HOUSE BILL REPORT
SHB 2186
As Passed Legislature
Title: An act relating to long‑term care benefits for public employees.
Brief Description: Establishing long‑term care benefits for public employees.
Sponsors: By House Committee on Health Care (originally sponsored by Representatives Dyer, Cody, Dickerson, L. Thomas, Quall, Carlson and Cooke).
Brief History:
Committee Activity:
Health Care: 1/12/96, 2/1/96 [DPS].
Floor Activity:
Passed House: 2/8/96, 97-0.
Senate Amended.
House Concurred.
Passed Legislature.
HOUSE COMMITTEE ON HEALTH CARE
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 11 members: Representatives Dyer, Chairman; Backlund, Vice Chairman; Hymes, Vice Chairman; Cody, Ranking Minority Member; Murray, Assistant Ranking Minority Member; Campbell; Conway; Crouse; Sherstad; Skinner and H. Sommers.
Staff: Antonio Sanchez (786-7383).
Background: Long-term care refers to a wide range of medical and human services provided to those who are disabled or limited in their functional capacities and require assistance in performing necessary daily activities for a relatively long and indefinite period. These services can be provided in the home, community, or in a formal institutional setting such as a nursing home. The demand for long-term care services is expected to increase significantly in the state of Washington and nationally for the next 10 years as the baby boomer generation comes of age.
Long-term care is different from the other health care services in that it is not typically covered under most health care policies or by Medicare. Medicare is not designed to help with chronic long-term care. It pays primarily for hospital and physician services. A person who wants long-term care coverage under his or her health care policies must purchase it separately. Most often, people pay for services with their savings until they have exhausted their savings and Medicaid takes over. Historically, Medicaid has been the only insurer for long-term care. However, it is available only to those elderly persons who are impoverished.
Although seniors plan for many aspects of their retirement, financial planning for long-term care has traditionally been ignored. One alternative to spending one's life savings on long-term care is to purchase private long-term care insurance. Long-term care insurance allows some protection against the catastrophic costs associated with long-term care services.
Long-term care insurance is regulated in this state by the Office of the Insurance Commissioner. Currently, a number of private long-term care insurance plans are offered to the public. The Legislature recently added a new public/private insurance plan called the Long-term Care Partnership, to the list of plans offered. This long-term care insurance option is targeted at the middle-income person. The partnership option offers comprehensive coverage with a unique asset protection feature that protects one's assets so a person will not have to impoverish himself or herself to retain long-term care.
Long-term care insurance coverage is not currently available to state employees and their dependents through the Public Employee Benefits Board (PEBB).
Summary of Bill: The PEBB is directed to design and make available one or more long-term care insurance plans to public employees and their dependents, including their parents by January 1, 1998. An employee is required to pay the entire cost of the insurance premiums through payroll deductions should the employee elect to obtain long-term care insurance coverage. Participation is voluntary and the plans are prohibited from being included in binding arbitration. A technical advisory committee is established to provide technical assistance to the PEBB and the Health Care Authority. The advisory committee will be made up of representatives from the office of the Insurance Commissioner, long-term care service providers, licensed insurance agents, employees, and others as needed. The Health Care Authority is required to set marketing procedures and work in cooperation with the office of the Insurance Commissioner to develop a consumer education program for eligible employees. A report concerning the marketing and distribution of the long-term care insurance benefits offered under this program must be submitted to the Legislature by December 1998 by the Health Care Authority in consultation with the PEBB.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: This legislation will provide public employees an opportunity to plan for their future care needs in a cost effective fashion. This option will save the state money and provide employees with an important voluntary benefit.
Testimony Against: None.
Testified: Kathy Marshall, Washington Association of Homes for the Aging; Scott Sigman, Washington Health Care Association; Gail McGaffick, Home Care Association of Washington; Greg Devereaux, Washington State Employees Union; Joan Lewis, Office of the Insurance Commissioner; Spencer Lehmann, Washington Association of Health Underwriters; Vicki Welson and Beth Berendt, Health Care Authority; and Jeff Larsen, Washington Residential Care Conference.