HOUSE BILL REPORT

SSB 5466

BYSenate Committee on Financial Institutions (originally sponsored by Senators Moore, Bender and Metcalf; by request of Insurance Commissioner)

Revising provisions on fees assessed against health maintenance organizations.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass.  (13)

      Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Crane, Day, Dellwo, Ferguson, Meyers, Niemi, Nutley, Silver and Winsley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE APRIL 8, 1987

BACKGROUND:

In 1986 the legislature passed legislation providing that a pro rata share of the cost of regulating health maintenance organizations (HMOs) be assessed to each HMO.  The fee to be charged is based on the HMO's total receipts for the year, but may not exceed 5 1/2 cents per person.  Fees collected are currently deposited in the general fund.

SUMMARY:

Each health maintenance organization (HMO) is subject to a minimum $1,000 fee which is to be deposited in the Insurance Commissioner's regulatory account.  Fees collected are to be accounted for jointly with the fees collected from health care service contractors (HCSCs) and are to be used to pay the costs of regulating both HMOs and HCSCs. 

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Scott Jarvis, Insurance Commissioner's Office.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    By allowing the fees collected from both HMOs and HCSCs to be credited to a single account, the commissioner's office will be able to avoid the duplication and inefficiency which results from allocating work to different accounts.

House Committee - Testimony Against:      None Presented.