ࡱ> molM w*bjbj== 7<WWA&5l 8 $!2  (, , , ```Y![![![![![![!$ # ,%J!`````!", , 4!"""`, , "`Y!""I , `$s 8 !0!) jv%vv% "  WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE February 18, 2008 Cross-Over Cut-Off Scheduled for Tuesday, February 19 House and Senate Up Against Deadline to Pass Bills Facing a deadline at 5:00 p.m. on Tuesday, February 19, the House and Senate are working overtime to pass bills. The cross-over deadline means that bills originating in the House must be passed to the Senate, and measures originating in the Senate must be passed to the House by the deadline. Hundreds of bills that have been approved by committees in the House and Senate are backed up in the Rules Committees or on lengthy Floor Calendars competing for an opportunity to be considered. Many will not make it. State Revenues Drop by $423 Million--Budget Writers Respond On Friday, February 15 Dr. Chang Mook Sohn, the state's top economist, issued a revised revenue projection for the state, estimating that state revenues will decrease by $423 million from earlier projections between now and the end of the current biennium in June, 2009. The report issued by the state's Economic and Revenue Forecast Council attributed nearly $231 million of the reduction to a weakened housing market and declining real estate excise tax collections. The report caused a stir among legislative budget writers who are preparing to release supplemental budget proposals for the remainder of the '07-'09 biennium. The gloomy report may also cause many bills that pose a budget impact to the state to be left behind. Although Governor Gregoire had hoped that the supplemental budget would leave over $1 billion unspent, it appears that the revenue projection will cut into that amount. While the report projects decreased revenues for the state, it predicts that Washington's economy will outperform the national economy over the next year. OIC Individual Market Bill Placed on House Floor Calendar The House is poised to take final action on ESB 5261the OICs proposal relating to the individual health insurance market. The bill was placed on the House Floor Calendar on Tuesday, February 12. The bill could be brought to a vote at any time. The bill was passed by the House Health Care & Wellness Committee on Tuesday, February 5. The vote was 8-5, with all Democrats voting in support of the measure, and all Republicans with the exception of Rep. Tom Campbell (D, 2nd Legislative District) voting against it. 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 an amendment adopted in the Senate, the authority to disapprove rates would sunset on January 1, 2012. The bill also contains a provision which would establish a sliding scale minimum loss ratio based on a carriers declination ratea provision added on the Senate floor. The measure has already been 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 Approves HIP Measure The House has approved HB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The measure passed the House tonight on a vote of 54-40. Debate on the measure was sharply-divided, and eight Democrats joined all but one Republican in voting against the measure. Two leaders in the House Democratic Caucus were among those voting "no". The bill now goes to the Senate, where it has already been scheduled for a hearing before the Senate Health and Long Term Care Committee on Wednesday, February 20. During hearings in the House, 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 Committee Kills Bill to Study Interpreter Services The Senate Ways and Means Committee has killed a measure authorizing a study of language access problems encountered by consumers who purchase health insurance. The study would have been conducted by the Office of the Insurance Commissioner, with recommendations due by January 1, 2009. The study was all that remained of SB 6684a measure that was introduced as a proposal to require health insurers to provide language translators to assist non-English-speaking consumers communicate with health care providers. At a hearing on the measure, AHIP and the Washington Association of Health Underwriters testified with concerns about the costs and operational difficulties posed by the bill. When the measure was brought to a vote on Thursday, February 7, an amendment was adopted to remove all aspects of the bill except for the study. The measure was referred to the Senate Ways and Means Committee where it was killed when it was not brought to a vote before the deadline for committee action. Senate Approves Bill Relating to Reimbursements Paid to Chiropractors On Wednesday, February 13, the Senate passed 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. The bill was passed on a broad bipartisan vote of 40-9. During hearings in the Senate, 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 Ways and Means Committee adopted an amendment deleting language relating to discrimination in the underlying bill, and extending the effective date of the restrictions on reimbursement schedules by one year, until January 1, 2009. The bill now goes to the House for consideration. Senate Passes Controversial Bill Relating to Optometrists The Senate has passed an amended version of SB 6644a measure that would impose restrictions on referral provisions in health plans with respect to eye care. The measure was approved on a sweeping vote of 46-3 on Friday, February 15. Groups representing ophthalmologists and health carriers testified in opposition to the measure when it was considered at hearing, expressing concern about the vague language in the measure, and the likelihood of new litigation directed at health plans. The bill now goes to the House. Bill to Enact the NAIC Model on Long Term Care Insurance Passes Senate The Senate has approved a measure that is based on the NAIC Model Long Term Care Act. On February 11, SB 6364 was approved without a dissenting vote. It now goes to the House Health Care & Wellness Committee where it has been scheduled for a hearing on Wednesday, February 20. The House committee has previously approved a similar measureHB 2666, which is now pending on the House Floor Calendar. WAHU, together with AHIP, the ACLI, and NAIFA, testified in support of the measures. Deputy Insurance Commissioner Beth Berendt also testified in support of the bills. There was no opposition. House Approves Wrongful Death Measure Despite Opposition from Local Governments and Others Late on the evening of Friday, February 15, the House of Representatives passed E3SHB 1873the controversial wrongful death bill that has been a top priority for the Washington State Trial Lawyers Association since last year. The measure passed on a 59-34 vote. The House rejected nine amendments that were advanced by the Association of Washington Cities, which were offered by Rep. Jay Rodne (R, 5th Legislative District). The House-passed measure is a striking amendment to the underlying bill, and contains new language offered by Rep. Pat Lantz (D, 26th Legislative District) to clarify the meaning of "significant involvement" that allows a parent to make a claim. Two Republicans joined 57 Democrats in voting for the measure. Four Democrats joined with 30 Republicans in voting against it. Five members were excused. The vote record on final passage is noted below. The measure now goes to the Senate for hearings. On Monday, February 4, the House Judiciary Committee approved an amended version of 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. The committee approved the measure following a hearing on Friday, February 1 that 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. The measure will likely be referred to the Senate Government Operations & Elections Committee. A similar measureSB 6696was introduced by Sen. Darlene Fairley (D, 32nd Legislative District), and approved by the Senate Government Operations & Elections Committee. SB 6696, however, was killed in the Senate Ways and Means Committee when it was not brought to a vote before the deadline for committee action earlier this week. Representatives of local governments, physician groups, hospitals, insurers, defense lawyers, and others will continue to actively oppose E3SHB 1873 when it is considered in the Senate.     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