Transcript Highlights:

• In this environment, predictable payment matters.
• out the time for payment.
• of claims and delays in payment.
• My work focuses on claims accuracy, payment follow-up, and timely reimbursement.
• Sometimes it takes well over a year from billing to receive payment.

Bills: SB5915 , SB5988 , SB6025 , SJM8002

Committee: House Health Care & Wellness

Keywords: SB 5915, health technology assessment, HTA, clinical committee, medical technology review, coverage determination, state-purchased health care, Washington health care, RCW, evidence-based medicine, cost-effectiveness, safety and efficacy, Medicare coverage, national coverage determination, clinical guidelines, patient advocacy, public comment, medical necessity, rare disease, life-threatening disease

Transcript Highlights:

• SHARE OF THESE PAYMENTS.
• AND THE PUBLIC HOSPITAL PAYMENT PROGRAMS.
• IN THE PREPAID HEALTH PLAN HOSPITAL DIRECT PAYMENT PROGRAM APPROPRIATION.
• >> HOW DO YOU EXPLAIN THE MISSING OF THE PAYMENT?
• >> WE ARE A COUPLE MONTHS EFFECTIVELY IN THE REAR FOR THOSE PAYMENTS? >> Rep.

Transcript Highlights:

• The Prompt Payment Act was meant to address these sorts of payment delays, but the law only applies to
• So what payments need to be made online by nonprofits?
• So are we talking about paper checks, the checks, payments that go from, in your case, payments that
• The checks, payments that go from, in your case, payments that go from nonprofits to the state versus
• payments that go from the state to the nonprofits.

Summary: The joint Senate and Assembly Select Committee on the nonprofit sector held a hearing focused on the importance of California’s nonprofit sector and how state systems can better support it. Chair and co-chair remarks emphasized that nonprofits are essential to the state’s economy and public services, especially as federal cuts and administrative burdens increase pressure on organizations that deliver health care, food assistance, homelessness services, disaster response, and other safety-net functions. CalNonprofits CEO Jeff Green described the sector’s size and complexity, citing roughly 110,000 nonprofits in California, about 1.4 to 1.5 million nonprofit workers, and major concerns about funding uncertainty, delayed reimbursements, and federal threats to nonprofit funding and nonpartisanship. He said many organizations are being forced to use reserves, reduce services, or take out loans while waiting for state payments. The Little Hoover Commission presented findings from its study of state grant and contract administration, arguing that nonprofits often subsidize state services because of late payments, insufficient advance funding, and inadequate reimbursement for overhead. The commission recommended requiring advance payments, expanding prompt-payment protections, matching federal indirect-cost rates, standardizing emergency contract amendments, creating an Office of Nonprofit Empowerment, reducing duplicative reporting, moving to electronic payments, improving feedback to unsuccessful applicants, and using longer grant periods. Committee members expressed support for these ideas and discussed shifting state contracting culture toward outcomes and better coordination. The commission also noted that SB 1240, which would create the Office of Nonprofit Empowerment, and SB 1366, related to payment delays, align with its recommendations. The Attorney General’s Charitable Trusts Section then outlined its rollout of a new online filing system for charities and charitable fundraisers. Elizabeth Kim said the system, launched in stages beginning in 2024, is intended to replace paper filings, reduce incomplete submissions and bounced checks, and speed processing; the final phase is expected to cover renewals, delinquency, raffles, professional fundraisers, dissolution, and complaints. Committee members asked about staffing impacts and complaint handling, and DOJ explained that complaints are reviewed based on allegations, public filings, and, when needed, requests for additional information. A final panel featured Matt Gonzalez of Nonprofit New York, who described New York City’s Mayor’s Office of Nonprofit Services as a model for reducing contract backlogs, increasing advance payments, and improving coordination through ombudsman-style support and chief nonprofit officers. Public commenters from the California Alliance of Child and Family Services, SEIU, and CalNonprofits urged support for stronger state-nonprofit partnerships, transparency, and modernization of contracting systems. No formal vote was taken; the hearing concluded after testimony and public comment.

