HOUSE BILL REPORT

                 EHB 1876

                    As Passed Legislature

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

Brief Description:  Modifying provision of dental services by certified health plans.

Sponsors:  Representatives Dyer and Dellwo.

Brief History:

  Committee Activity:

Health Care:  2/21/95 [DP].

Floor Activity:

Passed House:  3/10/95, 98-0.

Passed Legislature.

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].  The only exception to the requirement is Dental-Only CHPs.  Such CHPs were allowed to offer dental services as a separate, or "unbundled", service.  The Dental-Only CHPs authorization was passed in two separate bills and codified in two different chapters of RCW.

In implementing the 1993 Act, the Washington Health Services Commission found inconsistencies in the two provisions.  This measure codifies the Dental-Only CHP provision in one statute and removes certain inconsistencies.

Summary of Bill:  Insuring entities are permitted to offer coverage for dental services 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 dental-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.

Dental-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.

RCW 48.01.210 and RCW 43.72.110 (1993 acts) are repealed.

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:  The bill is necessary to clarify current law.

Testimony Against:  None.

Testified:  Sarah Lee Bourlier, Washington Dental Service (pro).