HOUSE BILL REPORT
ESHB 2038
BYHouse Committee on Ways & Means (originally sponsored by Representatives Sprenkle, Holland, Braddock, Brooks, Peery, Grimm and Locke)
Establishing the Washington state health care authority.
House Committe on Ways & Means
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (16)
Signed by Representatives Grimm, Chair; Appelwick, Basich, Braddock, Brekke, Dellwo, Ebersole, Grant, Hine, Locke, Peery, Rust, H. Sommers, Spanel, Sprenkle and Valle.
Minority Report: Do not pass. (8)
Signed by Representatives Brough, Fuhrman, Holland, McLean, Nealey, Schoon, Silver and B. Williams.
House Staff:Sue Crystal (786-7136)
AS PASSED HOUSE MARCH 2, 1988
BACKGROUND:
Health and other forms of insurance benefits are currently provided to state employees through contracts negotiated by the State Employees Insurance Board (SEIB). The SEIB is composed of representatives of the governor, higher education faculty and administrators, the director of the department of personnel, employee unions and associations, retired persons and the legislature. Health benefits are provided with no premium contribution by the employee. The present contracts for health insurance for both the Uniform Plan (Blue Cross) and the HMOs end June 30, 1988.
SUMMARY:
The Washington state health care authority is created as an independent agency with an administrator appointed by the governor. The State Employees Benefits Board is established within the authority. It is charged with the responsibility to design and approve insurance benefit plans for state employees. The board, to be appointed by the governor, will be composed of three representatives of state employees, three members with experience in health benefit management and cost containment, and the administrator. The administrator shall serve as chair.
The current SEIB will continue its present functions related to the upcoming contract. OFM will review and approve SEIB actions relating to the contract. After October 1, 1988, the new benefits board will be in place and the authority will assume responsibility for administering the insurance benefit contracts.
The State Employees Benefits Board will establish health care plans for state employees to take effect after the upcoming contracts end. These benefits would be provided through contracts with insurance carriers and HMOs or through self-insurance. The contracts shall provide that participants may use equally the services of a variety of providers subject to appropriate utilization controls. Plans may include methods of maximizing cost containment while ensuring access to quality care. The authority will provide information and technical assistance to the board. Premium contributions from employees are prohibited. All claims data shall be the property of the state. The board will assume SEIB's functions relating to the development of plans for the provision of life, liability, accident, disability income, and other forms of insurance.
The authority will develop the technical capacity to review the other state health care purchasing programs and explore options for cost containment and delivery alternatives for these programs. The authority is to develop data systems to obtain utilization and other forms of data from all state health purchasing programs. A report is required that reviews the state health purchasing programs and regulatory agencies and makes recommendations regarding coordination between programs and structural changes in the state's current health delivery system.
The authority will analyze the provision of health benefits to K - 12 employees and the cost savings resulting from integration of local school districts into benefit plans offered by the authority.
A health care policy technical advisory board appointed by the administrator is established that will provide technical input to the authority regarding data collection and analysis of the state purchased health care programs and effective approaches to cost control, quality and access to health care. The technical advisory board will be composed of persons with interest and expertise in health care purchasing, delivery or research and analysis and include representatives of the following entities: private health care purchasers, health care providers, insurance carriers, HMOs, health care service contractors, state agencies that purchase health care, the insurance commissioner and health care consumers.
The bill authorizes the Authority to be established immediately and take necessary steps to insure that the act can be fully implemented October 1, 1988. The remainder of the act takes effect October 1, 1988.
EFFECT OF SENATE AMENDMENT(S): The Senate amendments change the structure of the State Employees Benefits Board by removing the administrator of the authority as a member of the board. The board membership would consist of three representatives of state employees and three members with expertise in health benefit management and cost containment. The administrator will serve as chair of the board.
Appropriation: $1.3 million to the Office of the Governor.
Fiscal Note: Requested February 29, 1988.
Effective Date:The bill contains an emergency clause and sections 13, 32, 33, 34, and subsection 1 of section 37 takes effect immediately. The remainder of the act takes effect on October 1, 1988.
House Committee ‑ Testified For: None Presented.
House Committee - Testified Against: See committee staff.
House Committee - Testimony For: None Presented.
House Committee - Testimony Against: See committee staff.
VOTE ON FINAL PASSAGE:
Yeas 59; Nays 39
Voting Nay: Representatives Allen, Amondson, Ballard, Barnes, Baugher, Beck, Betrozoff, Brough, Bumgarner, Butterfield, Chandler, Day, Doty, Ferguson, Fuhrman, Gallagher, Hankins, Holland, Lewis, May, McLean, Miller, Moyer, Nealey, Padden, Patrick, Prince, Sanders, Schmidt, Schoon, Silver, Smith C, Sommers D, Taylor, Walker, Williams B, Williams J, Wilson S, Winsley