ࡱ> kmjM #bjbj== 7:WW5l   8< H $2x x ( y{{{{{{$,! L#J B 4BBB p  B yBBi l PsRhgn D 80Ij# v#B  WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE February 4, 2008 House Committee Schedules Early Hearing to Consider OIC Individual Market Bill The House Health Care & Wellness Committee has scheduled a hearing on Tuesday, February 5 to consider ESB 5261the OICs proposal relating to the individual health insurance market. The committee has scheduled the measure for a vote in committee only a day later, on Wednesday, February 6. On Friday, January 25, 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. After adopting a floor amendment which would establish a sliding scale minimum loss ratio based on a carriers declination rate, the bill remained on the Senate third reading calendar until it Wednesday, January 30, when it was approved by the Senate on a final vote of 31-18. All Democrats but one voted for the measure, all Republicans voted against it. House Appropriations Committee to Consider Amended HIP Measure The House Appropriations Committee has scheduled a hearing to consider HB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The Appropriations Committee is scheduled to consider the measure for fiscal implications on Monday, February 4. The measure has already been approved by the House Health Care & Wellness Committee 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. Senate Ways and Means Committee Takes Action on Bill Relating to Reimbursements Paid to Chiropractors The Senate Ways and Means Committee has taken action on 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 previously 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. Although a voice vote was taken in committee, the state website for the measure does not yet show that it has been transmitted to the Senate Rules Committee. Senate Committee Considers Controversial Bill Relating to Optometrists On Wednesday, January 30, the Senate Health & Long Term Care Committee held a hearing to consider SB 6644a measure that would prohibit health plans from discriminating in any way among health care providers licensed to perform primary medical eye care services. Groups representing ophthalmologists and health carriers testified in opposition to the measure, expressing concern about the vague language in the measure, and the likelihood of new litigation directed at health plans. The bill has not yet been scheduled for a vote. House Committee Holds Hearing on Wrongful Death Measure Senate Panel to Consider Senate Version On Friday, February 1, the House Judiciary Committee held 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. Fridays hearing featured testimony from two panels of state and local government representatives who testified in opposition to the measure, arguing that the bill would add nearly $2 million to the value of each wrongful death claim that involves the state and local governments as defendants. Insurers, physician groups, hospitals, construction groups, and others have also indicated opposition to the measure. A new wrongful death bill has also 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. Proponents of the legislation apparently wanted SB 6696 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. Although Chairman Fairley previously indicated that she would wait for the House to take action on the issue, she has now scheduled SB 6696 for a hearing on Tuesday, February 5 at 1:30 p.m. State and local governments, together with the Washington Defense Trial Lawyers, and health care representatives will once again lead the opposition to the measure at the hearing. Insurers and others will also indicate their opposition. Senate Committee to Consider Bill Allowing Exemplary Damages The Senate Judiciary Committee has scheduled a hearing to consider SB 6614a measure that was introduced a few days ago by Senator Brian Weinstein (D, Mercer Island) which would allow exemplary damages to be sought in civil actions in which a defendant acted with reckless and wanton disregard for the health, safety, and welfare of another. The measure appears to be a clear effort to enact authority for punitive damages. A broad coalition of employers, professional associations, construction groups, insurers, defense lawyers, and others has organized to oppose the measure. The proposal excludes state and local governments from the exemplary damages that would be authorized. Senate Holds Hearing to Consider Bill to Increase Damages Under the Consumer Protection Act The Senate Consumer Protection & Housing Committee held a hearing on Thursday, January 31 to consider SB 6382a measure that would increase damages for violations of the Consumer Protection Act from a maximum of $10,000 to $50,000. Retailers, employers, defense attorneys, and insurers indicated their opposition to the measure. The bill has not been scheduled for a vote in committee. House and Senate Committees Approve Bills to Enact the NAIC Model on Long Term Care Insurance Key House and Senate Committees have each approved bills based on the NAIC Model Long Term Care Act. On Wednesday, January 30 the House Health Care & Wellness Committee approved a slightly-amended version of HB 2666. The amendment calls for the OIC to adopt rules to implement the measure. On Friday, January 25 the Senate Health & Long Term Care Committee approved SB 6364. The measure was advanced to the Senate Floor Calendar on Wednesday, January 30, and could be taken up in the next few days. The ACLI, together with AHIP, NAIFA, and the Washington Association of Health Underwriters testified in support of the measures. Deputy Insurance Commissioner Beth Berendt also testified in support of the bills. There was no opposition.     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