BILL REQ. #:  S-0050.2 

Read first time 01/27/2005.   Referred to Committee on Financial Institutions, Housing & Consumer Protection.

     AN ACT Relating to continuing health insurance coverage for convicted felons; amending RCW 48.41.160, 48.44.220, 48.44.360, and 48.46.380; and adding a new section to chapter 48.46 RCW.

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

Sec. 1   RCW 48.41.160 and 1987 c 431 s 16 are each amended to read as follows:
     (1) A pool policy offered under this chapter shall contain provisions under which the pool is obligated to renew the policy until the day on which the individual in whose name the policy is issued first becomes eligible for medicare coverage. At that time, coverage of dependents shall terminate if such dependents are eligible for coverage under a different health plan. Dependents who become eligible for medicare prior to the individual in whose name the policy is issued, shall receive benefits in accordance with RCW 48.41.150.
     (2) The pool may not change the rates for pool policies except on a class basis, with a clear disclosure in the policy of the pool's right to do so.
     (3) A pool policy offered under this chapter shall provide that, upon the death or felony conviction of the individual in whose name the policy is issued, every other individual then covered under the policy may elect, within a period specified in the policy, to continue coverage under the same or a different policy.

Sec. 2   RCW 48.44.220 and 1983 c 154 s 4 are each amended to read as follows:
     No health care service contractor shall deny coverage to any person solely on account of race, religion, national origin, felony conviction, or the presence of any sensory, mental, or physical handicap. Nothing in this section shall be construed as limiting a health care service contractor's authority to deny or otherwise limit coverage to a person when the person because of a medical condition does not meet the essential eligibility requirements established by the health care service contractor for purposes of determining coverage for any person.
     No health care service contractor shall refuse to provide reimbursement or indemnity to any person for covered health care services for reasons that the health care services were provided by a holder of a license under chapter 18.22 RCW.

Sec. 3   RCW 48.44.360 and 1984 c 190 s 5 are each amended to read as follows:
     (1) Every health care service contractor that issues group contracts providing group coverage for hospital or medical expense shall offer the contract holder an option to include a contract provision granting a person who becomes ineligible for coverage under the group contract, including a person who becomes ineligible as a consequence of a felony conviction, the right to continue the group benefits for a period of time and at a rate agreed upon. The contract provision shall provide that when such coverage terminates, the covered person may convert to a contract as provided in RCW 48.44.370.
     (2) Subsection (1) of this section applies to the dependents of a covered person who loses group coverage eligibility due to a felony conviction.

NEW SECTION.  Sec. 4   A new section is added to chapter 48.46 RCW to read as follows:
     Each health maintenance agreement issued, amended, or renewed after the effective date of this section must provide for the continuation of coverage for a convicted felon and that felon's dependents upon payment of the premium for the coverage.

Sec. 5   RCW 48.46.380 and 1993 c 492 s 291 are each amended to read as follows:
     Every authorized health maintenance organization, upon canceling, denying, or refusing to renew any individual health maintenance agreement, shall, upon written request, directly notify in writing the applicant or enrolled participant as appropriate, of the reasons for the action by the health maintenance organization. Any benefits, terms, rates, or conditions of such agreement which are restricted, excluded, modified, increased, or reduced shall, upon written request, be set forth in writing and supplied to the individual. The written communications required by this section shall be phrased in simple language which is readily understandable to a person of average intelligence, education, and reading ability. The written communication must include a statement of the right of a convicted felon, and the felon's dependents, to continue coverage upon payment of the premium for the coverage.