HOUSE BILL REPORT

                 EHB 2837

                  As Amended by the Senate

Title:  An act relating to the definition of medicare supplemental insurance or medicare supplement insurance policy.

Brief Description:  Modifying the definition of medicare supplemental insurance or medicare supplement insurance policy.

Sponsors:  Representatives Dyer, Cody and Murray; by request of Insurance Commissioner.

Brief History:

  Committee Activity:

Health Care:  2/1/96 [DP].

Floor Activity:

Passed House:  2/8/96, 97-0.

Senate Amended.

HOUSE COMMITTEE ON HEALTH CARE

Majority Report:  Do pass.  Signed by 12 members:  Representatives Dyer, Chairman; Backlund, Vice Chairman; Hymes, Vice Chairman; Cody, Ranking Minority Member; Murray, Assistant Ranking Minority Member; Campbell; Conway; Crouse; Morris; Sherstad; Skinner and H. Sommers.

Staff:  Charlie Gavigan (786-7340).

Background:  Medicare coverage is available to persons over the age of 65, persons suffering from end-stage renal disease, or persons who have disabilities.  In many cases, persons covered by Medicare choose to have additional insurance to pay for health care not covered by Medicare.  Such additional coverage, called Medicare supplemental insurance coverage, is designed as a program which supplements reimbursements under the Medicare program.  The Medicare program is established under federal law and is administered under both federal and state law.  State programs must comply with minimum federal standards.  Federal law defining Medicare supplemental insurance has been revised.

Summary of Bill:  Changes are made to Washington's definition of Medicare supplemental insurance to conform to changes in federal law.

EFFECT OF SENATE AMENDMENT(S): The amendment exempts policies or funds for employers or labor organizations from Medicare supplemental insurance provisions.  (This exemption is removed in the bill as it passed the House.)

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  This bill is necessary to implement changes in federal law.  If these changes in law are not made by April 28, 1996, Medicare supplemental insurance policies regulated under state law cannot be sold in Washington State.

Testimony Against:   None.

Testified:   Melodie Bankers, Office of the Insurance Commissioner.