Washington State House Democrats

March 15, 2005

OLYMPIA– Alarmed by the growing numbers of Washington residents who lack health insurance, the House passed health-care reforms late Monday that aim to create more insurance coverage choices for small businesses and individuals.

"Every person and business in Washington state is paying for the crisis of the uninsured," said Rep. Eileen Cody, D-Seattle, who chairs the House Health Care Committee. "This crisis is not only preventing children and families from getting health care they need, it is shifting staggering costs to taxpayers, businesses and people who do have insurance."

According to Insurance Commissioner Mike Kreidler, uncompensated health care bills cost Washington residents more than $318 million each year in higher taxes, medical costs, and insurance premiums.

To help the large number of uninsured residents who work for small businesses, the House voted 56-41 to create the small business assist program requested by Gov. Christine Gregoire. The program, embodied in House Bill 2069, would create two new insurance options for workers in small businesses:

• One option would offer financial assistance to help low-income employees of small businesses pay their share of their employer’s health plan premiums.
• The other option would let the employers enroll their workers in a small business assist health plan tailored to the needs of small businesses.

The small business assist health plan would be designed by the state Health Care Authority and offered through private insurers, beginning in January 2007.

"Small businesses want to cover their employees, but they need insurance choices they can afford," said Rep. Dawn Morrell, D-Puyallup, who sponsored the proposal. "We have a crisis on the brink of calamity, and inaction is no longer an option."

In separate action, the House also passed legislation sponsored by Cody that aims to encourage insurers to offer non-subsidized Basic Health Plan coverage to Washington residents.

Insurers have been reluctant to offer this coverage because of costs. Cody’s legislation, House Bill 2060, would reduce the costs and risks to insurers by requiring high-risk individuals to get coverage through the Washington State Health Insurance Pool, also known as the high-risk pool.