HOUSE BILL REPORT
SJM 8002
As Reported by House Committee On:
Health Care & Wellness
Brief Description: Concerning Medicare.
Sponsors: Senators Hasegawa, Chapman, Stanford, Trudeau and Valdez.
Brief History:
Committee Activity:
Health Care & Wellness: 3/21/25, 3/26/25 [DP].
Brief Summary of Joint Memorial
  • Requests the federal government to take certain actions so that Medicare beneficiaries will not suffer additional costs from choosing original Medicare and will have a choice between the public and private program.
HOUSE COMMITTEE ON HEALTH CARE & WELLNESS
Majority Report: Do pass.Signed by 12 members:Representatives Bronoske, Chair; Lekanoff, Vice Chair; Rule, Vice Chair; Davis, Macri, Obras, Parshley, Shavers, Simmons, Stonier, Thai and Tharinger.
Minority Report: Do not pass.Signed by 6 members:Representatives Schmick, Ranking Minority Member; Caldier, Assistant Ranking Minority Member; Marshall, Assistant Ranking Minority Member; Low, Manjarrez and Stuebe.
Staff: Jim Morishima (786-7191).
Background:

Medicare is a federal health insurance program covering individuals 65 years of age or older and younger individuals with certain disabilities.  Individuals enrolling in Medicare may enroll in original Medicare, which is administered by the federal government, or in Medicare Advantage, which is administered by private insurers.

 

Both original Medicare and Medicare Advantage are regulated almost exclusively by federal law, which preempts state law in this area.
Summary of Bill:

The Legislature makes various findings regarding Medicare and states its opposition to Medicare privatization.  

 

The Legislature requests the federal government to level the playing field between original Medicare and Medicare Advantage so that Medicare beneficiaries will not suffer additional costs by enrolling in original Medicare and will have a genuine choice between the public and private program as a step toward health care equity.  To that end, the Legislature asks the federal government to:

  • eliminate the original Medicare 20 percent copays and set an out-of-pocket cap on medical expenses;
  • add benefits to original Medicare such as dental, vision, and hearing coverage as is permitted for Medicare Advantage;
  • eliminate the allowed excessive administrative costs and profits in the Medicare Advantage program; and
  • recoup funds for the Medicare Trust Fund from Medicare Advantage overpayments, fraud, and abuse to support a robust original Medicare system that will lower costs and improve benefits, access, and equity for all seniors and disabled beneficiaries.  
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Upon enactment.
Staff Summary of Public Testimony:

(In support) Medicare is a promise that retirement or disability will not end access to health care.  Washington should go on record to uphold this promise and help build a stronger system for future generations.  Medicare Advantage and Medicare supplemental insurance have created an unlevel playing field for traditional Medicare.  Traditional Medicare spends 3 percent on overhead, while Medicare Advantage plans are allowed to retain 15 percent for overhead.  Medicare Advantage plans may be less expensive, but enrollees are often subject to severe restrictions such as benefit restrictions and limited networks.  The United States has the best doctors and hospitals.  Traditional Medicare enrollees can go to any of them, but Medicare Advantage enrollees cannot.  Medicare Advantage plans are harming rural hospitals, which are critically important to the communities they serve.  Medicare Advantage is leading to the closure and total acquisitions of these hospitals.  When services are not available locally, patients have to travel, which can be challenging.  Individuals with chronic conditions rely on Medicare, but Medicare Advantage is chipping away at necessary services.  The state should stand up to the oligarchy trying to profit on the backs of the disabled and the chronically ill.  Overpaying for the healthy and underpaying for the sick is destroying our health care system.  Risk adjustment is insufficient to solve this problem.  For-profit corporations are experts at gaming the system.  Medicare Advantage plans often offer popular additional benefits, which can be irresistible to enrollees.  The choice between traditional Medicare and Medicare Advantage is not a real choice.  Medicare Advantage is a gold mine for Wall Street.  The overpayments to Medicare Advantage companies should be redirected to pay for improvements in traditional Medicare.  Enrollees in traditional Medicare deserve the same benefits that Medicare Advantage enrollees enjoy.  The Medicare Trust Fund must be preserved for future generations.

 

(Opposed) None.
Persons Testifying:

Senator Bob Hasegawa, prime sponsor; Kathryn Lewandowsky, Whole Washington; Annie Fitzgerald; Dr. Ed Weisbart, National Board Secretary Physicians for a National Health Program; Ellen Memshew; and Lynne Dodson.
Persons Signed In To Testify But Not Testifying:

Jeff Johnson, Co-President Puget Sound Advocates for Retirement Action.