H-4865              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1907

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lux, Chandler, Braddock, Patrick and Rayburn; by request of Insurance Commissioner)

Read first time 2/5/88.

AN ACT Relating to health care coverage; and creating new sections.

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

NEW SECTION. Sec. 1.     The legislature finds that insurance providers, including health care service contractors, health maintenance organizations, and disability insurers, commonly issue contracts which provide for scheduled premium increases based on a covered individual attaining a higher age.  This practice has resulted in an increasing number of citizens sixty-five years and older being unable to afford needed insurance coverage.  This act is intended to restrict this practice with regard to health and disability insurance contracts issued to citizens sixty-five years of age and older by requiring the use of alternate rating systems and contract provisions.

NEW SECTION. Sec. 2.     The insurance commissioner shall study the practices of health insurers, health care contractors, and health maintenance organizations in basing rates for health care coverage upon the age of persons sixty-five years of age or older and shall review and develop methods for requiring health care coverage provided to persons sixty-five years of age or older to be based upon rating systems other than age.  In conducting the study, the commissioner shall consult with the senate and house financial institutions and insurance committees; representatives of health insurers, health care service contractors, and health maintenance organizations; and persons representing the interests of consumers of health care coverage for persons sixty-five years of age or older.  The commissioner shall prepare a report of his findings and recommendations no later than December 31, 1988, and shall deliver a copy of the report to the chairpersons of the senate and house financial institutions and insurance committees.