REPORT TITLE:
Health Ins. Revolving Fund


DESCRIPTION:
Establishes a Health Insurance Revolving Fund, funded by
assessments on entities providing or offering health benefits or
services regulated by the Insurance Commissioner, for the purpose
of supporting Commissioner regulation of health insurance.
(SB1127 HD3)

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


                   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:       Health insurance revolving fund.  (a)  There is
 
 5 established a revolving fund in the state treasury to be
 
 6 administered by the commissioner and to be designated as the
 
 7 health insurance revolving fund.
 
 8      (b)  The commissioner may expend moneys from the health
 
 9 insurance revolving fund for the regulation of health insurance,
 
10 including but not limited to the hiring of professional,
 
11 technical, and support staff, and for compliance, education,
 
12 examination, investigation, and rate and policy analysis.
 
13      (c)  Beginning with fiscal year 2000-2001 and each fiscal
 
14 year thereafter, each mutual benefit society under article 1 of
 
15 chapter 432, health maintenance organization under chapter 432D,
 
16 and any other entity offering or providing health benefits or
 
17 services under the regulation of the commissioner, except an
 
18 insurer licensed to offer health insurance under article 10A,
 
19 shall deposit with the commissioner by July 1 of each year an
 

 
Page 2                                                     1127
                                     S.B. NO.           S.D. 1
                                                        H.D. 3
                                                        

 
 1 assessment of $10,000 for the first seventy thousand private,
 
 2 nongovernment members the entity covers and an additional
 
 3 assessment on a pro rata basis to be determined and imposed by
 
 4 the commissioner for covered members exceeding seventy thousand.
 
 5 The aggregate annual assessment shall not exceed $        .  The
 
 6 assessment shall be credited to the health insurance revolving
 
 7 fund.  If assessments are increased, the commissioner shall
 
 8 provide to any organization or entity subject to the increased
 
 9 assessment, justification for the increase.
 
10      (d)  The commissioner shall report annually to the
 
11 legislature before the convening of each regular session as to
 
12 fund administration and expenditures.
 
13      (e)  The commissioner may adopt rules in accordance with
 
14 chapter 91 to effectuate the purposes of this section."
 
15      SECTION 2.  Upon approval of this Act, each mutual benefit
 
16 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
17 health maintenance organization under chapter 432D, Hawaii
 
18 Revised Statutes, and any other entity offering or providing
 
19 health benefits or services under the regulation of the
 
20 commissioner, except an insurer licensed to offer health
 
21 insurance under article 10A of chapter 431, Hawaii Revised
 
22 Statutes, shall pay to the insurance commissioner by September
 

 
 
 
Page 3                                                     1127
                                     S.B. NO.           S.D. 1
                                                        H.D. 3
                                                        

 
 1 30, 1999, an one-time assessment in an amount not to exceed
 
 2 $        to be credited to the health insurance revolving fund.
 
 3      SECTION 3.  There is appropriated out of the health
 
 4 insurance revolving fund the sum of $          or so much thereof
 
 5 that may be necessary for fiscal year 1999-2000 and the sum of
 
 6 $        or so much thereof as may be necessary for fiscal year
 
 7 2000-2001 to carry out the purposes of this Act.
 
 8      The sums appropriated shall be expended by the department of
 
 9 commerce and consumer affairs for the purposes of this Act.
 
10      SECTION 4.  New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect upon its approval.