HOUSE BILL REPORT
SSB 6224
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 Passed House:
March 5, 2008
Title: An act relating to modifying the interest accrual methodology for vendor overpayments.
Brief Description: Modifying the interest accrual methodology for vendor overpayments.
Sponsors: By Senate Committee on Ways & Means (originally sponsored by Senator Keiser).
Brief History:
Appropriations: 2/26/08, 2/27/08 [DP].
Floor Activity:
Passed House: 3/5/08, 96-0.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass. Signed by 33 members: Representatives Sommers, Chair; Dunshee, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Haler, Assistant Ranking Minority Member; Anderson, Chandler, Cody, Conway, Darneille, Ericks, Fromhold, Grant, Green, Haigh, Hinkle, Hunt, Hunter, Kagi, Kenney, Kessler, Kretz, Linville, McIntire, Morrell, Pettigrew, Priest, Ross, Schmick, Schual-Berke, Seaquist, Sullivan and Walsh.
Staff: Mark Matteson (786-7145).
Background:
Vendors of the Department of Social and Health Services (Department) to which the
Department has made overpayments for services rendered must repay the amounts overpaid
with interest. The amount of interest is calculated at 1 percent per month. The accrual period
begins 30 days following the date when the Department first sends notice of overpayment to
the vendor, or 90 days after the date of overpayment to the vendor, whichever occurs first.
The Department Secretary may secure overpayments and the interest thereon through a lien
against the vendor's real and personal property, through seizure of assets, or other methods
available to the Department for the satisfaction of debts.
In June 2007 representatives of the Washington State Pharmacy Association (WSPA) met
with Department staff concerning pharmacy audits. In a letter to legislators issued July 3,
2007, the Department provided context on recent discussions with WSPA. The Department
explained that the discussions yielded agreement about steps to take to address concerns
about the Department audits, including investigating how to modify overpayment interest
accrual periods.
Summary of Bill:
Interest on overpayments to a vendor may not begin to accrue earlier than 30 days following
notification by the Department that overpayment has occurred.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) The change to the interest accrual period in this bill is the same as in the
companion bill, which this committee approved and voted out. Please continue to support
the proposed policy change.
(Opposed) None.
Persons Testifying: Dedi Hitchens, Washington State Pharmacy Association.