HOUSE BILL REPORT
HB 1383
As Reported by House Committee On:
Health Care
Appropriations
Title: An act relating to the public employees' benefits board.
Brief Description: Requiring the public employees' benefits board to develop a health savings account option for employees.
Sponsors: Representatives Condotta, Bailey, Newhouse, Curtis, Hinkle, Pearson, Kretz, Strow, Armstrong, Kristiansen, Talcott, Skinner and Holmquist.
Brief History:
Health Care: 2/28/05, 3/1/05 [DP];
Appropriations: 3/5/05 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON HEALTH CARE
Majority Report: Do pass. Signed by 12 members: Representatives Cody, Chair; Campbell, Vice Chair; Morrell, Vice Chair; Bailey, Ranking Minority Member; Curtis, Assistant Ranking Minority Member; Alexander, Clibborn, Condotta, Hinkle, Lantz, Moeller and Skinner.
Minority Report: Do not pass. Signed by 3 members: Representatives Appleton, Green and Schual-Berke.
Staff: Dave Knutson (786-7146).
Background:
In 2003, as part of the Medicare Modernization Act, Congress authorized people to establish
health savings accounts to work with qualifying high-deducible health coverage to help
people finance medical expenses. Health savings accounts are tax-free accounts that can be
set up by individuals or employers. They are personal accounts that are owned by
individuals, even when employers establish and contribute to them. Interest earned is not
taxed, and funds that are not used may carry over to the following year. A qualifying
high-deductible health plan is one that has an annual deductible of at least $1,000 for
individual coverage and at least $2,000 for family coverage, with out-of-pocket costs not to
exceed $5,000 for an individual and $10,000 for families. Preventive care is not subject to
the annual deductible. The Internal Revenue Service rules on high deductible health plans
provide that services such as physicals, immunizations, screenings, prenatal care, and
tobacco-cessation programs are covered without imposing any deductible. Preventive care
also includes medication taken to prevent a disease or reoccurrence of a disease, such as
taking cholesterol-lowering medications to prevent heart disease.
Summary of Bill:
The Public Employees Benefit Board will develop a health savings account with a
high-deductible health plan as an option for employees who receive their health care coverage
through the Health Care Authority.
Appropriation: None.
Fiscal Note: Requested on February 27, 2005.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: The federal government authorized Health Savings Accounts in 2003. They offer an affordable method of providing health care coverage. State employees should be able to take advantage of this new health care coverage option. It is a choice they should be allowed to make.
Testimony Against: None.
Persons Testifying: (In support) Representative Condotta, prime sponsor.
(Neutral) Daniel Mead Smith, Washington Policy Center; and Richard Onizuka, Health Care
Authority.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass. Signed by 24 members: Representatives Sommers, Chair; Fromhold, Vice Chair; Alexander, Ranking Minority Member; Anderson, Assistant Ranking Minority Member; McDonald, Assistant Ranking Minority Member; Armstrong, Bailey, Buri, Clements, Cody, Dunshee, Grant, Haigh, Hinkle, Hunter, Kagi, Kessler, Linville, McDermott, Miloscia, Pearson, Priest, Talcott and Walsh.
Minority Report: Do not pass. Signed by 4 members: Representatives Conway, Darneille, Kenney and Schual-Berke.
Staff: David Pringle (786-7310).
Summary of Recommendation of Committee On Appropriations Compared to
Recommendation of Committee On Health Care:
No new changes were recommended.
Appropriation: None.
Fiscal Note: Requested on February 27, 2005.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: None.
Testimony Against: None.
Persons Testifying: None.