STAND. COM. REP. NO. 608

Honolulu, Hawaii

, 2005

RE: H.B. No. 855

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 855 entitled:

"A BILL FOR AN ACT RELATING TO MUTUAL BENEFIT SOCIETIES,"

begs leave to report as follows:

The purpose of this measure is to increase the accountability of mutual benefit societies to their members by:

(1) Requiring the administrative board of a mutual benefit society to include representatives of small businesses, provider networks, large businesses, and consumers;

(2) Allow aggrieved members to apply to the Insurance Commissioner for equitable relief; and

(3) Provide penalties for noncompliance.

Testimony in support was submitted by the Employees Chamber of Commerce, Hawaii Coalition for Health, and a private citizen. The Department of Commerce and Consumer Affairs supported the intent of the measure. Testimony in opposition was submitted by the Chamber of Commerce of Hawaii, Kaiser Permanente, and Hawaii Medical Service Association. Hawaii Association of Health Plans commented.

 

In the interest of facilitating further discussion on this matter, your Committee has amended this bill by changing the effective date to July 1, 2099. Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 855, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 855, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

KENNETH HIRAKI, Chair