HOUSE BILL REPORT

                 EHB 2005

                      As Passed House:

                       March 10, 1995

Title:  An act relating to the modification of provisions governing certified health plans providing vision benefits only.

Brief Description:  Modifying certified health plan provision of vision benefits.

Sponsors:  Representatives Dyer and Dellwo.

Brief History:

  Committee Activity:

Health Care:  2/21/95 [DP].

Floor Activity:

Passed House:  3/10/95, 98-0.

HOUSE COMMITTEE ON HEALTH CARE

Majority Report:  Do pass.  Signed by 11 members:  Representatives Dyer, Chairman; Backlund, Vice Chairman; Hymes, Vice Chairman; Cody, Assistant Ranking Minority Member; Casada; Conway; Crouse; Kessler; Morris; Sherstad and Skinner.

Staff:  Bill Hagens (786-7131).

Background:  The Washington Health Services Act of 1993 requires newly created certified health plans [CHPs] to offer, at a minimum, the full uniform benefits package [UBP].  Proponents of  HB 2005 seek an exception to this requirement in order to permit certain CHPs to offer vision care only.

Summary of Bill:  Insuring entities are permitted to offer coverage for vision care as part of, or separate from, the UBP, consistent with certification rules set by the Insurance Commissioner.  Such permission is not intended to convey a market advantage for vision-only CHPs.  The Washington Health Services Commission and the Insurance Commissioner shall develop and enforce separate cost containment requirements,  including separate community-rated premium submaximums and enrollee financial participation submaximums.

Vision-care only CHPs are required to comply with all applicable laws governing the financial supervision and solvency of such organizations, including laws concerning capital and surplus requirements, reserves, deposits, bonds, and indemnities.

The Act takes effect July 1, 1995.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  The bill contains an emergency clause and takes effect on July  1, 1995.

Testimony For:  Vision care is more efficient if offered through vision care only CHPs.

Testimony Against:  None.

Testified:  Jean Leonard, Vision Service Plan (pro); and Lisa Thatcher, Opticians Association of Washington (pro).