HOUSE BILL REPORT

HB 1323

BYRepresentatives Braddock, Chandler, Nutley, Peery, Meyers, Lux, Brooks and Unsoeld; by request of Office of Insurance Commissioner

Revising the Washington state health insurance coverage access act.

House Committe on Health Care

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Braddock, Chair; Day, Vice Chair; Bristow, Brooks, Bumgarner, Cantwell, Lux, Sprenkle and Vekich.

House Staff:Bill Hagens (786-7131)

AS REPORTED BY COMMITTEE ON HEALTH CARE JANUARY 27, 1988

BACKGROUND:

The Washington State Health Insurance Pool was created in 1987 to provide health care insurance for persons who are denied adequate coverage because of poor health or because cost of coverage would be prohibitive.

The Insurance Commission has identified several sections of the Act that require amending.

SUMMARY:

SUBSTITUTE BILL:  A definition of "accounting year" is added to the chapter to provide flexibility to the board. The board is expanded from nine to 11 members at the time self-insured organizations are required to participate in the pool.  The board reporting requirement is changed from March 1 to 120 days after the end of each accounting year.

The time for "administrator-role" bidding process is changed from one year to six months; the period for selection of the administrator is reduced from six months to three months.  Out-of-state insurers are permitted to bid.

The time limitation (four years) on member abatement or deferment responsibility is deleted.  The board is permitted to waive the requirement that applicants be rejected for other coverage prior to enrollment. Enrollee participation payments are set on a calendar, not policy year, basis.

Medicare supplement provisions are clarified. Liability protection is extended to members of the pool's board of directors.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  A constitutionally questionable definition of "resident" is deleted.  Out-of-state insurers are permitted to bid for administrator role.

Fiscal Note:      Requested January 20, 1988.

House Committee ‑ Testified For:    David Rogers, Chief Deputy, Office of the Insurance Commissioner; Mel Sorenson, Washington Physicians Service; Basil Badley, Health Insurance Association of America; Joan Gaumer, Blue Cross of Washington; Richard Horsman, Washington Health Insurance Pool, American Diabetes Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The technical changes presented are needed.

House Committee - Testimony Against:      None Presented.