STAND. COM. REP. NO.744

Honolulu, Hawaii

, 2003

RE: S.B. No. 747

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 747 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to require dental plans to allow patients to choose their own dentists and to provide patients the option of having their insurance reimbursement sent directly to their dentists.

Testimony in support of this measure was received from Hawaii Dental Association, Kaneohe Family Dental Care, and six individuals. Testimony in opposition was received from The Chamber of Commerce of Hawaii, Hawaii Medical Service Association, and United Food and Commercial Workers Union, Local 480. Comments were submitted by Hawaii Dental Service.

Your Committee finds that this measure would alleviate the lack of proper dental care that exists in Hawaii in general. A large part of the solution is accessibility, which is improved by affordability. Accessibility is enhanced with reimbursements to non-participating providers, allowing patients to seek treatment from more dentists. Affordability is improved by alleviating the necessity that patients pay for their services at the time the service is rendered by a non-participating provider.

Your Committee heard concerns that this measure may result in higher costs and lower quality of dental care since non-participating providers are not bound to dental plan fee schedules or credentialing and quality improvement measures. To further exacerbate this problem, current participating providers may choose not to remain in dental plans since reimbursements will be paid regardless of participation.

In view of the foregoing concerns, your Committee has amended this measure by changing the effective date to July 1, 2050, to continue the discussion, and making technical, nonsubstantive changes for clarity.

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. 747, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 747, S.D. 1.

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

____________________________

RON MENOR, Chair