(Basic Health Administration)
Preproposal statement of inquiry was filed as WSR 02-10-126.
Title of Rule: Revising basic health rules regarding eligibility based on income and other factors, to ensure that enrollment and subsidy levels are based on an accurate appraisal of the person's circumstances.
Purpose: These revisions will allow basic health to make a more accurate determination of a person's premium responsibility and their eligibility for the program.
Statutory Authority for Adoption: RCW 70.47.050.
Statute Being Implemented: RCW 70.47.020(4) and 70.47.060 (5) and (9).
Summary: This draft rule revises the definition of income to include some sources that were previously excluded and to clarify others. It also includes clarification of Washington state residence, to exclude those who leave the state with no intent to return or who are out of state for more than three consecutive months (allows an exception to this provision for dependent students attending school full-time out of state).
Reasons Supporting Proposal: The intent of these revisions is to ensure that those persons receiving basic health coverage are eligible for the program.
Name of Agency Personnel Responsible for Drafting: Rosanne Reynolds, Lacey, Washington, (360) 923-2948; Implementation and Enforcement: Kathy Eberle, Lacey, Washington, (360) 412-4307.
Name of Proponent: Washington State Health Care Authority, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This draft rule revises the definition of income, to include some sources that previously were not included and to clarify others. Some are not changed, only regrouped to be in a more logical order. The rule also clarifies that those who leave Washington state with no intent to return or who are out of state for more than three consecutive months will not be considered Washington residents. An exception is made for dependents who are attending school full-time out of state and are out of Washington state during the school year.
These changes will allow basic health to make a more accurate determination of a person's premium responsibility and their eligibility for the program.
Proposal Changes the Following Existing Rules: Revises the definition of income to include some sources that previously were not included and clarifies that a person who leaves Washington state with no intent to return or who is out of the state for more than three consecutive months will not be considered a Washington state resident, with the exception of dependent students attending school out of state.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The Health Care Authority is not required by chapter 19.85 RCW to prepare a small business economic impact statement. There will be little, if any, cost to small business.
RCW 34.05.328 does not apply to this rule adoption. RCW 34.05.328 does not apply to the Health Care Authority rules unless requested by the Joint Administrative Rules Review Committee or applied voluntarily.
Hearing Location: 676 Woodland Square Loop S.E., West Wing, Conference Room W-302, 3rd Floor, Lacey, WA, on August 6, 2003, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Nikki Johnson by July 28, 2003, TDD (888) 923-5622 or (360) 923-2805.
Submit Written Comments to: Rosanne Reynolds, P.O. Box 42686, Olympia, WA 98504-2686, e-mail Rrey107@hca.wa.gov, fax (360) 923-2605, by August 6, 2003.
Date of Intended Adoption: August 7, 2003.
June 30, 2003
AMENDATORY SECTION(Amending Order 02-06, filed 12/3/02, effective 1/1/03)
WAC 182-25-010 Definitions. The following definitions apply throughout these rules.
(1) "Administrator" means the administrator of the Washington state health care authority (HCA) or designee.
(2) "Appeal procedure" means a formal written procedure for resolution of problems or concerns raised by enrollees which cannot be resolved in an informal manner to the enrollee's satisfaction.
(3) "Basic health plan" (or BHP) means the system of enrollment and payment for basic health care services administered by the administrator through managed health care systems.
(4) "BHP plus" means the program of expanded benefits available to children through coordination between the department of social and health services (DSHS) and basic health plan. Eligibility for BHP Plus is determined by the department of social and health services, based on Medicaid eligibility criteria. To be eligible for the program children must be under age nineteen, with a family income at or below two hundred percent of federal poverty level, as defined by the United States Department of Health and Human Services. They must be Washington state residents, not eligible for Medicare, and may be required to meet additional DSHS eligibility requirements.
(5) "Co-payment" means a payment indicated in the schedule of benefits which is made by an enrollee to a health care provider or to the MHCS.
(6) "Covered services" means those services and benefits in the BHP schedule of benefits (as outlined in the member handbook issued to the enrollee, or to a subscriber on behalf of the enrollee), which an enrollee shall be entitled to receive from a managed health care system in exchange for payment of premium and applicable co-payments.
(7) "Disenrollment" means the termination of covered services in BHP for a subscriber and dependents, if any.
(8) "Effective date of enrollment" means the first date, as established by BHP, on which an enrollee is entitled to receive covered services from the enrollee's respective managed health care system.
