HOUSE BILL REPORT

SHB 2841

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.

Floor Activity:

Passed House: 2/10/10, 96-0.

Senate Amended.

Passed Senate: 3/2/10, 45-0.

House Concurred.

Passed House: 3/6/10, 95-0.

Passed Legislature.

Brief Summary of Substitute Bill

Exempts individuals from taking the standard health questionnaire if they are purchasing an individual health benefit plan because their former employer has gone out of business.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 13 members: Representatives Cody, Chair; Driscoll, Vice Chair; Ericksen, Ranking Minority Member; Bailey, Campbell, Clibborn, Green, Herrera, Hinkle, Kelley, Moeller, Morrell and Pedersen.

Background:

Currently, persons wishing to purchase an individual health benefit plan must complete a standard health questionnaire unless:

they are moving from one geographic area to another where the current health plan is not offered;
their established health care provider is no longer in the network of the individual health plan;
they have exhausted the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage and apply within 90 days;
they lose group coverage from a group that was exempt from COBRA requirements but had at least 24 months of continuous coverage immediately prior to disenrollment;
they had at least 24 months of continuous coverage in the Basic Health Plan immediately prior to application; or
they are eligible to purchase or drop COBRA continuation coverage.

Individuals who do not qualify for COBRA coverage because their employer employs fewer than 20 employees do not have to complete the standard health questionnaire if they apply for an individual health care policy within 90 days of a federally-defined qualifying event.

Summary of Substitute Bill:

Individuals who are applying for an individual health benefit plan because their employer has gone out of business do not have to take the standard health questionnaire if application is made within 90 days of the employer discontinuing group coverage, the person had at least 24 months of continuous group coverage immediately prior to discontinuation.

Staff Summary of Public Testimony:

(In support) If a person's employer has gone out of business, the person should not have to take the standard health questionnaire when applying for an individual health plan.

(In support with concerns) Premera Blue Cross supports the bill with an amendment to specify what legal documentation must be provided to ensure the employer has gone out of business.