STAND. COM. REP. NO.535

Honolulu, Hawaii

, 2003

RE: S.B. No. 747

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 747 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to require dental plans to allow patients to choose their own dentists and to provide patients the option of having their insurance reimbursement sent directly to their dentists.

Oral testimony in support of this measure was presented by a private citizen.

The Chamber of Commerce of Hawaii, the Hawaii Medical Service Association, the Mutual Benefit Association of Hawaii, and the Voluntary Employees' Benefit Association of Hawaii submitted written testimony in opposition to this measure. Oral testimony in opposition to this measure was presented by the Plumbers and Pipefitters Union, Local 675.

Your Committee finds that accessibility and affordability of proper dental services are continuing problems in this State. The poor state of dental care can lead to more serious health problems, which may further result in increased medical costs and deteriorating health conditions.

Your Committee believes that the key to combating this problem lies in improved access to quality dental care. Improved access can be achieved by providing patients with greater flexibility in selecting a dental care provider. Additionally, the direct payment of insurance reimbursements to the dental providers will foster better dental care by not requiring patients to pay for such services in advance. Patients with emergencies or those with serious dental problems will also be in a better position to obtain and pay for treatment.

Your Committee finds that concerns over any increase in costs to the patient, associated with the assignment of payment, are unfounded. Your Committee notes that this measure does not require reimbursement parity. Instead, patients will benefit from the assignment of payment by having additional flexibility in paying for dental services without compromising an insurer's accountability protocols. According to a study conducted by the Legislative Reference Bureau in 1997, states with assignment of payment laws have cited no problems with the practice. In addition, assignment does not divest the insurer of ability to determine the scope of benefits and the terms of the contract.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 747 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

ROSALYN H. BAKER, Chair