Transcript Highlights:

• A lot of these state-directed payments, a lot of these supplemental payments, have just come under additional
• I do know that there are a lot of supplemental payments on the Medicaid side that cover uncompensated
• I do know that there are a lot of supplemental payments on the Medicaid side that cover uncompensated
• Florida's Directed Payment Program for Hospitals provides payments to hospitals for both inpatient and
• I would say, similar to essentially every supplemental payment program, state-directed payment for 38.6

Summary: The Legislative Budget Commission met with a quorum present and considered two budget amendments for the Agency for Health Care Administration. The first, EOGB 2026-0831, authorized $2.1 billion in budget authority for the Low-Income Pool to support safety-net providers for uncompensated charity care. Members asked about the timing of CMS approval and whether the program addressed hospital shortfalls for insured patients and children; AHCA said the program is for uncompensated care and would follow up on specific questions. The amendment was adopted without objection. The second amendment, EOGB 2026-0875, placed $7.9 billion in reserve for Florida’s Directed Payment Program for hospitals, pending final CMS approval. Discussion focused on hospital attestations that no hold harmless agreements were in place, the meaning of those federal requirements, and whether any agreements had to be unwound; AHCA said attestations had been received from all hospitals and submitted to CMS. Members also asked about the approval timeline and whether another amendment would be needed after final approval, and AHCA said approval was hoped for soon but could not confirm the budget process. Representative Woodson raised concerns about cancer hospitals not participating in the DPP; AHCA responded that those hospitals participate instead in a separate Florida Cancer Hospital supplemental program, which had already been approved. This amendment was also adopted without objection, and the commission then adjourned.

Transcript Highlights:

• Upon substantial completion, UK will make semi-annual availability payments, availability payments for
• All payments are conditioned on meeting performance standards. There'll be no upfront payments.
• All payments are conditioned on meeting performance standards. There'll be no upfront payments.
• payments for annual availability payments for optimization<00:09:58.000><c> services.
• One question on the payments that are, I think, 47 million in availability payments over 30 years.

Summary: The committee first handled routine business, including a quorum call, approval of the April 27 minutes, and a report of informational items. Those informational items included University of Kentucky medical equipment purchases, UK’s planned use of restricted funds for a public-private partnership, school district debt notices, UK’s use of construction management at risk for five projects, Kentucky Communications Network Authority capital project reporting, and UK lease improvements. The main action item was University of Kentucky’s request for approval of a $600 million central plants and utility infrastructure P3 tied to the Chandler expansion and other campus facilities. UK said the project would modernize and expand utility capacity, improve redundancy and efficiency, and support 24/7 hospital operations. UK explained that the financing would combine private equity and nonprofit debt, with no UK or Commonwealth debt or upfront payment, and that future availability payments would come from UK Healthcare funds. Members asked about the financing stack, the source of the restricted funds, and whether existing units would be replaced or modernized. The committee then approved the P3 agreement by roll call vote. The committee also considered and approved a lease renewal for a 20,000-square-foot College of Medicine facility near the Bowling Green Medical Center. UK said the lease would cost $38 per square foot, or $912,000 annually, and supports its long-running partnership with Bowling Green Hospital and planned medical student growth in the region. Members spoke favorably about the local impact of the program, and the lease renewal passed by roll call vote. Finally, the Finance and Administrative Cabinet reported three items requiring no action, including a $2.103 million Transportation Cabinet Department of Aviation project for two medium box hangars at Capital City Airport. Cabinet staff said the project would be funded by federal aviation money and restricted aviation funds, and later explained that the restricted funds come from a jet fuel tax deposited into the Aviation Economic Development Fund.

Transcript Highlights:

• .settlement payment varies.
• suggest that the growth of the cost of this upfront payment, The growth of the cost of this upfront payment
• non-monthly payments for those homeowners.
• over that upfront payment.
• There's no partial payments.

