STAND. COM. REP. NO. 516-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2797
                                     H.D. 1




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2797 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to amend Section 431:2-201.5,
Hawaii Revised Statutes, to:

     (1)  Add language that the State intends to retain
          enforcement jurisdiction over matters related to the
          federal Newborns' and Mothers' Health Protection Act of
          1996, and the Women's Health and Cancer Rights Act of
          1998;

     (2)  Mirror requirements applicable under the federal Health
          Insurance Portability and Accountability Act of 1996
          (HIPAA), by adding the term "all" to describe the range
          of group health plans that must be provided by group
          health issuers to small employers within the issuer's
          service area; and

     (3)  Clarify references to HIPAA.

     Your Committee received testimony from the Department of
Commerce and Consumer Affairs (DCCA) supporting this measure and
suggesting amendments.


 
 
 
                                 STAND. COM. REP. NO. 516-00
                                 Page 2

 
     Upon consideration of the testimony submitted, your
Committee has amended this bill as requested by DCCA to:

     (1)  Change a reference to "health coverage," to read
          "health insurance coverage," to be consistent with
          HIPAA; and

     (2)  Add language to the definition of "group health issuer"
          to include association plans, thereby making applicable
          to these plans the prohibition against imposition of
          limitations on coverage for preexisting conditions that
          applies to group health issuers.

     Technical, nonsubstantive amendments were also made for
purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2797, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2797, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair