1154-S AMH SERB H1141.1

SHB 1154  - H AMD2
     By Representative Serben

FAILED 01/28/2005

     On page 6, after line 26, insert the following:
     "(6) The mandate to provide coverage for mental health services shall not apply with respect to a group of fifty or more employees if the insurer chooses to contest the application of the mandate and can demonstrate an increase in the cost of the plan of more than one percent. The insurer can file documentation of any increases due to the mandate with the office of the insurance commissioner. If the commissioner determines that an increase of more than one percent is due to the cost of complying with this act, the plan does not have to comply with the mandates in this act. The insurer may appeal the determination under chapters 48.04 and 34.05 RCW."

     On page 8, after line 31, insert the following:
     "(6) The mandate to provide coverage for mental health services shall not apply with respect to a group of fifty or more employees if the health care service contractor chooses to contest the application of the mandate and can demonstrate an increase in the cost of the plan of more than one percent. The health care service contractor can file documentation of any increases due to the mandate with the office of the insurance commissioner. If the commissioner determines that an increase of more than one percent is due to the cost of complying with this act, the plan does not have to comply with the mandates in this act. The health care service contractor may appeal the determination under chapters 48.04 and 34.05 RCW."

     On page 10, after line 38, insert the following:
     "(6) The mandate to provide coverage for mental health services shall not apply with respect to a group of fifty or more employees if the health maintenance organization chooses to contest the application of the mandate and can demonstrate an increase in the cost of the plan of more than one percent. The health maintenance organization can file documentation of any increases due to the mandate with the office of the insurance commissioner. If the commissioner determines that an increase of more than one percent is due to the cost of complying with this act, the plan does not have to comply with the mandates in this act. The health maintenance organization may appeal the determination under chapters 48.04 and 34.05 RCW."

EFFECT:  Plans offered by private health insurers do not have to comply with the mental health parity provisions if they can demonstrate the mandates have increased the cost of a plan by more than one percent.

--- END ---