STAND. COM. REP. 196

Honolulu, Hawaii

, 2003

RE: H.B. No. 1617

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 Committees on Health and Human Services and Housing, to which was referred H.B. No. 1617 entitled:

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

beg leave to report as follows:

The purpose of this bill is to provide universal health for all Hawaii citizens at an affordable cost by:

(1) Establishing the State Health Authority (Authority) to be responsible for overall health planning for the State;

(2) Establishing the State Health Authority Fund (Authority Fund) to receive, among other things, payroll deductions, federal and state funds, and portions of health insurance premiums to carry out the duties of the Authority;

(3) Establishing the State Health Authority Commission to determine the financial cost of the Authority and to ascertain a financing mechanism to carry out the purpose of the Authority;

(4) Repealing the State Health Planning and Development Agency and transferring its functions to the Authority;

(5) Repealing the Prepaid Health Care Act; and

(6) Repealing the Hawaii Employer-Union Health Benefits Trust Fund and transferring the funds to the Authority Fund.

The Hawaii State Commission on the Status of Women, National Association of Social Workers, Hawai'i Primary Care Association, Kalihi Valley Community Foundation, and a concerned individual testified in support of this measure. The Hawaii Long Term Care Association and Hawaii Society of Naturopathic Physicians supported the intent of this measure.

The Department of Human Services, Hawaii Insurers Council, State Farm, Hawaii Government Employees Association, Kaiser Permanente, Healthcare Association of Hawaii, American Council of Life Insurers, ILWU Local 142, Hawaii Medical Association, American Family Life Assurance Company of Columbus, and a concerned individual submitted testimony in opposition to this measure.

The Hawaii Medical Service Association, AlohaCare, and several concerned individuals submitted comments.

Your Committees find that health care costs in Hawaii are escalating exponentially and Medicaid reimbursements are frequently less than the actual cost of care. Moreover, health insurance premiums and prescription drug costs continue to rise. The increase in the costs of health premiums translates into increased employer costs. Under the Prepaid Health Care Act, private sector employers are required to pay the bulk of health insurance premiums for their employees who work twenty hours or more per week. Public employees generally pay even more because the State of Hawaii is exempt from the Prepaid Health Care Act.

Furthermore, the increasing costs of health care, insurance premiums, employer costs, prescription drugs, long-term care, together with the growing number of uninsured individuals and inadequate Medicaid reimbursements are creating a vital need for new and innovative health care system to provide affordable health care for all of Hawaii's citizens.

Therefore, your Committees find that now is the time to consider a more efficient health coverage for the citizens of Hawaii by providing a single-payer system, wherein one entity covers all the health care for Hawaii at affordable cost.

 

However, your Committee also recognizes the need for a panel to review mandated health benefits. In addition, studies may be required to assure a reasonable transition of health care coverage from public and private insurance coverage.

Accordingly, your Committees have amended this bill by:

(1) Clarifying that health-care related portions of insurance provider reimbursements shall be deposited into the Authority Fund;

(2) Establishing the Review Panel on Mandated Health Care Service Coverage;

(3) Removing the provision repealing the Prepaid Health Care Act;

(4) Requiring employers to provide health care coverage to certain employees by a health care plan qualified by the Authority;

(5) Changing the effective dates, as well as other implementation and reporting dates; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1617, as amended herein and recommends that it pass Second Reading in the form attached hereto as H.B. 1617, H.D. 1, and be referred to the Committee on Labor and Public Employment.

 

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,

 

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair

____________________________

DENNIS A. ARAKAKI, Chair