Passed by the Senate May 16, 2011 YEAS 32   BRAD OWEN ________________________________________ President of the Senate Passed by the House May 10, 2011 YEAS 80   FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SECOND ENGROSSED SENATE BILL 5773 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
Approved May 31, 2011, 2:23 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | June 1, 2011 Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 1st Special Session |
Read first time 02/11/11. Referred to Committee on Ways & Means.
AN ACT Relating to making a health savings account option and high deductible health plan option and a direct patient-provider primary care practice option available to public employees; amending RCW 41.05.065; and adding a new section to chapter 41.05 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.05.065 and 2009 c 537 s 7 are each amended to read
as follows:
(1) The board shall study all matters connected with the provision
of health care coverage, life insurance, liability insurance,
accidental death and dismemberment insurance, and disability income
insurance or any of, or a combination of, the enumerated types of
insurance for employees and their dependents on the best basis possible
with relation both to the welfare of the employees and to the state.
However, liability insurance shall not be made available to dependents.
(2) The board shall develop employee benefit plans that include
comprehensive health care benefits for employees. In developing these
plans, the board shall consider the following elements:
(a) Methods of maximizing cost containment while ensuring access to
quality health care;
(b) Development of provider arrangements that encourage cost
containment and ensure access to quality care, including but not
limited to prepaid delivery systems and prospective payment methods;
(c) Wellness incentives that focus on proven strategies, such as
smoking cessation, injury and accident prevention, reduction of alcohol
misuse, appropriate weight reduction, exercise, automobile and
motorcycle safety, blood cholesterol reduction, and nutrition
education;
(d) Utilization review procedures including, but not limited to a
cost-efficient method for prior authorization of services, hospital
inpatient length of stay review, requirements for use of outpatient
surgeries and second opinions for surgeries, review of invoices or
claims submitted by service providers, and performance audit of
providers;
(e) Effective coordination of benefits; and
(f) Minimum standards for insuring entities.
(3) To maintain the comprehensive nature of employee health care
benefits, benefits provided to employees shall be substantially
equivalent to the state employees' health benefits plan in effect on
January 1, 1993. Nothing in this subsection shall prohibit changes or
increases in employee point-of-service payments or employee premium
payments for benefits or the administration of a high deductible health
plan in conjunction with a health savings account. The board may
establish employee eligibility criteria which are not substantially
equivalent to employee eligibility criteria in effect on January 1,
1993.
(4) Except if bargained for under chapter 41.80 RCW, the board
shall design benefits and determine the terms and conditions of
employee and retired employee participation and coverage, including
establishment of eligibility criteria subject to the requirements of
this chapter. Employer groups obtaining benefits through contractual
agreement with the authority for employees defined in RCW 41.05.011(6)
(a) through (d) may contractually agree with the authority to benefits
eligibility criteria which differs from that determined by the board.
The eligibility criteria established by the board shall be no more
restrictive than the following:
(a) Except as provided in (b) through (e) of this subsection, an
employee is eligible for benefits from the date of employment if the
employing agency anticipates he or she will work an average of at least
eighty hours per month and for at least eight hours in each month for
more than six consecutive months. An employee determined ineligible
for benefits at the beginning of his or her employment shall become
eligible in the following circumstances:
(i) An employee who works an average of at least eighty hours per
month and for at least eight hours in each month and whose anticipated
duration of employment is revised from less than or equal to six
consecutive months to more than six consecutive months becomes eligible
when the revision is made.
(ii) An employee who works an average of at least eighty hours per
month over a period of six consecutive months and for at least eight
hours in each of those six consecutive months becomes eligible at the
first of the month following the six-month averaging period.
(b) A seasonal employee is eligible for benefits from the date of
employment if the employing agency anticipates that he or she will work
an average of at least eighty hours per month and for at least eight
hours in each month of the season. A seasonal employee determined
ineligible at the beginning of his or her employment who works an
average of at least half-time, as defined by the board, per month over
a period of six consecutive months and at least eight hours in each of
those six consecutive months becomes eligible at the first of the month
following the six-month averaging period. A benefits-eligible seasonal
employee who works a season of less than nine months shall not be
eligible for the employer contribution during the off season, but may
continue enrollment in benefits during the off season by self-paying
for the benefits. A benefits-eligible seasonal employee who works a
season of nine months or more is eligible for the employer contribution
through the off season following each season worked.
(c) Faculty are eligible as follows:
(i) Faculty who the employing agency anticipates will work
half–time or more for the entire instructional year or equivalent nine-month period are eligible for benefits from the date of employment.
