Z-1565               _______________________________________________

                                                   HOUSE BILL NO. 1907

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Lux, Chandler, Braddock, Patrick and Rayburn; by request of Insurance Commissioner

Read first time 1/29/88 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to health care coverage; adding a new section to chapter 48.42 RCW; and creating a new section.

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.  A new section is added to chapter 48.42 RCW to read as follows:

          (1) Except as may be permitted by rule adopted by the commissioner, insurers writing the various types of disability insurance, health care service contractors, and health maintenance organizations are prohibited from using the age of their insureds, subscribers, or participants sixty-five years of age and older as the basis for increasing their premiums or prepayment charges.

          (2) The commissioner shall by rule establish the effective date for the prohibition under subsection (1) of this section and may establish standards for its effectuation.