The bill aims to enhance consumer affordability in healthcare in Washington State by empowering the Health Care Cost Transparency Board to analyze and address rising healthcare costs. It introduces provisions that allow the board to conduct comprehensive analyses of healthcare cost drivers, establish a health care cost growth benchmark, and enforce compliance among healthcare providers and payers. Key amendments include the requirement for the board to collect and analyze data on healthcare expenditures and cost growth, as well as the establishment of advisory committees with representatives from consumer, labor, and employer groups. Additionally, the board is mandated to conduct an annual survey on underinsurance among residents and study the costs associated with nonprofit healthcare providers.

Starting July 1, 2024, the board will have the authority to require performance improvement plans from payers and providers that exceed established cost growth benchmarks without justification. These plans must identify cost drivers and outline steps to reduce costs. Furthermore, beginning July 1, 2025, the board may impose civil fines on entities that exceed the benchmark for three out of five years or fail to participate in a performance improvement plan. The bill also allows for the collection of fees to cover administrative costs and enables the sharing of collected data with the health care cost transparency board while ensuring confidentiality. Overall, the legislation seeks to improve transparency and accountability in healthcare spending, ultimately aiming to alleviate the financial burden on consumers.

Statutes affected:
Original Bill: 70.390.020, 70.390.040, 70.390.050, 70.390.070, 43.71.130, 70.405.030