SENATE BILL REPORT

SHB 1620

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Padden, Dellwo, Taylor, Day, Lux, Chandler, Crane, Miller and Winsley)

Requiring a study of group health insurance coverage continuation.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 23, 1988; February 25, 1988

Majority Report:  Do pass.

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

Senate Staff:Benson Porter (786-7470)

                  February 25, 1988

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 25, 1988

BACKGROUND:

Health insurers, health care contractors and health maintenance organizations (HMOs) are required to offer a conversion policy or contract to any person covered under a group health plan upon termination of a person's eligibility for coverage under the plan.  Certain provisions must exist in order for the insurers, contractors, and HMOs to be required to offer a conversion policy.  Apart from the conversion policy requirements, insurers, contractors, and HMOs are not required to admit a person under another group plan without proof of insurability.

SUMMARY:

The Insurance Commissioner is directed to conduct a study of continuation of coverage for persons whose group health care coverage is cancelled or nonrenewed.  The commissioner is to consult with the House and Senate Financial Institutions and Insurance Committees, health insurers, and affected consumers.  The commissioner must report his findings and recommendations to the Legislature by December 31, 1988.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Padden, original sponsor (for); Tony Lazanis, Innkeepers (for); Charles Pederson, Innkeepers (for); Kathy Pederson (for); Bob Seeber, Restaurant/Lodging Associations (for); Mel Sorensen, Washington Physicians Service (for); Joan Gaumer, Blue Cross; Gary Smith, Independent Business Association