Legislative Report
On
Wednesday, January 21 the Senate Financial Institutions & Insurance
Committee Friday, held a hearing to consider SB 5180—a measure introduced at
the request of Insurance Commissioner Mike Kreidler to adopt the NAIC updates
to the Standard Valuation and Standard Nonforfeiture laws, including a new
approach based on principle-based reserves. The American Council of Life Insurers,
Allstate, American Family Insurance, and USAA testified in support of the bill.
The OIC also spoke in favor of the bill. The committee took action and approved
a “do pass” recommendation on the bill on Friday, January 23. The bill has been
referred to the Senate Rules Committee in preparation for consideration on the
Senate floor.
A
House version of the bill (HB 1076) was approved by the House Business and
Financial Services Committee on January 20. HB 1076 has been referred to the
House General Government & Information Technology Committee for
consideration of the fiscal note on the measure that has been prepared by the
OIC. The committee has scheduled a hearing on the measure for Tuesday, February
3. This is a routine referral for review of the fiscal note, and is not
expected to significantly delay the progress of the bill. The bill has already
been placed on a list of bills to be brought to a vote.
House
Fiscal Committee to Consider OIC Proposal to Adopt NAIC Revisions to NAIC Model
Insurer Holding Company Act
The House General Government &
Information Technology Committee has scheduled a hearing on Tuesday, February 3
to consider HB 1065— Insurance Commissioner Mike Kreidler’s proposal to adopt
the new NAIC revisions to the Model Insurance Holding Company Act. The bill has
already been considered and approved by the House Business and Financial
Services Committee, and the bill appears to be moving forward in a routine
manner. During the hearing in the Business and Financial Services
Committee, the ACLI, together with PCI, America’s Health Insurance Plans and
other industry trade associations and stakeholders testified in support of the
bill.
The revisions are a standard for maintaining NAIC
accreditation, and they must be enacted by the close of 2015. The bill has been
discussed within an informal OIC stakeholder work group for at least two years.
The House General Government & Information Technology Committee has already
scheduled a vote for the bill, so it is expected to move forward without
controversy. Review of the fiscal note is routine, and no controversies or
significant delays are anticipated.
On
Friday, January 30 a Senate version of the bill (SB 5717) was introduced by
Senator Jan Angel (R, 26th District). It is expected that the bill will be scheduled
for hearing in coming days.
House
Committee Considers Electronic Insurance Transactions Bill—Senate Committee to
Consider Senate Version in Coming Days
The
House Business & Financial Services Committee held a hearing on Wednesday,
January 28 to consider HB 1329—a measure closely modeled after the Federal
Uniform Electronic Transaction Act that would specifically authorize insurers
to conduct business with policyholders over the internet, subject to the
consent of each policyholder. The proposal also includes a section that would
allow an insurer to post generic policy forms and endorsements on a
publicly-available website in lieu of mailing paper documents to policyholders,
subject to the consent of each policyholder.
At
the hearing PCI, Allstate, American Family Insurance, the American Council of
Life Insurers, and Progressive Insurance testified in support of the bill. Also
testifying in support of the bill, but noting that some additional adjustments
will be necessary, were the Office of the Insurance Commissioner and the agent
groups. The issues raised by the OIC appear to be easily resolved. Work
continues with respect to language that has been negotiated between the PCI and
agent groups at the national level.
The
bill was introduced by Representative Derek Stanford at the request of the
Property Casualty Insurers Association of America. The proposal has been
enacted in over two dozen states. A Senate version of the measure (SB 5471) was
introduced by Senator Jan Angel (R, 26th District) On Thursday, January 22.
Senate Financial Institutions & Insurance Committee has scheduled a hearing
for SB 5471 on Thursday, February 5.
On
Friday, January 23 Rep. Steve Kirby (D, 29th District) introduced HB 1578—a
measure that would authorize insurers to offer “customer satisfaction”
benefits. The measure would allow insurers to provide a premium credit or other
financial benefit to a policyholder who is dissatisfied with the service
provided by the insurer. The bill was introduced at the request of Allstate to
provide specific statutory authority for filings that might be submitted to the
OIC regarding such benefits. The bill is likely to be scheduled for a hearing
next week.
