2SSB 5491 -
By Senator Keiser
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 (1) The legislature finds that:
(a) Health care spending in the state and nationally is rising
rapidly. In 2010, health care expenditures will comprise more than
seventeen percent of the nation's gross domestic product;
(b) Health care spending is growing as a percentage of Washington
state's budget. From 2000 to 2007, health care expenditures have
increased from twenty-two percent to twenty-nine percent of the state
budget. This rapid rise in expenditures is competing with other needed
services, including K-12 education;
(c) The legislature appropriates over one billion dollars per year
to support the benefits for K-12 employees. However, there is very
little transparency or accountability for how those benefit dollars are
spent; and
(d) Purchasing of health benefits for school employees is
decentralized and is managed by individual school districts and
educational service districts, resulting in additional administrative
costs, duplicative efforts, and a fragmented purchasing pool.
(2) Therefore, the legislature intends to pursue streamlining the
purchasing and delivery of school district and educational service
district employee health care benefits. Centralized purchasing of
health benefits would provide administrative efficiencies while also
providing transparency and accountability for the benefit spending.
NEW SECTION. Sec. 2 If established under Concurrent Resolution
8409 of the 2010 legislative session, the joint select committee on
health reform implementation may consider ways to streamline the
purchasing and delivery of school district and educational service
district employee health care benefits, including opportunities to
insert administrative efficiency, create transparency and
accountability for benefit spending, and create more equitable premium
contributions for employees with dependents. The joint select
committee may appoint an advisory committee for this purpose and may
review available data to inform its recommendations.
Sec. 3 RCW 28A.400.275 and 1990 1st ex.s. c 11 s 5 are each
amended to read as follows:
(1) Any contract for employee benefits executed after April 13,
1990, between a school district and a benefit provider or employee
bargaining unit is null and void unless it contains an agreement to
abide by state laws relating to school district employee benefits. The
term of the contract may not exceed one year.
(2) ((School districts)) A health insurer, as defined in RCW
74.09A.010, providing or administering health care benefits for school
district or educational school district employees shall annually submit
to the Washington state health care authority summary descriptions of
all benefits offered under the district's employee benefit plan. The
((districts)) health insurer shall also submit data to the health care
authority specifying the total number of employees and, for each
employee, types of coverage or benefits received including numbers of
covered dependents, ((the number of eligible dependents,)) and the age
and sex of the employee and each dependent. The health insurer in
coordination with the school district must submit the amount of the
district's contribution, each bargaining group's pooling dollars
available per member, and additional premium costs paid by the employee
through payroll deductions((, and the age and sex of the employee and
each dependent)). The plan descriptions and the data shall be
submitted in a format and according to a schedule established by the
health care authority. The first submission of data from each health
insurer must be provided by November 1, 2010.
(((3) Any benefit provider offering a benefit plan by contract with
a school district under subsection (1) of this section shall agree to
make available to the school district the benefit plan descriptions
and, where available, the demographic information on plan subscribers
that the district is required to report to the Washington state health
care authority under this section.))"
(4) This section shall not apply to benefit plans offered in the
1989-90 school year.
2SSB 5491 -
By Senator Keiser
On page 1, line 2 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 28A.400.275; and creating new sections."
EFFECT: Strikes the underlying bill, adds an intent section, requires the joint select committee on health care reform implementation to consider ways to streamline the purchasing and delivery of K-12 employee health care benefits; and replaces current reporting requirements with language requiring health insurers that provide or administer health benefits for K-12 employees to submit data.