After lengthy negotiations and significant pushback from industry lobbyists on HB 1508, a bill that would have strengthened the Health Care Cost Transparency Board and penalized those that repeatedly go over spending limits, Fair Health Prices Washington decided to end advocacy efforts on the bill this year with the strong version that passed out of the House rather than advancing the bill in the Senate. We are appreciative of the media attention it received, including articles in the State of Reform and Everett Herald and the opportunity it provided to raise the issue of health care affordability and accountability in the legislature. A huge thanks to the organizations and advocates who testified and supported it, including those who signed on to this letter of support submitted to the Senate Health committee.
Another measure that we supported as part of Fair Health Prices Washington that we are still watching is SB 5236. That bill would set staffing loads and improve working conditions to support frontline healthcare workers. This priority of SEIU 1199 NW was voted out of the House Labor & Workplace Standards committee and was passed on to the Rules Committee for review on April 4th.
Looking over new bills, we were intrigued by the late appearance of SB 5767, introduced by Sen. Randall and Rolfes, that will tax excess compensation paid to the five highest compensated hospital employees. The bill says some nonprofit hospitals are “eroding trust in the health care system” by paying top executives excessive compensation but “failing to offer essential reproductive health services, provide safe working conditions to frontline staff, and care for our most vulnerable populations.”
Starting January 2024, to begin payments in 2025, the bill defines excess compensation as 10 times the average salary calculated by the Employment Security Department (ESD). In 2021, the average salary in Washington state was $82,508. The tax will be 7.5% of the compensation paid and the proceeds will be used to expand access to affordable health care, advance health equity and expand access to reproductive care.