Summary: The committee first heard a work session on cryptocurrency kiosks from the Department of Financial Institutions and Spokane City Councilmember Paul Dillon. DFI described crypto kiosks as licensed money transmission terminals that allow cash purchases of virtual currency, and said the main concern is fraud: scammers often pressure victims, especially older adults, to deposit cash into kiosks and send it to wallets controlled by organized crime. DFI cited a sharp increase in kiosk volume, nationwide fraud complaints and losses, and said Washington currently has licensing and disclosure rules but lacks transaction and fee limits. The department said it is seeking stronger disclosures, a $1,000 daily transaction limit, and a fee cap. Spokane described its unanimous ordinance banning new kiosks and removing existing ones after local scam reports, and members asked about how the machines work, whether the fraud is in the hardware or the transaction, and whether stronger warnings or screening could help. The committee then reviewed home equity sharing agreements, or CHISAs, based on a report by Mariana Amaram and testimony from DFI and industry representatives. The report found that CHISAs provide homeowners a lump sum in exchange for a share of future home value or appreciation, with no monthly payments, but that consumers often struggle to understand the products and settlement calculations. The report said the market has grown quickly in Washington, that costs can be hard to predict, and that early uncapped contracts could produce very high settlement amounts, especially during periods of rising home prices. DFI said it views these products as mortgage loans and is moving forward with rulemaking, including counseling and clearer disclosures, while industry witnesses said the products are equity-based rather than debt-based and asked for tailored regulation. Members discussed the need for better consumer education, clearer payoff schedules, and whether the products should be treated as mortgages or a separate category. The final panel focused on Washington’s space economy, with presentations from Amazon Leo, Blue Origin, Stoke Space, Space Northwest, and Green River College. Speakers highlighted major in-state investments in satellite manufacturing, launch systems, and workforce training, including Amazon Leo’s Redmond and Kirkland facilities, Blue Origin’s Kent headquarters, and Stoke Space’s Kent manufacturing and Moses Lake test site. Space Northwest presented data showing the sector’s growing economic footprint, high-wage jobs, and regional clusters in Kent and Redmond, and urged more workforce programs, incentives, infrastructure support, and a state space commission. The companies emphasized local hiring, apprenticeship and certification programs, and the role of Washington’s aerospace supply chain in supporting the broader space industry. No votes were taken during the transcript excerpt.

Transcript Highlights:

• approved payment plan.
• they're not complying with the payment plan.
• I have also made the payment for June already.
• So we haven't actually, and both of those payments were a property tax relief payment that was deposited
• We selected 10 dates during 2023 and 2024 that we requested payment tape reports, which detailed payments

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior meeting minutes and then received updates on delinquent water and sewer reports, including seven new reinstatements and a reduction to four remaining delinquent filers. Staff also reported on municipal accounting code noncompliance, removing Denning and Gum Springs from the 60-day clock after improved records were verified, and presenting repeat findings for Fargo, Lead Hill, Alma, Jericho, and Haynes. Members discussed repeated audit problems, the length of time some issues had persisted, and whether towns should be given additional time or face stronger action; motions were made and adopted to place some entities on a 60-day clock or defer action to later meetings. For Fargo and Alma, staff described extensive repeat accounting deficiencies, including missing budgets, bank reconciliations, financial statements, receipts, journals, and supporting documentation. Fargo’s mayor said the town had been understaffed and was beginning to improve its office systems; the committee voted to defer the matter for 60 days and file the report. Alma’s officials said they were trying to correct water audit and accounting issues, and the committee likewise deferred the matter to the August meeting while warning that water-audit delays could jeopardize turnback funds. The committee then reviewed misuse-of-street-funds findings for Jericho and Haynes. Jericho’s police chief and officials explained that traffic fines, drug-related arrests, and other citations had pushed the town over the statutory threshold, while staff clarified that the speed-trap calculation excludes certain add-on fines and is referred to the prosecuting attorney for any action. Haynes officials said repayment problems stemmed from lost revenue and staffing changes, including the loss of the police department, but staff reported the town remained behind on its repayment plan and also owed the IRS. The committee voted to defer the Haynes matter to September and to defer Jericho as well, with members emphasizing the need for consistency and possible broader legislative review of small-town viability. A special report on the Pulaski County Regional Solid Waste Management District drew substantial discussion. Staff cited findings involving board approval of payroll and contracts, credit card documentation, car allowances and personal vehicle use, competitive bidding, and unusually high advertising spending, as well as the sale of trailers and other equipment at low prices. The district director said the board had delegated authority for many expenditures, that personal use was reported for tax purposes, and that advertising was necessary to educate the public about recycling. Members questioned the procurement and disposal decisions and the size of the advertising budget; after discussion, the committee deferred the report to September and asked the director to return. The meeting also included brief deferred reports on Biggers, Gilmore, and Holly Grove, which were filed after local officials described ongoing efforts to resolve long-standing audit and tax issues.

