ࡱ> y{z (bjbj I6i 5. . qqqqq8$6t(QQQ6666666\8:J6qQQ6qq46,,,pqq5,6,,.I1 8LX0:56060lH;RpH;HU1U1H;qi1hQr,c\QQQ66jQQQ6H;QQQQQQQQQ. 7:   WASHINGTON ASSOCIATION OF HEALTH UNDERWRITERS LEGISLATIVE UPDATE March 16, 2009 March 12 Deadline ArrivesMany Bills Dont Survive Now more than half over, the 2009 Legislative Session passed a key deadline this week, and the result is that dozens of bills will receive no further consideration this year. Pursuant to the cut-off resolution approved by the House and Senate at the beginning of the 2009 Legislative Session, bills not passed in the house of origin by 5:00 p.m. on Thursday, March 12 will receive no further consideration this year. Dozens of bills failed to meet Thursdays deadline. With the passing of the cross-over cutoff, legislative committees will begin hearings once again. House committees will begin to consider measures passed by the Senate and Senate committees will begin to consider measures passed by the House. Under the cut-off resolution, committees have until Monday, March 30 to approve measures. Budget bills, and measures necessary to implement the budget, are exempt from the cut-off timelines. In addition to committee work, members of the House and Senate will be focused on budget issues this week, as the updated state revenue forecast is due to be released on Thursday, March 19. Preliminary indications suggest that the new forecast will show a continued weakening of Washingtons economy and a further decline in state revenues. The remainder of the 2009 Legislative Session will be focused on how budget writers will resolve a budget shortfall of between $8 billion to $9 billion. House Kills Bill to Force School Districts and ESDs to Purchase Health Benefits though the PEBBSenate Approves Amended Measure to Study the Issue The House has killed HB 1940 when it was not brought to a vote prior to the cut-off on Thursday, March 12. The measure would have required school districts and ESDs to purchase health benefits through the state after September 1, 2012. When the bill was considered at hearing, WAHU, together with representatives of the Washington Education Association, other union groups, and some school districts, testified in opposition to the bill, arguing that school districts and ESDs should continue to have the choice of participating in PEBB programs or finding other options to serve their needs. The bill was killed in the House Rules Committee when it was not moved to the House floor calendar and approved by the March 12 deadline. On Monday, March 9 the Senate approved an amended version of a related bill2SSB 5491. The amended version of the measure replaced all of the original language of the bill with a study of the issue to be conducted by the Health Care Authority. 2SSB 5491 has been referred to the House Ways and Means Committee for consideration. Senate Approves Scaled-Back Reform ProposalHouse Committee to Consider Measure On Monday, March 9 the Senate passed 2SSB 5945a bill that was introduced by Senator Karen Keiser to provide universal coverage to all Washington residents by 2012. The measure was previously amended in the Senate Health & Long Term Care Committee to establish a Washington Health Partnership as a working group to focus on health care reform goals in phases. These phases include extending coverage to individuals below 200% of the federal poverty level in an Apple Health program for adults, consolidating the purchase of health coverage, and streamlining administration. The Partnership would also examine health care reform proposals. Under the measure passed by the Senate, the Partnership would be required to seek to maximize federal funds for vaccines for low income children and family planning services. The bill also calls for the Partnership to determine if additional federal funds are available to provide funding for vaccines for non-Medicaid eligible children under 300% of the federal poverty level. The measure was approved in the Senate on a 28-19 vote, with two members excused. The bill has been referred to the House Health Care & Wellness Committee, and has been scheduled for a hearing on Friday, March 20. OIC Bill to Regulate Discount Plans Passes Senate A proposal introduced at the request of Insurance Commissioner Mike Kreidler to regulate certain Discount Health Plans has passed the Senate on a 43-3 final vote with three members excused. SSB 5480 would establish consumer protection standards and new regulatory requirements with respect to health programs that market discounts on charges for health care services. The measure would require such programs to be licensed by the OIC before conducting business in the state, and current programs would have six months from the effective date of the act to submit an application and come into compliance. At Senate hearings on the measure, Commissioner Kreidler testified in support, indicating that consumers are frequently confused by marketing materials relating to discount programs, and that his office does not currently have regulatory authority over them. The Washington Association of Health Underwriters also testified in support of the bill, arguing that licensed agents and brokers must adhere to regulatory standards with respect to their actions, but that those who market discount programs are not subject to any standards or requirements, and that consumers can easily become confused about what is being sold. The bill has been referred to the House Health Care & Wellness Committee for consideration. Senate and House Committees to Consider Measures Relating to the Individual Market Standard Health Questionnaire The Senate Health & Long Term Care Committee has scheduled a hearing to consider ESHB 1401 SB 5406a measure that provides that individuals who are eligible to purchase COBRA coverage, or who drop COBRA coverage, are exempt from the standard health questionnaire when they apply for individual health insurance coverage. The House Health Care & Wellness Committee has also scheduled a hearing to consider ESSB 5406the Senate counterpart to ESHB 1401. The Senate hearing on the measure has been scheduled for Thursday, March 19. The House Health Care & Wellness Committee will consider ESSB 5406 on Friday, March 20. House Kills Measure on Association Health Plans The House has killed SHB 1714a controversial measure relating to association group plans. The measure was killed when it was not brought to a vote on the House floor prior to the cut-off for approval on Thursday, March 12. Although the measure was the subject of significant negotiations between business groups, the OIC, and key legislators, the measure failed to move forward. In February the House Health Care & Wellness Committee gave approval to an amended version of HB 1714, and passed the measure out of committee. The amendment approved by the committee replaced all of the language of the bill as it was introduced with language calling for data on association health plans to be provided to the Office of the Insurance Commissioner to facilitate a better understanding of the association health plan market. Barring some unusual development, the issue is dead for the remainder of the 2009 session. House Committee to Consider Bill on Administrative Simplification and Streamlining The House Health Care & Wellness Committee has scheduled a hearing on Thursday, March 19 to consider 2SSB 5346a measure that is intended to establish streamlined and uniform standards for the administration of private and public health care programs. AHIP and other health carrier representatives testified in support of the goals of the measure when it was considered in the Senate. They also urged the committee to continue to include state programs within the requirements of the measure. The measure passed the Senate on Wednesday, March 4 without a dissenting vote. The bill directs the Insurance Commissioner to designate one or more lead organizations to coordinate the development of processes, guidelines, and standards to streamline health care administration for use by payers and providers of health care services in Washington State. The bill also directs the Department of Social and Health Services, the Department of Labor and Industries, and the Health Care Authority to cooperate in this process.     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