ࡱ> sutq` bjbjqPqP I.::g5       & 8& M,2&^(+++++++-h/T+ WWW+  4,;;;W|  J+;W+;;$  '  ;DXx&8+4,0M,&j;0+;0D&'&';0 :'Z:@;z4++XM,WWWW& & & & & & & & &          WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS SPECIAL LEGISLATIVE UPDATE May 4, 2007 On Wednesday, May 2 Governor Gregoire took action on two key bills that have been of interest to WAHU and its members during the 2007 legislative session. Interestingly, although the Governor signed both bills, she also used her authority to partially veto both of them as well. E2SSB 5930 This measure resulted from the work of the Governors Blue Ribbon Commission on Health Care Costs and Access. As passed by the legislature, the measure includes a long line of largely uncontroversial adjustments to the health care system: reimbursement changes for DSHS and the Health Care Authority to reward quality; new chronic care projects for DSHS; the creation of a new Washington State Quality Forum within the HCA to collect data and encourage best practices; requirements for the HCA to design a new health care information system and health care record bank; requiring the HCA and DSHS to report on unnecessary emergency room usage; requiring the Insurance Commissioner to report on opportunities to reduce administrative costs; and an array of other programs and reports that are intended to enhance wellness, preventive care, and evidence-based medicine. The bill also includes changes to the Washington State Health Insurance Poollifting the lifetime maximum to $2 million, and allowing more high risk patients to enter the WSHIP. These changes will likely add to the losses for the WSHIP, which will result in higher assessments for health plans and increased premium costs for individuals and employers buying coverage from regulated carriers. Interestingly, the Governor vetoed provisions in the bill that would have established a new nine member board that would have been charged with designing and managing the Washington Health Care Partnershipa redesigned entity authorized by E2SHB 1569 (see below) that will administer the Small Employer Health Insurance Program to provide low-income employees of small business a premium subsidy. The Governor left the new board composition included in E2SHB 1569 to govern these activities rather than the board included in E2SSB 5930. The Governor also vetoed the emergency clause in the bill. E2SSB 5930 unfortunately represents a missed opportunity for legislators and the Governor. As passed by the Senate, the bill included key provisions allowing health carriers to offer a new health plan option to small employersan option free of mandated benefits that currently apply. Unfortunately, House leaders refused to go along with the Senate position on this issue, and these provisions were removed from the bill