Requires the public employees' benefits board to offer to public employees at least one self-insured plan in which participants receive primary care services from a direct patient-provider primary care practice.   Official Text and Analysis.

Removes the requirement that employees enrolled in the direct practice plan pay a share of premium costs that is no more than 75 percent of the share paid by employees enrolled in other plans. Allows the Public Employees' Benefits Board (PEBB) to limit enrollment in the direct practice plan to members who are heavy utilizers of services and allows a direct practice to negotiate a variable direct fee to reflect the higher level of utilization within a plan subject to such enrollment restrictions.

States that, during 2013 and 2014, must offer as a pilot project the option for members enrolled in a self-insured health plan to receive primary care services from a direct practice. The direct fee to the direct practice must be paid by PEBB rather than the individual subscriber. The direct practice option is additional to the basic benefits provided by the self-insured plans and does not affect members' coverage for other services. PEBB must submit a report to the Legislature no later than November 1, 2014, describing the impact of the direct practice option on plan costs and the health of the members enrolled in the option. PEBB must use best efforts to inform and educate prospective enrollees of the existence and benefits of the plan. Direct practices may accept payment for direct fees paid on behalf of direct patients enrolled in the new health plan offered by PEBB. The direct fee may vary to reflect the intensity of services associated with the enrollees in the pilot project.