1046‑S AMH PATT HAGE 13

SHB 1046 ‑ H AMD FAILED 2/10/95 060

By Representative Patterson

     On page 8, line 5 strike "(54) RCW 48.43.160 and 1993 c 492 s 426;"

EFFECT:  Deletes Health insurance purchasing cooperatives‑-Certification repealer.  If adopted, the effect would be to maintain in law all of the Washington Health Services Act, except for Health insurance purchasing cooperatives‑-Certification.

      RCW 48.43.160 Health insurance purchasing cooperatives‑-Certification.  (1) No person may establish or operate a health insurance purchasing cooperative without having first obtained a certificate of authority from the insurance commissioner.

      (2) Every proposed cooperative shall furnish notice to the insurance commissioner that shall:

      (a) Identify the principal name and address of the cooperative;

      (b) Furnish the names and addresses of the initial officers of the cooperative;

      (c) Include copies of letters of agreement for participation in the cooperative including minimum term of participation;

      (d) Furnish copies of its proposed articles and bylaws; and

      (e) Provide other information as prescribed by the insurance commissioner in consultation with the health services commission to verify that the cooperative is qualified and is managed by competent and trustworthy individuals.

      (3)(a) The commissioner shall approve applications for certificates in accordance with the order received.

      (b) The commissioner shall establish by rule a fee to be paid by cooperatives in an amount necessary to review and approve applications for a certificate of authority.  Such fee shall accompany the application and no certificate may be issued until such fee is paid.  Fees collected for such purpose shall be deposited in the insurance commissioner's regulatory account in the state treasury.

      (4) All funds representing premiums or return premiums received by a cooperative in its fiduciary capacity shall be accounted for and maintained in a separate account from all other funds.  Each willful violation of this section constitutes a misdemeanor.

      (5) Every cooperative shall keep at its principal address, a record of all transactions it has consummated on behalf of its members with certified health plans.  All such records shall be kept available and open to the inspection of the insurance commissioner at any business time during a five-year period immediately after the date of completion of the transaction.  [1993 c 492 ' 426.]

NOTES:

      Findings‑-Intent‑-1993 c 492:  See notes following RCW 43.72.005.

Health insurance purchasing cooperatives:  RCW 43.72.080.