Transcript Highlights:

• She gets a $35,000 payment from the other company.
• The very first part you started with was on voluntary payments.
• I just want to follow up on when people actually do voluntary payments.
• So, yeah, with respect to voluntary payments that are made. Right.
• either payments made by an at-fault party or the at-fault party's insurer.

Committees: House Insurance , House Insurance and Banking

Transcript Highlights:

• </c><00:02:46.080><c> for</c> The employees can receive payment for The employees can receive payment
• </c> the overall statewide overtime payments. the overall statewide overtime payments.
• And these shift bonus payments are in addition to the regular payments or the overtime payments that
• for all overtime payments.
• for all overtime payments.

Transcript Highlights:

• The Prompt Payment Act was meant to address these sorts of payment delays, but the law only applies to
• to be incorporated into the Prompt Payment Act.
• So are we talking about paper checks, the checks, payments that go from, in your case, payments that
• So are we talking about paper checks, the checks, payments that go from, in your case, payments that
• The checks, payments that go from, in your case, payments that go from nonprofits to the state versus

Transcript Highlights:

• The settlement payment varies.
• suggest that the growth of the cost of this upfront payment, The growth of the cost of this upfront payment
• over that upfront payment.
• , and because it required no monthly payment.
• There's no partial payments.

Summary: The committee first held a work session on cryptocurrency kiosks, with the Department of Financial Institutions and Spokane City Council describing how virtual currency kiosks operate, where they are located in Washington, and the rapid growth in transaction volume. DFI said the machines are being used heavily in scams, especially against older and vulnerable consumers, and cited FBI fraud data showing substantial losses. DFI outlined possible consumer protections in pending legislation, including stronger disclosures, a $1,000 daily transaction limit, and a fee cap. Spokane City Council described its unanimous ordinance banning new kiosks and requiring removal of existing ones, citing local scam reports and the difficulty of recovering funds once they are sent through crypto wallets. Committee members asked about how the machines are used, whether the hardware itself is vulnerable, and whether stronger warnings or screening requirements could help. The committee then reviewed home equity sharing agreements, or CHISAs/HESAs, following a legislative report. The report’s author said these products provide homeowners a lump sum in exchange for a share of future home value or appreciation, with no monthly payments, but can be difficult for consumers to understand and can produce highly variable settlement costs. The report found the market has grown quickly in Washington, that many consumers using the products had financial hardship, and that many did not fully understand how settlement amounts were calculated. DFI said it views the products as mortgage-like and is moving forward with rulemaking, including counseling and clearer disclosures. Industry representatives said the products are equity-based rather than debt-based, support access to home equity for people who may not qualify for traditional loans, and said they are working with DFI on standardized disclosures, counseling, and annual settlement estimates. Senators raised concerns about consumer understanding, cost caps, and whether the products should be treated as mortgages under state law. In the final work session, the committee heard an overview of Washington’s space economy from Amazon Leo, Blue Origin, Stoke Space, Space Northwest, and Green River College. Speakers highlighted major investments in Washington facilities, manufacturing, testing, and workforce training, and described the state as a hub for aerospace and satellite activity. They emphasized job creation, supply-chain spending, and education partnerships, including technician certification and apprenticeship-style programs. Several speakers urged the legislature to expand tax incentives to include space companies, support grants and workforce programs, and consider a state space commission or similar long-term coordination effort. The committee thanked the presenters and noted time constraints before ending the hearing.

Transcript Highlights:

• In this environment, predictable payment matters.
• times they're denying claims or they're extending out the time for payment.
• of claims and delays in payment.
• My work focuses on claims accuracy, payment follow-up, and timely reimbursement.
• Sometimes it takes well over a year from billing to receive payment.

