HOUSE BILL REPORT

                     SHB 2817

                              As Passed House

                             February 17, 1992

Title:  An act relating to small employer health insurance, data collection, and administrative reform.

Brief Description:  Enacting the small employer health insurer availability act.

Sponsor(s):  By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Zellinsky, Bowman, Dellwo, Broback, R. Johnson, Paris, Dorn, Schmidt, R. Meyers, Winsley, Ballard, Beck, Ludwig, Brough, Vance, Wynne, Carlson, Miller, Forner, Tate, Hochstatter, Van Luven, Wood, May, Fuhrman, Mitchell, Brumsickle and Ferguson).

Brief History:

   Reported by House Committee on:

Financial Institutions & Insurance, February 7, 1992, DPS;

Passed House, February 17, 1992, 95-0.

HOUSE COMMITTEE ON

FINANCIAL INSTITUTIONS & INSURANCE

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives Dellwo, Chair; Zellinsky, Vice Chair; Broback, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Anderson; Dorn; Inslee; R. Johnson; R. Meyers; Paris; Schmidt; Scott; and Winsley.

Staff:  John Conniff (786-7119).

Background:  In 1990, responding to small employer problems in obtaining group health insurance, the Legislature required insurers, health care service contractors, and health maintenance organizations to offer a basic group health insurance policy to employer groups of less than 25 employees.  Apart from a general instruction that rates for such group plans should be reasonable and plan contracts should be submitted to the insurance commissioner for prior approval, no provision of the act set specific standards for design and sale of such coverage.

Summary of Bill:  The insurance commissioner must study ways to improve small employer access to health insurance and report back to the Legislature by January 1, 1993.

Fiscal Note:  Not requested.

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

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.