SENATE BILL REPORT

SB 5876

As of February 20, 2001

Title:  An act relating to the establishment of a medicaid managed care contracting pilot project.

Brief Description:  Creating a pilot project to provide health services to certain needy persons.

Sponsors:  Senators Snyder, Hargrove and Kohl‑Welles.

Brief History:

Committee Activity:  Health & Long‑Term Care:  2/22/01.

SENATE COMMITTEE ON HEALTH & LONG‑TERM CARE

Staff:  Jonathan Seib (786‑7427)

Background:  Managed health care systems that seek to serve clients of the Department of Social and Health Services (DSHS) must meet certain statutory standards.  They must follow uniform negotiation and contractual procedures.  They also must meet financial integrity standards.  Managed health care systems are regulated under Title 48 RCW.

Summary of Bill:  DSHS is directed to design and implement a pilot project to contract with health carriers, in partnership with managed health care systems that are not health carriers, to provide health care services for recipients of temporary assistance for needy families, for pregnant women, and for nondisabled children eligible under current categorically needy medical assistance programs.  The pilot project must be for up to two years and in two counties, including one rural western Washington county.  The managed health care system that is not a health carrier is financially responsible for maintaining adequate reserves.  In the event of insolvency on the managed health care system that is not a health carrier, the partner health carrier is secondarily responsible for payment of any claims.

The activities of DSHS and the managed health care system that is not a health carrier, are exempt from the provisions of Title 48 RCW, except those statutory provisions relating to the patients bill of rights (Chapter 5, Laws of 2000).

Appropriation:  None.

Fiscal Note:  Requested on February 20, 2001.

Effective Date:  The bill contains an emergency clause and takes effect immediately.