HOUSE BILL REPORT

                  HB 1082

             As Reported By House Committee on:

                         Health Care

Title:  An act relating to disclosure of information by the health care authority and state employees benefit board.

Brief Description:  Allowing nondisclosure of trade information by the health care authority and state employees benefits board.

Sponsor(s):  Representatives Braddock, Moyer, Sprenkle and Orr.

Brief History:

  Reported by House Committee on:

Health Care, January 30, 1991, DPS.

HOUSE COMMITTEE ON

HEALTH CARE

Majority Report: That Substitute House Bill No. 1082 be substituted therefore, and the substitute bill do pass.  Signed by 11 members:  Representatives Braddock, Chair; Day, Vice Chair; Moyer, Ranking Minority Member; Casada, Assistant Ranking Minority Member; Cantwell; Edmondson; Franklin; Morris; Paris; Prentice; and Sprenkle.

Staff:  Bill Hagens (786-7131).

Background:  The Health Care Authority (HCA) is the state agency responsible for administering the public employees benefit program.  It currently maintains contracts with eight medical HMOs, one dental prepaid plan, four uniform medical plan vendors and one uniform dental plan vendor.  Each carrier or vendor contracting with the HCA must present reports on utilization and cost data, some of which are considered proprietary by the vendor or contractor.  The State Employees Benefits Board (SEBB), which advises the HCA, also has occasion to review sensitive cost data.  Inappropriate release of this information might adversely affect the competitiveness of the provider.

Summary of Substitute Bill:  Current law is amended to allow the HCA to exempt such data from public disclosure and would allow the SEBB to hold executive sessions when it must review and discuss such data.  These provisions are consistent with current provisions in the Insurance Commissioner's statutes (RCW 48.02.120) and with the Open Meetings Act addressing executive sessions for governing bodies.

Substitute Bill Compared to Original Bill:  Clarifies that effected information will be kept confidential at all times.

Fiscal Note:   Requested January 21, 1991.

Effective Date of SUBSTITUTE Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Needed to insure true competition among contractors.

Testimony Against:  None.

Witnesses:  Kristen West, Health Care Authority (Pro); and Ken Bertrand, Group Health (Pro).