December 1, 2023
OLYMPIA, Wash. — Washington State Insurance Commissioner Mike Kreidler and Attorney General Bob Ferguson presented lawmakers with a preliminary report outlining the current state of Washington state's health care system. This report examines recent market consolidation and the process of evaluating changes that may improve affordability.
Congress took the following action against Mr. Kreidler and Mr. Ferguson: Last year's funding Examines the key factors that affect the affordability of health insurance for individuals, businesses, and state governments. The two offices were tasked with putting together policy options to improve health care affordability in Washington.
The final report is expected to be submitted to Parliament in August 2024.
“Washington state has made great strides in helping people access health insurance,” Kreidler said. “Our uninsured rate is one of the lowest in the country, and I am very proud that we were early adopters of Medicaid expansion. We need to understand the fundamental costs of health care, and we are grateful that Congress will support this important effort.”
a 2022 survey According to the survey, 62% of people in Washington state have struggled to pay their medical bills in the past year, rationing prescriptions, delaying treatment, or using up their savings to pay for medical bills. 81% said they were worried about whether they would be able to afford medical care in the future.
In a joint message to lawmakers, Kreidler and Ferguson explain how health care costs are determined by two factors: These are the types and number of medical services people use, and the prices of those services. Employers, including in Washington state, have sought to reduce health care costs by promoting the use of generic drugs and high-deductible plans, and encouraging the use of higher-quality, lower-cost health care providers and facilities. However, the structure of the health care system, including the integration of health insurance companies, hospitals, and health care providers, limits the impact of these efforts.
The preliminary report includes the following details:
- The structure of Washington's current health care system. Contains information on vertical and horizontal integration of health insurance companies, hospitals, and providers.
- Trends in private equity investing in Washington.
- An overview of potential policy options to improve health insurance affordability. Some of them have already been adopted in Washington.
- An overview of current enforcement of federal and state antitrust laws aimed at ensuring strong market competition.
- A review of how other states are monitoring and approaching health care integration.
- Review of non-competition agreements and anti-competition provisions in insurance company/provider contracts in health care.
The final report will include detailed actuarial and economic analysis of the policy options that will generate the most interest from lawmakers and interest groups.
