Why do we need to change the current system?

Here in Washington, 750,000 people lack health care. As a state we spend billions on health care for state workers and the poor. As a nation we spend $2 trillion a year and our health outcomes aren’t very good. The Mathematica report shows that hundreds of millions of dollars a year could be saved on health care under Sen. Keiser’s proposal, the Washington Health Partnership.

How would it work?

The WA Health Partnership would cover all Washingtonians with a comprehensive standardized benefit package with an independent administrator. Enrollees would choose among participating carriers, networks, or the fee-for-service option, and would pay premiums equal to the difference between a low or lowest-cost option and the option that they choose.

Eligibility for Medicaid and State Children’s Health Insurance Program (SCHIP) would be expanded.

The Washington Health Partnership Act-first introduced during the 2008 legislative session- will accomplish two critical health care goals:

· Provide health care coverage to all residents in the state

· Save several billion dollars each year for Washingtonians, including reduced spending for individuals, the public sector  and private sector

Consumers and employers will see the following benefits from this plan:

· A 32 percent reduction in out-of-pocket spending for health care for consumers ($1.03 billion a year a year)

· A reduction in employer-related health care spending of $2 - $4 billion per year.

· A reduction in state health care spending by $330 million a year.

How would savings be achieved?

Keiser’s plan achieves savings by:

· Putting everyone in large pools thereby lowering administrative costs and saving hundreds of millions

· Expanding the Medicaid program to cover more low-income people. This brings in additional federal funding to the state

· Creating transparent and fair markets where health care plans can compete on quality and price

How are you going to pay for this program?

In addition to the huge savings and broad coverage, the Mathematica report also found that the cost to pay for the Washington Health Partnership was about half what had been originally proposed. The original bill, sponsored by Senator Keiser, included a payroll tax of 3 percent on employees and an employer payroll share of from 9-11 percent of Social Security payroll. The Mathematica analysis found that the payroll tax could be reduced to 6 percent of employers’ Social Security payroll and a 1-2 percent employee payroll tax.

Will consumers be able to choose their provider?

Yes. The Washington Health Partnership would provide consumers and employers a choice of plans and providers. It would include all Washington residents, except those who are already covered by federal medical programs.