STAND. COM. REP. NO. 984

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1664
                                        H.D. 3




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and
Health and Human Services, to which was referred H.B. No. 1664,
H.D. 3, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

     The purpose of this measure is to strengthen the Hawaii
Patient Bill of Rights and Responsibilities Act by implementing
the recommendations of the Patient Rights and Responsibilities
Task Force (Task Force). 

     The Insurance Commissioner, the Task Force's Access to
Services Subcommittee, Kaiser Permanente, the Legal Aid Society
of Hawaii, and the Hawaii Medical Service Association presented
testimony in support of the measure.  The Department of Health,
the Hawaii Federation of Physicians and Dentists, the American
Association of Retired Persons State Legislative Committee, and
an individual, though not present at the hearing, submitted
written testimony in support of the measure.  State Farm
Insurance Companies and an individual presented comments on the
measure. 

     Act 178, Session Laws of Hawaii 1998, established the Hawaii
Patient Bill of Rights and Responsibilities Act (Act) that
established certain rights and protections for enrollees in
managed care plans.  Additionally, Act 178 required the
Commissioner to convene a task force comprised of members from
the public and private sectors to review laws relating to patient

 
a                                                     HB1664 HD3
                                                      
                                   STAND. COM. REP. NO. 984
                                   Page 2


rights and responsibilities, determine whether further action was
required to protect patients under the Act, and report its
findings and recommendations to the 1999 Legislature.  

     This measure implements the Task Force's recommendations.
Some of the key provisions in this measure:

     (1)  Establish a health insurance revolving fund and
          authorize appropriations out of the fund to pay for
          medical experts and to fund educational activities; 

     (2)  Require the accreditation of managed care plans;

     (3)  Specify the type of information that must be included
          in a managed care plan's notice of final determination;

     (4)  Clarify review hearing rights, procedures, and
          standards in the case of an appeal to the Commissioner
          from a managed care plan's adverse decision, including
          specification of the information that a managed care
          plan must provide in its notice of final determination;

     (5)  Strengthen the enrollee information requirements for
          managed care plans; and

     (6)  Establish detailed requirements for a health plan's
          provision of emergency services. 

     Your Committees find that the recommendations proposed by
the Task Force will further strengthen patients' rights in the
area of health care. 

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Health and
Human Services that are attached to this report, your Committees
are in accord with the intent and purpose of H.B. No. 1664,
H.D. 3, and recommend that it pass Second Reading and be referred
to the Committee on Ways and Means.




 
a                                                     HB1664 HD3
                                                      
 
 
 
 
 
                                   STAND. COM. REP. NO. 984
                                   Page 3


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and Health
                                   and Human Services,



____________________________       ______________________________
SUZANNE CHUN OAKLAND, Chair        BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     HB1664 HD3