HB 1123 Washington House · 2025-2026 Regular Session

Ensuring access to primary care, behavioral health, and affordable hospital services.

This bill establishes new reimbursement rules for health insurers covering Washington public employees' health plans. Starting in 2027, insurers must pay at least 150% of Medicare rates for primary care and behavioral health services, while capping payments at 200% of Medicare for most hospital services (350% for children's specialty hospitals). Rural hospitals and critical access facilities must receive minimum payments of 101% of Medicare costs. These requirements specifically apply to insurers serving public employees, not general health coverage.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 12, 2026 Last action Jan 12, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Bill Substitute Bill · 6 edits
MODERATE
This bill was amended to clarify that reimbursement limits apply only to in-network providers located in Washington, expanding the scope of protected providers. The changes also tighten payment floors for primary care and behavioral health by requiring payments to be the greater of 150% of Medicare rates or the contractor's contracted rate, ensuring providers receive at least their agreed-upon fees. Additionally, the reporting requirements were expanded to include impacts on other health insurance markets, and a new exemption was added for rural and island hospitals to prevent penalties on critical community facilities.
Scope change
The bill's applicability was narrowed to specifically target 'in-network' providers located in Washington, rather than all providers, while simultaneously strengthening financial protections for primary care and behavioral health services.
ELIGIBILITY

Reimbursement caps now apply only to 'in-network' providers located in Washington, excluding out-of-network providers from these specific limits.

FISCAL

Payment floors for primary care and behavioral health services were changed to require the greater of 150% of Medicare rates or the contractor's contracted rate, ensuring providers are paid at least their negotiated rates.

REQUIREMENT

New reporting requirements were added to analyze the bill's impact on enrollee costs in health insurance markets outside the public employee program.

Reimbursement caps for specialty children's hospitals were updated to apply only to 'in-network' providers located in Washington.

SCOPE

A new exemption was created for rural critical access hospitals, sole community hospitals, and specific island hospitals in Skagit County, exempting them from certain reimbursement caps.

DEFINITION

A new definition clarifies that reimbursement limits for inpatient and outpatient services do not include charges for professional services.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
9
Key actions
3
Committee
4
Jan 12, 2026
Introduced
By resolution, reintroduced and retained in present status.
lower
Feb 10, 2025
Committee
Referred to Rules 2 Review.
lower
Feb 5, 2025
Lower · Passed
Minority; do not pass.
lower
Feb 5, 2025
Lower · Passed
Executive action taken in the House Committee on Appropriations at 4:00 PM.
lower
Jan 27, 2025
Lower · Passed
Public hearing in the House Committee on Appropriations at 4:00 PM.
lower
1 primary · 16 co-sponsors

Sponsors