Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Health Care & Wellness Committee

HB 2552

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Concerning individual health coverage.

Sponsors: Representatives Cody, Kenney, Morrell and Moeller.

Brief Summary of Bill

  • Requires carriers offering individual coverage to prorate deductibles to coincide with the date of the annual rate adjustment.

Hearing Date: 1/15/10

Staff: Dave Knutson (786-7146).

Background:

Health carriers are allowed to adjust premium rates for individual policies annually, except for changes in family composition, changes in the health benefit plan requested by the individual, or changes in government requirements that affect the health benefit plan. The annual date to adjust premium rates is typically June, July, or August. The individual's deductible typically begins in January and ends in December. If an individual chooses to change their coverage because of a large premium increase during the summer, they would have to satisfy a new deductible for the remainder of the calendar year under a new individual policy.

Summary of Bill:

For health policies in the individual market, carriers must prorate deductibles to coincide with the date of the annual rate adjustment.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.