Washington State
House of Representatives
Office of Program Research		 BILL
ANALYSIS
Health Care Committee

HB 1702

Brief Description: Creating the "Health Care Responsibility Act" to expand access to health insurance coverage.

Sponsors: Representatives Cody, Campbell, Moeller, Appleton, Morrell, Green, Conway, Schual-Berke, Simpson, Darneille, Lantz, Kenney, Murray, Ormsby, Chase and Hasegawa.

Brief Summary of Bill
  • Imposes a fee on large employers to be used to purchase health insurance for employees.
  • Authorizes the Health Care Authority to use Basic Health Plan (BHP) funds to subsidize employee premium shares for employer sponsored health insurance.
  • Small employers may enroll as a group in the BHP and have their costs subsidized from savings accruing from the conversion of subsidized BHP enrollees to fee supported enrollees.

Hearing Date: 2/17/05

Staff: Dave Knutson (786-7146).

Background:

Employees of many large employers do not have access to health insurance through their employer. An employer is free to choose whether to offer health insurance coverage to their employees. If these employees sign up for coverage through the Basic Health Plan or the Medicaid program, the public subsidizes the cost of their health care. Employers who do not provide health insurance for their employees do not directly contribute to the cost of publicly subsidized health insurance.

Summary of Bill:

Employers with more than 50 full time equivalent employees will be assessed a fee for every employee working over 86 hours per month. The fees will be sufficient to pay for Basic Health Plan (BHP) coverage for an adult. Employers that provide health coverage for their employees may deduct from the fee their aggregate expenses for providing health insurance coverage or other health care benefits for employees.

Low wage employees of small employers may obtain assistance through the Basic Health Plan to pay for their share of their employer sponsored health insurance premium. Premium assistance will be available to low income employees if the biennial operating budget provides funding for 100,000 covered lives and if certain requirements related to small employer insurance coverage and eligibility conditions are met.

A small employer group enrollment option is established for participation in the Basic Health Plan. Small employers can apply for group coverage and receive a subsidy through the Basic Health Plan. This option will be available if savings result from the conversion of subsidized enrollees in the Basic Health Plan to fee-supported enrollees and the Legislature appropriates the savings to finance this option.

Appropriation: None.

Fiscal Note: Requested on February 9, 2005.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.