147
THE SENATE                           S.C.R. NO.            S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                    SENATE  CONCURRENT
                        RESOLUTION
  REQUESTING A COMPARATIVE ANALYSIS OF HAWAII'S HEALTH CARE AND
    DENTAL CARE PLANS, AND AN ASSESSMENT OF THE INEQUITIES OR
    UNEVENNESS OF THE TAX LAWS AND ANY OTHER LAWS IN RELATION
    TO MUTUAL BENEFIT SOCIETIES AND ALL OF INSURANCE.



 1        WHEREAS, the 1998 Health Risk Management Inc. Report
 2   ranked Hawaii's quality of health care the best in the country;
 3   and
 4   
 5        WHEREAS, the February 1994 General Accounting Office
 6   Report indicated that Hawaii's health care dues rates are among
 7   the lowest in the nation despite the high cost of living; and
 8   
 9        WHEREAS, the December 1998 American Journal of Public
10   Health ranked Hawaii as the state with the highest number of
11   medically insured people in the country and the highest number
12   of physicians and dentists per capita; and
13   
14        WHEREAS, elsewhere in the United States, serious problems
15   and concerns with the management and operation of some health
16   care plans have arisen; and
17   
18        WHEREAS, Although Hawaii has not experienced many of the
19   problems associated with other health plans in the United
20   States, the Legislature wishes to ensure Hawaii's high standard
21   of excellence in health care will continue into the twenty-
22   first century; and
23   
24        WHEREAS, the same types of health care plans exist here as
25   do elsewhere in the United States; and
26   
27        WHEREAS, Hawaii has taken steps to prevent these problems
28   from occurring here, with the passage of Act 178, Session Laws
29   of Hawaii 1998, known as the Patient's Bill of Rights to
30   legislate and protect consumers' health care rights; and 
31   
32        WHEREAS, the Legislature wishes to better understand the
33   variety and composition of health care plans and dental care
34   plans in the State to further protect Hawaii's consumers; and 

 
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                                  S.C.R. NO.            S.D. 1
                                                        
                                                        

 
 1   
 2        WHEREAS, the Legislature is also concerned about apparent
 3   inequities between mutual benefit societies and other insurers
 4   with respect to taxes and other requirements; and 
 5   
 6        WHEREAS, insurers are required to pay a tax on premiums
 7   received for risks underwritten pursuant to section 431:7-202,
 8   Hawaii Revised Statutes (HRS); and
 9   
10        WHEREAS, insurers paid approximately $59.5 million in
11   premium taxes in fiscal year 1998; and
12   
13        WHEREAS, mutual benefit societies are not subject to
14   taxation under section 431:7-202, HRS; and 
15   
16        WHEREAS, mutual benefit societies are also exempt from
17   participating in the Hawaii Insurance Guaranty Association
18   (HIGA) which pays the covered claims of an insolvent insurer
19   and assesses its member insurers in order to pay HIGA's
20   obligations; now, therefore,
21    
22        BE IT RESOLVED by the Senate of the Twentieth Legislature
23   of the State of Hawaii, Regular Session of 1999, the House of
24   Representatives concurring, that the Insurance Commissioner is
25   to compile pertinent data and conduct a comprehensive analysis
26   of all relevant health and dental plans, including but not
27   limited to health maintenance organizations and mutual benefit
28   societies, and prepare a report containing its findings; and
29   
30        BE IT FURTHER RESOLVED that the Insurance Commissioner
31   report on the following components:
32   
33        (1)  Corporate form and domicile of the health or dental
34             care plan;
35   
36        (2)  Years in operation;
37   
38        (3)  Regulatory oversight, i.e. external audits, filings,
39             and jurisdiction;
40   
41        (4)  Types of plans and programs provided, i.e. QUEST,
42             individual plans, Medicare;
43   
44        (5)  Corporate administrative expenses;
45   
46        (6)  Accreditation status;
47   
48        (7)  Consumer satisfaction complaints;

 
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                                  S.C.R. NO.            S.D. 1
                                                        
                                                        

 
 1   
 2        (8)  Financial protections for members;
 3   
 4        (9)  Relationship of board of directors and others to the
 5             plan;
 6   
 7       (10)  Corporate governance;
 8   
 9       (11)  Member rights including membership meetings and
10             voting rights; and
11   
12       (12)  Organizational structure;
13   
14   and
15   
16        BE IT FURTHER RESOLVED that the Auditor is requested to
17   assess the inequities or unevenness of the tax laws and any
18   other laws in relation to mutual benefit societies and all of
19   insurance; and
20   
21        BE IT FURTHER RESOLVED that the Insurance Commissioner and
22   the Auditor shall submit their findings no later than twenty
23   days prior to the convening of the Regular Session of 2000; and
24   
25        BE IT FURTHER RESOLVED that certified copies of this
26   Concurrent Resolution be transmitted to the Insurance
27   Commissioner, who shall in turn transmit a copy to every mutual
28   benefit society and health maintenance organization licensed to
29   do business in Hawaii, and to the Auditor.