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ENGROSSED SENATE BILL NO. 6834
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C 187 L 90
State of Washington 51st Legislature 1990 Regular Session
By Senators Sellar, Conner, West, McDonald and Bauer
Read first time 1/30/90 and referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to basic health benefits for small businesses; adding a new section to chapter 48.21 RCW; adding a new section to chapter 48.44 RCW; adding a new section to chapter 48.46 RCW; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the rising cost of comprehensive group health coverage is exceeding the affordability of many small businesses and their employees. The legislature further finds that certain public policies have an adverse impact on the cost of such coverage. It is therefore the intent of the legislature to reduce costs by authorizing the development of basic hospital and medical coverage for small groups.
NEW SECTION. Sec. 2. A new section is added to chapter 48.21 RCW to read as follows:
A basic group disability insurance policy may be offered to employers of fewer than twenty-five employees. Such a basic group disability insurance policy shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.21.130, 48.21.140, 48.21.141, 48.21.142, 48.21.144, 48.21.146, 48.21.160 through 48.21.197, 48.21.200, 48.21.220, 48.21.225, 48.21.230, 48.21.235, 48.21.240, 48.21.244, 48.21.250, 48.21.300, 48.21.310, or 48.21.320.
Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, benefits in excess of the basic coverage authorized herein. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.
The policy authorized by this section shall not supplant or supersede any existing policy for the benefit of employees in this state. Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.
NEW SECTION. Sec. 3. A new section is added to chapter 48.44 RCW to read as follows:
A basic health care service contract may be offered to employers of fewer than twenty-five employees. Such a basic health care service contract shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.44.225, 48.44.240, 48.44.245, 48.44.290, 48.44.300, 48.44.310, 48.44.320, 48.44.325, 48.44.330, 48.44.335, 48.44.340, 48.44.344, 48.44.360, 48.44.400, 48.44.440, 48.44.450, and 48.44.460.
Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, benefits in excess of the basic coverage authorized herein. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.
The policy authorized by this section shall not supplant or supersede any existing policy for the benefit of employees in this state. Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.
NEW SECTION. Sec. 4. A new section is added to chapter 48.46 RCW to read as follows:
A basic health maintenance agreement may be offered to employers of fewer than twenty-five employees. Such a basic health maintenance agreement shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.46.275, 48.46.280, 48.46.285, 48.46.290, 48.46.350, 48.46.355, 48.46.375, 48.46.440, 48.46.480, 48.46.510, 48.46.520, and 48.46.530.
Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, benefits in excess of the basic coverage authorized herein. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.
The policy authorized by this section shall not supplant or supersede any existing policy for the benefit of employees in this state. Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.
NEW SECTION. Sec. 5. The commissioner shall collect data from disability insurers, health care service contractors, and health maintenance organizations relating to the coverage sold pursuant to this act. The data shall include the number of groups purchasing coverage, the number of insureds, subscribers, members and their dependents under coverage, and the rates and rate increases or decreases of the coverage. Not later than November 1, 1992, the commissioner shall assemble a written summary of this data, which shall be made available to the governor, appropriate legislative committees, and other interested individuals.
NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.