H-588                _______________________________________________

                                                     HOUSE BILL NO. 61

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Dellwo, Lux, Fisch, Hine and Basich

Read first time 1/18/85 and referred to Committee on Local Government. Referred to Committee on Financial Institutions & Insurance 1/30/85.

AN ACT Relating to health insurance; amending RCW 41.04.180; and adding new sections to chapter 41.04 RCW.

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

        Sec. 1.  Section 1, chapter 75, Laws of 1963 as last amended by section 1, chapter 82, Laws of 1974 ex. sess. and RCW 41.04.180 are each amended to read as follows:

          Any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body may, whenever funds shall be available for that purpose provide for all or a part of hospitalization and medical aid for its active, retired, or disabled employees and their dependents through contracts with regularly constituted insurance carriers or with health care service contractors as defined in chapter 48.44 RCW or self-insurers as provided for in chapter 48.52 RCW, for group hospitalization and medical aid policies or plans:  PROVIDED, That any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body shall provide the active, retired, or disabled employees thereof a choice of policies or plans through contracts with not less than two regularly constituted insurance carriers or health care service contractors or other health care plans, including but not limited to, trusts of self-insurance as provided for in chapter 48.52 RCW:  AND PROVIDED FURTHER, That any county may provide such hospitalization and medical aid to active, retired, or disabled county elected officials and their dependents on the same basis as such hospitalization and medical aid is provided to other county employees and their dependents((:  PROVIDED FURTHER, That provision for school district personnel shall not be made under this section but shall be as provided for in RCW 28A.58.420)).

NEW SECTION. Sec. 2.  A new section is added to chapter 41.04 RCW to read as follows:

          Rates, costs, or premium levels developed for plans under RCW 41.04.180 shall  be developed by pooling the experience of active, retired, and disabled employees and their dependents participating in the plans.  Rates for a retired or disabled employee who is eligible for and elects to apply for medicare shall be actuarially reduced to reflect the value of part A and part B of medicare.

NEW SECTION. Sec. 3.  A new section is added to chapter 41.04 RCW to read as follows:

          Current and future retired or disabled employees and their dependents may participate in insurance plans and contracts available under RCW 41.04.180 under the qualifications, terms, conditions, and benefits set by the supervising official or governing body.  However, premiums or rates charged the retired or disabled employees and their dependents shall be developed by the pooling of experience under section 2 of this act.