Washington’s OIC Issues Report on Healthcare Affordability Options

August 13, 2024

On August 1, 2024, the Office of the Insurance Commissioner (OIC) issued a report to the legislature on policy options to make healthcare more affordable in the state.

Relying especially on pricing data and actuarial analyses to estimate savings for consumers, organizations, and the state’s economy, the report examines five specific policy options, including:

• Creating a reinsurance program in the individual and small group health insurance markets.
• Increasing the minimum medical loss ratio standard for all commercial health plans to 88%.
• Using reference-based pricing for healthcare facility and provider payments where the price for healthcare services is tied to Medicare reimbursement rates.
• Using hospital global budgeting to pay hospitals a fixed amount for all inpatient and outpatient services provided to a patient population in a given year.
• Meeting the Health Care Cost Transparency Board’s expenditure growth targets.

While this report is advisory only, it will likely be an important resource for the Washington state legislature as it evaluates healthcare policy in the state. Sponsors of group health plans in Washington should be aware of its contents.

Report »

Fact Sheet »