STAND. COM. REP. NO. 610

Honolulu, Hawaii

, 2005

RE: H.B. No. 106

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 106, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this bill is to protect employee privacy rights by defining the types of health care information and the circumstances under which insurers, mutual benefit societies, and health maintenance organizations (HMOs) provide this information to employers.

The Hawaii Medical Service Association and the Hawaii Association of Health Plans testified in support of this measure. The Employers' Chamber of Commerce supported the intent of the bill. The Department of Commerce and Consumer Affairs and Summerlin Life & Health Insurance Company testified in opposition to this measure.

Your Committee finds that group health claims information allows employers to compare the costs of health care plans and make a determination on which plan is most cost-effective for their employees. However, concerns were raised regarding the required release of information that may infringe upon an insurer's proprietary and ratemaking information. Your Committee believes that this measure is an attempt to strike a balance between the necessary release of information and the right to privacy.

Your Committee has concerns regarding the exception for the provision of information to employers that provide coverage under a policy for fewer than 100 employees, which would primarily affect small businesses. Accordingly, your Committee has amended this measure by:

(1) Eliminating the exemption that permitted insurers, mutual benefit societies, and HMOs not to provide information to employers that provide coverage under a particular policy for fewer than 100 employees; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 106, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Judiciary in the form attached hereto as H.B. No. 106, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

____________________________

KIRK CALDWELL, Chair