REPORT TITLE:
Insurance exemption


DESCRIPTION:
Exempts health insurance offered under federally funded
entitlement programs by insurers, mutual benefit societies,
health maintenance organizations, and managed care plans from
mandated coverage requirements.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        528
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HEALTH INSURANCE.  
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 431:10A, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "�431:10A-     Federally funded entitlement programs;
 
 5 exemption.   Requirements relating to mandated coverages shall
 
 6 not be applicable to any insurer offering health insurance under
 
 7 a federally funded entitlement program; provided that this
 
 8 exemption shall apply only to that part of the insurer's business
 
 9 under the federally funded entitlement program."
 
10      SECTION 2.  Chapter 432:1, Hawaii Revised Statutes, is
 
11 amended by adding a new section to be appropriately designated
 
12 and to read as follows:
 
13      "�432:1-     Federally funded entitlement programs;
 
14 exemption.  Requirements relating to mandated coverages shall not
 
15 be applicable to any mutual benefit society offering health
 
16 insurance under a federally funded entitlement program; provided
 
17 that this exemption shall apply only to that part of the mutual
 
18 benefit society's business under the federally funded entitlement
 
19 program."
 

 
Page 2                                                     528
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      SECTION 3.  Chapter 432D, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "�432D-     Federally funded entitlement programs;
 
 5 exemption.  Requirements relating to mandated coverages shall not
 
 6 be applicable to any health maintenance organization offering
 
 7 health insurance under a federally funded entitlement program;
 
 8 provided that this exemption shall apply only to that part of the
 
 9 health maintenance organization's business under the federally
 
10 funded entitlement program."
 
11      SECTION 4.  Chapter 432E, Hawaii Revised Statutes, is
 
12 amended by adding a new section to be appropriately designated
 
13 and to read as follows:
 
14      "�432E-     Federally funded entitlement programs;
 
15 exemption.  Requirements under this chapter shall not be
 
16 applicable to any managed care plan under a federally funded
 
17 entitlement program; provided that this exemption shall apply
 
18 only to that part of the managed care plan's business under the
 
19 federally funded entitlement program."
 
20      SECTION 5.  New statutory material is underscored.
 
21      SECTION 6.  This Act shall take effect upon its approval.