SENATE BILL REPORT

SHB 2585

As Reported By Senate Committee On:

Health & Long-Term Care, February 19, 2004

Title: An act relating to prohibiting civil or criminal liabilities or penalties for actions related to the Washington state health insurance pool.

Brief Description: Prohibiting civil or criminal liabilities or penalties for actions related to the Washington state health insurance pool.

Sponsors: House Committee on Judiciary (originally sponsored by Representatives Cody, Bailey and Schual-Berke).

Brief History:

Committee Activity: Health & Long-Term Care: 2/19/04 [DP].

SENATE COMMITTEE ON HEALTH & LONG-TERM CARE

Majority Report: Do pass.

      Signed by Senators Deccio, Chair; Winsley, Vice Chair; Brandland, Franklin, Keiser, Parlette and Thibaudeau.

Staff: Jonathan Seib (786-7427)

Background: The Washington State Health Insurance Pool (WSHIP) is the state-facilitated insurance program for high-risk individuals who are unable to obtain coverage in the individual market. It is governed by a ten-member volunteer board of directors, six of whom are appointed by the Governor and four of whom are selected from among the health carriers that make up the membership of the pool. The Insurance Commissioner is also a non-voting, ex officio member. WSHIP's day-to-day operations are overseen by an executive director hired by the board.

Legal counsel retained by the board recently reviewed the board's operations, including its enabling statutes. It suggested that current law did not provide the degree of civil and criminal immunity typically afforded entities such as this, concluding that although the existing statute is generally quite broad, it lacks clarity and contains language that could lead to an inappropriately narrow interpretation by a court. There is concern that this could interfere with WSHIP operations.

Summary of Bill: The current law regarding immunity for actions taken in connection with the operation of the Washington State Health Insurance Pool is changed to provide that the pool, its members, board directors, officers, and employees, and the Insurance Commissioner and his or her representatives or employees, are not liable for good faith actions taken in the performance of the powers and duties set forth in the WSHIP enabling statute.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: None.

Testimony Against: None.

Testified: No one.

Signed In/Did Not Testify: PRO: Bob Moore, Washington State Health Insurance Pool Board.