STAND. COM. REP. NO. 119-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2002
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No.
2002 entitled: 

     "A BILL FOR AN ACT RELATING TO PROTECTION OF HEALTH
     INFORMATION BY PROPERTY AND CASUALTY INSURERS,"

begs leave to report as follows:

     The purpose of this bill is to set standards to safeguard
protected health information from unauthorized collection, use,
and disclosure by requiring property and casualty insurers to
establish procedures for the treatment of all protected health
information.

     The Hawaii Insurers Council (HIC) and State Farm Insurance
Companies testified in support of this measure.  The Department
of Commerce and Consumer Affairs (DCCA) testified in support of
the intent of this measure, but expressed reservations about its
ability and availability of resources to enforce this measure
should an excessive number of violations occur.  The Office of
Information Practices (OIP) and Common Cause Hawaii opposed this
measure.

     HIC testified that property and casualty insurance companies
have responsibilities with respect to protected health
information that are distinctly different from the information
that is produced and managed by primary health care providers and
accident and health insurance carriers.  HIC believes that this
measure is a unique approach that reasonably addresses the manner

 
 
 
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                                 Page 2

 
in which medical information should be managed by property and
casualty insurers.

     Your Committee, however, heard compelling testimony by OIP
that this measure weakens the protections afforded to
individuals' health care information.  Your Committee is
concerned about OIP's testimony, and requests the Committees on
Consumer Protection and Commerce and Judiciary and Hawaiian
Affairs to thoroughly address these concerns as it falls under
their jurisdictional purview.

     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.
2002 and recommends that it pass Second Reading and be referred
to the Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair