| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Health Care & Wellness Committee | |
HB 1886
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.
Brief Description: Creating the Washington health security trust.
Sponsors: Representatives Appleton, Hasegawa, Ormsby, Moeller, Pettigrew, Schual-Berke, Dickerson, Simpson, Williams, Darneille, Flannigan, Hunt, Chase, McCoy, Green and Wood.
Brief Summary of Bill |
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Hearing Date: 2/27/07
Staff: Dave Knutson (786-7146).
Background:
Approximately 46 million Americans do not have health care coverage. There is currently a mix
of employer-sponsored health care coverage and public financing for health coverage through the
Medicaid, Medicare, the Basic Health Plan, state-funded health care, and the State Children's
Health Insurance Program. Individuals who do not qualify for public health coverage and work
for an employer who does not offer health coverage cannot, in many cases, afford to purchase
health care coverage.
Summary of Bill:
A Washington health security trust is created to provide every citizen with coverage for a set of
health services. The system would include the following: a single health care financing entity
will be created, a comprehensive package of health services, health care coverage would be
independent of employment, administrative costs would be reduced, savings would be generated
to ensure coverage of all residents, publicly sponsored health programs would be incorporated
into the Washington health trust. The trust will be governed by a nine member board. The board
will adopt an annual Washington health security trust budget. The health budget will not exceed
the previous years budget by more than the consumer price index. It will establish a single
benefits package. If thee are sufficient funds in the trust long-term care will be a covered benefit
as of May 15, 2010. Pharmaceutical and durable medical equipment manufacturers must provide
their products in Washington at the lowest rate offered to federal and other government entities.
The board will negotiate annual budgets with hospitals and other providers. Nonresidents are
only covered for emergency services and emergency transportation. Employers will pay 10
percent of the amount of aggregate gross quarterly payroll above $125,000. All residents 18
years and older with incomes over 150 percent of the federal poverty level will pay a health
security premium of $75 per month. The health care authority is abolished and its powers and
duties are transferred to the health security trust. Revenues currently deposited in the health
services account are instead deposited in the reserve account created by this act.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.