Washington State Proposes Health Insurance Reform

Legislators in the Evergreen State have just past sweeping healthcare reforms, that supporters say will make vast improvements to Washington’s healthcare delivery system. Yet opponents say the measures do very little to help small businesses and families obtain access to low cost medical insurance.

The measure was passed overwhelmingly in the State house with a 61-34 margin; it is expected to go through the Senate as well, and then on to the Governor. A Spokesperson for Gov. Chris Gregoir said that the Governor is “on-board” with the House version of the Bill.

Representatives in favor of the Bill say it does not do everything to solve all of Washington States healthcare woes, but it is a step in the right direction. Those opposed said that it was a “missed opportunity” to do more for small businesses and the uninsured. The bill has been designed to build upon programs that have proven to work. It also calls for the expansion of wellness and patient education programs, and provides more public access to the University of Washington Health Science Library though an online interactive website.

While opponents have said that the bill does not help small businesses gain access to affordable group medical insurance, the bill does provide for a pilot “Connector” program similar to the one currently being rolled out and tested in Massachusetts. Under such a Connector system the state would build a large pool of potential customers looking to purchase low-cost health insurance policies, by combining small businesses, individuals and trade groups into a single consortium. The theory is that the State serving as the “connector” can negotiate lower rates with the insurers because they are going in with the strength of the large pool. Insurance companies would compete heavily to obtain such a large pool of customers and the States Health Care Authority, which will administer the program, would have the power to negotiate for lower costs.

That is the theory anyway. Such a successful Connector program could be the first step to Universal Health Insurance, but officials in Washington will be watching Massachusetts, as will the Governors of many other states to see how it works in practice before totally adopting the reforms.