STAND. COM. REP. NO. 1437

Honolulu, Hawaii

, 2005

RE: S.C.R. No. 133

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Housing and Health, to which was referred S.C.R. No. 133 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO STUDY AND REPORT ON THE FEASIBILITY AND ADVISABILITY OF ESTABLISHING EITHER A STATE-SPONSORED INSURANCE COMPANY OR A CAPTIVE INSURER TO PROVIDE MEDICAL MALPRACTICE COVERAGE TO HEALTH CARE PROVIDERS,"

beg leave to report as follows:

The purpose of this measure is to request a study on the feasibility of establishing a state-sponsored insurance company or captive insurer to provide medical malpractice insurance to health care providers.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs, Hawaii Health Systems Corporation, Hawaii Medical Association, American College of Obstetricians and Gynecologists, and Hawaii Independent Physicians Association. The Legislative Reference Bureau (LRB) presented comments on the measure.

Your Committees find that the cost of hospital professional and general liability coverage continues to rise and that there is a lack of insurers willing to provide coverage in Hawaii. While the access problem exists statewide, it is particularly serious on the neighbor islands. Further, the difficulty in obtaining liability coverage has affected the availability of medical treatment, especially in the areas of obstetrics/gynecology, general surgery, orthopedic surgery, anesthesiology, and gastroenterology.

In order for the Legislature to better address this problem, this measure requests LRB, in consultation with the Insurance Commissioner and other stakeholders, to study the feasibility and advisability of establishing either a state-sponsored insurance company or a captive insurer to provide malpractice coverage to health care providers.

Your Committees have amended this measure:

(1) To require LRB to review other states' experience with providing medical malpractice insurance coverage under a state-sponsored program, rather than to examine the feasibility of establishing a state-sponsored insurance company;

(2) To require the Insurance Commissioner to conduct a study that includes:

(a) The experience of captive insurance companies domiciled in Hawaii and in other states that provide professional liability insurance, particularly medical malpractice insurance;

(b) The trends in medical malpractice verdicts and malpractice insurance premiums since state-established medical claims conciliation panels have come into existence;

(c) A comparison of medical malpractice insurance rates in Hawaii with those of other states that do not have medical claims conciliation panels or similar procedures; and

(d) A comparison of medical malpractice insurance rates in Hawaii with those of liability policies for other professions; and

(3) By conforming its title to reflect the above amendments and by making other technical changes for the purpose of consistency.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Housing and Health that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 133, as amended herein, recommend that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 133, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Housing and Health,

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ROSALYN H. BAKER, Chair

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RON MENOR, Chair