SENATE BILL REPORT

SHB 1067

BYHouse Committee on Health Care (originally sponsored by Representatives 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

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):March 30, 1989; March 31, 1989

Majority Report:  Do pass.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, Moore, Rasmussen, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, MARCH 31, 1989

BACKGROUND:

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

It has been suggested by the Insurance Commissioner's office that several sections of the act creating the Washington State Health Insurance Pool need to be changed to facilitate administration of the pool.

SUMMARY:

A definition of "accounting year" is added to the chapter to provide flexibility to the board.  The board is expanded from nine to 11 members at the time self-insured organizations are required to participate in the pool.  The board reporting requirement is changed from March 1 to 120 days after the end of each accounting year.

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

The time limitation of four years pertaining to liability for deferred assessments is deleted.  The board is permitted to waive the requirement that applicants be rejected for other coverage prior to enrollment.  Enrollee participation payments are set for a calendar, not policy year.

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

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Robert Schneidler, Chairman, Washington State Health Ins. Pool (pro)