H-4178              _______________________________________________

                                                   HOUSE BILL NO. 1620

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Padden, Dellwo, Taylor, Day, Lux, Chandler, Crane, Miller and Winsley

Read first time 1/20/88 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to group health insurance; adding a new section to chapter 48.21 RCW; adding a new section to chapter 48.44 RCW; and adding a new section to chapter 48.46 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.21 RCW to read as follows:

          If a person's eligibility for coverage under a group policy providing benefits for hospital or medical expenses is terminated because the group policy is canceled or nonrenewed by the insurer, the person shall be permitted to obtain coverage under a group policy issued to a different group by the canceling or nonrenewing insurer without proof of insurability, subject to the following conditions:

          (1) The person must be eligible for coverage under the different group's policy by virtue of the person's employment or membership in the group at the time the insurer cancels or nonrenews the person's group policy; and

          (2) The person may not be charged more for such coverage than is charged for other members of the different group.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.44 RCW to read as follows:

          If a person's eligibility for coverage under a group contract providing benefits for hospital or medical expenses is terminated because the group contract is canceled or nonrenewed by the contractor, the person shall be permitted to obtain coverage under a group contract issued to a different group by the canceling or nonrenewing contractor without proof of insurability, subject to the following conditions:

          (1) The person must be eligible for coverage under the different group's contract by virtue of the person's employment or membership in the group at the time the contractor cancels or nonrenews the person's group contract; and

          (2) The person may not be charged more for such coverage than is charged for other members of the different group.

NEW SECTION. Sec. 3.  A new section is added to chapter 48.46 RCW to read as follows:

          If a person's eligibility for coverage under a group agreement providing benefits for hospital or medical care is terminated because the group agreement is canceled or nonrenewed by the health maintenance organization, the person shall be permitted to obtain coverage under a group agreement issued to a different group by the canceling or nonrenewing health maintenance organization without proof of insurability, subject to the following conditions:

          (1) The person must be eligible for coverage under the different group's agreement by virtue of the person's employment or membership in the group at the time the health maintenance organization cancels or nonrenews the person's group agreement; and

          (2) The person may not be charged more for such coverage than is charged for other members of the different group.