make health insurance coverage more affordable for small businesses and their employees;

(2) Stabilize the private health insurance market for small businesses; and

(3) Increase the numbers of people with access to affordable health insurance coverage and improve health outcomes in Washington state.

Appropriates the sum of five million dollars, or as much thereof as may be necessary, for the biennium ending June 30, 2009, from the health savings account, previously identified with small employer insurance assistance, to the reinsurance account established in this act for the purposes of this act.