April 17, 2007 

OLYMPIA - A bill requiring the Department of Social and Health Services (DSHS) and Health Care Authority (HCA) to enter into data-sharing agreements with Oregon and Idaho to assure the valid residency of applicants for state-sponsored health care services in Washington today was signed into law by the governor. House Bill 1848 was sponsored by Reps. Richard Curtis and Bill Fromhold.

“Pharmacists in our state have experienced problems with patients filling prescriptions paid for by Washington’s state-sponsored health care programs, but presenting a driver’s license from Oregon to skirt paying the sales tax on other items they are purchasing at the same time,” said Curtis, R-La Center. “With the passage of this law, we will enable DSHS and other agencies to better track recipients of state-funded medical services.”

“Living in an area bordered by a state without sales tax poses unique challenges for cities and counties. Folks can easily apply for and receive state-sponsored health care benefits if they are a resident of this state,” said Fromhold, D-Vancouver. “This bill allows us to identify people on our Washington state health care rolls who are utilizing other states’ driver’s licenses to avoid paying Washington sales tax.”

The legislators said a southwest Washington pharmacist brought this issue to their attention when the pharmacy clerk noticed a trend of patients purchasing items along with their state-paid prescriptions and reminding the clerks that they should not be charged sales tax because they live in Oregon.

“House Bill 1848 gives us one more tool to use in our ongoing efforts to ensure the integrity of our Medicaid program,” said Doug Porter, Assistant Secretary of the Health & Recovery Services Administration at the state Department of Social and Health Services. “Washington has always had a reputation for being tough on provider and client fraud, but this new law is aimed at filling a vacuum that currently exists in the statutes by helping us prevent abuse of residency laws in state border areas.”  

“We want the system to help as many residents as possible, but that can’t happen if patients are abusing it,” said Curtis. “We’re not trying to turn people away, but Washington has its health care programs for those in need, as I am sure Idaho and Oregon have also, each intended to serve only their state’s residents.”

Curtis said people living in neighboring states who need medical or prescription drug assistance should be enrolled in those states’ respective programs. Washington, he said, is struggling to keep people on state-funding assistance programs covered and can’t continue carrying the financial burden of other states.

Both sponsors added that medical assistance through the state Medicaid program is available to Washington residents through DSHS and HCA. The programs are designed to provide subsidized health insurance coverage to low-income state residents who are not eligible for Medicare or are institutionalized at the time of enrollment. By law, state general assistance applicants, including those applying for Medicaid or other state medical assistance programs, must be state residents and U.S. citizens, or lawfully admitted aliens.

“This legislation won’t turn away qualified Washington residents, it simply puts into place a cross-checking requirement for residency to ensure people requesting state aid actually reside in the state,” Fromhold said.  “House Bill 1848 is a good step to ensuring we’re taking care of those Washingtonians in need.” 

# # #

CONTACT:    Bobbi Cussins, Public Information Officer – 360.786.7252

                    Jennifer Zahn Spieler, Public Information Officer – 360-786-7201