HOUSE OF REPRESENTATIVES

H.C.R. NO.

93

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING A STUDY OF THE FEASIBILITY OF MEDICAL SAVINGS ACCOUNTS.

 

WHEREAS, medical savings accounts provide an alternative method of funding health care that can be more cost-effective than standard health insurance, and which can enable individuals to save money while earning interest; and

WHEREAS, certain questions have arisen regarding medical savings accounts' applicability in Hawaii, including whether:

(1) Medical savings accounts would affect Hawaii's exemption to preemption under the federal Employee Retirement Income Security Act (ERISA);

(2) Legislation allowing the creation of medical savings accounts would be preempted under ERISA; and

(3) Medical savings accounts can be consistent with the minimum package of benefits required under the State's Prepaid Health Care Act (Health Care Act);

and

WHEREAS, in 1974, Hawaii received an exemption to preemption under ERISA that allowed the State to require employers to provide health insurance to employees; and

WHEREAS, the Health Care Act was enacted for the purpose of providing basic, affordable health insurance for all employees, and any changes in the Health Care Act may jeopardize the ERISA exemption which would have a disastrous effect for both employers and employees; and

WHEREAS, the Legislature firmly believes there is a need to provide basic health insurance coverage, and it is vital that medical savings accounts be in accordance with this important public policy; and

WHEREAS, the Legislature finds that medical savings account legislation will not be preempted under ERISA, since the State already is able to regulate the types of medical insurance offered under the Health Care Act, as found in Article 10A, Hawaii Revised Statutes; and

WHEREAS, the Attorney General has suggested that establishment of medical savings accounts would not have an impact on Hawaii's ERISA exemption; and

WHEREAS, despite this reassurance from the Attorney General, the ultimate decision on whether the enactment of medical savings account legislation would eliminate Hawaii's ERISA exemption will be decided by federal officials; and

WHEREAS, if legislation allowing medical savings accounts was enacted by the Legislature and the federal court ruled that it indeed did alter the Health Care Act as it was originally enacted in 1974, the court could reexamine and possibly eliminate Hawaii's exemption; and

WHEREAS, should this occur, it would prohibit the State from requiring employers to provide health insurance coverage for their employees; and

WHEREAS, the Attorney General has suggested that medical savings accounts may provide minimum benefits in a manner consistent with the Health Care Act depending on the package an employer presents to the Director of Labor and Industrial Relations; and

WHEREAS, the type of package that is allowed will have an enormous impact on our society; and

WHEREAS, a large number of employees may obtain high deductible policies and could possibly lose their homes and entire savings if they are afflicted by a major illness or injury; and

WHEREAS, since risks will be shifted away from those who obtain high deductible policies, the establishment of high deductible policies may impact the insurance rates for those who do not choose to obtain high deductible policies; and

WHEREAS, if the rates do increase for the other plans, high deductible policies may cause rates to increase so much as to preclude them from being a feasible choice for Hawaii's employees; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty Second Legislature of the State of Hawaii, Regular Session of 2003, the Senate Concurring, that the Auditor is requested to conduct a social and financial analysis of the impact medical savings accounts would have on the Health Care Act; and

BE IT FURTHER RESOLVED that for purposes of this analysis, the Auditor is directed to examine the feasibility of medical savings accounts, as proposed in the following measures introduced during the Regular Session of 2003:

(1) House Bill No. 450;

(2) House Bill No. 1167; and

(3) House Bill No. 1293;

and

BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to assist the Auditor in obtaining any information related to rate-making, and the impact the minimum coverage provided under medical savings accounts would have on consumers; and

BE IT FURTHER RESOLVED that the Hawaii Medical Service Association, and Kaiser Permanente are requested to assist the Auditor in preparing this analysis; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Insurance Commissioner, the President of the Hawaii Medical Service Association, and the President of Kaiser Permanente.

 

 

OFFERED BY:

_____________________________

Report Title:

Requests that auditor to conduct a study on the feasibility of medical savings accounts and its impacts on the Prepaid Health Care Act.