AN ACT Relating to health care and group insurance benefits for superior court judges; amending RCW 36.32.400, 41.04.180, and 41.05.065; creating a new section; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. It is the intent of this act to eliminate double coverage of state and county health care benefits and/or group insurance for superior court judges at public expense. Nothing in this act, however, shall preclude superior court judges from obtaining additional county coverage at their own expense with the concurrence of the county.

Sec. 2. Section 36.32.400, chapter 4, Laws of 1963 as amended by section 7, chapter 106, Laws of 1975-'76 2nd ex. sess. and RCW 36.32.400 are each amended to read as follows:

(1) Any county by a majority vote of its board of county commissioners may enter into contracts to provide health care services and/or group insurance for the benefit of its employees, and may pay all or any part of the cost thereof. Any two or more counties, by a majority vote of their respective boards of county commissioners may, if deemed expedient, join in the procuring of such health care services and/or group insurance, and the board of county commissioners of each participating county may, by appropriate resolution, authorize their respective counties to pay all or any portion of the cost thereof.

(2) A county may elect to include superior court judges under county benefit plans under this section and, if applicable, RCW 41.04.180, in which case the county shall be entitled to collect from the state the state's benefit contribution for each superior court judge pursuant to section 4 of this 1990 act. If the county elects to include its superior court judges under county benefit plans, those superior court judges shall not be entitled to coverage under chapter 41.05 RCW.

(3) Nothing in this section shall impair the eligibility of any employee of a county, municipality, or other political subdivision under RCW 41.04.205.

Sec. 3. Section 1, chapter 75, Laws of 1963 as last amended by section 1, chapter 82, Laws of 1974 ex. sess. and RCW 41.04.180 are each amended to read as follows:

(1) Any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body may, whenever funds shall be available for that purpose provide for all or a part of hospitalization and medical aid for its employees and their dependents through contracts with regularly constituted insurance carriers or with health care service contractors as defined in chapter 48.44 RCW ((~~or self-insurers as provided for in chapter 48.52 RCW,~~)) for group hospitalization and medical aid policies or plans: PROVIDED, That any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body shall provide the employees thereof a choice of policies or plans through contracts with not less than two regularly constituted insurance carriers or health care service contractors or other health care plans((~~, including but not limited to, trusts of self-insurance as provided for in chapter 48.52 RCW~~)): AND PROVIDED FURTHER, That any county may provide such hospitalization and medical aid to county elected officials and their dependents on the same basis as such hospitalization and medical aid is provided to other county employees and their dependents: PROVIDED FURTHER, That provision for school district personnel shall not be made under this section but shall be as provided for in RCW 28A.58.420.

(2) A county may elect to include superior court judges under county-paid benefits under this section and, if applicable, RCW 41.04.180, in which case the county shall be entitled to collect from the state the state's benefit contribution for each superior court judge pursuant to section 4 of this 1990 act. If the county elects to include its superior court judges under county benefit plans, those superior court judges shall not be entitled to coverage under chapter 41.05 RCW.

Sec. 4. Section 8, chapter 107, Laws of 1988 and RCW 41.05.065 are each amended to read as follows:

(1) The board shall study all matters connected with the provision of health care coverage, life insurance, liability insurance, accidental death and dismemberment insurance, and disability income insurance or any of, or a combination of, the enumerated types of insurance for employees and their dependents on the best basis possible with relation both to the welfare of the employees and to the state: PROVIDED, That liability insurance shall not be made available to dependents.

(2) The state employees' benefits board shall develop employee benefit plans that include comprehensive health care benefits for all employees. In developing these plans, the board shall consider the following elements:

(a) Methods of maximizing cost containment while ensuring access to quality health care;

(b) Development of provider arrangements that encourage cost containment and ensure access to quality care, including but not limited to prepaid delivery systems and prospective payment methods;

(c) Wellness incentives that focus on proven strategies, such as smoking cessation, exercise, and automobile and motorcycle safety;

(d) Utilization review procedures including, but not limited to prior authorization of services, hospital inpatient length of stay review, requirements for use of outpatient surgeries and second opinions for surgeries, review of invoices or claims submitted by service providers, and performance audit of providers; and

(e) Effective coordination of benefits.

(3) The board shall design benefits and determine the terms and conditions of employee participation and coverage, including establishment of eligibility criteria.

(4) The board may authorize premium contributions for an employee and the employee's dependents. Such authorization shall require a vote of five members of the board for approval.

(5) Employees may choose participation in only one of the health care benefit plans developed by the board.

(6) The board shall review plans proposed by insurance carriers that desire to offer property insurance and/or accident and casualty insurance to state employees through payroll deduction. The board may approve any such plan for payroll deduction by carriers holding a valid certificate of authority in the state of Washington and which the board determines to be in the best interests of employees and the state. The board shall promulgate rules setting forth criteria by which it shall evaluate the plans. (7) For each superior court judge granted county benefits under RCW 36.32.400(2) and, where applicable, RCW 41.04.180(2), the state shall pay to the county an amount equal to the employer contribution under the approved plan of the state employee benefit board, and that judge shall not be provided other benefits under this chapter.

NEW SECTION. Sec. 5. This act shall take effect January 1, 1991.