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

HB 2942

Brief Description: Concerning contracts of health care providers.

Sponsors: Representatives Curtis, Morrell, Campbell, Cody, Green, Clibborn, Kessler, Serben, Rodne, Moeller, McCune and Hasegawa.

Brief Summary of Bill
  • Health carriers who control 40 percent or more of a local market for health plans must not terminate a provider contract except for reasonable cause, and must offer a provider contract to any provider within the local area who meets the carrier's customary and reasonable credentialing standards.

Hearing Date: 1/31/06

Staff: Dave Knutson (786-7146).

Background:

Health carriers who control a large share of a local market for health plans are in a strong position to dictate terms to providers who wish to be covered by the carrier's health plan.

Summary of Bill:

Health carriers who control 40% or more of a local market for health plans must not terminate a provider contract except for reasonable cause. They are also required to offer a provider contract to any provider within the local area who meets the carrier's customary and reasonable credentialing standards.

Appropriation: None.

Fiscal Note: Not requested.

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