H-1556.3  _______________________________________________

 

                          HOUSE BILL 1805

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By Representatives Backlund, Dyer, L. Thomas, Sump, Crouse, Smith, Sherstad, Zellinsky, Talcott, Lambert, Bush, Mulliken, Thompson, Johnson, Buck, Skinner, Boldt, D. Schmidt, Sterk, Clements, Hickel, Koster, Cooke, Mastin and Carrell

 

Read first time 02/10/97.  Referred to Committee on Health Care.

Requiring the health care authority to offer health care savings accounts to unsubsidized basic health plan enrollees.


    AN ACT Relating to health care savings accounts under the basic health plan; and amending RCW 48.68.005.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 48.68.005 and 1995 c 265 s 2 are each amended to read as follows:

    (1) This chapter shall be known as the health care savings account act.

    (2) The legislature recognizes that the costs of health care are increasing rapidly and most individuals are removed from participating in the purchase of their health care.

    As a result, it becomes critical to encourage and support solutions to alleviate the demand for diminishing state resources.  In response to these increasing costs in health care spending, the legislature intends to clarify that health care savings accounts may be offered as health benefit options to all residents as incentives to reduce unnecessary health services utilization, administration, and paperwork, and to encourage individuals to be in charge of and participate directly in their use of service and health care spending.  To alleviate the possible impoverishment of residents requiring long-term care, health care savings accounts may promote savings for long-term care and provide incentives for individuals to protect themselves from financial hardship due to a long-term health care need.

    (3) Health care savings accounts are authorized in Washington state as options to employers and residents.

    (4) The Washington state health care authority, created pursuant to chapter 41.05 RCW, shall establish, by rule, a health care savings account pilot project for a three-year period to be offered to unsubsidized enrollees in the basic health plan as authorized by chapter 70.47 RCW.  The scope of the program services must be the same as that offered to unsubsidized basic health plan enrollees who are not participating in the program.  Requirements on eligibility, enrollee financial participation, and  account management and use may be similar to the provisions of the federal medical savings account program of the federal health insurance portability and accountability act of 1996 (Part C, Title III, section 301), as amended.  The authority shall contract with an actuarial firm to develop the program for an amount no greater than thirty-five thousand dollars.  The firm must have extensive knowledge of the operations of health care savings accounts coverage and must have performed actuarial analyses for, at least, one hundred million dollars of health care savings account coverage and programs.  The authority shall adopt rules, no later than November 1, 1997, and shall offer the program as soon as possible after adoption of the rules.  The authority shall conduct an evaluation on the program's effectiveness and shall report its finding to the appropriate committees of the legislature by July 1, 2001.  The full cost of the program, including administration, marketing, and evaluation, is to be incurred by enrollee premiums and no additional cost is to be incurred by the state.  The office of the insurance commissioner may not adopt rules regarding this subsection.

 


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