STAND. COM. REP. NO.2527

Honolulu, Hawaii

, 2002

RE: S.B. No. 2762

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2762, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE SUNSET CLAUSE FOR MENTAL HEALTH AND ALCOHOL AND DRUG ABUSE TREATMENT INSURANCE BENEFITS,"

begs leave to report as follows:

The purpose of this measure is to make permanent the requirement that health insurance plans in the State include coverage for the treatment of mental illness, alcohol dependence, and drug dependence.

Your Committee received testimony in support of this measure from the Department of Health, Hawaii Government Employees Association, Hawaii Psychological Association, Equal Insurance Coalition, Mental Health Association in Hawaii, National Association of Social Workers, Kalihi-Palama Service Area Board on Mental Illness and Substance Abuse, National Alliance for the Mentally Ill Oahu, Hawaii Medical Association, Hawaii Psychiatric Medical Association, Hawaii Nurses' Association, and two individuals.

The National Institute of Mental Health estimates the annual cost of untreated mental illness at over $300 billion per year in the United States. Untreated mental illness and substance abuse disorders may result in increased demands for services to treat secondary medical conditions such as HIV disease, fetal alcohol syndrome, cardiopulmonary disease, and cirrhosis.

Currently, state law mandates the inclusion of mental health and substance abuse treatment services in individual and group health plans. However, this mandate is scheduled to be repealed on July 1, 2002, having been extended several times since the law was enacted in 1988. Your Committee finds that mental health and substance abuse treatment services are essential and integral components of health care. Therefore, your Committee supports the passage of this measure which repeals the sunset of chapter 431M, Hawaii Revised Statutes, and ensures continued coverage for mental illness and substance abuse disorders under health insurance plans in this State.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2762, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

RON MENOR, Chair