FINAL BILL REPORT

SSB 5466

                                   C 83 L 87

BYSenate Committee on Financial Institutions (originally sponsored by Senators Moore, Bender and Metcalf; by request of Insurance Commissioner)

Revising provisions on fees assessed against health maintenance organizations.

Senate Committee on Financial Institutions

House Committe on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

In 1986 the Legislature passed legislation providing that a pro rata share of the cost of regulating health maintenance organizations (HMOs) be assessed to each HMO.  The fee to be charged is based on the HMO's total receipts for the year, but may not exceed 5 1/2 cents per person.  The legislation was intended to allow HMOs, health care service contractors, and commercial insurers to be regulated in the same fashion.  Fees collected are currently deposited in the general fund.

SUMMARY:

Each HMO is subject to a minimum $1,000 fee which is to be deposited in the Insurance Commissioner's regulatory account.  Minimum fees assessed and the deposit of the collected fees by HMOs are to be consistent with the present practices of health care service contractors and commercial insurers.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 97   0

EFFECTIVE:July 26, 1987