STAND. COM. REP. NO. 794

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 783
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 783 entitled: 

     "A BILL FOR AN ACT RELATING TO DENTAL INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to permit a patient to direct
an insurer to directly reimburse a nonparticipating dental
provider.

     The Insurance Commissioner and three individuals presented
testimony in support of the measure.  The Hawaii Dental
Association and twenty-nine individuals, though not present at
the hearing, submitted written testimony in support of the
measure.

     Queen's Health Management, the Chamber of Commerce of
Hawaii, Legislative Information Systems of Hawaii, the Hawaii
Building and Construction Trades Council, AFL-CIO, and the Hawaii
Medical Services Association presented testimony in opposition to
the measure.  The Hawaii Medical Group Management Association,
the Hawaii State AFL-CIO, and the Hawaii Government Employees
Association, though not present at the hearing, submitted written
testimony in opposition to the measure.

     This measure gives the patient the option to allow the
dental plans to directly reimburse the provider.  Your Committee
notes that this measure does not require a plan to reimburse a

 
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nonparticipating provider at the same or equal rate of
reimbursement as a participating provider.  

     Your Committee has amended this measure by:

     (1)  Changing the effective date of the bill to July 1,
          2001, to provide dental plans sufficient time to
          implement the direct reimbursement option;

     (2)  Adding similar language to other chapters in Hawaii's
          insurance laws so that all plans are covered; and 

     (3)  Making technical amendments for style and conformity.

     
     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 783, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 783, S.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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