Bill would help small business owners compare health insurance plans.
Washingtonians may soon have a clearer picture of healthcare costs, thanks to a bill that would improve the state’s all-payer healthcare claims database (APCD). Twenty other states already have these databases, which show how healthcare costs compare across procedures and services, geographies, populations and other factors.
In April 2014, Gov. Jay Inslee signed House Bill 2572 into law, creating an all-payer claims database, but the measure was only a half step. It didn’t require all insurers to submit claim information, limiting the data to just the state Public Employees Benefits Board health plans and Medicaid.
“You simply cannot generate statistically valid reports given these restrictions,” says Patrick Connor, NFIB’s Washington state director.
Without full transparency, it’s difficult to know how costs compare among patients, insurance plans and providers, Connor says. Consumers and businesses could better evaluate their options with a comprehensive picture of cost and quality.
So NFIB/Washington led a broad coalition that crafted legislation to fix the problem, and the updated proposal was then negotiated with the state’s two largest health insurers, Premera and Regence. The result of that work is House Bill 1437. NFIB/Washington, the Governor’s Office, Washington Health Alliance, Washington State Hospital Association, Washington State Medical Association, Premera and Regence testified in support of the bill.
HB 1437, using federal grant money already awarded to the state, would improve the existing database by requiring all health insurers to submit claims, including the cost of procedures and services. The bill also adds privacy protections for patient information, increased state oversight and a clearer process for data disclosure. HB 1437 has passed both the House Health Care & Wellness and Appropriations committees. It is headed to House Rules for further action.
“Small business owners and the families they support are now required to purchase health insurance under federal law or pay a penalty,” Connor says. “In exchange, they deserve access to meaningful cost and quality information to make informed healthcare decisions. The APCD is the foundation for better information and lower costs.”
State Rep. Eileen Cody, who introduced the bill, says, “By passing this bill, we make competition in healthcare costs a reality and allow consumers to compare prices just like they do when buying a car. In the end, every Washingtonian deserves equal access to quality healthcare, and having all the information is key to making important decisions about your health.”
