Z-1048               _______________________________________________

                                                   SENATE BILL NO. 5722

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Anderson and McMullen; by request of Department of Labor and Industries

Read first time 2/3/89 and referred to Committee on  Economic Development & Labor.

AN ACT Relating to medical aid purchases of health care goods and services; amending RCW 51.04.030; adding a new section to chapter 51.36 RCW; and making an appropriation.

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

        Sec. 1.  Section 1, chapter 14, Laws of 1980 as amended by section 8, chapter 200, Laws of 1986 and RCW 51.04.030 are each amended to read as follows:

          The director shall, through the division of industrial insurance, supervise the providing of prompt and efficient care and treatment, including care provided by physicians' assistants governed by the provisions of chapters 18.57A and 18.71A RCW, acting under a supervising physician to workers injured during the course of their employment at the least cost consistent with promptness and efficiency, without discrimination or favoritism, and with as great uniformity as the various and diverse surrounding circumstances and locations of industries will permit and to that end shall, from time to time, establish and promulgate and supervise the administration of printed forms, rules, regulations, and practices for the furnishing of such care and treatment:  PROVIDED, That, the department may recommend to an injured worker particular health care services and providers where specialized treatment is indicated or where cost effective payment levels or rates are obtained by the department:  AND PROVIDED FURTHER, That the department may enter into ((volume based)) contracts for goods and services including, but not limited to, durable medical equipment so long as state-wide access to quality service is maintained for injured workers.

          The director shall make and, from time to time, change as may be, and promulgate a fee bill of the maximum charges to be made by any physician, surgeon, hospital, druggist, physicians' assistants as defined in chapters 18.57A and 18.71A RCW, acting under a supervising physician or other agency or person rendering services to injured workers.  No service covered under this title shall be charged or paid at a rate or rates exceeding those specified in such fee bill, and no contract providing for greater fees shall be valid as to the excess.

          The director or self-insurer, as the case may be, shall make a record of the commencement of every disability and the termination thereof and, when bills are rendered for the care and treatment of injured workers, shall approve and pay those which conform to the promulgated rules, regulations, and practices of the director and may reject any bill or item thereof incurred in violation of the principles laid down in this section or the rules and regulations promulgated under it.

NEW SECTION. Sec. 2.  A new section is added to chapter 51.36 RCW to read as follows:

          When contracting for health care services and equipment, the department may require the disclosure of financial or valuable trade information in order to assure the health and safety of workers.  Upon written request from contractors, the department may hold such information confidential and exempt from public inspection and copying under RCW 42.17.260.

NEW SECTION. Sec. 3.     The sum of three hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the medical aid fund to the department of labor and industries for the biennium ending June 30, 1991, to carry out the purposes of this act.