HOUSE BILL REPORT

HB 1067

BYRepresentatives Braddock, Brooks, Day and P. King; by request of  Insurance Commissioner

Making technical changes in the state Health Insurance Coverage Access Act.

House Committe on Health Care

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. (10)

      Signed by Representatives Braddock, Chair; Day, Vice Chair; Brooks, Ranking Republican Member; Cantwell, Chandler, Morris, Prentice, D. Sommers, Sprenkle and Wolfe.

House Staff:Bill Hagens (786-7131)

AS REPORTED BY THE COMMITTEE ON HEALTH CARE FEBRUARY 8, 1989

BACKGROUND:

The purpose of this act is to provide a more workable framework for the Washington State Health Insurance Access Pool by making certain technical amendments to the Pool's enabling statute.

The Pool was created in 1987 to provide health insurance for persons who are denied adequate coverage because of poor health or because cost of coverage would be prohibitive.

The Insurance Commissioner has identified several sections of the Act that require amending in order to improve the operations of the Pool.

SUMMARY:

SUBSTITUTE BILL:  A definition of "accounting year" is added to the statute to provide flexibility to the governing board.  The board is expanded form nine to 11 members at such time that self-insured organizations are required to participate in the Pool.  The board's reporting requirement is changed from March 1 to 120 days after the end of each accounting year to coincide with insurance practices.

The time for "administrator role" bidding process is changed from one year to six months, and the period for selection of the administrator is reduced from six months to three months to expedite the process.  Out-of-state insurers are permitted to bid.

The time limitation of four years on Pool member abatement or deferment responsibility is deleted.  Pool member debt will continue until paid. The board is permitted to waive the requirement that applicants be rejected for other coverage prior to enrollment; this requirement has been identified to have unnecessarily delayed access in some cases.  Enrollee participation payments are set on a calendar not policy year basis.

Medicare supplement provisions are clarified.  Liability protection is extended to members of the Pool's board of directors.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Language is added to clarify that certain types of insurance companies that do not provide health coverage, e.g. credit life and disability insurance are not included in the Pool.

Fiscal Note:      No Impact.

House Committee ‑ Testified For:    David Rodgers, Office of the Insurance Commissioner.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Improves operation of the Pool.

House Committee - Testimony Against:      None Presented.