HOUSE OF REPRESENTATIVES

H.C.R. NO.

39

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 


HOUSE CONCURRENT

RESOLUTION

 

 

requesting THE ESTABLISHMENT OF a working group to review and report on the complexities of hearing aid costs and coverages by health insurance.

 

 

 


     WHEREAS, by Senate Concurrent Concurrent Resolution No. 34, S.D. 1, Regular Session of 2014, the Legislature requested the Auditor to assess the social and financial impacts of requiring health insurers to offer coverage for hearing aids, as proposed in Senate Bill No. 309, S.D. 1, Regular Session of 2014 (S.B. 309), pursuant to sections 23-51 and 23‑52, Hawaii Revised Statutes; and

 

WHEREAS, in response, the Auditor published Report No. 14‑10, entitled a "Study of Proposed Mandatory Health Insurance for Hearing Aids", dated October 2014; and

 

     WHEREAS, the Auditor found that insurers already provide coverage or planned to start providing coverage in 2015, and that S.B. 309 was likely to have minimal effect on insurance premium costs; and

 

     WHEREAS, the Auditor also found that hearing loss affects an estimated one-third of people in the United States between the ages of sixty-five and seventy-five, and close to one half of people older than seventy-five; and

 

     WHEREAS, this body understands that individuals over the age of sixty-five are eligible for insurance coverage by Medicare and that the State is preempted from mandating benefits to Medicare because regulatory authority rests with the Centers for Medicare and Medicaid; and

 

     WHEREAS, Report No. 14-10 found that as of August 2014, the twenty states with laws requiring that private health insurers provide coverage for hearing aids each had at least one coverage limitation based on the age of the beneficiary, the frequency at which insurers must provide hearing aids to beneficiaries, or the dollar cost the insurer must cover; and

 

     WHEREAS, Report No. 14-10 found the proposed bill's lack of coverage parameters problematic; and

 

     WHEREAS, the Report notes that the Department of Health had proposed changes to ensure adequate coverage so that those needing hearing aids are not left with a large co-payment and extra costs that would cause financial hardship; and

 

     WHEREAS, this body finds that additional details are needed on commercial and individual insurance coverage offered for hearing aids by each insurance plan, including the types of hearing aids covered and the coverage level itself; and

 

     WHEREAS, this body further finds that additional details are also needed on the medical necessity, accessibility, and cost of hearing aid options, with input from audiologists and hearing aid dealers and fitters who engage in the practice of fitting and selling hearing aids in the State; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, the Senate concurring, that a working group be established to review and report on the complexities of hearing aid costs and coverages by health insurance, including but not limited to:

 

     (1)  The categories of hearing aids covered by each health plan in the State;

 

     (2)  The level of coverage offered by each health plan in the State, including obligations the patient must cover such as co-pays, deductibles, and annual fees;

 

     (3)  The medical necessity, accessibility, and costs of different types of hearing aids;

 

     (4)  Recommended coverage parameters, including an evaluation of the following factors:  age of the beneficiary, frequency at which insurers must provide hearing aids to beneficiaries, and the minimum dollar cost or percentage of cost the insurer must cover, and whether any of these or other factors should be incorporated into provider requirements;

 

     (5)  Whether an appeal procedure should be implemented to allow for replacements prior to the expiration of a minimum period, if any, for obtaining new hearing aids within the coverage plan, if hearing loss worsens; and

 

     (6)  Other matters recommended by the working group; and

 

     BE IT FURTHER RESOLVED that the working group shall consist of the following members:

 

     (1)  One member of the House of Representatives to be designated by the Speaker of the House of Representatives, who shall co-chair the working group;

 

     (2)  One member of the Senate to be designated by the Senate President, who shall co-chair the working group;

 

     (3)  The Insurance Commissioner, or the Insurance Commissioner's designee;

 

     (4)  The Administrator of the Med-QUEST Division of the Department of Human Services, or the Administrator's designee; and

 

     (5)  One representative of the Department of the Attorney General to be designated by the Attorney General; and

 

The co-chairs of the working group shall invite the following individuals to participate as members of the working group:

 

     (1)  One representative from each entity operating a health plan in the State;

     (2)  An audiologist licensed under chapter 468E, Hawaii Revised Statutes;

 

     (3)  One hearing aid dealer or fitter licensed under chapter 451A; and

 

     (4)  Any other individuals the co-chairs recommend; and

 

     BE IT FURTHER RESOLVED that the working group, with the assistance of the Legislative Reference Bureau, shall submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2021; and

 

     BE IT FURTHER RESOLVED that the working group shall dissolve on January 30, 2021; and

 

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, President of the Senate, Speaker of the House of Representatives, Insurance Commissioner of the Department of Commerce and Consumer Affairs, Administrator of the Med-QUEST Division of the Department of Human Services, Attorney General, and Director of the Legislative Reference Bureau.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Hearing Aids Working Group