Z-1421.1  _______________________________________________

                          HOUSE BILL 2635

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Cody, Campbell, Schual‑Berke, Conway, Dickerson, Berkey, Edwards, Chase, McIntire, Ogden, Jackley, Kenney and Kagi; by request of Governor Locke

Read first time 01/23/2002.  Referred to Committee on Health Care.

Requiring the development of consolidated purchasing and administration of health care services.

    AN ACT Relating to development of consolidated purchasing and administration of health care services; adding new sections to chapter 41.05 RCW; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 41.05 RCW to read as follows:

    (1) The administrator, in concert with other state agencies involved in state purchased health care and other interested parties designated by the administrator, will begin implementation of consolidated health care services purchasing and administration by January 1, 2003.

    (2) The authority, in concert with the other state agencies that purchase health care, must develop and implement strategies to:

    (a) Promote greater value and cost-effectiveness in health care delivery through consolidated state purchasing and contracting;

    (b) Promote effective use of health care, patient safety, and health outcomes;

    (c) Enhance the state's ability to manage the rate of health care inflation by leveraging state purchasing;

    (d) Streamline and consolidate state health care administrative processes to promote greater efficiencies;

    (e) Reduce the administrative burden for health care providers and patients;

    (f) Consolidate state purchasing and administrative activities;

    (g) Improve consumer education and achieve meaningful cost sharing; and

    (h) Improve accountability of contractors, health plans, and providers through evaluation and monitoring of quality, service utilization, costs, access, and customer satisfaction.

NEW SECTION. Sec. 2.  A new section is added to chapter 41.05 RCW to read as follows:

    The administrator has the following powers and duties:

    (1) To implement consolidated health care services purchasing and administration directly, by contract, by interagency agreement, by necessary federal waivers, or by any combination thereof;

    (2) To manage in the most cost-effective manner consolidated health care services purchasing and administration to include all state agencies that provide state purchased health care.  The administrator will consolidate the various state agency administrative functions, data, and information systems, and operational activities related to the purchase and procurement of health care services necessary to implement this act.  This may include, but is not limited to, purchasing and contracting, information systems for claims processing and program administration, program eligibility determinations, member benefit and provider relations services, provider credentialing, contract monitoring, and provider utilization review activities;

    (3) To develop and implement strategies to encourage school districts, educational service districts, counties, municipalities, and other political subdivisions to participate in consolidated health care purchasing;

    (4) To design and implement public-private cooperative purchasing strategies that encourage the participation of private purchasers in consolidated health care services purchasing and promote greater value in health care delivery and cost efficiencies for state agencies and private purchasers; and

    (5) To adopt all rules necessary to implement the provisions of this act.

NEW SECTION. Sec. 3.  A new section is added to chapter 41.05 RCW to read as follows:

    (1) By October 1, 2002, the administrator must submit to the governor and the health care and fiscal committees of the legislature an initial report on the feasibility of requiring all school districts and educational service districts to participate in consolidated purchasing under this act beginning with the 2003-04 school year.  By December 1, 2002, the administrator must submit to the governor and the health care and fiscal committees of the legislature a final report on the study provided under this subsection.  All school districts and educational service districts must cooperate with the authority in conducting the study required by this subsection.

    (2) By January 1, 2003, the administrator must submit to the governor and the health care and fiscal committees of the legislature a progress report regarding the implementation of this act.

    (3) By January 1, 2005, the administrator must submit to the governor and the health care and fiscal committees of the legislature a report on the impacts of consolidated purchasing and administration and any recommendations for modifications and improvements.

    (4) This section expires January 1, 2005.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

                            --- END ---