Summary: The Health Care and Wellness Committee held a public hearing on several bills and a joint memorial. SB 5915 would update the health technology assessment program by adding technologies recommended for Medicare populations or in national guidelines to the review priority list, requiring broader evidence review for life-threatening or rare diseases, and setting timelines for posting and deciding review requests. Supporters, including rare disease advocates and providers, said the current process is outdated and too rigid; the bill was then held for later action. SJM 8002 urged Congress to strengthen original Medicare, oppose privatization, add benefits like dental, vision, and hearing, and reduce Medicare Advantage overpayments and fraud. Supporters from labor and senior groups argued it would protect beneficiaries and send a message to federal officials; the memorial was also held after testimony. The committee also heard SB 5395 on prior authorization. Staff explained it would tighten notice requirements, require a licensed clinician—not AI alone—to deny requests based on medical necessity, add transparency around policy changes, and change how retrospective denials are treated. The prime sponsor and provider groups said the bill was a negotiated compromise meant to reduce delays and inappropriate denials, while insurers were generally neutral but sought a narrow amendment. Testifiers described prior authorization as a major source of delay and administrative burden, and the bill was held after public testimony. SB 5845 would require carriers to pay or deny clean claims within 30 days, set timelines for non-clean claims and information requests, and allow penalties for repeated noncompliance. Hospitals, physicians, and health systems supported it as a way to improve predictable payment, while insurers were neutral and asked for a narrow amendment; the bill was also held. The committee heard SB 6025, which would change the definition of fetal death so gestational age is calculated using the best clinically accurate age rather than the last menstrual period. Obstetric and nursing witnesses said the current law can force inaccurate records and unnecessary burdens on grieving families, while opponents objected to the bill’s abortion-related definitions. The bill was held after testimony. Finally, SB 5988 would authorize the Department of Health to continue accrediting opioid treatment programs and charge fees to support that work. The department and the sponsor said the measure would preserve a patient-centered accreditation option amid budget pressure, and the committee closed testimony and held the bill.

Transcript Highlights:

• and public hospital payment programs.
• These programs provide fee-for-service supplemental payments and directed payments for physicians...
• These programs provide fee-for-service supplemental payments and directed payments for physicians and
• This program provides fee-for-service and supplemental payments and directed payment program for physicians
• This program provides fee-for-service and supplemental payments and directed payment program for physicians

Summary: The Legislative Budget Commission considered 21 budget amendments, most of them routine authority adjustments tied to federal grants, Medicaid payment programs, and trust fund realignments. The Department of Education received $14.751 million for a Preschool Development Grant to support early learning system improvements, workforce credentialing and training, IT modernization, and related early childhood certification work. The Department of Veterans Affairs shifted $2.2 million within its trust fund to cover higher nursing home occupancy, replace contract nursing with OPS staff, and meet rising operating costs. The Department of Health moved about $9.1 million to support Disability Determinations, where roughly 140,000 cases were pending or in process, and said the change would help reduce backlog and avoid a deficit. The Agency for Health Care Administration presented multiple amendments for Medicaid-related programs, including $766 million for indirect medical education, $1.9 million for managed care network adequacy audits, $209 million for the Rural Health Transformation Program, and several large supplemental payment programs for hospitals and physicians; members asked about CMS approval delays, provider access, and how rural funds would be distributed. The commission also adopted an amendment realigning KidCare funds, placing a $32.1 million surplus into reserve, though several members objected that the state had not yet implemented the 2023 KidCare expansion and that children remained on a wait list. Another Medicaid amendment placed a $376 million surplus into reserve after updated estimating conference projections. Other agencies also received approvals. FDLE received $16.26 million to buy counter-unmanned aircraft systems equipment such as radar and RF sensors to detect and mitigate drone threats. The Department of Juvenile Justice received $1.6 million for the Florida Scholars Academy and a Social Services Block Grant realignment, with staff confirming corrective action had been taken after prior audit findings about allowable SSBG spending. The Division of Emergency Management received federal pass-through authority for FIFA World Cup security and counter-UAS funds, both controlled by the Miami host committee, and members noted the state had little direct oversight over how those local grants would be used. The Department of Commerce received $148.4 million for Community Development Block Grant Disaster Recovery work, with questions focused on the split between housing, infrastructure, and administrative costs. The Department of State received $408,377 for arts and culture federal grant obligations. All amendments were adopted, generally without objection, after brief questioning and no public testimony.

