Health premiums/lobbying

AN ACT Relating to restricting the use of health care premiums 1
for political lobbying; adding a new chapter to Title 29B RCW; and 2
prescribing penalties. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that:5
(1) During the COVID-19 pandemic spanning multiple years many 6
persons, companies, and governments lost huge sums of income and 7
reserves through job loss, loss of employees, added expenses, and 8
interruptions in their ability to conduct their trade for extended 9
periods. In contrast, many health insurance companies reported 10
enormous profits during this time and used those profits to take 11
advantage of stock buybacks and increase CEO and executive pay, and 12
rather than passing on those profits to their policyholders in the 13
form of reduced premiums and increased benefits they instead 14
continued to lobby elected officials and governments for increases in 15
insurance premium rates. 16
(2) The voters of the state of Washington require immediate 17
action to be assured that funds collected by their health insurance 18
companies will be used for the health care needs of policyholders.19
S-0518.1
SENATE BILL 5243
State of Washington 69th Legislature 2025 Regular Session
By Senators Hasegawa, Shewmake, and Trudeau
Read first time 01/14/25. Referred to Committee on State Government,
Tribal Affairs & Elections.
p. 1 SB 5243
NEW SECTION. Sec. 2. The definitions in this section apply 1
throughout this chapter unless the context clearly requires 2
otherwise:3
(1) "Health insurance company" has the same meaning as "health 4
carrier" as defined in RCW 48.43.005. 5
(2) "Policyholder" means a person or group of persons who have 6
entered into a contractual arrangement or on whose behalf a 7
contractual arrangement has been entered into with a health insurance 8
company to receive health care services. 9
NEW SECTION. Sec. 3. (1) Health insurance companies operating 10
within the state of Washington and offering health insurance policies 11
for the benefit of policyholders may not use premiums collected from 12
those policyholders for lobbying or to make contributions to 13
candidates for state and federal elected offices.14
(2) Health insurance companies operating within the state of 15
Washington and offering health insurance policies for the benefit of 16
policyholders may not make contributions to political committees 17
using funds collected as premiums from policyholders. Health 18
insurance companies may make contributions from those policyholders' 19
funds that have been voluntarily and with express permission received 20
as a contribution to a separate political committee to be used for 21
political lobbying on the behalf of and for the benefit of those 22
policyholders. 23
NEW SECTION. Sec. 4. (1) The commission shall enforce the 24
provisions of this chapter. In the course of this duty, the 25
commission may request documentation from the office of the insurance 26
commissioner and may use any evidence provided by a policyholder.27
(2) Any health insurance company found to have violated the 28
provisions of this chapter is liable to their policyholders for at 29
least two times the amount of any unlawful contribution to any 30
candidate or political committee. 31
(3) If there is found to be any lobbying in violation of this 32
chapter, the health insurance company shall be fined no less than 33
$25,000 and no more than $500,000 for each violation, to be adjusted 34
annually by the commission based on the consumer price index as 35
published by the United States bureau of labor statistics or their 36
successor. 37
p. 2 SB 5243
NEW SECTION. Sec. 5. The provisions of this chapter are to be 1
liberally construed to effectuate its broad intent, policies, and 2
purposes.3
NEW SECTION. Sec. 6. Sections 1 through 5 and 8 of this act 4
constitute a new chapter in Title 29B RCW.5
NEW SECTION. Sec. 7. If any provision of this act or its 6
application to any person or circumstance is held invalid, the 7
remainder of the act or the application of the provision to other 8
persons or circumstances is not affected.9
NEW SECTION. Sec. 8. This act may be known and cited as the 10
health care dollars for health care act.11
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p. 3 SB 5243