ࡱ> npmy bjbjEE I,''5 -----AAA8y$A1t(   \1^1^1^1^1^1^1-35T^1-  ^1--4s1X--0\1(*r, ꙟq}AId+80101,j#6v#6D~,~,#6-, "/G[   ^1^1#p   1#6          :   WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE February 25, 2008 Bills to Enact the NAIC Model on Long Term Care Insurance Passed by House and Senate Committees The House Health Care & Wellness Committee has approved 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 Senate Health & Long Term Care Committee has approved a similar measureHB 2666, which was considered and passed by the committee on Thursday, February 28. AHIP, together with the ACLI, NAIFA, and the Washington Association of Health Underwriters testified in support of the measures. The OIC has also indicated its support of the bills. Importantly, an amendment was added by the House committee to allow the sale of policies under the Long Term Care Partnership. The provision was already in the House version of the bill, and remains in the measure approved by the Senate committee. Both bills have been referred to the Rules Committee in the House and Senate. Senate Committee Approves HIP MeasureBill Referred to Ways & Means Committee The Senate Health & Long Term Care Committee has approved 2SHB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The bill has been referred to the Senate Ways and Means Committee where it must be heard and approved by Monday, March 3 if it is to stay alive. 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. Interestingly, the Senate-passed supplemental budget appears to strip virtually all funding from the HIP. Thus, the future of the HIP appears to be unclear. House Passes OIC Individual Market Bill The House has approved an amended version of ESB 5261the OICs proposal relating to the individual health insurance market. The bill was placed on the House Floor Calendar on Tuesday, February 12, and passed on Friday, February 29. The measure passed on a vote of 68-26 with four members excused. The bill will go back to the Senate for consideration of the House 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 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. An amendment relating to whether an administrative law judge should be allowed to enter the final order in a contested case hearing with respect to an individual health insurance market rate filing was defeated on the House floor. 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. Two other amendments were adopted on the House floor before final passage. House Committee Kills Controversial Bill Relating to Optometrists The House Health Care & Wellness Committee has killed ESSB 6644a measure that would have imposed restrictions on referral provisions in health plans with respect to eye care. A hearing on the measure was held on Monday, February 25, but the bill was not brought to a vote before the cut-off for committee approval on Friday, February 29. Groups representing ophthalmologists and health carriers testified in opposition to the measure, expressing concern about the vague language in the measure, and the problems posed for managed care plans. On Friday, February 15 the measure was approved by the Senate on a sweeping vote of 46-3. Despite the vote in the Senate, the measure is dead for this year. House Committee Approves Bill Relating to Reimbursements Paid to Chiropractors The House Health Care and Wellness Committee has given approval to an amended version of 2SSB 5596a measure that was intended to 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. Prior to passing the measure on Wednesday, February 27, the House Health Care & Wellness Committee approved an amendment that appears to subject certain chiropractor billings to oversight from the OIC. The amended bill has been referred to the House Appropriations Committee where it must be considered and approved by the Committee on Monday, March 3the cut-off for fiscal committee action.     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