Transcript Highlights:

• and public hospital payment programs.
• These programs provide fee-for-service supplemental payments and directed payments for physicians...
• These programs provide fee-for-service supplemental payments and directed payments for physicians and
• This program provides fee-for-service and supplemental payments and directed payment program for physicians
• This program provides fee-for-service and supplemental payments and directed payment program for physicians

Summary: The Legislative Budget Commission met to consider 21 budget amendments, beginning with the Department of Education’s request for $14.751 million in federal grant authority for the Preschool Development Grant. Members asked whether any funds would support VPK or provider payments; the department said the money is for birth-to-kindergarten early learning work, including IT modernization, workforce credentialing, training, and streamlining director certification. The amendment was adopted without objection. The commission then approved amendments for the Department of Veterans Affairs to shift $2.2 million within its trust fund to cover higher nursing home occupancy and reduce staffing agency use, and for the Department of Health to realign about $9.1 million for disability determinations amid a backlog of roughly 140,000 cases. The Agency for Health Care Administration presented multiple Medicaid-related amendments, including $766 million for indirect medical education, $1.9 million for managed care network adequacy audits, $209 million for the Rural Health Transformation Program, and several large supplemental payment programs for KidCare, hospitals, physicians, cancer hospitals, nursing IME, and public hospital payments. Members questioned network adequacy, rural access, and the KidCare surplus and expansion; the KidCare realignment drew debate, with some members objecting because the 2023 eligibility expansion has not been implemented, but the amendment passed on a roll call vote. Other amendments adopted included FDLE’s $16.3 million for counter-UAS detection and mitigation equipment, DJJ’s $1.6 million for Florida Scholars Academy and a Social Services Block Grant realignment, and emergency management pass-throughs for FIFA World Cup security and counter-drone funding to the Miami host committee. The Department of Commerce received $148.4 million for disaster recovery under the CDBG-DR program, with questions about the split between housing, infrastructure, and administrative costs. The Department of State also received $408,377 for arts and culture grant authority. Most amendments were adopted without objection, and the commission adjourned after completing the agenda.

Transcript Highlights:

• analysis that has to go into the calculation of the payments.
• Madam Chair, members, we draw the federal funds at the time we make the payment.
• We draw the federal funds at the time the payment is made. All right. Thank you.
• When you make these payments, so you paid year one, did you notify the legislature?
• , and this is why the TIP payments aren’t being made.

Committee: Senate Senate Health and Human Services COR

Summary: The Committee on Health and Human Services held another oversight hearing on Access, focusing on fee-for-service behavioral health management, prior authorization and claims processing, the Targeted Investment Program (TIP), and network adequacy. The chair criticized Access for implementing a covered behavioral health services guide without public comment and for failing to produce records such as decision-making documentation, work group minutes, and public/tribal feedback. Members also raised concerns about ARPA compliance, the reduction of intensive outpatient reimbursement to a $157 per diem, and the impact of these actions on providers and Native American communities. Interim Director Roberta Harrison said Access had improved fraud controls and operations after the sober living fraud crisis, including tripling prior authorization speed, reducing denial codes by 64%, cutting claims processing to under 30 days, and adding dashboards and staffing. She said the agency is modernizing outdated systems and invited fraud referrals. On questions about claims and prior authorizations, Access reported average processing times of six days overall and 17 days for behavioral health prior authorizations, and said it had hired Constellation under a direct procurement to help with claims backlog. Harrison acknowledged that a proposal language suggesting higher ROI from denying more claims was not part of the contract scope. The committee also pressed Access on TIP delays. Staff explained that TIP payments depend on provider documentation, programmatic review, and allocation across many sites, and said year one of TIP 2.0 had been paid while years two and three had not yet been distributed. The chair requested a formal plan within 30 days to pay the delayed year two and year three TIP funds, estimated at about $122 million, along with all CMS-related TIP 2.0 documentation. On network adequacy, Access described its standards and annual MCO reporting process, but acknowledged gaps in tracking and said it would follow up on whether a fiscal year 2025 report was submitted to CMS. Members cited a federal ghost network report finding 28% of providers in Santa Cruz County inactive or unavailable, and requested unredacted network adequacy reports and further information on CMS engagement. The hearing ended with the chair noting some improvements but saying more oversight may follow, and the committee adjourned.

Transcript Highlights:

• And so in this environment, predictable payment matters.
• It shouldn't be different for payment owed by carriers to hospitals.
• So it's not just about that initial payment period.
• We rely on timely and accurate payment to keep our doors open.
• Most payment recovery is due to waste or abuse, not fraud.