Eligibility shall continue until the beginning of the first full month
of the next instructional year, unless the employment relationship is
terminated, in which case eligibility shall cease the first month
following the notice of termination or the effective date of the
termination, whichever is later.
(ii) Faculty who the employing agency anticipates will not work for
the entire instructional year or equivalent nine-month period are
eligible for benefits at the beginning of the second consecutive
quarter or semester of employment in which he or she is anticipated to
work, or has actually worked, half-time or more. Such an employee
shall continue to receive uninterrupted employer contributions for
benefits if the employee works at least half-time in a quarter or
semester. Faculty who the employing agency anticipates will not work
for the entire instructional year or equivalent nine-month period, but
who actually work half-time or more throughout the entire instructional
year, are eligible for summer or off-quarter coverage. Faculty who
have met the criteria of this subsection (4)(c)(ii), who work at least
two quarters of the academic year with an average academic year
workload of half-time or more for three quarters of the academic year,
and who have worked an average of half-time or more in each of the two
preceding academic years shall continue to receive uninterrupted
employer contributions for benefits if he or she works at least half-time in a quarter or semester or works two quarters of the academic
year with an average academic workload each academic year of half-time
or more for three quarters. Eligibility under this section ceases
immediately if this criteria is not met.
(iii) Faculty may establish or maintain eligibility for benefits by
working for more than one institution of higher education. When
faculty work for more than one institution of higher education, those
institutions shall prorate the employer contribution costs, or if
eligibility is reached through one institution, that institution will
pay the full employer contribution. Faculty working for more than one
institution must alert his or her employers to his or her potential
eligibility in order to establish eligibility.
(iv) The employing agency must provide written notice to faculty
who are potentially eligible for benefits under this subsection (4)(c)
of their potential eligibility.
(v) To be eligible for maintenance of benefits through averaging
under (c)(ii) of this subsection, faculty must provide written
notification to his or her employing agency or agencies of his or her
potential eligibility.
(d) A legislator is eligible for benefits on the date his or her
term begins. All other elected and full-time appointed officials of
the legislative and executive branches of state government are eligible
for benefits on the date his or her term begins or they take the oath
of office, whichever occurs first.
(e) A justice of the supreme court and judges of the court of
appeals and the superior courts become eligible for benefits on the
date he or she takes the oath of office.
(f) Except as provided in (c)(i) and (ii) of this subsection,
eligibility ceases for any employee the first of the month following
termination of the employment relationship.
(g) In determining eligibility under this section, the employing
agency may disregard training hours, standby hours, or temporary
changes in work hours as determined by the authority under this
section.
(h) Insurance coverage for all eligible employees begins on the
first day of the month following the date when eligibility for benefits
is established. If the date eligibility is established is the first
working day of a month, insurance coverage begins on that date.
(i) Eligibility for an employee whose work circumstances are
described by more than one of the eligibility categories in (a) through
(e) of this subsection shall be determined solely by the criteria of
the category that most closely describes the employee's work
circumstances.
(j) Except for an employee eligible for benefits under (b) or
(c)(ii) of this subsection, an employee who has established eligibility
for benefits under this section shall remain eligible for benefits each
month in which he or she is in pay status for eight or more hours, if
(i) he or she remains in a benefits-eligible position and (ii) leave
from the benefits-eligible position is approved by the employing
agency. A benefits-eligible seasonal employee is eligible for the
employer contribution in any month of his or her season in which he or
she is in pay status eight or more hours during that month.
Eligibility ends if these conditions are not met, the employment
relationship is terminated, or the employee voluntarily transfers to a
noneligible position.
(k) For the purposes of this subsection:
(i) "Academic year" means summer, fall, winter, and spring quarters
or semesters;
(ii) "Half-time" means one-half of the full-time academic workload
as determined by each institution, except that half-time for community
and technical college faculty employees shall have the same meaning as
"part-time" under RCW 28B.50.489;
(iii) "Benefits-eligible position" shall be defined by the board.
(5) The board may authorize premium contributions for an employee
and the employee's dependents in a manner that encourages the use of
cost-efficient managed health care systems.
(6)(a) For any open enrollment period following the effective date
of this section, the board shall ((develop)) offer a health savings
account option for employees that conforms to section 223, Part VII of
subchapter B of chapter 1 of the internal revenue code of 1986. The
board shall comply with all applicable federal standards related to the
establishment of health savings accounts.
