SENATE BILL REPORT

ESB 5824

BYSenators Johnson and McMullen

Revising the provision for payment of certain health care services.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 21, 1989; February 23, 1989

Majority Report:  Do pass as amended.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, McCaslin, McMullen, Matson, Moore, Rasmussen, Sellar, Smitherman, West.

Senate Staff:Walt Corneille (786-7416)

                  March 10, 1989

AS PASSED SENATE, MARCH 9, 1989

BACKGROUND:

Checks issued to nonparticipatory providers for payment of claims under a health care service contract must be made out to the provider and the insured jointly unless the insured shows evidence of prepayment.  The order in which the provider and insured appear on the check is not specified.

This has created situations where the insured deposits the check and does not reimburse the provider.

SUMMARY:

Checks for the payment of claims made by an insurance company for services provided by a licensed health care provider must be issued with the provider's name appearing first.

Pharmacists and providers of emergency medical care and transportation services are added to the list of licensed providers to which this section applies.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Don Brazier, Washington Physicians Service (pro); Linda Christopher, Washington State Dental Assistants (pro); Mel Sorensen, Washington Physicians Service (pro); Lars Hennum, Pharmacists of Washington (pro)