Summary: The Senate Health and Long-Term Care Committee heard testimony on several bills. SB 6159 would create a public hospital infrastructure account funded by a new annual coverage assessment on insurers and other businesses subject to the premium tax, and would allow public hospital districts and other public health entities to collaborate more freely and access capital financing for major construction or modernization projects. Senator Dhingra said the bill is intended to help public hospitals compete and modernize, especially amid federal Medicaid and ACA subsidy cuts. Supporters included UW Medicine, while hospital districts supported the general concept but said Section 2 could unintentionally narrow existing cooperative agreements with nonpublic entities. Health plans and insurers opposed the bill, arguing it would raise premiums, increase consolidation, and improperly sweep in property and casualty insurers and mutual companies; testimony also raised concerns about pass-through costs and retaliatory tax effects. The hearing on SB 6159 closed with 5 pro, 74 con, and 2 other sign-ins. The committee then heard SB 5845, which would modernize timely payment rules by requiring carriers and public employee plans to pay or deny all clean claims within 30 days, require prompt notice and a single request for additional information on incomplete claims, and impose interest or penalties for missed deadlines. Senator Slaughter said the bill would reduce uncertainty for providers and stabilize payments without increasing patient costs. Hospitals, physicians, and health systems strongly supported the measure, citing large volumes of late clean claims and examples of prolonged delays, including a Harborview claim that remained unpaid more than a year after billing. Health plans opposed the bill, saying the current 95% standard is workable, that they already meet high compliance rates, and that the bill could limit fraud, waste, and abuse review on high-dollar claims; they also sought more flexibility and additional time for responses. The hearing closed with 69 pro, 4 con, and 2 other sign-ins. The committee also heard SB 5916, which would prohibit health plans from disadvantaging non-opioid pain treatments relative to opioids in formularies and utilization management, and would require a Department of Health educational pamphlet on non-opioid alternatives. Senator Harris described the bill as a response to opioid deaths and a way to encourage safer pain treatment options. Patients, recovery advocates, and rare disease advocates testified in support, saying insurance barriers and step therapy often make non-opioid care harder to access and can push patients toward opioids. The Health Care Authority and an association of health plans opposed the bill, arguing it could reduce formulary flexibility, increase costs, and limit tools such as prior authorization and step therapy. The hearing closed with 8 pro, 1 con, and 2 other sign-ins. Finally, the committee heard SB 6102 and SB 6103, both sponsored by Senator Muzzall, and SB 6071. SB 6102 would align the ambulance transport quality assurance fee with federal rules after H.R. 1 barred new provider taxes, preserving the existing fee rate and adjusting the Medicaid add-on rate annually; the Washington Ambulance Association supported it, saying the program had improved wages and benefits for EMS workers. SB 6103 would make Medicaid payments for services provided by a rural emergency hospital subject to appropriation, creating a framework for East Adams Rural Health Care to convert to the new federal rural emergency hospital model; East Adams and the Washington State Hospital Association supported it as a way to preserve rural access. SB 6071 would shorten overpayment recovery timelines for all services to six months, or nine months for coordination-of-benefits cases, matching the shorter timelines already enacted for behavioral health services; providers and specialty associations supported the bill as a way to reduce destabilizing clawbacks, while the remaining testimony was still underway when the transcript ended.

Transcript Highlights:

• </c> have somebody talk about a pilt payment have somebody talk about a pilt payment in<00:52:26.559>
• I'll talk a little bit about each of these payment land classes and the related payment rate.
• I'll talk a little bit about each of these payment land classes and the related payment rate.
• I'll talk a little bit about each of these payment land classes and the related payment rate.
• The payments are countywide and not based on like a per-parcel payment.

Committee: Senate Taxes

Transcript Highlights:

• Estimated payments, right?
• Guardian ad litem payments.
• </c> because of through an estimated payment because of through an estimated payment or<00:20:39.760>
• Upon a payment error rate.
• So, what is a payment error?

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.

Transcript Highlights:

• She gets a $35,000 payment from the other company.
• Yeah, these are payments from the defendant or the at-fault insurance party.
• The very first part you started with was on voluntary payments.
• I just want to follow up on when people actually do voluntary payments.”
• “So, yeah, with respect to voluntary payments that are made. Right.

