BILL REQ. #:  H-4303.1 

Read first time 01/15/08.   Referred to Committee on Health Care & Wellness.

     AN ACT Relating to the impact of vendor rates on cost shifting between public and private purchasers of medical services; amending RCW 43.20A.405; and adding a new section to chapter 74.32 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 74.32 RCW to read as follows:
     In addition to the powers and duties enumerated in RCW 74.32.130, the governor's advisory committee on vendor rates shall conduct an extensive examination of rates paid to licensed health care providers to determine whether the rates paid by the department of social and health services are reasonable and necessary to ensure that medical program participants have access to accessible, quality services. The examination shall include an evaluation of whether current vendor rates result in a cost shift from public purchasers to private purchasers of health care. If expansions of public medical programs are proposed or enacted, the governor's committee on vendor rates shall determine whether a cost shift from public purchasers to private purchasers of health care will occur, and the extent of the cost shift.

Sec. 2   RCW 43.20A.405 and 1971 ex.s. c 309 s 2 are each amended to read as follows:
     After obtaining the review and advice of the governor's advisory committee on vendor rates, the secretary shall establish rates of payment for services which are to be purchased: PROVIDED, That the secretary shall afford all interested persons reasonable opportunity to submit data, views, or arguments, and shall consider fully all submissions respecting the proposed rates. Prior to the establishment of such rates, the secretary shall give at least twenty days notice of such intended action by mail to such persons or agencies as have made timely request of the secretary for advance notice of establishment of such vendor rates. Such rates shall not exceed the amounts reasonable and necessary to assure quality services and shall not exceed the costs reasonably assignable to such services pursuant to cost finding and monitoring procedures to be established by the secretary. Vendor rates for medical services purchased by the department shall include amounts reasonable and necessary to ensure access to licensed health care providers by all medical program participants by eliminating any cost shifting due to inadequate vendor rates. Information to support such rates of payment shall be maintained in a form accessible to the public.