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 agreements that could limit their participation in self-funded coverage options.

The bill defines "health carrier" in accordance with existing law, specifically referencing RCW 48.43.005. By establishing this prohibition, the legislation seeks to promote fair contracting practices and maintain the integrity of self-insured health coverage for public employees in Washington State.