HOUSE BILL REPORT

HB 2411

As Amended by the Senate

BYRepresentatives Braddock, Brooks and Prentice; by request of Health Care Authority

Amending health care authority provisions.

House Committe on Health Care

Majority Report:  Do pass.  (9)

      Signed by Representatives Braddock, Chair; Day, Vice Chair; Brooks, Ranking Republican Member; Chandler, Morris, Sommers, Sprenkle, Vekich and Wolfe.

House Staff:Bill Hagens (786-7131)

AS PASSED HOUSE FEBRUARY 6, 1990

BACKGROUND:

In 1988, in an effort to address a financial crisis regarding public employee benefits, the Legislature passed HB 2038 (Health Care Reform Act), which created the Washington State Health Care Authority (HCA).  (The HCA should not be confused with the Washington Health Care Facilities Authority, which is the public bonding agency for hospitals.) The HCA's two primary responsibilities are:  1) to develop and manage insurance benefits for state employees, retirees, and their families; and 2) to study ways for the state to become a prudent purchaser of health care services.

As the HCA was developed, agency officials identified several areas of law that needed change, including updating language, eliminating outdated requirements, clarifying the duties of the agency, modifying employee/spouse conversion provisions, and providing safeguards from public disclosure of certain proprietary information and bid related data.

SUMMARY:

Certain language changes are made to the Health Care Authority (HCA) enabling statute, including the listing of the newly created Department of Health as a cooperating agency.

The outdated requirement that contribution rates of newly enrolled local entities cannot reflect the benefit of any surpluses accrued prior to their entry is eliminated.

The role of the HCA is clarified regarding utilization of health data, the application process regarding local entities, appointment of a technical advisory committee, and promulgation of rules.

Language is added to include employees and spouses in the conversion entitlement.

The HCA is authorized to withhold from public disclosure certain proprietary information and data contained in responses to requests for bids.

EFFECT OF SENATE AMENDMENTS:  The responsibility for reviewing mandated benefits and mandated offerings is transferred from the Department of Health to the Washington State Health Care Authority.

Fiscal Note:      Requested January 10, 1990.

House Committee ‑ Testified For:    Margaret Stanley, Health Care Authority.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    These changes are necessary for the efficient operation of the Health Care Authority.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Miller