STAND. COM. REP. NO.1237-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 940

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 940, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE UNFAIR PRACTICES,"

begs leave to report as follows:

The purpose of this bill is to clarify the rights and obligations of mutual benefit societies and health maintenance organizations with regard to the health coverage of individuals who may have a third party claim for recovery of damages. This bill provides that refusing to provide, or limiting, health coverage to persons who may have third party claims for damages is an unfair insurance practice under article 13 of the Insurance Code.

Consumer Lawyers of Hawaii, Hawaii Claims Managers Association, and three individuals testified in support of this measure. The Department of Commerce and Consumer Affairs offered comments. The Hawaii Medical Service Association, Queen's Health Plans, Kapiolani HealthHawaii, Straub Health Plan Services, Inc., Chamber of Commerce of Hawaii, Hawaii Association of Health Plans, Hawaii Business Health Council, Hawaii Bankers Association, Retail Merchants of Hawaii, AT&T, Avalon Development and Consulting, Voluntary Employees' Benefit Association of Hawaii, and Mutual Benefit Association of Hawaii opposed this measure.

Your Committee has amended this bill by:

(1) Inserting a defective date of January 1, 2020, for the purpose of continued discussion; and

(2) Making technical, nonsubstantive amendments to correct drafting errors.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 940, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 940, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair