SENATE BILL REPORT

                                   SHB 1082

             AS REPORTED BY COMMITTEE ON HEALTH & LONG-TERM CARE,

                                MARCH 28, 1991

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

SPONSORS:House Committee on Health Care (originally sponsored by Representatives Braddock, Moyer, Sprenkle and Orr).

HOUSE COMMITTEE ON HEALTH CARE

SENATE COMMITTEE ON HEALTH & LONG‑TERM CARE

Majority Report:  Do pass.

      Signed by Senators West, Chairman; L. Smith, Vice Chairman; Amondson, Johnson, L. Kreidler, Niemi, and Wojahn.  

Staff:  Don Sloma (786‑7414)

Hearing Dates:March 27, 1991; March 28, 1991

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 health maintenance organizations (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:

Current law is amended to allow the HCA to exempt such data from public disclosure and to 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.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

This bill is needed to allow detailed negotiations to occur to reduce the cost of health care.

TESTIMONY AGAINST:  None

TESTIFIED:  Kristen West, Health Care Authority (pro); Maribeth O'Connor, Group Health (pro)