ࡱ> moly )bjbjEE I*''5 -----AAA8y$A1t(   \1^1^1^1^1^1^1-35T^1-  ^1--4s1d--0\1(*r, vwAUd+80101,j#6p#6D~,~,#6-, "/G[   ^1^1)j   1#6          :   WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE February 25, 2008 OIC Individual Market Bill Remains on House Floor Calendar The House remains 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 measure 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. The bill seems to be on a temporary hold while legislators consider a possible amendment relating to contested case hearings before an administrative law judge. The question that legislators are considering is whether an ALJ should be allowed to enter the final order in a contested case hearing with respect to an individual health insurance market rate filing. Current law allows the OIC to enter the final order in a contested case hearing, even if that means that a proposed order from an independent administrative law judge is set aside. Senate Committee Considers HIP Measure The Senate Health & Long Term Care Committee held a hearing to consider 2SHB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The measure passed the House on Friday, February 15 on a vote of 54-40. During hearings before the Senate committee, 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. These concerns were also expressed during hearings when the measure was considered during hearings in the House. The Senate Health & Long Term Care Committee has tentatively scheduled the bill to come to a vote in committee on Monday, February 25. House Committee Considers Bill Relating to Reimbursements Paid to Chiropractors The House Health Care and Wellness Committee held a hearing on Thursday, February 21 to consider 2SSB 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 has previously been approved by the Senate on a broad bipartisan vote of 40-9. During hearings in both the House and Senate, AHIP and other carrier representatives 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. Business groups also indicated their opposition to the measure. The House Health & Long Term Care Committee is tentatively scheduled to bring the measure to a vote on Monday, February 25. House Committee to Consider Controversial Bill Relating to Optometrists The House Health Care & Wellness Committee has scheduled a hearing to consider ESSB 6644a measure that would impose restrictions on referral provisions in health plans with respect to eye care. The hearing will be held on Monday, February 25. On Friday, February 15 the measure was approved by the Senate on a sweeping vote of 46-3. Groups representing ophthalmologists and health carriers testified in opposition to the measure when it was considered in the Senate, expressing concern about the vague language in the measure, and the likelihood of new litigation directed at health plans. Similar testimony is expected when the measure is considered by the House committee. Bill to Enact the NAIC Model on Long Term Care Insurance Considered by House Committee The House Health Care & Wellness Committee held a hearing on Wednesday, February 20 to consider SB 6364a measure that is based on the NAIC Model Long Term Care Act. On February 11, the bill was approved by the Senate without a dissenting vote. The House has approved a similar measureHB 2666, which has been scheduled for a hearing before the Senate Health & Long Term Care Committee on Wednesday, February 27. The ACLI, together with AHIP, NAIFA, and the Washington Association of Health Underwriters testified in support of the measures. Deputy Insurance Commissioner Beth Berendt has also testified in support of the bills. There has been no opposition.     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