HOUSE BILL ANALYSIS

                     HB 2047

Brief Description:  Prohibiting a health service provider from charging a percentage of benefits for acting as a representative.

Sponsors:  Representative McMorris

                  Hearing:  February 26, 1997

BACKGROUND:

Under the industrial insurance law, a class C felony is imposed on any person or entity that solicits or receives, or offers or pays, a kickback, bribe, or rebate in return for referring a claimant for industrial insurance services or for purchasing or recommending goods or services covered by industrial insurance.  This penalty does not apply to properly disclosed discounts.  The law does not address payments that a claimant might make to a provider for acting as the claimant's authorized representative.

SUMMARY OF BILL:

A service provider is prohibited from:  (1) providing a health care service to an industrial insurance claimant while acting as the claimant's representative to obtain authorization for the services; and (2) charging a percentage of the benefits for acting as the claimant's representative.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule-making powers of an agency.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.