Health Care in Washington
State-run system
Issue Overview: The cost and availability of healthcare has been a small business owner's No. 1 concern for more than 20 years, according to studies conducted by the NFIB Research Foundation. One of the ideas favored by some is for states to step in and run the system from money it assesses everybody.
Issue Background: Senate Bill 6221 would establish a state-run healthcare system to be paid for by a tax of between 2 percent and 4 percent of the Social Security wages of each employee under age 65; between 9 percent and 10 percent of their social security wages of self-employed individuals; and between 9 and 12 percent of aggregate social security wages of employers.
SB 6221 is patterned after a proposal in Wisconsin that has not yet passed its Legislature, so there is no experience with this type of healthcare system.
NFIB Position: NFIB is opposed to SB 6221.
Issue Status: Dead for the 2008 session.
Preventative and state-run healthcare
Issue Overview: Similar to Senate Bill 6221, House Bill 2460 would establish a new healthcare program for all residents that would provide both preventative care and insurance.
Issue Background: Should HB 2460 become law, a new board created by it would fill in all the details. The financing for HB 2460 would come from employers, who would pay 3 percent of their wages up to $500,000; 4 percent over $500,000 of wages up to $1 million; and 5 percent over $1 million of wages. Employees would pay a flat assessment equal to 1 percent of their wages subject to the Medicare tax.
NFIB Position: NFIB is opposed to HB 2460.
Issue Status: Dead for the 2008 session.
Association Health Plan study
Issue Overview: House Bill 2689 and Senate Bill 6365 would direct the state Insurance Commissioner to routinely collect data as deemed necessary by the Commissioner from insurance carriers on their enrollment in health plans purchased through an association or member-governed group, known as association health plans.
Issue Background: Data includes but is not limited to information on the number of people receiving insurance coverage through associations; whether the rating for small groups included in the plan uses claims data or health factors; demographic information on those enrolled; etc. The Joint Legislative Audit and Review Committee must review and analyze the data gathered by the OIC and report to the Legislature by Dec. 15, 2008, and Dec. 15, 2009, on association health plans and any impact they may have on the small group insurance market. The Insurance Commissioner has clearly stated in the past that he does not like association health insurance plans. It appears the bill is intended to be used to eliminate association health insurance plans in the future.
NFIB Position: NFIB is opposed to HB 2689 and SB 6365.
Issue Status: Dead for the 2008 session
Health Insurance Partnership revisions
Issue Overview: Last year, the Legislature passed the Health Insurance Partnership (HIP) intended to provide health insurance to small businesses through a state contracted health insurance "connector" style program like that recently implemented in Massachusetts. NFIB expressed a number of significant concerns about this legislation in 2007 and indicated that the proposal would not work. The board set up to implement the HIP discovered in late 2007 that it could not effectively implement the HIP plan as designed by the 2007 Legislature.
Issue Background: House Bill 2537 would make changes to the HIP legislation passed in 2007 to exempt it from various insurance law requirements and provide a subsidy for start-up funding. NFIB strongly believes the HIP program will only be able to offer higher-than-market cost health insurance to small businesses. The state, however, is spending millions in the development and implementation of a solution not likely to benefit most small businesses.
NFIB Position: NFIB opposes HB 2537.
Issue Status: Passed House of Representatives, pending in the State Senate.
Citizens' Task Force
Issue Overview: The Legislature is proposing the establishment of a nine-member work group appointed by the governor in 2008 to examine options for improving access to quality, affordable healthcare. The idea, contained in House Bill 2536 and Senate Bill 6333, would use taxpayer money to hold public hearings around the state to gather input from citizens on healthcare reform proposals -- most of which would involve government-run, employer-funded systems.
Issue Background: The work group would be required to conduct meetings across the state to seek public input. The work group will contract for an independent economic analysis of four separate healthcare proposals to provide affordable health coverage. The proposals are:
- allowing health carriers to offer a health plan with a limited scope of benefits
- expanding the Health Insurance Partnership to include individuals and large employer groups
- providing a guaranteed benefit plan for all Washingtonians
- and, covering all Washingtonians.
The work group is required to report its findings and recommendations by Dec. 1, 2008. NFIB opposes this legislation because it is a waste of taxpayer resources to drum up support for government-run, healthcare reform. We already had vast citizen input through the Governor's Blue Ribbon Commission on Health Care that recommended several pro-small business reforms. Unfortunately, the Legislature failed to implement many of these reforms.
NFIB Position: NFIB opposes HB 2536 and SB 6333.
Issue Status: Senate Bill 6333 passed the Senate and is now the House Rules Committee.
