SF0098

Official summary

SF0098 Bill Summary Bill No.: SF0098 Drafter: JWL LSO No.: 06LSO-0414 Effective Date: 7/1/2006 Enrolled Act No.: SEA0056 Chapter No.: 120 Prime Sponsor: Senator Scott Catch Title: Health insurance-small employer carrier reinsurance. Subject: Amendments to the small employer carrier reinsurance program. Summary/Major Elements: Current law contains a small employer carrier reinsurance program. This bill modifies that program. Creates an account for the payment of all claims, insurer reimbursements and costs of administration in the program and authorizes continuous appropriation of the account. Creates an insurance carrier assessment, in addition to small employer premiums, to support the program. All authorized insurers liable for premium taxes can be assessed to offset costs of the program. The assessments are limited to 40% of the gross premium tax owed. Insurers receive credit for the assessment plus a 5% additional credit against premium taxes owed. Authorizes the program board to create groupings or pools among participating employers or individuals. Replaces the fixed statutory premiums for small employer groups with a range of allowable premium rates. Requires the premiums to be kept as close as possible to the lower limits, except to the extent necessary not to exceed the 40% assessment limit.