HOUSE BILL REPORT
HB 1460
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Health Care & Wellness
Title: An act relating to extending existing mental health parity requirements to individual and small group plans.
Brief Description: Extending existing mental health parity requirements to individual and small group plans.
Sponsors: Representatives Schual-Berke, Hankins, Cody, Campbell, Morrell, Green, Dickerson, Darneille, McDermott, Jarrett, Hudgins, Moeller, Kagi, Rodne, Williams, Ormsby, Haigh, Linville, Wood, Conway, O'Brien, Hasegawa, Santos and Lantz.
Brief History:
Health Care & Wellness: 2/12/07, 2/14/07 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON HEALTH CARE & WELLNESS
Majority Report: Do pass. Signed by 10 members: Representatives Cody, Chair; Morrell, Vice Chair; Hinkle, Ranking Minority Member; Barlow, Campbell, Green, Moeller, Pedersen, Schual-Berke and Seaquist.
Minority Report: Do not pass. Signed by 3 members: Representatives Alexander, Assistant Ranking Minority Member; Condotta and Curtis.
Staff: Dave Knutson (786-7146).
Background:
Currently, commercial insurance policies covering more than 50 employees, state employees,
and the Basic Health Plan are required to cover mental health services in a manner equal to
coverage for other medical and surgical services. This mental health parity requirement first
became effective January 1, 2006, with additional phased-in requirements for maximum
out-of-pocket limits, and a single deductible in 2008 and 2010, respectively.
Currently, 48 states require some form of mental health parity for insurance coverage of
mental health services, or have mental health mandates of some sort. Twenty states,
including Washington, provide exemptions for some small groups from mental health parity
requirements. In Washington, small group policies are exempt from the required coverage,
however insurance carriers are required to offer each small group optional supplemental
coverage for mental health treatment.
Summary of Bill:
Effective January 1, 2008, insurance policies issued for all individuals, groups, and the
Washington State Health Insurance Pool are required to include coverage for mental health
services equal to coverage for other medical and surgical services. The requirement for
insurance carriers to offer supplemental coverage to small groups is repealed.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect on January 1, 2008.
Staff Summary of Public Testimony:
(In support) People with a mental illness should be treated the same as people with a physical
illness or disability. The small increase in health insurance premiums will be offset by
reductions in other publically funded services.
(Opposed) Most mental health treatment is prescription drugs, and they can harm you and
keep you dependent. Increased health insurance premiums caused by this new mandate will
result in fewer people being able to afford to purchase health coverage.
Persons Testifying: (In support) Randy Revelle, Washington State Coalition for Insurance
Parity; Len McComb, Washington State Hospital Association; Sean Corry, Sprague Israel
Giles, Incorporated; and Tamera Alkire.
(Opposed) Carole Willey, Holistic Health and Advocacy; Ruth Martin, Citizens' Commission
on Human Rights; Nancee Wildermuth, Regence Blue Shield and Pacific Care; and Mel
Sorenson, America's Health Insurance Plans and Washington Association of Health
Underwriters.