OLYMPIA — Legislation to make health care more affordable for public and school employees was signed into law Tuesday.
Senate Bill 5083, sponsored by Sen. June Robinson (D-Everett), sets new standards for how much state-purchased health plans pay hospitals and providers, helping reduce the rising costs of hospital care and shift investment toward primary and behavioral health services. The law applies to health plans under the Public Employees Benefits Board (PEBB) and School Employees Benefits Board (SEBB), which together cover nearly 700,000 Washingtonians.
“This bill puts us on a path toward a more balanced health care system — one that prioritizes affordability and better access to essential services like primary and behavioral health care,” Robinson said. “It’s a strong step toward long-term savings for families and the state alike, while making care more accessible where it’s most needed.”
The law caps reimbursement rates for inpatient and outpatient hospital services beginning in 2027, with separate limits for in-network and out-of-network hospitals, and tailored benchmarks for children’s hospitals. It also sets a floor for primary care and outpatient behavioral health provider payments, ensuring those services are not underfunded. Sole community and critical access hospitals are largely exempt from the limits, protecting access in rural areas.
The law includes provisions to prevent balance billing and calls for two reports, due in 2030 and 2034, evaluating impacts on premiums, care access, and state costs.
The law goes into effect July 27.
