A bill to standardize Law Enforcement Officers & Fire Fighters (LEOFF) disability boards’ notice to members of covered medical services has been introduced.
SB 5336, sponsored by Sen. Steve Conway (D–Tacoma), is a short bill that requires the Department of Retirement
Services to adopt rules requiring that each LEOFF 1 disability board “provide eligible members with documentation of the covered medical services.” Section 1 of the bill includes a legislative intent section that finds that some LEOFF
disability boards do not provide notice of what medical costs are covered by the board, and that the legislature intends that all disability boards provide LEOFF 1 retirees with evidence of medical coverage.
The bill arises from concerns raised by some LEOFF 1 representatives who object to retirees having to pay medical expenses out of pocket and then request reimbursement after the fact. However, many disability boards will work with retirees who experience
financial hardship when having to pay an expense up front and out of pocket. It would be nearly impossible for most boards to set up a universal system to pay all eligible expenses (i.e. a pharmacy co-pay) up front.
LEOFF 1 disability boards already provide documentation of covered expenses via their adopted policies, and AWC understands that this bill is likely to only codify the current practice. The bill does not appear to require boards to generate new documentation of medical coverage, nor for all boards to cover up front covered costs. It only requires LEOFF 1 disability boards to inform members of their medical coverage policies, which could presumably be done by using existing documentation.
However, AWC is concerned that the bill could lead to confusion between medical providers and retirees as to which medical costs are covered up front and which may be reimbursed. There is also the possibility that through the rulemaking process additional
requirements would be created that could drive up costs.
SB 5336 was originally scheduled for a public hearing on Monday, February 1, in the Senate Ways & Means Committee, but was removed from the agenda a few hours before the hearing and has not yet been rescheduled. AWC will continue to monitor this bill for potential committee action in the future.