GUEST EDITORIAL

OLYMPIA - Both large and small employers - and the thousands of individuals and families they cover through group health insurance - would lose their choice of plans under a new law waiting to be signed by Gov. Chris Gregoire.

GUEST EDITORIAL

OLYMPIA - Both large and small employers - and the thousands of individuals and families they cover through group health insurance - would lose their choice of plans under a new law waiting to be signed by Gov. Chris Gregoire.

Engrossed Second Substitute House Bill 2319 passed the Legislature on March 3 and is awaiting review by the governor. The bill further defines the state-based health insurance exchange required by the federal government under the new health care law. As written, E2SHB 2319 would eliminate employer choice over the type of coverage purchased and reduce the number of insurers offering coverage in our state. The Association of Washington Business has formally requested section vetoes of the bill, which would allow the work of the exchange to progress without disrupting coverage beginning in 2014.

For large employers (more than 100 employees) and small employers (fewer than 50) the bill stands to significantly reduce the number of available plan options.

Under the new federal law, employers with more than 100 employees cannot purchase coverage from the exchange, but the state exchange legislation will restrict the sale of catastrophic high deductible plans to just the exchange. With this state imposed restriction, large employers could be forced to drop catastrophic or high deductible plans for their employees, no matter how beneficial the plans.

Small employers offering these same plans could also likely be left without options, since the bill forces them to purchase this type of coverage through the new state-based exchange. Catastrophic and high deductible plans will no longer be available on the open market. Insurers for which this is a niche market will likely close their plans and leave the state, leaving employers with few choices at a higher cost.

E2SHB 2319 suggests a scenario similar to the contraction of the health insurance market in Washington in 1998, during which more than a dozen health insurers closed shop in Washington due to the market reforms put in place by the Legislature. Many insurers will likely close their plans and leave the state, leaving employers with few choices at a higher cost.

Formed in 1904, the Association of Washington Business is Washington's oldest and largest statewide business association, and includes more than 7,800 members representing 650,000 employees.