HOUSE BILL REPORT

SB 6412

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 applying for health insurance coverage when an insurance carrier discontinues all individual health benefit plan coverage.

Brief Description: Assisting persons seeking individual health benefit plan coverage when their prior carrier has terminated individual coverage.

Sponsors: Senators Rolfes and Harper.

Brief History:

Committee Activity:

Health Care & Wellness: 2/15/12, 2/20/12 [DPA].

Brief Summary of Bill

(As Amended by Committee)

  • Exempts certain persons whose individual coverage was discontinued by July 1, 2012, from the standard health questionnaire.

  • Requires a person's prior coverage in a plan that was discontinued by July 1, 2012, to be credited against any pre-existing waiting period in the person's new coverage.

HOUSE COMMITTEE ON HEALTH CARE & WELLNESS

Majority Report: Do pass as amended. Signed by 11 members: Representatives Cody, Chair; Jinkins, Vice Chair; Schmick, Ranking Minority Member; Hinkle, Assistant Ranking Minority Member; Bailey, Clibborn, Green, Harris, Kelley, Moeller and Van De Wege.

Staff: Jim Morishima (786-7191).

Background:

I. The Standard Health Questionnaire.

Before purchasing insurance on the individual market, or as a non-subsidized enrollee in the Basic Health Plan, a person must complete the standard health questionnaire, which is a type of health screening. Based on the results of the questionnaire, the person may be denied coverage. Certain individuals, however, are exempt from completing the standard health questionnaire:

II. Pre-Existing Condition Waiting Periods.

Health carriers in the individual market are allowed to impose pre-existing condition waiting periods of up to nine months (until January 1, 2014, when such waiting periods will be prohibited by federal law). A carrier in the individual market must give an applicant credit toward any pre-existing condition waiting period for coverage (other than catastrophic coverage) the applicant had in the 63 days prior to the application if:

–––––––––––––––––––––––––––––––––

Summary of Amended Bill:

I. The Standard Health Questionnaire.

When applying for coverage from a carrier or as a nonsubsidized enrollee in the Basic Health Plan, a person is exempt from completing the standard health questionnaire if:

II. Pre-Existing Condition Waiting Periods.

A carrier, or the Basic Health Plan, must credit an applicant's period of prior coverage in his or her previous plan toward any pre-existing condition waiting period in the plan the applicant seeks to purchase if:

Amended Bill Compared to Original Bill:

The amended bill:

–––––––––––––––––––––––––––––––––

Appropriation: None.

Fiscal Note: Requested on February 21, 2012.

Effective Date of Amended Bill: The bill contains an emergency clause and takes effect immediately.

Staff Summary of Public Testimony:

(In support) KPS Insurance recently announced that they are pulling out of the individual market, which will result in many people losing coverage. This bill is narrowly tailored to this situation. This bill is aimed at helping the little guy. It is important to keep the emergency clause in this bill. The 24 months of prior coverage should be allowed to run in either the individual or small group market.

(Opposed) None.

Persons Testifying: Senator Rolfes, prime sponsor; Matt Ryan; and Joe King, Group Health Cooperative.

Persons Signed In To Testify But Not Testifying: None.