This bill introduces a new section to chapter 41.05 RCW aimed at ensuring access to primary care, behavioral health, and affordable hospital services for public employees and their dependents. It defines "contractor" as a health carrier or third-party administrator providing medical insurance under this chapter. The bill mandates that hospitals receiving payments through state-administered programs must contract with health carriers upon a good faith offer, with specific reimbursement limits set for various types of hospital services. Starting January 1, 2027, reimbursement for inpatient and outpatient services is capped at 200% of Medicare rates, with higher caps for specialty hospitals and rural hospitals. By January 1, 2029, these caps will be further reduced to 190% for general hospitals and 300% for specialty hospitals.

Additionally, the bill outlines requirements for contractors regarding reimbursement rates for primary care and behavioral health services, ensuring they are not less than specified percentages of Medicare rates. It allows for non-fee-for-service payment methodologies that promote quality care and mandates that contractors provide cost and quality data to the authority for monitoring purposes. A report analyzing the impacts of these changes is required by December 31, 2030, which may include recommendations for legislative adjustments. The authority is also empowered to adopt rules for enforcement and compliance with the new provisions.