This bill establishes a "covered lives assessment professional services rate account" in Washington State, which will begin collecting assessments from Medicaid managed care organizations and health carriers starting January 1, 2026. The assessments will be based on the number of covered lives, with a maximum rate of $18.00 per member per month for Medicaid managed care organizations in 2026, and a maximum of $0.50 per member per month for health carriers. The assessments will be limited to the first 3,000,000 member months on a per-carrier basis and will be used to fund professional services rate increases for Medicaid providers. The collected funds will be deposited into the newly created account and can only be used for specified purposes, including payments to health care providers and managed care organizations.

Additionally, the bill outlines the conditions under which the assessments may be adjusted or refunded, particularly if federal approval is not obtained or if certain legal challenges arise. It also includes provisions for the authority and commissioner to develop rules for the assessment process, including notifications and penalties for late payments. The entire chapter is contingent upon the fulfillment of specific conditions, and if these conditions are not met, the chapter will cease to be effective, with any remaining funds refunded to the contributing organizations.