REPORT TITLE:
Health Insurance 


DESCRIPTION:
Establishes an assessment process for entities providing or
offering health benefits or services regulated by the Insurance
Commissioner, for the purpose of supporting the Commissioner's
regulation of health insurance. (SB1127 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1127
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 3
STATE OF HAWAII                                            C.D. 1
                                                                      
_________________________________________________________________________
_________________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO INSURANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�431:       Assessments of health insurers.  (a)  The
 
 5 assessments shall be used to defray any administrative costs,
 
 6 including personnel costs, associated with health insurance
 
 7 regulation, and costs incurred by supporting offices and
 
 8 divisions.  Any law to the contrary notwithstanding, the
 
 9 commissioner may use the moneys from assessments to employ,
 
10 without regard to chapters 76 and 77, necessary professional,
 
11 technical, administrative, and support personnel to implement and
 
12 carry out the purposes of title 24 as it relates to health
 
13 insurance.
 
14      (b)  Beginning with fiscal year 2000-2001, and including
 
15 fiscal year 2001-2002, each mutual benefit society under article
 
16 1 of chapter 432, health maintenance organization under chapter
 
17 432D, and any other entity offering or providing health benefits
 
18 or services under the regulation of the commissioner, except an
 

 
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 1 insurer licensed to offer health insurance under article 10A,
 
 2 shall deposit with the commissioner by July 1 of each year an
 
 3 assessment of $10,000 for the first seventy thousand private,
 
 4 nongovernment members the entity covers and an additional
 
 5 assessment on a pro rata basis to be determined and imposed by
 
 6 the commissioner for covered members exceeding seventy thousand;
 
 7 provided that in the third year and each year thereafter,
 
 8 assessments shall be borne on a pro rata basis.  The aggregate
 
 9 annual assessment shall not exceed $1,000,000.  The assessment
 
10 shall be credited to the insurance regulation fund.  If
 
11 assessments are increased, the commissioner shall provide to any
 
12 organization or entity subject to the increased assessment,
 
13 justification for the increase.
 
14      (c)  Moneys credited to the insurance regulation fund that
 
15 are not used for health insurance regulation or general
 
16 administration purposes shall not revert to the general fund nor
 
17 shall be used for other purposes.
 
18      (d)  The commissioner may suspend any assessment made
 
19 against any mutual benefit society under article 1 of chapter
 
20 432, health maintenance organization under chapter 432D, and any
 
21 other entity offering or providing health benefits or services
 
22 under the regulation of the commissioner if the commissioner
 
23 determines that the entity may reach insolvency or other
 

 
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 1 financial difficulty if the assessment is made against the
 
 2 entity."
 
 3      SECTION 2.  Upon approval of this Act, each mutual benefit
 
 4 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
 5 health maintenance organization under chapter 432D, Hawaii
 
 6 Revised Statutes, and any other entity offering or providing
 
 7 health benefits or services under the regulation of the
 
 8 commissioner, except an insurer licensed to offer health
 
 9 insurance under article 10A of chapter 431, Hawaii Revised
 
10 Statutes, shall pay to the insurance commissioner by September
 
11 30, 1999, a one-time assessment in an aggregate amount not to
 
12 exceed $1,000,000 to be credited to the insurance regulation
 
13 fund; provided that the insurance commissioner may spread the
 
14 total assessment required over several smaller assessments.  
 
15      SECTION 3.  There is appropriated the sum of $1,000,000 or
 
16 so much thereof as may be necessary for fiscal year 1999-2000 and
 
17 the sum of $1,000,000 or so much thereof as may be necessary to
 
18 be deposited into the insurance regulation fund to carry out the
 
19 purposes of this Act.
 
20      The sums appropriated shall be expended by the department of
 
21 commerce and consumer affairs for the purposes of this Act.
 
22      SECTION 4.  New statutory material is underscored.
 

 
 
 
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 1      SECTION 5.  This Act shall take effect after S.B. No. 1129
 
 2 in its final form, 1999 Regular Session, becomes an Act.