HOUSE BILL REPORT

EHB 1709

BYRepresentatives O'Brien, Patrick, R. King and Sayan; by request of Department of Labor and Industries

Revising provisions for medical aid purchase of health care goods and services.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

Rereferred House Committee on Appropriations

Majority Report:  Do pass with amendments. (25)

      Signed by Representatives Locke, Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Brough, Dorn, Ebersole, Hine, Holland, May, McLean, Nealey, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Dave Knutson (786-7136)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

The Department of Labor and Industries is authorized to enter into volume-based contracts for health care services.  Bidding for these contracts may require a business to disclose confidential commercial information. Under the public records law, the confidential information provided to a public agency is not generally protected from public disclosure.

SUMMARY:

The Department of Labor and Industries' authority to contract for health care goods and services is not limited to volume-based contracts.  Upon request of a contractor, the department is required to keep financial and valuable trade information confidential.  The information is not subject to public inspection and copying under the Public Disclosure Law.

Appropriation:    $300,000 from the medical aid fund to the Department of Labor and Industries.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Commerce & Labor)  Taylor Dennen, Department of Labor and Industries.

NEUTRAL (Commerce & Labor):  Mel Sorensen, Washington Physicians Service.

(Appropriations)  Brett Buckley, Labor and Industries.

House Committee - Testified Against:      (Commerce and Labor) None Presented.

(Appropriations) None Presented.

House Committee - Testimony For:    (Commerce & Labor) The Department of Labor and Industries needs broader contracting authority to improve the quality and cost of services provided to injured workers.  However, during the contracting process, the department must aggressively seek valuable financial and commercial information that, under current law, may not be kept confidential. In several instances, the department was compelled to disclose this information to the contractor's competitor to the detriment of the contractor.

(Appropriations) This legislation will allow the Department of Labor and Industries to pursue cost-effective health cost containment strategies.

House Committee - Testimony Against:      (Commerce & Labor) None Presented.

(Appropriations) None Presented.