SENATE BILL REPORT

HB 2332

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 of February 22, 2016

Title: An act relating to the filing and public disclosure of health care provider compensation.

Brief Description: Removing an expiration date concerning the filing and public disclosure of health care provider compensation.

Sponsors: Representative Kirby; by request of Insurance Commissioner.

Brief History: Passed House: 2/16/16, 97-0.

Committee Activity: Health Care: 2/22/16.

SENATE COMMITTEE ON HEALTH CARE

Staff: Mich'l Needham (786-7442)

Background: Prior to July 28, 2013, health care service contractors and health maintenance organizations were required to file their provider contract forms with the Insurance Commissioner (Commissioner). The Commissioner could approve the forms for immediate use. If the Commissioner took no action within 15 days, the forms were deemed approved, unless the Commissioner invoked a 15-day extension.

Beginning July 28, 2013, all carriers were required to file all provider contracts and provider compensation agreements with the Commissioner 30 days before use. A provider contract and its related compensation agreements are deemed approved if the Commissioner does not disapprove them within the 30-day period; the Commissioner may extend the 30-day period by 15 days. Provider compensation agreements are confidential and not subject to public inspection and copying if filed through the system for electronic rate and form filings and the Commissioner's general filing instructions.

The provisions relating to provider contracts and compensation agreements expire on July 1, 2017, after which the requirements relating to provider contract forms, as they existed prior to July 28, 2013, will go back into effect.

Summary of Bill: The July 1, 2017, expiration date on the provisions relating to the filing of provider contracts and compensation agreements is removed.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This simply removes the sunset and reflects requests from the carriers. We support the bill. It continues provisions that are working now and there is no reason to have the provisions expire. We are supporting of allowing certain provisions to remain confidential. We worked out the agreement with providers in 2013 and at the last minute a sunset was added but that should be removed.

Persons Testifying: PRO: Lonnie Johns-Brown, Office of the Insurance Commissioner; Kathryn Kolan, Washington State Medical Association; Steve Gano, Premera; Sydney Smith Zvara, Assoc of WA Healthcare Plans.

Persons Signed In To Testify But Not Testifying: No one.