ࡱ> qsry nbjbjEE I*''85 -----AAA8yA1t(   0121212121212135T21- 21--4G1d--001$*n, =aAQX+8v0]101,j5v5Dz,z,5-, "+CW   2121p   15          :   WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE January 28, 2008 Senate Erupts in Controversy over OIC Individual Market Bill On Friday, January 25, only one day after the Senate Health and Long Term Care Committee approved ESB 5261 out of committee, Senate leaders took quick action to bring the measure to the Senate floor for consideration. AHIP, together with health plans that provide coverage in the individual health insurance market and small employers, quickly assembled to express concerns about the bill to key members of the Senate. Republican members of the Senate quickly objected to the fact that the bill was being advanced too quickly for a meaningful review of amendments. The bill would provide authority to the OIC to disapprove rates in the individual market. The measure would also increase the minimum loss ratio for products in the individual market to 75% (77% offset by the 2% premium tax). Pursuant to a committee amendment, the authority to disapprove rates would sunset on January 1, 2012. Bitter comments about the process resulted in Republicans threatening to use procedural objections to keep the bill from coming to a vote. It appears that an agreement was struck on the process, however, when Democratic leaders agreed to hold the bill on the calendar so long as all work on amendments was allowed to proceed. The bill remains on the Senate third reading calendar, which means that no further amendments can be considered in the Senate. All that remains is an up or down vote on final passage of the amended bill. House Committee Approves Amended HIP MeasureSenate Committee Considers Related Measure On Thursday, January 24, the House Health Care & Wellness Committee approved an amended version of HB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The measure passed on a divided vote, with all Democrats voting in favor of the measure and almost all Republicans voting against it. The Washington Association of Health Underwriters, together with small business groups, testified with concerns about the billarguing that the HIP does not appear to be referenced in the budget to provide subsidies to low income employees of small employers. They also expressed concern that the legislation may allow the HIP to be preferentially positioned in the market to compete directly with current market options. The Senate Health & Long Term Care Committee also held a hearing on the issue, considering SB 6221 on Monday, January 21. Employers expressed similar concerns with respect to SB 6221 as they did with regard to HB 2537. The Senate committee has not yet taken action on the measure. Senate Ways and Means Committee Considers Bill on Reimbursements Paid to Chiropractors On Tuesday, January 22 the Senate Ways and Means Committee held a hearing to consider SB 5596a measure that would prohibit health plans from setting payment formulas for chiropractors which are different from those set for other providers when they are performing health care services. AHIP and Regence testified against the measure, pointing out that the fiscal note on the bill suggests that the costs for chiropractic services will increase if the measure is enacted. The bill has not yet been scheduled for a vote. House and Senate Committees Consider NAIC Model on Long Term Care Insurance Key House and Senate Committees each considered legislation based on the NAIC Model Long Term Care Act on Wednesday, January 23. The House Health Care & Wellness Committee considered HB 2666 and the Senate Health & Long Term Care Committee considered SB 6364. WAHU, together with the ACLI, NAIFA, and AHIP testified in support of the measures. Deputy Insurance Commissioner Beth Berendt also testified in support of the bills. There was no opposition. On Friday, January 25, the Senate Health & Long Term Care Committee passed the bill to the Senate Rules Committee without amendment. New Wrongful Death Bill Introduced in the SenateHouse Committee Schedules Hearing on the Issue A new wrongful death bill has been introduced in the Senate. SB 6696 has been introduced by Sen. Darlene Fairley (D, 32nd Legislative District), and Chair of the Senate Government Operations & Elections Committee. In related action, the House Judiciary Committee has scheduled a hearing to consider HB 1873a controversial wrongful death bill that passed in the House last year but failed in the Senate Judiciary Committee when an insufficient number of committee members failed to sign the majority report to pass the bill out of committee. We have learned that proponents of the legislation wanted SB 6696 to be referred to the Senate Government Operations & Elections Committee rather than the Senate Judiciary Committee where it died last year. Plaintiff lawyers appear to be trying to find a way to get through the hearing process in the Senate, and that they have been simply running into the same problems this year in the Senate Judiciary Committee that they had last year. Local governments have already been actively working the Senate Government Operations & Elections Committee to build opposition to the measure, and it now appears that Chairman Fairley has decided to wait for the House to take action on the issue. She has not scheduled SB 6696 for a hearing. It is anticipated that the hearing scheduled in the House Judiciary Committee for HB 1873 will be to consider an amendment that is identical to SB 6696. Local governments, professional associations, employers, defense lawyers, and insurers will be testifying in opposition to the measure.     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