FINAL BILL REPORT

                 SHB 2279

PARTIAL VETO

                         C 337 L 97

                     Synopsis as Enacted

Brief Description:  Revising the basic health plan.

Sponsors:  By House Committee on Appropriations (originally sponsored by  Representatives Huff and Backlund).

House Committee on Appropriations

Background:  In 1995, the Legislature made a number of changes to the Basic Health Plan (BHP).  Mental health, chemical dependency treatment, and organ transplant benefits were added.  To boost enrollments in the BHP, an entitlement for health insurance agents and brokers to receive a commission for individual or group enrollments in the BHP was created.  A process for financial sponsorship of enrollees was put in place.  Payments made on behalf of the enrollee are prohibited from exceeding the total premium due from the enrollee.

Summary:   An Agent or a broker may receive a commission for enrolling a person in the Basic Health Plan if funding for the commission is specifically provided. The prohibition against financial sponsor payments exceeding premiums due from the enrollee is deleted.  Chemical dependency, mental health, and organ transplant benefits may be offered by the Basic Health Plan if funding is available.  A person who solicits applications for the BHP is required to comply with the insurance code, including the requirement to be licensed as an agent. 

Four technical and clarifying amendments are made to the Health Insurance Reform Act (enacted this session as ESHB 2018).  Two amendments clarify statutory references.  One amendment clarifies that underwriting for the high-risk pool is to be based on the rules for the small group rather than the individual market to prevent gender inequity.  The last amendment provides a definition for Acovered person@ which was mistakenly deleted in the Health Insurance Reform Act.

Votes on Final Passage:

House  55 42

Senate 27 20 (Senate amended)

House       (House refused to concur)

First Conference Committee

Senate      (Senate refused to adopt)

House       (House refused to adopt)

Second Conference Committee

Senate 47 0

House  56 42

Effective:July 27, 1997

July 1, 1997(Sections 1 & 2)

Partial Veto Summary: The governor vetoed two technical corrections to ESHB 2018.