S-1197               _______________________________________________

                                                   SENATE BILL NO. 5889

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senator Hansen

Read first time 2/19/87 and referred to Committee on Financial Institutions.

AN ACT Relating to insurance regulation; amending RCW 41.05.005; adding a new section to chapter 48.20 RCW; adding a new section to chapter 48.21 RCW; adding a new section to chapter 48.44 RCW; and adding a new section to chapter 48.46 RCW.

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

        Sec. 1.  Section 1, chapter 136, Laws of 1977 ex. sess. and RCW 41.05.005 are each amended to read as follows:

          The legislature, recognizing the desirability of maintaining a healthy work force in order to promote the efficiency and productivity of the employees and officials working for the state, declares it to be in the best interest of the state to provide comprehensive health care to state employees and officials and their dependents.

          It is therefore the purpose of this chapter to establish health care plans that provide comprehensive health care for all qualified state employees and officials and their dependents, which plans will be funded by the employer to the fullest extent possible.

The legislature also finds that in order to protect the safety of state employees it shall be illegal for the board to contract for the filling of individual drug prescriptions with out-of-state providers.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.20 RCW to read as follows:

          A disability contractor shall not enter into agreements with out-of-state pharmacies or suppliers of pharmaceuticals for the direct provision of prescription drugs to its insureds.

NEW SECTION. Sec. 3.  A new section is added to chapter 48.21 RCW to read as follows:

          A group disability contractor shall not enter into agreements with out-of-state pharmacies or suppliers of pharmaceuticals for the direct provision of prescription drugs to its insureds.

NEW SECTION. Sec. 4.  A new section is added to chapter 48.44 RCW to read as follows:

          A health care services contractor shall not enter into agreements with out-of-state pharmacies or suppliers of pharmaceuticals for the direct provision of prescription drugs to its contract holders.

NEW SECTION. Sec. 5.  A new section is added to chapter 48.46 RCW to read as follows:

          A health maintenance organization shall not enter into agreements with out-of-state pharmacies or suppliers of pharmaceuticals for the direct provision of prescription drugs to its consumers.