House Committee
Considers New “All Payer Claims Database” Bill Introduced at the Request of
Governor Inslee
On
Friday, January 30 the House Health Care Committee held a hearing to consider
HB 1437—a bill that was requested by Governor Inslee to provide for adjustments
to the statewide all-payer claims database that was established in 2014
regarding the reporting of data, pricing of products, and parameters for the
release of information. The bill attracted supportive testimony from business
groups, health plans, provider groups, and others. A slightly different version
of the bill (SB 5084) was introduced in the Senate last week by Senator Randi
Becker (R, 2nd District). Although the bills vary slightly, both HB 1437 and SB
5084 have been heavily negotiated by health plans and other stakeholders, and
show evidence of agreement among many groups. SB 5084 has not yet been
scheduled for a hearing.
Senate
Committee Schedules Hearing to Consider Bill to Prohibit the Health Benefits
Exchange from Premium Aggregation
The
Senate Health Care Committee has scheduled a hearing to consider SB 5142—a
measure that would prohibit the Health Benefit Exchange from aggregating or
delegating the aggregation of funds that comprise the premium for an individual
qualified health plan. The bill is scheduled to be heard on Monday, January 26.
The bill was introduced following related action by the Health Exchange Board
to cease premium aggregation, but some legislators have expressed concern that
the Board might revisit the issue. SB 5142 would remove the Board’s authority
to aggregate premium. Rep. Richard DeBolt (R, 20th District) has introduced HB
1628 in the House—an identical measure to SB 5142. HB 1628 has not yet been
scheduled for hearing.
House
Committtee to Consider Controversial Bill Regarding Preauthorizations and
Cost-Sharing
The
House Health Care & Wellness Committee has scheduled a hearing to consider
HB 1471—a measure that would impose controversial new requirements and
restrictions regarding health plans’ activities associated with
preauthorizations, cost-sharing requirements, and other practices. A Senate
version of the bill has been introduced (SB 5560) but the measure has not been
scheduled for hearing, and it appears that the Senate may wait to see what the
House chooses to do with its version of the measure. The bills have been introduced
at the request of the Washington State Chiropractic Association and other
provider groups.
Senate
and House Committees Approve Bills Introduced to Standardize Filings in Large
Group, Stand-Alone Dental, and Stand-Alone Vision Markets
Both the Senate and House
Health Care Committees have taken action to approve companion bills that would
standardize the filing requirements for disability insurers in the large group,
standalone dental, and standalone vision markets. HB 1053 and SB 5023 were
introduced by key members in the House and Senate at the request of Cigna. The
bills are intended to allow disability insurers to benefit from the same
regulatory provisions for filings in these markets that are currently available
to health care service contractors and HMO’s. SB 5023 was considered by the
Senate Health Care Committee on Thursday, January 22. On Friday, January 23 the
House Health Care Committee held a hearing to consider the House version of the
bill—HB 1053. At both hearings Cigna, the Office of the Insurance Commissioner,
and the Washington Association of Healthcare Plans testified in support of the
bill. Other disability insurers and health care service contractors signed in
to indicate support for the measures. The issues have been negotiated to
resolution with the OIC.
SB
5023 was approved by the Senate Health Care Committee on Thursday, January 29,
and HB 1053 was approved by the House Health Care & Wellness Committee on
Friday, January 30. Both bills have been referred to the respective Senate and
House Rules Committees in preparation for being pulled to the Senate and House
floor calendars for consideration.
OIC
Prepares Legislative Proposals
Insurance
Commissioner Mike Kreidler has prepared a series of legislative proposals that
he intends to submit to the 2015 Legislature. His proposals can be found on the
OIC’s website at
http://www.insurance.wa.gov/laws-rules/legislation-rules/legislation/.
Commissioner Kreidler’s proposals include the revisions to the NAIC model
Holding Company Act, the Standard Valuation and Nonforfeiture Model Act, the
Own Risk Solvency Assessment Act, the Credit for Reinsurance Model Act, and a
proposal that deals with long term care insurance bills addressing independent
review organizations involved in disputes associated with long term care
insurance claims.
Legislature
Adopts Cut-Off Resolution for the Consideration of Bills
On
the first day of the 2015 session the Senate adopted SCR 8400—a cut-off
resolution establishing dates for the consideration of bills. The House
approved the measure on Tuesday, January 20. Key dates are as follows:
February
20—the last day for committees in the House of origin to take action on bills;
February
27—the last day for Fiscal committees in the House of origin to take action on
bills;
March
11—the last day for the House of origin to take action on bills;
April
1—the last day for committees in the opposite House to take action on bills;
April
7—the last day for Fiscal committees in the opposite House to take action on
bills;
April
15—the last day for the opposite House to take action on bills (except exempt
bills and bills passed by both Houses in different forms);
April
26—the last day of the 2015 Regular Legislative Session
Respectfully,
Melvin N. Sorensen
Lobbyist NAIFA-Washington
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