United States of Care Provides Testimony in Support of Washington Legislation to Address Hospital Prices in the State Employee Health Plan

Earlier this week United States of Care submitted testimony in support of House Bill 1123/Senate Bill 5083 to the Washington House Appropriations Committee and Senate Health & Long-Term Care Committee. This legislation provides Washington with a solution to address unaffordable insurance premiums and out-of-pocket costs, which are placing a larger-than-ever financial burden on Washington residents and the state’s budget. 

By leveraging the power of the state employee health plan (SEHP) to cap hospital payments and realign payment incentives, this legislation could contain SEHP costs by approximately $400 million by fiscal year 2029, substantially reducing state expenditures and lowering out-of-pocket costs for state and school employees in Washington. 

Washington joins several other states looking to reduce out of control hospital expenditures by setting rates that more accurately reflect the cost of providing services. Targeting rates paid through SEHPs has the potential to generate significant savings that can be reinvested in other areas of the state budget, including Medicaid or other state-based affordability programs.