WA HB1123

Hospitals receiving Medicaid payments must contract with public employee health plan contractors upon receiving a good faith offer, except HMO-owned hospitals

Beginning January 1, 2027, hospital reimbursement capped at 200% of Medicare rates (350% for children's specialty hospitals), with minimum floors of 150% of Medicare for primary care and behavioral health services

Beginning January 1, 2029, hospital reimbursement caps decrease to 190% of Medicare (300% for children's specialty hospitals)

Rural critical access hospitals and sole community hospitals exempt from caps, with reimbursement floor of 101% of allowable costs; island hospitals in Skagit County public hospital districts also exempt unless part of multi-hospital health systems

Health Care Authority required to report by December 31, 2030, on impacts to network access, premiums, cost-sharing, state expenditures, and effects on other insurance markets