SENATE BILL REPORT

SHB 1323

BYHouse Committee on Health Care (originally sponsored by Representatives Braddock, Chandler, Nutley, Peery, Meyers, Lux, Brooks and Unsoeld; by request of Office of Insurance Commissioner)

Revising the Washington state health insurance coverage access act.

House Committe on Health Care

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 23, 1988

Majority Report:  Do pass.

      Signed by Senators von Reichbauer, Chairman; West, Vice Chairman; Kreidler, Moore, Rasmussen, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  February 24, 1988

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 23, 1988

BACKGROUND:

The Washington State Health Insurance Pool was created in 1987 to provide health care insurance for persons who are denied adequate coverage because of poor health or because cost of coverage would be prohibitive.

The Insurance Commissioner has identified several sections of the Act that require amending.

SUMMARY:

A definition of "accounting year" is added to the chapter to provide flexibility to the board. The board is expanded from nine to 11 members at the time self-insured organizations are required to participate in the pool.  The board reporting requirement is changed from March 1 to 120 days after the end of each accounting year.

The time for "administrator-role" bidding process is changed from one year to six months; the period for selection of the administrator is reduced from six months to three months.  Out-of-state insurers are permitted to bid.

The time limitation of four years on member abatement or deferment responsibility is deleted.  The board is permitted to waive the requirement that applicants be rejected for other coverage prior to enrollment.  Enrollee participation payments are set on a calendar, not policy year, basis.

Medicare supplement provisions are clarified.  Liability protection is extended to members of the pool's board of directors.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 20, 1988

Senate Committee - Testified: Catherine Baraschkoff, Blue Cross of Washington and Alaska (pro); David Rodgers, Chief Deputy, Insurance Commission (pro)