STAND. COM. REP. 172

Honolulu, Hawaii

, 2003

RE: H.B. No. 1256

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 1256 entitled:

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

begs leave to report as follows:

The purpose of this bill is to:

(1) Establish the Review Panel on Mandated Health Care Service Coverage (Panel) to review and evaluate existing and proposed mandated health care services; and

(2) Repeal the Auditor's responsibility of reviewing the proposed mandated coverage.

The Hawaii Psychological Association, Hawaii Medical Service Association, and a concerned individual testified in support of this measure. Kaiser Permanente supported this measure with amendments. The Department of Commerce and Consumer Affairs, Insurance Division, opposed this measure. The Office of Information Practices submitted comments.

Your Committee finds that while increased health benefits contribute to providing better health coverage for individuals, an increase in mandated health services may also be a contributing factor to increased health insurance premiums. Your Committee believes that an entity needs to conduct an extensive review on the financial and social impact of mandated health benefits and determine if there are any alternatives.

Your Committee has amended this bill by:

(1) Changing the term "carrier" to "health plan";

(2) Adding two members to the Panel to include a representative from a health maintenance organization and a health insurance company;

(3) Removing the provision that the Panel may enter into closed executive meetings;

(4) Conforming with the repeal of the Auditor's responsibility to review proposed mandated coverage by repealing the requirements for the content of the reports;

(5) Repealing all mandated health coverage benefits on July 1, 2004;

(6) Appropriating funds for the Panel to carry out its duties; and

(7) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

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. 1256, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1256, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

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

 

____________________________

DENNIS A. ARAKAKI, Chair