SENATE BILL REPORT

SB 6356

BYSenators West and Kreidler; by request of Health Care Authority

Amending health care authority provisions.

Senate Committee on Health & Long-Term Care

Senate Hearing Date(s):January 24, 1990; January 25, 1990

Majority Report:  Do pass.

      Signed by Senators West, Chairman; Smith, Vice Chairman; Amondson, Johnson, Kreidler, Niemi, Wojahn.

Senate Staff:Scott Plack (786-7409)

                  February 8, 1990

AS PASSED SENATE, FEBRUARY 7, 1990

BACKGROUND:

The Washington Health Care Authority was organized in 1988 to administer state employee health care benefits.  The Authority may utilize self-insurance as a means for providing health care insurance coverage to state employees.  Statutory provisions enacted prior to the creation of the Authority allow employees and dependents of counties, municipalities and other political subdivisions within the state to participate in the state health care plan.  These statutes have not been updated since the state enacted a self-insurance plan and do not specifically permit employees and dependents of these other entities to participate.

State agencies that purchase health care services are required to cooperate with the Authority to establish health care information systems.  The requirement was established prior to the creation of the Department of Health which is currently not required to participate. 

Dependents of employees who become ineligible under the state plan may convert to an individual plan without undergoing any waiting period.  The Authority has been permitting spouse and employees similar conversion rights though no specific statutory authority to do so exists.  The conversion right is in addition to federally mandated conversion rights authorized in COBRA.

There are currently no provisions to allow the administrator of the Authority to withhold information relating to contract proposals received by bidders.  Some bidders may be inhibited from participating in the request for bid process because proprietary information is subject to disclosure.

SUMMARY:

Employees and dependents of counties, municipalities and political subdivisions are granted eligibility to participate in the state's self-insurance plan.  Outdated statutory provisions are deleted that allow surplus funds to be returned to counties, municipalities or political subdivisions.  The state Department of Health is directed to join other state agencies to establish health care information systems.  Specific duties of the Health Care Authority are restated under the general authority section of the Health Care Authority.

Employees and spouses who become ineligible under the state plan are permitted to convert to an individual plan with the same provider unless they are eligible for Medicare, have coverage provided by another plan or, if it is an employee, he or she has been terminated for misconduct.  Upon the request of a contract bidder the administrator shall make exempt from the public inspection information in a bid relating to unique methods of conducting business or determining prices or premiums charged for services.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 12, 1990

Senate Committee - Testified: Margaret Stanley, Health Care Authority (pro)