This represents a long-overdue improvement, as prior law allowed recovery actions for up to two years after the date of service.
Budget Proviso – Provider Contracting Collaborative
In addition to policy bills, the Legislature included an important budget proviso aimed at addressing long-standing concerns related to provider contracting practices.
As you know, I have advanced several legislative proposals targeted at addressing the imbalance between providers and carriers, particularly with respect to contract provisions such as fee schedules, rates, and reimbursement practices. These efforts included proposals for cost-of-living adjustments to provider fee schedules, as well as requirements that carriers engage in meaningful negotiations with independent providers. However, the Legislature has not demonstrated a willingness to move forward on these policy changes.
In response, we shifted strategy. Rather than continuing to pursue legislation that was unlikely to advance, we worked to move this issue into a policy development setting by engaging the William D. Ruckelshaus Center, in collaboration with the Office of the Insurance Commissioner, to convene a structured study and stakeholder process. This approach creates an opportunity to elevate the discussion, build a broader record, and develop informed policy recommendations for future legislative consideration.
The following language is exactly as it was inserted into the final budget presented to the Governor.
The operating budget appropriates $250,000 from the Insurance Commissioner’s Regulatory
Account for the Insurance
Commissioner to contract with the William D. Ruckelshaus Center. The purpose of this contract is to design, convene, and facilitate a structured collaborative forum focused on contracting practices between health carriers and healthcare providers and facilities for fully insured health plans.
The forum will include participation from: (i) Representatives of licensed clinicians not affiliated with or owned by hospitals or health carriers, such as physical, speech, and occupational therapists, chiropractors, advanced registered nurse practitioners, physicians, physician assistants, licensed clinical social workers, marriage and family counselors, mental health counselors, and psychologists; (ii) Representatives of health carriers, as defined in RCW 48.43.005;
(iii) Representatives of healthcare facilities, such as urban hospitals, rural hospitals, ambulatory surgery centers, behavioral health agencies, tribal clinics, and federally qualified health centers; (iv) A representative of the Insurance Commissioner; and (v) A representative of the Health Care Authority.
The forum shall be capped at 25 primary participants. The Ruckelshaus Center shall work in collaboration with the Insurance Commissioner to identify and select participants who are representative of interested organizations.
The forum shall address issues related to one or more of the following topic areas, which may be prioritized or sequenced: (i) Credentialing of healthcare facilities and providers, including the use of a uniform electronic process for collecting and transmitting necessary provider-supplied data to support credentialing under RCW 48.165.035, information required by carriers for credentialing, and timeliness of credentialing decisions;
(ii) Mid-contract modifications of carrier payment, utilization review, or other policies related to payment for or delivery of care to enrollees; and
(iii) Contract negotiation practices with respect to rates, fee schedules, or payment methodologies for payment to healthcare providers and facilities.
The forum shall submit a preliminary report to the Legislature by December 31, 2026, summarizing its progress to date.
It is the intent of the Legislature to continue funding the collaborative forum in the 2027–2029 fiscal biennium. The forum shall submit a final report to the Legislature by December 15, 2027, detailing the outcome of its work and documenting areas of agreement, disagreement, and any policy considerations or recommendations. Consensus among participants is not required.
Final Thoughts
This session underscored both the opportunities and challenges of working within a dynamic legislative environment. While not every priority advanced as hoped, meaningful progress was made— particularly in areas addressing transparency, accountability, and the evolving role of technology in health care. Most importantly, and frequently forgotten, is that we had no losses to statutes we currently enjoy.
Continued engagement remains essential. Legislative outcomes are shaped not only in Olympia, but by the voices of constituents throughout the state.
Governor Bob Ferguson signs SB 5845. Photo provided by Washingon State Legislative Support Services.
Ple x us April/May 20 26
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