Title: An act relating to health insurance for retired and disabled public employees.

Brief Description: Providing for individual health insurance for retired and disabled public employees.

Sponsors: By House Committee on Health Care (originally sponsored by Representatives Cody, Campbell, Kenney, Dickerson and Rockefeller).

Brief Summary of Substitute Bill

• If political subdivisions are unable to offer their retirees and disabled employees access to group insurance coverage they must assist them in applying for individual health insurance.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 11 members: Representatives Cody, Chair; Morrell, Vice Chair; Bailey, Ranking Minority Member; Alexander, Campbell, Clibborn, Darneille, Moeller, Rodne, Schual-Berke and Skinner.

In 2002, the Legislature enacted legislation requiring political subdivisions to offer retirees and disabled employees access to group health insurance coverage. The legislation took effect on January 1, 2003, but political subdivisions were allowed up to one year from this date to come into compliance. The legislation established a mandate for the political subdivision to offer access to health coverage, but did not require health carriers to offer such coverage. Following the passage of the legislation in 2002, health carriers have declined to offer group policies for public retirees and disabled employees, and political subdivisions have not been able to offer any alternatives to their retirees or disabled employees.

If political subdivisions are unable to offer access to group health insurance for their retirees and disabled employees they must assist their retirees and disabled employees in applying for individual health benefit plans. The Office of the Insurance Commissioner and carriers that offer individual health benefit plans will help political subdivisions meet this obligation by developing standardized information on the availability and cost of individual health benefit plans, application packages, and health benefit fairs.

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