STAND. COM. REP. NO. 1148

Honolulu, Hawaii

, 2005

RE: H.B. No. 106

H.D. 3

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 106, H.D. 3, entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish the circumstances under which insurers, mutual benefit societies, and health maintenance organizations are required to provide employers with employer-sponsored group health claims experience, and what types of information can be requested and provided.

The Hawaii Management Alliance Association, the Hawaii Association of Health Plans, the Hawaii Medical Service Association, and Kaiser Permanente submitted testimony in support of this measure. The Department of Commerce and Consumer Affairs testified that it would support the measure with an amendment. The Employers' Chamber of Commerce, Summerlin, and Employee Benefit Consulting submitted testimony in opposition.

Your Committee finds that the federal Health Insurance Portability and Accountability Act of 1996, commonly referred to as HIPAA, establishes guidelines for health insurers to follow in protecting private member information. It is in the best interest of the entire community that individual privacy is both valued and protected and individuals are not penalized for their respective health conditions. This measure defines what type of health care information and under what circumstances this information can be provided to employer groups.

Upon further consideration, your Committee has amended this measure by:

(1) Limiting the fee that an insurer, mutual benefit society, or health maintenance organization may charge an employer for providing information to fifty dollars;

(2) Applying the measure to employer groups of fifty or more employees;

(3) Limiting the amount of time the insurer has to provide the information to no later than sixty days;

(4) Adding the provisions of S.B. No. 140 S.D. 1 to prohibit broad discretionary clauses that give an insurer, mutual benefit society, or health maintenance organization broad discretionary authority to set the type and scope of medical coverage to be provided in health insurance contracts with employers; and

(5) Making part II of the measure effective upon its approval, while keeping the effective date for part I as July 1, 2050 to encourage more discussion of that part.

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 H.B. No. 106, H.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 106, H.D. 3, S.D. 1, 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