FINAL BILL REPORT

ESHB 2797

C 192 L 04

Synopsis as Enacted

Brief Description: Increasing access to health insurance options for certain persons eligible for the Federal Health Coverage Tax Credit under the Trade Act of 2002 (P.L. 107-210).

Sponsors: By House Committee on Health Care (originally sponsored by Representatives Morrell, Cody, Linville, G. Simpson, Edwards, Kenney and Ormsby; by request of Insurance Commissioner).

House Committee on Health Care

Senate Committee on Health & Long-Term Care

Background:

One of the effects of international trade is domestic job loss and dislocation. To help workers who lose their jobs as a result of international trade, Congress enacted the Trade Act of 2002 (P.L. 107-210). The Trade Act provides a federal tax credit that subsidizes private health insurance coverage for displaced workers certified to receive certain trade adjustment assistance benefits and for persons over age 55 who receive benefits from the Pension Benefit Guaranty Corporation.

Summary:

Subject to approval as a qualified plan, the Health Care Authority is authorized to offer the Basic Health Plan as a qualified plan for the federal Health Coverage Tax Credit Program. Eligible persons may enroll in the Basic Health Plan as a health coverage tax credit enrollee.

The Administrator of the Health Care Authority will collect premiums for the Basic Health Plan from health coverage tax credit eligible enrollees in an amount sufficient to cover the cost charged by the managed health care system provider, plus the administrative cost of providing the plan to the enrollee. The Administrator will establish a mechanism for receiving premium payments from the Internal Revenue Service for health coverage tax credit eligible enrollees. The Administrator is authorized to end the participation of persons eligible for the Basic Health Plan if the federal government reduces or terminates financial support for them. Carriers that serve subsidized Basic Health Plan enrollees are not required to serve health coverage tax credit enrollees.

Votes on Final Passage:

House 95  0

Senate 49  0    (Senate amended)

House 96  0    (House concurred)

Effective: January 1, 2005