(b) By November 30, 2015, and each year thereafter, the authority
shall submit a report to the relevant legislative policy and fiscal
committees that includes the following:
(i) Public employees' benefits board health plan cost and service
utilization trends for the previous three years, in total and for each
health plan offered to employees;
(ii) For each health plan offered to employees, the number and
percentage of employees and dependents enrolled in the plan, and the
age and gender demographics of enrollees in each plan;
(iii) Any impact of enrollment in alternatives to the most
comprehensive plan, including the high deductible health plan with a
health savings account, upon the cost of health benefits for those
employees who have chosen to remain enrolled in the most comprehensive
plan.
(7) Notwithstanding any other provision of this chapter, for any
open enrollment period following the effective date of this section,
the board shall ((develop)) offer a high deductible health plan ((to be
offered)) in conjunction with a health savings account developed under
subsection (6) of this section.
(8) Employees shall choose participation in one of the health care
benefit plans developed by the board and may be permitted to waive
coverage under terms and conditions established by the board.
(9) The board shall review plans proposed by insuring entities that
desire to offer property insurance and/or accident and casualty
insurance to state employees through payroll deduction. The board may
approve any such plan for payroll deduction by insuring entities
holding a valid certificate of authority in the state of Washington and
which the board determines to be in the best interests of employees and
the state. The board shall adopt rules setting forth criteria by which
it shall evaluate the plans.
(10) Before January 1, 1998, the public employees' benefits board
shall make available one or more fully insured long-term care insurance
plans that comply with the requirements of chapter 48.84 RCW. Such
programs shall be made available to eligible employees, retired
employees, and retired school employees as well as eligible dependents
which, for the purpose of this section, includes the parents of the
employee or retiree and the parents of the spouse of the employee or
retiree. Employees of local governments, political subdivisions, and
tribal governments not otherwise enrolled in the public employees'
benefits board sponsored medical programs may enroll under terms and
conditions established by the administrator, if it does not jeopardize
the financial viability of the public employees' benefits board's long-term care offering.
(a) Participation of eligible employees or retired employees and
retired school employees in any long-term care insurance plan made
available by the public employees' benefits board is voluntary and
shall not be subject to binding arbitration under chapter 41.56 RCW.
Participation is subject to reasonable underwriting guidelines and
eligibility rules established by the public employees' benefits board
and the health care authority.
(b) The employee, retired employee, and retired school employee are
solely responsible for the payment of the premium rates developed by
the health care authority. The health care authority is authorized to
charge a reasonable administrative fee in addition to the premium
charged by the long-term care insurer, which shall include the health
care authority's cost of administration, marketing, and consumer
education materials prepared by the health care authority and the
office of the insurance commissioner.
(c) To the extent administratively possible, the state shall
establish an automatic payroll or pension deduction system for the
payment of the long-term care insurance premiums.
(d) The public employees' benefits board and the health care
authority shall establish a technical advisory committee to provide
advice in the development of the benefit design and establishment of
underwriting guidelines and eligibility rules. The committee shall
also advise the board and authority on effective and cost-effective
ways to market and distribute the long-term care product. The
technical advisory committee shall be comprised, at a minimum, of
representatives of the office of the insurance commissioner, providers
of long-term care services, licensed insurance agents with expertise in
long-term care insurance, employees, retired employees, retired school
employees, and other interested parties determined to be appropriate by
the board.
(e) The health care authority shall offer employees, retired
employees, and retired school employees the option of purchasing long-term care insurance through licensed agents or brokers appointed by the
long-term care insurer. The authority, in consultation with the public
employees' benefits board, shall establish marketing procedures and may
consider all premium components as a part of the contract negotiations
with the long-term care insurer.
(f) In developing the long-term care insurance benefit designs, the
public employees' benefits board shall include an alternative plan of
care benefit, including adult day services, as approved by the office
of the insurance commissioner.
(g) The health care authority, with the cooperation of the office
of the insurance commissioner, shall develop a consumer education
program for the eligible employees, retired employees, and retired
school employees designed to provide education on the potential need
for long-term care, methods of financing long-term care, and the
availability of long-term care insurance products including the
products offered by the board.
(11) The board may establish penalties to be imposed by the
authority when the eligibility determinations of an employing agency
fail to comply with the criteria under this chapter.
NEW SECTION. Sec. 2 A new section is added to chapter 41.05 RCW
to read as follows:
(1) The Washington state health care authority shall develop a plan
to incorporate direct patient-provider primary care practices as
provided in chapter 48.150 RCW into one or more of the choices of
health benefit programs made available to participants in the public
employees' benefits board system beginning no later than the open
enrollment period beginning November 1, 2012.
(2) The plan will be developed in consultation with the board and
interested parties, will identify statutory barriers to implementation,
and will include proposed legislation to address those barriers and
implement the plan. The plan will be submitted to the board and to the
house of representatives and senate health care committees by December
1, 2011.