SENATE BILL REPORT

SB 6633

BYSenators Johnson and Nelson

Providing for direct payment to the provider under health care service contracts.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 4, 1988; February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6633 be substituted therefor, and the substitute bill do pass.

      Signed by Senators von Reichbauer, Chairman; Johnson, Kreidler, McCaslin, Rasmussen, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  February 8, 1988

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

BACKGROUND:

Checks issued by an insurance company for payment of claims under a health insurance contract must be made out to the provider and the insured jointly unless the insured shows evidence of prepayment.

This may create a situation where the insured deposits the check and does not reimburse the provider.

SUMMARY:

Checks for the payment of claims made by an insurance company for services provided by a licensed health care provider must be issued directly to and in the single name of the provider.  This requirement applies to contracts entered into, issued or renewed after October 1, 1988.

EFFECT OF PROPOSED SUBSTITUTE:

Everything after the enacting clause is striken.  An uncodified section is added to Chapter 48.44 RCW.

The insurance commissioner must establish a committee to review health care payment procedures utilized by health care service contractors to pay claims.  The committee must include representatives of the insurance commissioner, health care contractors, health care providers and employers.  The Committee is dissolved January 1, 1989.

The committee is required to report to the insurance commissioner not later than November 1, 1988.  The report must include recommendations for legislation, if needed, which must be referred to the chairmen of the Senate and House Financial Institutions and Insurance Committees.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Victor J. Barry, D.D.S., Washington State Dental Association (pro); Dr. Leib Alexander, Washington State Dental Association (pro)