Committee: House Insurance and Banking

Summary: The Insurance Committee first established a quorum and then went into executive session, where it voted House Bill 1615 and House Bill 2071 “do pass” with 11 ayes and no opposition on each bill, with one member present on the roll call. After returning to public session, the committee opened a hearing on House Bill 1647, sponsored by Representative Overcast, which was described as a fairness measure intended to prevent double recovery when insurance payments have already satisfied part of a claim. The sponsor and supporters said the bill was aimed at property damage claims and intercompany arbitration between insurers, though several members questioned whether the bill’s language was actually limited to property damage or instead reached broader collateral source issues and evidence rules. Committee members, especially Representatives Butts, Zimmerman, and Castile, pressed the sponsor on how the bill would work in practice, whether it would reduce a plaintiff’s recovery or instead affect insurer subrogation rights, and why arbitration was being addressed in an evidentiary statute. Supporters from the Missouri Insurance Coalition and other industry groups said the bill would clarify offset rules, preserve voluntary insurer-to-insurer arbitration, and prevent inconsistent court treatment of prior payments. Opponents, including attorney Blake Heath, argued the bill was drafted too broadly, did not stay confined to property damage, and was placed in the wrong statutory section because these issues are usually handled through insurer subrogation rather than in a lawsuit by the injured party. Additional support came from the Missouri State Medical Association, Associated Industries of Missouri, and the National Association of Mutual Insurance Companies, though some supporters also acknowledged the bill might need narrowing if the intent was property damage only. No vote was taken on House Bill 1647 during the hearing, and the committee adjourned after testimony concluded.

Transcript Highlights:

• approved payment plan.
• I have also made the payment for... So if you took over in 25, why were payments still late?
• I have also made the payment for June already, and going forward, we should have those payments made.
• So we haven't actually—and both of those payments were a property tax relief payment that was deposited
• The board has authorized the director to issue any payments less than $1,000, and any payments over $1,000

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior minutes and then received a series of audit and compliance updates. Staff reported on delinquent private water and sewer reports, delinquent 2013-2023 water reports, and several municipal accounting code noncompliance cases. Denning and Gum Springs were recommended to be removed from the 60-day clock after staff visits showed improved records, while Fargo, Lead Hill, Almy, Jericho, Haynes, Biggers, Gilmore, and Holly Grove were discussed for repeat findings involving missing audits, poor bookkeeping, unpaid or misapplied street funds, deficit balances, and other accounting deficiencies. Several of these entities were given additional time or had reports filed without objection, while others were deferred for later review. Fargo’s mayor said the town had been understaffed and was working to improve its accounting systems; the committee voted to defer the matter to the August meeting. Lead Hill’s mayor described efforts to complete overdue water audits and improve office procedures, and the committee also postponed action for 60 days. Almy’s mayor and recorder-treasurer were present, and the committee placed the town on the 60-day clock for repeat accounting issues. Biggers and Gilmore both acknowledged long-running audit problems and said they were working with auditors and the IRS; their reports were filed. Holly Grove’s treasurer said she had only recently taken the position, and that report was filed as well. The committee spent considerable time on the street-fund misuse cases for Jericho and Haynes. Jericho was found to have exceeded the statutory threshold tied to fines and costs, with staff noting the town had since become current on its repayment plan; the committee deferred the report to September. Haynes was also behind on its repayment plan for street funds, with staff saying the town had recently made up the shortfall and was current as of the meeting, but the committee still deferred the report to September. Members and staff also discussed how the speed-trap law is applied, whether certain fines and costs count toward the threshold, and the role of the prosecuting attorney in deciding whether to take further action. The committee then reviewed a special report on the Pulaski County Regional Solid Waste Management District, which had six findings involving board approval of payroll and contracts, credit card documentation, vehicle and cell phone use, competitive bidding, electronic funds controls, and unusually high advertising spending. District Director Craig Douglas said the board had delegated some authority, that receipts were missing during a temporary staffing gap, and that advertising was needed to educate the public; he also defended the sale of trailers and other equipment as a way to exit the trailer business. Several members questioned the explanations and the low resale value of equipment, but the committee ultimately deferred the report to September. The meeting also included a recognition of accounting students interning with audit staff and a final set of actions on deferred water and sewer reports: 11 were filed, seven were deferred for lack of proper responses, and a private report on Shannon Hills Water, Sewer, and Fire Department was noted as involving misappropriation by an office manager and inadequate internal controls.