H-2333              _______________________________________________

                                            SUBSTITUTE HOUSE BILL NO. 61

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Dellwo, Lux, Fisch, Hine and Basich)

Read first time 3/8/85 and passed to Committee on Rules.

AN ACT Relating to health insurance; and amending RCW 41.04.180.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 75, Laws of 1963 as last amended by section 1, chapter 82, Laws of 1974 ex. sess. and RCW 41.04.180 are each amended to read as follows:

(1) Any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body may, whenever funds shall be available for that purpose provide for all or a part of hospitalization and medical aid for its employees and their dependents through contracts with regularly constituted insurance carriers or with health care service contractors as defined in chapter 48.44 RCW or self-insurers as provided for in chapter 48.52 RCW, for group hospitalization and medical aid policies or plans:  PROVIDED, That any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body shall provide the employees thereof a choice of policies or plans through contracts with not less than two regularly constituted insurance carriers or health care service contractors or other health care plans, including but not limited to, trusts of self-insurance as provided for in chapter 48.52 RCW:  AND PROVIDED FURTHER, That any county may provide such hospitalization and medical aid to county elected officials and their dependents on the same basis as such hospitalization and medical aid is provided to other county employees and their dependents:  PROVIDED FURTHER, That provision for school district personnel shall not be made under this section but shall be as provided for in RCW 28A.58.420.

(2) Any county, municipality, or other political subdivision of the state that provides a plan for all or part of hospitalization and medical aid for its employees shall permit retired and disabled employees and their dependents to continue participation in such plan subject to the following exceptions, limitations, and conditions:

(a) This subsection shall have no application to school district personnel provided for in RCW 28A.58.420; to a county, municipality, or other political subdivision participating in an insurance program administered under chapter 41.05 RCW if retired and disabled employees and their dependents of such participating county, municipality, or other political subdivision are permitted to continue coverage under an insurance program administered under chapter 41.05 RCW; and members of the law enforcement officers' and fire fighters' retirement system under chapter 41.26 RCW.

(b) A person who requests continued participation in the plan may be required to pay for such continuation of coverage under the plan; however, such payment may not exceed the rate, cost, or premium provided for active employees.

If the person is eligible for federal medicare, the plan shall reduce benefits and rates, costs or premiums for such person to the extent medicare benefits duplicate plan benefits.

(c) Nothing contained in this subsection shall be deemed to affect any plan contained in a collective bargaining agreement in existence as of the effective date of this act; however, any plan contained in future collective bargaining agreements shall conform to the provisions of this subsection.