SENATE BILL REPORT
SB 5610
As of January 18, 2022
Title: An act relating to requiring cost sharing for prescription drugs to be counted against an enrollee's out-of-pocket costs, deductible, cost sharing, out-of-pocket maximum, or similar enrollee obligation, regardless of the source of the payment.
Brief Description: Requiring cost sharing for prescription drugs to be counted against an enrollee's obligation, regardless of source.
Sponsors: Senators Frockt, Cleveland, Conway, Dhingra, Hasegawa, Honeyford, Keiser, Kuderer, Liias, Lovelett, Lovick, Randall, Robinson, Salda?a, Salomon, Stanford, Van De Wege and Wilson, C..
Brief History:
Committee Activity: Health & Long Term Care: 1/19/22.
Brief Summary of Bill
  • Requires all cost-sharing amounts paid by or on behalf of an enrollee to count toward the enrollee's applicable cost-sharing requirement.
SENATE COMMITTEE ON HEALTH & LONG TERM CARE
Staff: Greg Attanasio (786-7410)
Background:

Cost-sharing refers to the portion of costs for healthcare services an enrollee of a health plan is responsible for paying out-of-pocket before the plan covers the remainder of the cost.  Cost-sharing can be in the form of a deductible, copayment, coinsurance, or similar obligations.  The out-of-pocket maximum is the maximum amount an enrollee must pay for covered services in a plan- year across all types of cost-sharing obligations.  Under the Affordable Care Act, most plans have an out-of-pocket maximum that varies depending on if the plan is for an individual or a family. 

 

Cost-sharing obligations for prescription drug coverage varies among health plans, with some plans providing coverage before the deductible, some requiring the enrollee to meet a plan deductible before providing coverage, and some requiring the enrollee to meet a specific prescription drug deductible.
Summary of Bill:

Beginning January 1, 2023, when calculating an enrollee's contribution to any applicable cost-sharing requirement, a health carrier or health care benefit manager shall include any cost-sharing amounts paid by the enrollee directly or on behalf of the enrollee by another person for a covered prescription drug and apply that amount in full toward the enrollee's deductible, out-of-pocket maximum, or similar obligation.

 

The Insurance Commission may adopt any rules necessary to implement this requirement. 

 

This requirement does not apply to a qualifying health plan for a health savings account to the extent necessary to preserve the enrollee's ability to claim tax exempt contributions and withdrawals from the enrollee's health savings account under Internal Revenue Service laws, regulations, and guidance.
Appropriation: None.
Fiscal Note: Requested on January 10, 2022.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.