BILL REQ. #:  S-2661.1 

Read first time 04/22/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to requesting and implementing a federal waiver to ensure the ongoing sustainability and vitality of the commercial insurance market by seeking a waiver to offer multiple private health benefit exchanges; adding a new section to chapter 43.71 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that private exchanges combine new technologies and traditional customer service including online eligibility verification, mechanisms for allowing employers who connect their employees or retirees with exchanges to offer subsidies, and meaningful health plan comparisons. These exchanges are sometimes called marketplaces or intermediaries, and work directly with consumers to connect them with the desired health insurance product.
     (2) The legislature finds that private exchanges are designed to help consumers find plans personalized to their various needs, including specific health conditions, preferred and convenient doctors and hospital networks, and family budgets.
     (3) The legislature finds that it is in the best interest of the residents of Washington to transition functions of the Washington health benefit exchange into the hands of private exchanges where there is a proven track record of connecting customers with appropriate and affordable health insurance, superior customer satisfaction, and an abundance of plans from which to choose.
     (4) Furthermore, the legislature finds that having robust competition among health insurance plans accrues benefits to consumers and the people of Washington, in like manner, eliminating the current monopoly held by the Washington health benefit exchange and creating an opportunity for competition and superior service among private exchanges will demonstrate market efficiencies and expand business opportunities.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.71 RCW to read as follows:
     (1) By July 1, 2014, the exchange shall, in collaboration with the office of the insurance commissioner, apply to the secretary of the United States department of health and human services for a waiver to authorize Washington state to explore the opportunity of offering multiple private health benefit exchanges in Washington state by January 1, 2016.
     (2) The exchange, in collaboration with the office of the insurance commissioner, must hire a neutral consultant to conduct analyses and make preparations for the transition from a single health benefit exchange to multiple private health benefit exchanges. Research must include, but is not limited to:
     (a) Seeking clarity on how advance premium tax credits and cost-sharing subsidies would be accessed through multiple organizations;
     (b) Conducting a cost-benefit analysis and assessment of the impacts on consumers and the insurance market; and
     (c) Suggested statutory changes required in order to implement the new private health benefit exchanges.
     (3) The current exchange may continue to operate after implementation of the private health benefit exchanges. However, the current exchange shall receive no special treatment or aid that would create an unlevel playing field or advantage over the private health benefit exchanges.