Key hearings focus on drug pricing safeguards, Medicaid reimbursement and timely payment standards
The pace in Olympia accelerated this week, with lawmakers moving on both budget development and a slate of policy proposals impacting the health care landscape. Revenue discussions are gaining momentum, and several employer‑focused tax concepts are resurfacing in revised forms. At the same time, committees are advancing a mix of workforce, regulatory and operational measures that will have direct implications across our health system.
This week’s top bills with hearings in Olympia
HB 2145: Protecting patient access to discounted medications and health care services through Washington’s health care safety net by preventing manufacturer limitations on the 340B drug pricing program.
WSHA strongly supports HB 2145, which would prohibit for-profit drug manufacturers from interfering with distribution of 340B drugs through unfavorable terms or conditions for 340B providers and their contract pharmacies. This bill is supported by 340B covered entities, including FQHCs, HIV/AIDs clinics, critical access hospitals and other safety net hospitals that qualify for the program.
Many 340B hospitals expand patient access to needed medications through arrangements with pharmacies located within the patients’ communities. The federal Health Resources and Services Administration (HRSA), oversees the 340B program, audits the program and its entities, and has repeatedly affirmed that arrangements with contract community pharmacies are allowed under the program.
For-profit drug manufacturers are increasingly trying to avoid giving this discount by interfering with the distribution of 340B drugs. Often the manufacturer will offer unfavorable terms with 340B health care organizations and the pharmacies they partner with. This threatens the financial viability of safety net providers and access to needed drugs and services for the patients in their communities.
HB 2145 is scheduled for public hearing in the House Committee on Health Care & Wellness on Tuesday, Jan. 20 at 1:30 p.m. Members can sign-in on HB 2145 before 12:30 p.m. on Tuesday. (Remy Kerr and Andrew Busz)
SB 5845: Modernizing and clarifying timely payment requirements for health carriers.
WSHA strongly supports SB 5845, which addresses a major source of financial strain for hospitals: delayed or unclear claims processing. It requires carriers to pay or deny clean claims within 30 days, establishes firm timelines for acknowledging incomplete claims, mandates transparency about what information is needed, and imposes late fee pen
alties when carriers fail to comply with the timelines in the bill.
SB 5845 is scheduled for a public hearing in the Senate Committee on Health & Long-Term Care on Tuesday, Jan. 20 at 10:30 a.m. Members can sign-in on SB 5845 before 9:30 a.m. Tuesday. (Jennifer Brackeen)
SB 5993: Prohibiting interest charges for new and unpaid medical debt.
WSHA has concerns about SB 5993. While the bill aims to provide relief to patients by prohibiting interest charges on medical debt, it may unintentionally undermine the financial stability of hospitals that already operate on narrow margins. The bill prohibits charging or collecting interest on medical debt and shortens the enforcement period for judgements involving medical debt to six years.
These changes could prevent hospitals from recovering costs for care already provided, especially where uncompensated care levels are already high. By restricting repayment tools and timelines, SB 5993 threatens to increase bad debt burdens and reduce funds hospitals rely on to provide core services, staffing and essential care for low-income and underserved populations.
Scheduled for public hearing in the Senate Committee on Law & Justice on Monday, Jan. 19 at 10:30 a.m. Members can sign-in on SB 5993 before 9:30 a.m. Tuesday. (Katerina LaMarche)
HB 2548: Strengthening health care market standards for health care transactions
While HB 2548 is less expansive than health care transaction oversight proposals in prior years, WSHA still has concerns with the proposal. The bill expands the current scope of the state pre-transaction notice law in ways that are not clearly defined. HB 2548 appears to expand the power of the Attorney General’s Office to share sensitive information related to transactions with state agencies. Finally, the bill establishes an unclear trigger for revocation of nonprofit status and expands the types of transactions subject to the hospital conversion statute.
HB 2548 is scheduled for public hearing in the House Committee on Civil Rights & Judiciary on Wednesday, Jan. 21 at 8 a.m. Members can sign-in on HB 2548 before 7:00 a.m. Wednesday. (Zosia Stanley)
HB 2100: Enacting an excise tax on large operating companies on the amount of payroll expenses above the minimum wage threshold of the additional Medicare tax to fund services to benefit Washingtonians and establishing the Well Washington fund account.
WSHA has deep reservations about this legislation. HB 2100 would impose a broad new excise tax on business payroll expenses, including hospitals. This will just increase costs and pressures to hospital systems already struggling with rising labor and operational expenses. The bill applies a 5% tax to wages above $125,000 for companies above a certain threshold, with no way for employers to pass those costs on. This would directly increase expenses for hospitals employing highly skilled clinical and technical staff.
For hospitals that rely on specialized professionals to maintain essential services, this tax would divert scarce resources from patient care. Layering a new statewide payroll tax on existing financial obligations could worsen workforce shortages and undermine health care stability across the state.
Scheduled for public hearing in the House Committee on Civil Rights & Judiciary on Wednesday, Jan. 22 at 1:30 p.m. Members can sign-in on HB 2100 before 12:30 p.m. Wednesday. (Ashlen Strong)
WSHA is weighing in on the following bills Jan. 19-23:
Monday, Jan. 19
Senate Labor & Commerce
SB 6117: Concerning collective bargaining for employees not covered by the national labor relations act. (Remy Kerr)
Senate Law & Justice
SB 5993: Prohibiting interest charges for new and unpaid medical debt. (Katerina LaMarche)
Tuesday, Jan. 20
House Consumer Protection & Business
HB 2439: Enhancing public health by modifying cigarette, vapor product, and tobacco product policy. (Remy Kerr)
Senate Health & Long-Term Care
SB 6102: Aligning the quality assurance fee for the ambulance transport fund with federal regulations. (Andrew Busz)
SB 6071: Standardizing overpayment recovery requirements. (Andrew Busz)
Senate Law & Justice
SB 5906: Establishing data and personal safety protections within areas of public accommodation for all Washington residents. (Katerina LaMarche)
Senate Labor & Commerce
SB 5852: Concerning immigrant worker protections (Remy Kerr)
Wednesday, Jan. 21
House Civil Rights and Judiciary
HB 2548: Strengthening health care market standards (Zosia Stanley)
House Health Care & Wellness
HB 2283: Establishing a medical loss ratio of at least 90 percent for health plans. (Jennifer Brackeen)
HB 2425: Concerning nursing delegation. (Katerina LaMarche)
Thursday, Jan. 21
House Finance
HB 2100: Enacting an excise tax on large operating companies on the amount of payroll expenses above the minimum wage threshold of the additional Medicare tax to fund services to benefit Washingtonians and establishing the Well Washington fund account. (Ashlen Strong)
Friday, Jan. 22
Senate Labor & Commerce
SB 5847: Concerning access to medical care in workers’ compensation. (Remy Kerr)