2459-S AMH CODY PRIN 026

SHB 2459 - H AMD

By Representative Cody

   On page 75, line 15, increase the health services account--state appropriation by $150,000.

   On page 75, line 22, correct the total.

   On page 77, after line 37, insert the following:

   "(10) $150,000 of the health services account--state appropriation is provided for fiscal year 2005 solely to conduct a study and prepare recommendations to the legislature related to health care financing, cost containment and quality improvement in the state's health care system. The report and recommendations must be submitted to the governor and appropriate committees of the legislature by October 1, 2005.

   (a) The study shall be conducted jointly by the administrator, the department of health and the state board of health. An advisory committee shall be established that includes representatives of at least the following individuals or entities: Business; labor organizations; consumers, including people with disabilities; communities of color; health care providers and facilities; health insurance carriers; academic or health care research institutions; health care ethicists; the department of social and health services; and the department of labor and industries. The committee shall be actively consulted with in conducting the study and preparing recommendations.

   (b) The following issues shall be examined and addressed in the study and recommendations:

   (i) Assessing Washington state's health care needs and available resources. In assessing health care needs, improving health status and health outcomes for residents of Washington state should be the primary focus;

   (ii) The impacts of the employer-based health insurance system upon the availability and affordability of health insurance coverage in Washington state. The impacts to be considered include but are not limited to:

   (A) Trends in employer sponsored health insurance coverage among large and small employers, including an assessment of the impact of the failure of some large employers to provide health insurance coverage to their workers on the competitive environment between employers that do provide coverage and those that do not;

   (B) The appropriate role of medical assistance programs, the state childrens health insurance program and the basic health plan as a source of health care coverage for low wage workers whose employers do not offer health insurance coverage, and the fiscal impact of that coverage upon the state;

   (iii) Containing the cost of health care coverage;

   (iv) Improving the quality and effectiveness of the health care system through increased focus upon evidence-based medicine, proven preventive health services, management of chronic disease, implementation of proven patient safety strategies, and other appropriate mechanisms;

   (v) Decreasing health disparities between racial and ethnic groups;

   (vi) Increasing the transparency of health care costs and the relative efficiency with which care is delivered; and

   (vii) Consolidation of existing state programs to achieve efficiencies where possible.

   (c) To provide more information related to the role of state funded health insurance programs in covering low wage workers, the administrator, in consultation with the department of social and health services, shall provide a report to the legislature by February 1, 2005 on employers whose employees are receiving benefits through the basic health plan or medical assistance for themselves or their dependents. The report must include information on the size of the employers, the number of employees who are receiving benefits through the basic health plan or medical assistance; the number of enrollees who are spouses or dependents of their employees; whether the employers offer health benefits to their employees; and the cost to the state of providing basic health plan or medical assistance for their employees and enrolled dependents."

EFFECT: A study on health care financing, cost containment, and quality improvement of the state's health care system will be conducted by the administrator of the health care authority, the department of health, and state board of health. The report and recommendations must be submitted to the legislature and governor by October 1, 2005. Also requires a report to the legislature by February 1, 2005 on employers whose employees are receiving benefits through the basic health plan or medical assistance.

FISCAL IMPACT:

Increases health services account by $150,000.