ࡱ> kmjy bjbjEE I&''U5 -----AAA8yA2t(A2C2C2C2C2C2C246TC2-C2--4X2lll|--1lA2ll+K- A.X,81n202,j7v7DW-W-7-k->C,lo$C2C2p27 :   WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE March 10, 2008 Bill to Enact the NAIC Model on Long Term Care Insurance Passes House and SenateMeasure Goes to Governor Gregoire The House and Senate have approved an amended version of HB 2666a measure that is based on the NAIC Model Long Term Care Act. The Senate took final action on the measure on Tuesday, March 4. The House concurred in the amended bill on Saturday, March 8. The bill will now go to Governor Gregoire. WAHU, together with AHIP, NAIFA, and the ACLI testified in support of the measure. The Office of the Insurance Commissioner has also indicated its support of the bill. Importantly, the bill will allow the sale of policies under the Long Term Care Partnership. Senate Approves Amended HIP Measure The Senate has approved an amended version of 2SHB 2537a measure that was introduced to clarify the authority and activities of the Health Insurance Partnership. The bill was previously amended in the Senate Ways and Means Committee by Sen. Karen Keiser, Chair of the Senate Health and Long Term Care Committee. Under Sen. Keisers amendment, the HIP would only be available to employers who attest that they are not providing coverage to their employees, and that at least 50% of their employees are low wage workers. The amendment sharply reduces the reach of the HIP when compared with the bill as it was introduced by Rep. Cody at the beginning of the legislative session. Although the bill came to the Senate floor with the Keiser amendment from the Ways and Means Committee, employer groups and WAHU continued to express opposition to the measurearguing that the HIP does not appear to be referenced in the budget to provide subsidies to low income employees of small employers, and that the bill appears to allow the HIP to be preferentially positioned in the market to compete directly with current market options. WAHU and employer groups strongly supported an amendment offered by Sen. Linda Parlette, which would have required the HIP to provide direct subsidies to low income employees of small employers. Unfortunately, the amendment failed on a sharply divided vote of 24-24. The Keiser amendment was then approved by the Senate, and the bill was passed on a final vote of 27-22. The amended bill will go back to the House for consideration of the Senate amendment. It is expected that the House will concur in the Senate amendment. 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 Approves Bill Relating to Reimbursements Paid to Chiropractors The House 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 vote on final passage in the House was 79-15 with 4 excused. The amended bill must now go back to the Senate for consideration of the House amendments. The bill was previously 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 was referred to the House Appropriations Committee where it was approved by the Committee on Monday, March 3. The measure was pulled to the House Floor Calendar on Wednesday, March 5. On the afternoon of Thursday, March 6, Rep. Eileen Cody, Chair of the House Health Care & Wellness Committee, introduced a new striking amendment for consideration on the House floor. Before the amendment could be fully evaluated, House leaders brought the bill up for consideration. The Cody amendment was adopted, and the amended bill was passed by the House. The amendment would impose a significant data call on health plans with respect to chiropractic billings and reimbursements. The amendment also appears to remove authority for carriers to use payment differentials that take into account differences in malpractice costs, training, and other factors. The amended bill will go back to the Senate for consideration of the House amendments.     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