1569-S2.E AMS PFLU NEED 014

E2SHB 1569 - S AMD to S AMD S-3448.1/07 438

   By    Senator Pflug

WITHDRAWN 4/12/2007

   Beginning on page 6, line 22, strike all material after "Sec. 6." through page 7, line 26, and insert the following:

"RCW 70.47A.040 and 2006 c 255 s 4 are each amended to read as follows:

   (1) Beginning July 1, 2007, the administrator shall accept applications from eligible employees, on behalf of themselves, their spouses, and their dependent children, to receive premium subsidies through the small employer health insurance partnership program.

   (2) Premium subsidy payments may be provided to eligible employees if:(a) The eligible employee is employed by a small employer; and

   (b) ((The actuarial value of the health benefit plan offered by the small employer is at least equivalent to that of the basic health plan benefit offered under chapter 70.47 RCW. The office of the insurance commissioner under Title 48 RCW shall certify those small employer health benefit plans that are at least actuarially equivalent to the basic health plan benefit; and ))

Small employers may offer any available health benefit plan including health savings accounts. Health savings account subsidy payments may be provided to eligible employees if the eligible employee participates in an employer-sponsored high deductible health plan and health savings account that conforms to the requirements of the United States internal revenue service.

c) The small employer will pay at least forty percent of the monthly premium cost for health benefit plan coverage of the eligible employee.

   (3) The amount of an eligible employee's premium subsidy shall be determined by applying the sliding scale subsidy schedule developed for subsidized basic health plan enrollees under RCW 70.47.060 to the employee's premium obligation for his or her employer's health benefit plan.

   (4) After an eligible individual has enrolled in the program, the program shall issue subsidies in an amount determined pursuant to subsection (3) of this section to either the eligible employee or to the carrier designated by the eligible employee.

   (5) An eligible employee must agree to provide verification of continued enrollment in his or her small employer's health benefit plan on a semiannual basis or to notify the administrator whenever his or her enrollment status changes, whichever is earlier. Verification or notification may be made directly by the employee, or through his or her employer or the carrier providing the small employer health benefit plan. When necessary, the administrator has the authority to perform retrospective audits on premium subsidy accounts. The administrator may suspend or terminate an employee's participation in the program and seek repayment of any subsidy amounts paid due to the omission or misrepresentation of an applicant or enrolled employee. The administrator shall adopt rules to define the appropriate application of these sanctions and the processes to implement the sanctions provided in this subsection, within available resources."

EFFECT: Modifies the requirement for SEHIP to have benefits that are actuarially equivalent to Basic Health, to allow any benefits offered in the small group market including and HSA.

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