in the House. E2SHB 1569 Although this measure started out as Rep. Codys proposal to implement an operational Connector for the individual and small group health insurance markets, as passed by the legislature, it is a far less sweeping measure. The bill renames the current Small Employer Health Insurance Program (SEHIP) as the Health Insurance Partnership. Under the bill, the new Partnership will take over the responsibilities of administering the former SEHIP program for providing premium subsidies to low-income employees of small businesses. The SEHIP program was established under the control of the Washington State Health Care Authority. ESSHB 1569 establishes a new seven-member board, chaired by the Administrator of the HCA, to manage the activities of the Partnership. In addition to managing the former SEHIP program, the Partnership board will be required to conduct studies to determine the feasibility of including the individual and small group markets in the Partnership. The OIC is also required to contract for an independent study of health benefit mandates, rating requirements and insurance statutes and rules to determine their impact on premiums and the health of covered individuals. Together with most segments of the business community, WAHU played a key role in opposing earlier versions of HB 1569 that would have created an active and operational Connector for the small group and individual health insurance markets. As passed by the legislature and signed by the Governor, E2SHB 1569 simply adjusts the administration of the current SEHIP program and requires new studies of larger Connector options. The Governor vetoed provisions in E2SHB 1569 that were duplicative of provisions in E2SHB 5930. She also vetoed the emergency clause in the bill. With respect to the SEHIP program, the new 07-09 operating budget provides $3.137 million in new funding for the program. This funding will be allocated for premium subsidies for eligible employees of small employers. It will also fund four new employees to assist in administering the programleaving less than $3 million for actual subsidies. The subsidies will be available for coverage to be effective in January, 2009. Applications for subsidies will not be accepted until September, 2008. If you have questions or comments about this report, please contact one of the following members of WAHUs legislative committee: Cathy Backamus ( HYPERLINK "mailto:ceb@bratrud.com)-" ceb@bratrud.com)- Tri-County Chapter Legislative Chair Bob Harley ( HYPERLINK "mailto:rharley@fidelityins.com)-" rharley@fidelityins.com)- Spokane Chapter Legislative Chair Mark Rose ( HYPERLINK "mailto:mrose@baldwinrgi.com" mrose@baldwinrgi.com) Northwest Washington Legislative Chair Josh Nace ( HYPERLINK "mailto:jnace@dentalhealthservices.com" jnace@dentalhealthservices.com