AN ACT Relating to creating an apple health employer assessment to fund the health care affordability account;
Summary
SB 6173 creates a new “apple health employer assessment” on certain employers in Washington that have one or more employees enrolled in Apple Health (the state Medicaid program) in the prior calendar year. The assessment is calculated based on the employer’s total member months multiplied by a percentage of the Medicaid fair share capitation amount, and it is collected quarterly by the Employment Security Department. The bill also requires annual calculation and employer notice of the assessment obligation, with data-sharing agreements among the Employment Security Department, the Department of Social and Health Services, and the Health Care Authority to support administration.
The bill directs that revenue from the assessment be deposited into the state health care affordability account. It amends the account’s funding provisions so that the new assessment revenue is added to existing sources such as grants, federal funds, and other appropriations. Money in the account may be spent only after appropriation and is limited to premium and cost-sharing assistance programs and certain health care programs for low-income individuals. The bill also defines key terms such as employer, employed, member month, qualifying individual, and excludes small employers, government entities, and certain franchises from the assessment.
Impact
SB 6173 would add a new employer-based funding mechanism to Washington law by imposing a recurring assessment on larger employers with Apple Health-enrolled workers and by creating related administrative duties for state agencies. It amends the state health care affordability account statutes to include assessment revenue as a dedicated funding source and establishes a new chapter in Title 74 RCW governing the assessment’s calculation, collection, and deposit. The measure would affect employers subject to the assessment, the Employment Security Department, the Department of Social and Health Services, the Health Care Authority, and the state treasury account that finances affordability and low-income health coverage programs.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears policy-driven and supportive of expanding funding for health coverage affordability. The bill’s structure suggests an intent to shift some of the cost of Medicaid-related coverage support toward employers whose workers use Apple Health, while preserving funding for premium and cost-sharing assistance. Because there is no transcript or vote history provided, there is no documented public debate in the supplied materials to indicate broader support or opposition.
Contention
The main point of contention likely centers on the new employer assessment itself, especially for employers with workers enrolled in Medicaid who would face an added quarterly charge. Employers may object to the cost, the use of employee Medicaid enrollment as a trigger, and the administrative burden of reporting and remitting the assessment. Supporters would likely emphasize the bill’s purpose of financing health care affordability and low-income coverage, while opponents may argue it functions as a payroll-related tax or penalty on employers and could affect hiring or labor costs. The exclusions for small employers, government entities, and certain franchises suggest the bill tries to narrow the burden, but those carveouts may also be a point of policy debate.