SENATE BILL REPORT

SB 6631

BYSenators McCaslin and Smitherman

Requiring that employers offer an alternative to a dental care assistance plan that limits providers.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6631 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Walt Corneille (786-7416)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 5, 1988

BACKGROUND:

Certain dental care plans include coverage for dental services only if the insured receives services from specified providers.  There is no requirement that an employer provide an alternative dental plan which allows employees to choose the dental care provider.

SUMMARY:

Public or private employers that offer dental care assistance plans which limit the provider of dental care to those specified in the plan must make available to employees an alternative plan.  The alternative plan must allow employees to obtain dental care services from a provider of their choice.

The portion of the premium paid by the employer for the alternative plan must be substantially comparable to the portion paid by the employer for the other plan.

EFFECT OF PROPOSED SUBSTITUTE:

Only agreements for dental care benefits entered into or renewed after January 1, 1989 are subject to the act.

The portion of the premiums paid by the employer for the limiting plan must be comparable to, but no greater than, the portion of the premium paid for the other plan.

The act only applies to employers with greater than 25 employees under coverage.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Mel Sorensen, Washington Physicians Service (con); Stuart Bender, Washington State Dental Association (pro); George D. Masten, SEIB; Joan Conner, Blue Cross; Curtis F. Smith, Washington State Dental Association (pro)