This bill introduces a new section to chapter 41.05 RCW that prohibits health carriers acting as third-party administrators for self-insured plans from requiring state-owned hospital systems to participate in any commercial health plans as a condition for negotiating or participating in self-funded plans. This measure aims to protect public employees and school employees by ensuring that state-operated hospital systems are not compelled to engage in commercial contracts to access self-funded coverage options.

The bill defines "health carrier" in accordance with existing definitions in RCW 48.43.005, ensuring clarity in the application of the new regulations. By establishing these restrictions, the legislation seeks to promote fair contracting practices and maintain the integrity of self-insured health coverage for public employees in Washington State.