STAND. COM. REP. NO. 3461

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2256

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 2256, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose of this measure is to allow mutual benefit societies with less than five per cent of the health insurance market share offering contracts for dental and vision insurance to bundle different types of benefits into a single unified policy without violating anti-tying statutes.

 

     Your Committee received testimony in support of this measure from the Hawaii Medical Assurance Association.  Testimony in opposition was received from the State Insurance Commissioner, State Attorney General, State Farm Insurance Companies, and Hawaii Medical Services Association.

 

     Your Committee finds that small insurers are essential in providing consumers with insurance coverage options where the consumers may not be able to readily obtain or afford coverage from larger insurers.  In order to compete, small insurers frequently exercise the longstanding practice of "bundling" different classes of insurance, such as health, dental, and vision, together in a unified single policy to provide broader insurance coverage as well as greater flexibility and pricing options for consumers.  This bill attempts to clarify that small insurers may bundle different classes of insurance.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2256, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

____________________________

BRIAN T. TANIGUCHI, Chair