HOUSE OF REPRESENTATIVES

H.B. NO.

613

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HEALTH INSURANCE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to continue permitting small accident and health or sickness insurers, who lack coercive power in the marketplace, to bundle together different classes of insurance, such as health, dental, and vision.  Under these circumstances, bundling provides broader health care coverage in single unified policies, ultimately resulting in lower overall premiums; fostering greater competition within the Hawaii insurance marketplace; and providing consumers with greater flexibility, coverage, and pricing options.

     Act 227, Session Laws of Hawaii 2008, which amended the Insurance Code to permit such bundling, contains a sunset clause that will repeal Act 227 on June 30, 2011.  The legislature finds that the bundling exemption for small accident and health or sickness insurers has benefitted Hawaii consumers and that it has not had an adverse effect on competition because the affected insurers lack coercive market power.  Consequently, the purpose of this Act is to remove the sunset clause and keep in place the specification that it is not an unfair method of competition or an unfair or deceptive act or practice for an accident and health or sickness insurer with a market share of less than five per cent to refuse to issue or renew a policy with a prospective insured unless the prospective insured contracts for another class or an additional policy of the same class of insurance with the same insurer.

     SECTION 2.  Act 227, Session Laws of Hawaii 2008, section 5, as amended by Act 11, Session Laws of Hawaii 2009, section 22, is amended to read as follows:

"SECTION 5.  This Act shall take effect upon its approval[, and shall be repealed on June 30, 2011; provided that section 431:13-103(a), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act]."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.

     SECTION 4.  This Act shall take effect on January 7, 2059.


 


 

Report Title:

Insurance Provider Bundling; Sunset Clause

 

Description:

Removes the sunset clause provisions in section 5 of Act 227, Session Laws of Hawaii 2008.  Effective January 7, 2059.  (HB613 HD1)

 

 

 

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