HOUSE BILL REPORT

HB 2087

As Reported by House Committee On:

Health Care

Title: An act relating to the qualification of self-employed individuals or sole proprietors as a small employer.

Brief Description: Modifying the definition of "small employer" or "small group" under chapter 48.43 RCW.

Sponsors: Representative Benson.

Brief History:

Committee Activity:

Health Care: 3/4/03 [DP].

HOUSE COMMITTEE ON HEALTH CARE

Majority Report: Do pass. Signed by 12 members: Representatives Cody, Chair; Morrell, Vice Chair; Pflug, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Alexander, Benson, Campbell, Clibborn, Darneille, Moeller, Schual-Berke and Skinner.

Staff: Dave Knutson (786-7146).

Background:

The definition of a small employer includes a self-employed individual or sole proprietor who derives at least 75 percent of their income from a trade or business through which they have attempted to earn taxable income and have filed Internal Revenue Service form 1040, schedule C or F.

Summary of Bill:

The definition of small employer is modified to include self-employed individuals or sole proprietors who derive at least 75 percent of their gross income from one or more trades or businesses they have attempted to earn taxable income through and have filed an appropriate Internal Revenue Service form.

Appropriation: None.

Fiscal Note: Not Requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: This change will help farmers and sole proprietors to purchase affordable health insurance.

Testimony Against: The definition of a small employer should be changed to exclude individuals and sole proprietors.

Testified: (In support) Representative Benson, prime sponsor.

(Support with amendment) Mel Sorensen, Employer Healthcare Coalition.

(Concerns) Nancee Wildermuth, Regence Blue Shield.