State Legislative Chair Greg Seifert ( HYPERLINK "mailto:greg.seifert@biggsinsurance.com)-" greg.seifert@biggsinsurance.com)- Federal Legislative Chair     PAGE 1 -  PAGE 2 - 2:MRXYZ[t  ÷ëÙrerererYh9rhE6CJaJh9rhE@CJaJh9rh"u@CJaJh9rhB#@CJaJh9rh5@CJaJh^~h, 8@h, 85>*@h^~h, 85>*@hT h, 85>*@ h, 8@ h]Z@ h9r5@ h, 85@h$hE5@ hE@jhEhE@U hp@2MYZ[s t  wxFG $ a$gd, 8 gdE $ a$gdE gvgfgijlmoprstuvw&`#$gd5<=>OPcu%&';<fgrs'㤵n㵤Z&j(Vh9rh"u6CJUaJ&j9Uh9rhE6CJUaJh9rh"u0J6CJaJ&j6Th9rh"u6CJUaJ jh9rh"u6CJUaJh9rh"u6CJaJh9rhE0J6CJaJ&jSSh9rhE6CJUaJh9rhE6CJaJ jh9rhE6CJUaJ#'()JKfghjkmnpqswx~whKy0JmHnHu hKy0JjhKy0JU hKyCJhKymHnHujhKyUhKyh-1jh-1UhEhE6h9rh"u6CJaJh9rh"u0J6CJaJ jh9rh"u6CJUaJ&j?Wh9rh"u6CJUaJ"gd5  $ !H$a$ G 0 00.PP&P1:pE/ =!"#$% SSDd6J  C &Alogo 1bRe,.hia![RDnRe,.hia![PNG  IHDR$  sRGBgAMA a cHRMz&u0`:pQ< pHYsnu>tIME  (AtEXtSoftwareAdobe Photoshop 7.0lQIDATx^}u$89pP2rsD FtT}_sϟ *?߷yvww=@l|}[%}ހ|~5[g)sTKyK?B&k}|o皾80ϯ;qwp@2x[ @B\Y7'7M$rQe>o›ę|#(p!BܺnOwp9&9# 珔b٥ =TZs sqT?19F.a@E{+eQ wyeBu7YqJ{E@A@~/~wBi@st$tH.G\kdUz =19;ļQ2M#Ǐ1%5^-Z^bPGl`X ӌBxirzkڟ/%63z&v-\˸ˆư<<55?Oj9^?`p=蕿n!iXjƵ5s lmTWb:8Ү|hΒ7Y=[LMc$TpO`eCcmǦƿND }=&אI4d1V?+ uA@Qs07y ľ v2'N]]b#M[G2h, 2e)c9?Gb;p]8 9ռ|x6\!4~ùQC.mKe|f«AD-3tTHg|'By q 1Z l02YGg \/C_jT#-rfI4QNC_6}8}>K}4fpq4D֪nA e2tHxKW^B<CbxURb#=4߃_1'.5`'AWlA -YGdL`$9t d:is7 ͦ(*B1ЀpK4Ep &z'!eiSA`g 6郫=(]FpqQɴ| wSE!2$jZTz$6ͽIzfA;pQD/h!đuc />7Y j@vMhl]B*ãHC-S2Jśy~~nذnWFhLү=# sH Ht1ɳpF7My?VAifp>cZ"~B #6pjIY! hJD$b.I*rDV8NJyWkt8v]"sYm&N}5X}Js@~sD{ Ns&h N{]I"pman訕_*z/dV&煛 !߻EODl^X`w͸@?4P{aS$1̴0`yg Ŵrm\y-f!( ,ĦCz}$M8k0u!$ y?C] ׳3lMjE]z)Fc`= aDl-~O7g%ݠ\RԆ'/9KlwŔY\jlJ$ȅ{ _}Q\yr!ռ&xy=⃈r F1e5,KO&&6@`&'Ay諵"1M7P,8Du%1{q4PZ 7cw@3aB+4͟^:IlQ}l.cV߱ wJUt>Р[EsN.Zi4qZlUI4߯&6~ކ L dKT(ugRb 9G'8xO8L:xAD4#,&cU^\JlȀ2Q` )Z{OB̈U:z&(#-7 ._*`Ba/( dŠBF=x N#6nim2u $1Cצ/Wsd{SL,n`gmjf^J8&#ę{eE&"ެIԆqjZ{MlI6d^֎-7Kʼ|J30jzH 6Gz X|0I K:Ϻ[szq4 c_yBR=qvWՐk{5bT#u+JhӈۺʍZRlEFJTcM,c\КpF H%qnr:I6{">dn ͞#z9 7_YsxZm1~~a] h1l)KlM"b*cԆD#;Ӻʹ-ް ҩca6qB!'w"~3&[C^UF}!a, L m^SƳ,bf…{.Lp78v!?2<R@P+"dfޮE& j6Þ)LElm\oY˒˜ZB%y8 rz!K@I66e1|6C#d4~I(iaN!62ni'LCƮ)l2 N:vhU䂀8;c/r.r~C`}xL'6a.:ij26%AA|qk۳dq~?>{/ 'oX,3rgD)Ml#RV7/+*h=^P\{PC8jBoV#dظwr̋0—a7>O`bךy+(Cu1n,LyG._[쌒}IZSg9z{ v$6 omCN\b & ]2Z֖>diT'[E)iKƑĶe?'NˬKl&*9wh<\i=߷by/Κ^Q QFlR'ëȓfOl5F|]<46Uwml!ɤInvf7Wmͷv H9ִ_L *r%uyMfXfZZ&qpK^q2q̨=4;AQE69W¦%ZA,`ebF'S5*1V)QV&~BgdF qY++dq֟Tl;2ykk7QA^_9$YTx!Þxݻ,;d6}Ko{';hȫmFbpLYTt23(-6-EN$-nKlyFl!FyJQ[<:t<&O㔖n_Mێjc>>:nzMM'}vp^Z#El|.b'36}fwӞD19_?޾K0xl /3&0 nlGcfXSh0OlMA-¨w>t=~SA┸1_E>ҕ7 3]%A nbj8!o`ٗ3Ol$tӪ~Kk?7&aOZ4AHoec ܚ9ni0rbC^H=nIb㌋'*ôHWzGtMp:c-0ٱgC`4g$܇hUXrBF˹=U> lY"NE|[G92%AtTD℄6M0{:&2ԌK.%G6kt gkؚz$%3YHsy9f|]6tqvAdZVxF!*7j.=[@Pޥ0IJD8fdbiD[v'Sm%)?Xv]O˧Z @`ȰhK*fLI[--مcabqjvjx!A1`꽅40k6:+58pkNIƦ,D軛~‹[Ţy(ą>Ll,a<(>d_!8hy (bQBLdr~fیQxkҁͰrs;;os#6HXxݥ15Hٻ,9vN_58 MKfޯӷ9}ȉ^\@ _hm>. 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