BILL REQ. #:  H-1309.1 

Read first time 01/29/2007.   Referred to Committee on Health Care & Wellness.

     AN ACT Relating to provider payment in state subsidized health care; amending RCW 70.47.100; and adding a new section to chapter 74.09 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 70.47.100 and 2004 c 192 s 4 are each amended to read as follows:
     (1) A managed health care system participating in the plan shall do so by contract with the administrator and shall provide, directly or by contract with other health care providers, covered basic health care services to each enrollee covered by its contract with the administrator as long as payments from the administrator on behalf of the enrollee are current. A participating managed health care system may offer, without additional cost, health care benefits or services not included in the schedule of covered services under the plan. A participating managed health care system shall not give preference in enrollment to enrollees who accept such additional health care benefits or services. Managed health care systems participating in the plan shall not discriminate against any potential or current enrollee based upon health status, sex, race, ethnicity, or religion. The administrator may receive and act upon complaints from enrollees regarding failure to provide covered services or efforts to obtain payment, other than authorized copayments, for covered services directly from enrollees, but nothing in this chapter empowers the administrator to impose any sanctions under Title 18 RCW or any other professional or facility licensing statute.
     (2) The plan shall allow, at least annually, an opportunity for enrollees to transfer their enrollments among participating managed health care systems serving their respective areas. The administrator shall establish a period of at least twenty days in a given year when this opportunity is afforded enrollees, and in those areas served by more than one participating managed health care system the administrator shall endeavor to establish a uniform period for such opportunity. The plan shall allow enrollees to transfer their enrollment to another participating managed health care system at any time upon a showing of good cause for the transfer.
     (3) Prior to negotiating with any managed health care system, the administrator shall determine, on an actuarially sound basis, the reasonable cost of providing the schedule of basic health care services, expressed in terms of upper and lower limits, and recognizing variations in the cost of providing the services through the various systems and in different areas of the state.
     (4) In negotiating with managed health care systems for participation in the plan, the administrator shall adopt a uniform procedure that includes at least the following:
     (a) The administrator shall issue a request for proposals, including standards regarding the quality of services to be provided; financial integrity of the responding systems; and responsiveness to the unmet health care needs of the local communities or populations that may be served;
     (b) The administrator shall then review responsive proposals and may negotiate with respondents to the extent necessary to refine any proposals;
     (c) The administrator may then select one or more systems to provide the covered services within a local area; and
     (d) The administrator may adopt a policy that gives preference to respondents, such as nonprofit community health clinics, that have a history of providing quality health care services to low-income persons.
     (5) The administrator may contract with a managed health care system to provide covered basic health care services to subsidized enrollees, nonsubsidized enrollees, health coverage tax credit eligible enrollees, or any combination thereof.
     (6) For services rendered to basic health plan enrollees, the administrator shall issue contracts that require managed health care systems to reimburse health care providers in an amount equal to eighty percent of the payment rates for the same medical services provided to state employees through self-insured programs implemented by the authority under RCW 41.05.140. For services rendered to subsidized enrollees who are children or women receiving maternity services through the basic health plan, the administrator shall issue contracts that require managed health care systems to reimburse health care providers in an amount equal to the payment rates paid for the same medical services provided to state employees through self-insured programs implemented by the authority under RCW 41.05.140.
     (7) The administrator may establish procedures and policies to further negotiate and contract with managed health care systems following completion of the request for proposal process in subsection (4) of this section, upon a determination by the administrator that it is necessary to provide access, as defined in the request for proposal documents, to covered basic health care services for enrollees.
     (((7))) (8)(a) The administrator shall implement a self-funded or self-insured method of providing insurance coverage to subsidized enrollees, as provided under RCW 41.05.140, if one of the following conditions is met:
     (i) The authority determines that no managed health care system other than the authority is willing and able to provide access, as defined in the request for proposal documents, to covered basic health care services for all subsidized enrollees in an area; or
     (ii) The authority determines that no other managed health care system is willing to provide access, as defined in the request for proposal documents, for one hundred thirty-three percent of the statewide benchmark price or less, and the authority is able to offer such coverage at a price that is less than the lowest price at which any other managed health care system is willing to provide such access in an area.
     (b) The authority shall initiate steps to provide the coverage described in (a) of this subsection within ninety days of making its determination that the conditions for providing a self-funded or self-insured method of providing insurance have been met.
     (c) The administrator may not implement a self-funded or self-insured method of providing insurance in an area unless the administrator has received a certification from a member of the American academy of actuaries that the funding available in the basic health plan self-insurance reserve account is sufficient for the self-funded or self-insured risk assumed, or expected to be assumed, by the administrator.

NEW SECTION.  Sec. 2   A new section is added to chapter 74.09 RCW to read as follows:
     (1) The department shall establish physician-related payment rates for services provided by health care providers for services to clients, age nineteen and older who are eligible for medical programs in this chapter, to be an amount equal to eighty percent of the payment rates for the same services provided to state employees through self-insured programs implemented by the health care authority under RCW 41.05.140, except that maternity services shall be an amount equal to one hundred percent of the payment rate for maternity services under RCW 41.05.140.
     (2) The department shall establish physician-related payment rates for services provided by health care providers for services to clients, under age nineteen who are eligible for medical programs in this chapter, to be an amount equal to one hundred percent of the payment rates for the same services provided to state employees through self-insured programs implemented by the health care authority under RCW 41.05.140.
     (3) The department shall issue contracts authorized under RCW 74.09.522 that require managed care systems' contractors to pay health care providers for services rendered to department clients enrolled in the contracted managed care system at no less than the physician-related payment rates set forth in subsections (1) and (2) of this section.