Notice of Public Hearing for House Bill 2476 - 10 Year Analysis Complete

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HB 2476, titled AN ACT Relating to creating a covered lives assessment professional services rate account, has been scheduled for a public hearing by the House Committee on Appropriations.

Date and Time: 02/15/2024 4:00PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm A and Virtual, Olympia, WA

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		Covered Lives Assessment
2024		$0
2025		$0
2026		$117,950,093
2027		$235,900,186
2028		$235,900,186
2029		$235,900,186
2030		$235,900,186
2031		$235,900,186
2032		$235,900,186
2033		$235,900,186
Total:		$1,769,251,395

Office of Insurance Commissioner:

Assumptions:

•           The Health Care Authority (HCA) will provide the Office of Insurance Commissioner (OIC) with the number of covered persons per calendar year as described in RCW 71.24.064.  (Section 2(1))

•           Beginning in calendar year 2027, the HCA will provide the OIC with the amount needed to fund the professional services rate increases in Section 3(3) for the ensuing calendar year.  (Section 2(b))

Section 2(2)(a) requires, for calendar year (CY) 2026, the OIC to assess health carriers a per member per month assessment of no more than $0.50 per covered life.  Based on the December 2023 Health Insurance Report for the fully insured commercial market and limiting the assessment to 3 million member months per carrier, there were 1,115,741 persons covered under a fully insured individual or group health plan in CY2023.  Assuming, for purposes of this fiscal note, that $0.50 per covered life will be assessed and that the number of covered lives will remain the same as CY2023, estimated revenue of $6,694,446 (1,115,741 covered lives x $0.50 x 12 member months), in CY2026, will be collected as follows:

•           FY2026:  $3,347,223 ($1,673,612 due February 15 and $1,673,611 due May 15)

•           FY2027:  $3,347,223 ($1,673,612 due August 15 and $1,673,611 due November 15)       

Section 2(2)(b) requires that the assessment collected in CY2027 and annually thereafter to be set at the minimum rate necessary to fund the professional services rate increases in Section 3(3).  Although there is expected to be revenue collected for the newly established Covered Lives Assessment Professional Services Rate Account, the HCA is unable to provide the amount needed to fund the professional services rate increases for CY2027 and beyond at this time.

Wash State Health Care Authority:

Please see attached.

Ten-year projection prepared in consultation with the following agencies:

Wash State Health Care Authority
Office of Insurance Commissioner


Bill sponsors and contact information:


House Committee on Appropriations members and contact information:



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp