Bill
SB 5243
Prohibits health insurers in Washington from using premium funds for lobbying or political contributions; permits voluntary, separate policyholder contributions to a dedicated poli
A. Overview and purpose
- Bill Number: SB 5243 (Senate version S-0518.1)
- Title: Restricting the use of health care premiums for political lobbying
- Purpose: Prohibits health insurance companies operating in Washington from using policyholder premiums to fund lobbying activities or to contribute to political campaigns/committees. Allows policyholders to consent separately to use their funds for political contributions, but only if explicitly voluntary.
- Status: First reading, referred to the Committee on State Government, Tribal Affairs & Elections (Introduced January 14, 2025)
B. Key provisions at a glance
- New framework: Establishes a new chapter in Title 29B RCW to regulate the use of health premium funds for political activities.
- Definitions (Sec. 2):
- “Health insurance company” = same meaning as “health carrier” (per RCW 48.43.005).
- “Policyholder” = a person or group with a contractual arrangement with a health insurance company to receive health care services.
- Prohibited uses (Sec. 3):
- Health insurers may not use premiums to lobbying or to contribute to candidates for state or federal office.
- Insurers may not contribute from premium-derived funds to political committees.
- Permitted handling (Sec. 3):
- Insurers may receive voluntary, express-permission contributions from policyholders into a separate political committee, to be used for political lobbying on behalf of and for the benefit of those policyholders.
- Enforcement and remedies (Sec. 4):
- Enforcement by a designated state “commission” (the bill authorizes the commission to enforce this chapter; may request documentation from the Office of the Insurance Commissioner and use evidence from a policyholder).
- Damages to policyholders: insurers found in violation owe policyholders at least double the amount of any unlawful contribution.
- Penalties: fines for lobbying violations range from $25,000 to $500,000 per violation, adjustable annually by CPI (per US BLS).
- Construction and interpretation (Sec. 5): Provisions to be liberally construed to effectuate the act’s broad intent.
- Chapter linkage (Secs. 6–8): Creates a new chapter in Title 29B RCW and provides standard statutory boilerplate (including severability and short title: “Health Care Dollars for Health Care Act”).
C. Who would be affected
- Primary: Health insurance companies operating in Washington that issue policies to Washington policyholders.
- Secondary: Policyholders (who could receive redress if premiums are used unlawfully); political committees and lobbying entities receiving contributions restricted from premium funds.
- Government/Enforcement: A state commission (referenced as “the commission”) with authority to enforce the statute, plus cooperation with the Office of the Insurance Commissioner.
D. Implications and potential impacts
- Behavioral shift: Insurers would need to segregate premium funds from any political activities and ensure compliance.
- Oversight and transparency: Increased oversight of how premium dollars are used, with potential policyholder remedies if violations occur.
- Financial risk for violations: Potential double-damages to policyholders and sizeable per-violation fines (adjusted for inflation).
E. Procedural and timeline notes
- Current status is introductory: first reading and referral to the committee. No enacted effective date or specific implementation timeline published in the provided text.
F. Short title
- Health Care Dollars for Health Care Act
If you’d like, I can add a section comparing SB 5243 to current Washington RCWs on political contributions by insurers or provide a quick risk assessment for insurers and policyholders.
Compiled from official sources — confirm details with the bill’s official record.
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