STAND. COM. REP. NO.724-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2721

S.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 2721, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this bill is to:

(1) Extend for another year the authority of the Insurance Division to regulate dental insurance plans of dental service corporations and dental service organizations; and

(2) Provide that actions taken under Act 132, Session Laws of Hawaii 2001 (Act 132), shall continue as though Act 132 is in force until the conclusion of the complaint.

The Insurance Division of the Department of Commerce and Consumer Affairs, Hawaii Dental Service, and Hawaii Medical Service Association testified in support of this bill.

Act 132 was enacted by the Legislature to protect Hawaii citizens by making all dental insurance plans offered by dental service corporations and dental service organizations subject to regulation by the Insurance Division. As enacted, Act 132 will be repealed on July 1, 2002.

Soon after Act 132 took effect on May 22, 2001, the Insurance Division initiated an investigation based on complaints it received about the Hawaii Dental Health Plan (HDHP). HDHP was not able to pay its claims, did not respond adequately to unpaid claims complaints, and did not cooperate with a state examination of its financial health. HDHP is now in liquidation, and the Insurance Commissioner is serving as liquidator by court order.

Your Committee finds that this bill will enable the Insurance Division to bring closure to, and continue to pursue claims of providers and creditors in, the pending liquidation action.

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 S.B. No. 2721, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

____________________________

DENNIS A. ARAKAKI, Chair