(9) "Dependent" means:
(a) The subscriber's lawful spouse, not legally separated, who resides with the subscriber; or
(b) The unmarried child of the subscriber or the subscriber's dependent spouse, whether by birth, adoption, legal guardianship, or placement pending adoption, who is:
(i) Younger than age nineteen, and who has not been relinquished for adoption by the subscriber or the subscriber's dependent spouse; or
(ii) Younger than age twenty-three, and a registered student at an accredited secondary school, college, university, technical college, or school of nursing, attending full time, other than during holidays, summer and scheduled breaks; or
(c) A person of any age who is incapable of self-support due to disability, and who is the unmarried child of the subscriber or the subscriber's dependent spouse, whether by birth, adoption, or legal guardianship; or
(d) An unmarried child younger than age nineteen who is residing with the subscriber under an informal guardianship agreement. For a child to be considered a dependent of the subscriber under this provision:
(i) The guardianship agreement must be signed by the child's parent;
(ii) The guardianship agreement must authorize the subscriber to obtain medical care for the child;
(iii) The subscriber must be providing at least fifty percent of the child's support; and
(iv) The child must be on the account for BHP coverage.
(10) "Eligible full-time employee" means an employee who meets all eligibility requirements in WAC 182-25-030 and who is regularly scheduled to work thirty or more hours per week for an employer. The term includes a self-employed individual (including a sole proprietor or a partner of a partnership, and may include an independent contractor) if the individual:
(a) Is regularly scheduled to work thirty hours or more per week; and
(b) Derives at least seventy-five percent of his or her income from a trade or business that is licensed to do business in Washington.
Persons covered under a health benefit plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986 shall not be considered eligible employees for purposes of minimum participation requirements.
(11) "Eligible part-time employee" means an employee who meets all the criteria in subsection (10) of this section, but who is regularly scheduled to work fewer than thirty hours per week for an employer.
(12) "Employee" means one who is in the employment of an employer, as defined by RCW 50.04.080.
(13) "Employer" means an enterprise licensed to do business in Washington state, as defined by RCW 50.04.080, with employees in addition to the employer, whose wages or salaries are paid by the employer.
(14) "Enrollee" means a person who meets all eligibility requirements, who is enrolled in BHP, and for whom applicable premium payments have been made.
(15) "Family" means an individual or an individual and spouse, if not legally separated, and dependents. For purposes of eligibility determination and enrollment in the plan, an individual cannot be a member of more than one family.
(16) "Financial sponsor" means a person, organization or other entity, approved by the administrator, that is responsible for payment of all or a designated portion of the monthly premiums on behalf of a subscriber and any dependents.
(17) "Gross family income" means total cash receipts, as defined in (a) of this subsection, before taxes, from all sources, for subscriber and dependents whether or not they are enrolled in BHP, with the exceptions noted in (b) of this subsection. An average of documented income received over a period of several months will be used for purposes of eligibility determination, unless documentation submitted confirms a change in circumstances so that an average would not be an accurate reflection of current income. A twelve-month average will be used when calculating gambling income, lump-sum payments, and income from capital gains. A twelve-month history of receipts and expenses will be required for calculating self-employment or rental income unless the applicant or enrollee has not owned the business for at least twelve months.
(a) Income includes:
Money)) Wages, tips and salaries before any
(ii) Net receipts from nonfarm self-employment (receipts
from a person's own ((
unincorporated)) business, professional
enterprise, or partnership, after deductions for business
expenses). In calculating net self-employment income,
deductions will not be allowed for noncash-flow items such as
depreciation, amortization, or home office costs, and a net
loss from this calculation will not be used to offset other
(iii) Net receipts from farm self-employment (receipts from a farm which one operates as an owner, renter, or sharecropper, after deductions for farm operating expenses). In calculating net self-employment income, deductions will not be allowed for noncash-flow items such as depreciation, amortization, or home office costs, and a net loss from this calculation will not be used to offset other income sources;
Regular)) Periodic payments from Social Security,
railroad retirement, military pension or retirement pay,
military disability pensions, military disability payments,
government employee pensions, private pensions, unemployment
compensation, and strike benefits from union funds(( ,));
(v) One-time insurance payments other than reimbursement
for a loss, periodic insurance or annuity payments, and
compensation for injury other than reimbursement for medical
costs, including workers' compensation((
(vi) Public assistance, alimony, child support, and
military family allotments((
, private pensions, government
employee pensions (including military retirement pay), and
regular insurance or annuity payments));
(v))) (vii) Work study, assistantships, or training
(vi))) (viii) Dividends and interest accessible to the
enrollee without a penalty for early withdrawal;
(vii))) (ix) Net rental income, net royalties,
(( periodic receipts from estates or trusts,)) and net gambling
or lottery winnings;
(x) Lump sum inheritances and periodic receipts from estates or trusts; and
(xi) Capital gains.
(b) Income does not include the following types of money received:
(ii))) Any assets drawn down as withdrawals from a bank, the sale of property, a house or a car;
(iii))) (ii) Tax refunds, gifts, loans(( , lump-sum
inheritances, one-time insurance payments, or compensation for
injury (except workers' compensation)));
(iv))) (iii) Noncash (( benefits)) receipts, such as the
employer-paid or union-paid portion of health insurance or
other employee fringe benefits, food or housing received in
lieu of wages, the value of food and fuel produced and
consumed on farms, the imputed value of rent from
owner-occupied nonfarm or farm housing, goods or services
received due to payments a trust makes to a third party, and
such noncash benefit programs as Medicare, Medicaid, food
stamps, school lunches, state supplemental income that is
specifically dedicated to reimburse for services received, and
(v))) (iv) Income earned by dependent children with the
exception of distributions from a corporation, partnership, or
(vi))) (v) Income of a family member who resides in
another household when such income is not available to the
subscriber or dependents seeking enrollment in BHP;
(vii))) (vi) College or university scholarships,
grants, and fellowships (( and assistantships));
(viii))) (vii) Payments from the department of social
and health services adoption support program authorized under
RCW 26.33.320 and 74.13.100 through 74.13.145;
(ix))) (viii) Documented child care expenses for the
care of a dependent child of a subscriber may be deducted (at
a rate set by the administrator and consistent with Internal
Revenue Service requirements) when calculating gross family
income. To qualify for this deduction(( ,)):
(A) The subscriber and the spouse listed as a dependent
on the account, if any, must be employed or attending school
full-time during the time the child care expenses were
(B) Payment may not be paid to a parent or ((
parent)) stepparent of the child or to a dependent child of
the subscriber or his/her spouse.
(18) "Home care agency" means a private or public agency or organization that administers or provides home care services directly or through a contract arrangement to ill, disabled, or infirm persons in places of temporary or permanent residence, and is licensed by the department of social and health services (DSHS) as a home care agency. In order to qualify, the agency must be under contract with one of the following DSHS programs: Chore, Medicaid Personal Care, Community Options Program Entry System (COPES) or Respite Care (up to level three).
(19) "Institution" means a federal, state, county, city or other government correctional or detention facility or government-funded facility where health care historically has been provided and funded through the budget of the operating agency, and includes, but is not limited to: Washington state department of corrections institutions; federal, county and municipal government jail and detention institutions; Washington state department of veterans affairs soldiers' and veterans' homes; department of social and health services state hospitals and facilities and juvenile rehabilitation institutions and group homes. An institution does not include: Educational institutions; government-funded acute health care or mental health facilities except as provided above; chemical dependency facilities; and nursing homes.
(20) "Institutionalized" means to be confined, voluntarily or involuntarily, by court order or health status, in an institution, as defined in subsection (19) of this section. This does not include persons on work release or who are residents of higher education institutions, acute health care facilities, alcohol and chemical dependency facilities, or nursing homes.
(21) "Insurance broker" or "agent" means a person who is currently licensed as a disability insurance broker or agent, according to the laws administered by the office of the insurance commissioner under chapter 48.17 RCW.
(22) "Managed health care system" (or "MHCS") means:
(a) Any health care organization (including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof) which has entered into a contract with the HCA to provide basic health care services; or
(b) A self-funded or self-insured method of providing insurance coverage to subsidized enrollees provided under RCW 41.05.140 and subject to the limitations under RCW 70.47.100(7).
(23) "Maternity benefits through medical assistance," also known as S-Medical, means the coordinated program between BHP and DSHS for eligible pregnant women. This program includes all Medicaid benefits, including maternity coverage. Eligible members must be at or below one hundred eighty-five percent of the federal poverty level. Eligibility for this program is determined by DSHS, based on Medicaid eligibility criteria.
(24) "Medicaid" means the Title XIX Medicaid program administered by the department of social and health services, and includes the medical care programs provided to the "categorically needy" and the "medically needy" as defined in chapter 388-503 WAC.
(25) "Medicare" means programs established by Title XVIII of Public Law 89-97, as amended, "Health Insurance for the Aged and Disabled."
(26) "Nonsubsidized enrollee" or "full premium enrollee" means an individual who enrolls in BHP, as the subscriber or dependent, and who pays or on whose behalf is paid the full costs for participation in BHP, without subsidy from the HCA.
(27) "Open enrollment" means a time period designated by the administrator during which enrollees may enroll additional dependents or apply to transfer their enrollment from one managed health care system to another.
(28) "Participating employee" means an employee of a participating employer or home care agency who has met all the eligibility requirements and has been enrolled for coverage under BHP.
(29) "Participating employer" means an employer who has been approved for enrollment in BHP as an employer group.
(30) "Preexisting condition" means any illness, injury or condition for which, in the six months immediately preceding an enrollee's effective date of enrollment in BHP:
(a) Treatment, consultation or a diagnostic test was recommended for or received by the enrollee; or
(b) Medication was prescribed or recommended for the enrollee; or
(c) Symptoms existed which would ordinarily cause a reasonably prudent individual to seek medical diagnosis, care or treatment.
(31) "Premium" means a periodic payment, based upon gross family income and determined under RCW 70.47.060(2), which an individual, their employer or a financial sponsor makes to BHP for subsidized or nonsubsidized enrollment in BHP.
(32) "Program" means subsidized BHP, nonsubsidized BHP, BHP Plus, or maternity benefits through medical assistance.
(33) "Provider" or "health care provider" means a health care professional or institution duly licensed and accredited to provide covered services in the state of Washington.
(34) "Rate" means the amount, including administrative charges and any applicable premium and prepayment tax imposed under RCW 48.14.020, negotiated by the administrator with and paid to a managed health care system, to provide BHP health care benefits to enrollees.
(35) "Schedule of benefits" means the basic health care services adopted and from time to time amended by the administrator, which an enrollee shall be entitled to receive from a managed health care system in exchange for payment of premium and applicable co-payments, as described in the member handbook.
(36) "Service area" means the geographic area served by a managed health care system as defined in its contract with HCA.
(37) "Subscriber" is a person who applies to BHP on his/her own behalf and/or on behalf of his/her dependents, if any, who meets all applicable eligibility requirements, is enrolled in BHP, and for whom the monthly premium has been paid. Notices to a subscriber and, if applicable, a financial sponsor or employer shall be considered notice to the subscriber and his/her enrolled dependents.
(38) "Subsidized enrollee" or "reduced premium enrollee" means an individual who enrolls in BHP, either as the subscriber or an eligible dependent, whose current gross family income does not exceed twice the federal poverty level as adjusted for family size and determined annually by the federal Department of Health and Human Services, and who receives a premium subsidy from the HCA. To the extent that state funds are specifically appropriated for this purpose, with a corresponding federal match, "subsidized enrollee" also means an individual who enrolls in BHP, either as the subscriber or an eligible dependent, whose current gross family income is more than two hundred percent, but less than two hundred fifty-one percent, of the federal poverty level as adjusted for family size and determined annually by the federal Department of Health and Human Services, and who receives a premium subsidy from the HCA.
(39) "Subsidy" means the difference between the amount of periodic payment the HCA makes to a managed health care system on behalf of a subsidized enrollee, and the amount determined to be the subsidized enrollee's responsibility under RCW 70.47.060(2).
(40) "Washington state resident" or "resident," for purposes of this chapter, means a person who physically resides and maintains a residence in the state of Washington. An enrollee who leaves Washington state with no intent to return or who leaves Washington state for more than three consecutive months will be considered to no longer be a Washington resident, with the following exception. A dependent child who meets the requirements of subsection (9)(b)(ii) of this section and who is attending school out-of-state may be considered a Washington resident if he or she is out-of-state during the school year but continues to maintain his or her residence in Washington.
[Statutory Authority: RCW 70.47.050, 70.47.020 (4) and (5), 70.47.060 (9) and (10), 74.08A.100 and 2002 c 371. 02-24-051 (Order 02-06), § 182-25-010, filed 12/3/02, effective 1/1/03. Statutory Authority: RCW 70.47.050. 01-09-001 (Order 00-08), § 182-25-010, filed 4/4/01, effective 5/5/01. Statutory Authority: RCW 70.47.050 and 70.47.020 as revised by E2SSB 6067. 01-01-134 (Order 00-04), § 182-25-010, filed 12/20/00, effective 1/20/01. Statutory Authority: RCW 70.47.050, 70.47.060 and 70.47.100. 99-24-005 (Order 99-06), § 182-25-010, filed 11/18/99, effective 12/19/99. Statutory Authority: RCW 70.47.050, 70.47.060(9) and SHB 2556. 98-15-018, § 182-25-010, filed 7/6/98, effective 8/6/98. Statutory Authority: RCW 70.47.050. 98-07-002, § 182-25-010, filed 3/5/98, effective 4/5/98; 97-15-003, § 182-25-010, filed 7/3/97, effective 8/3/97; 96-15-024, § 182-25-010, filed 7/9/96, effective 8/9/96.]