STAND. COM. REP. NO. 121

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 169
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Human Services and Housing and Health, to
which was referred H.B. No. 169 entitled: 

     "A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"

beg leave to report as follows:

     The purpose of this bill is to increase the availability of
private long-term care (LTC) insurance policies by, among other
things:

     (1)  Requiring employers to offer LTC insurance to their
          employees; and

     (2)  Amending existing LTC insurance statutes to provide for
          desirable minimum underwriting requirements.

     The Executive Office on Aging, the Hawaii State Commission
on the Status of Women, the American Association of Retired
Persons, the Policy Advisory Board for Elder Affairs, the Hawaii
Coalition for Affordable Long-Term Care, Faith Action for
Community Equity, the Hawaii County Office of Aging, the
Department of Community Services Elderly Affairs of the City and
County of Honolulu, and one individual submitted testimony in
support of this measure.  The Department of Human Services
submitted testimony in support of the intent of this measure.


 
 
 
 
 
                                 STAND. COM. REP. NO. 121
                                 Page 2

 
     The American Council of Life Insurance and one individual
submitted testimony in opposition to this measure.  The
Department of Commerce and Consumer Affairs and the Hawaii State
Association of Life Underwriters submitted comments.

     Your Committees find that currently, the most equitable and
efficient manner of providing universal LTC is to increase the
availability of private LTC insurance.  As a matter of social
policy, your Committees also believe that the State should
require LTC insurance policies to offer specified LTC service
components.

     Your Committees are aware of the concern that this measure,
as written, may offer substandard polices compared to the
policies being offered across the nation, and respectfully
requests the Committee on Consumer Protection and Commerce to
review the National Association of Insurance Commissioners' LTC
Insurance Model Act and determine how this measure will meet
national standards.

     Your Committees have amended this measure by:

     (1)  Deleting all references to policies issued after
          October 14, 1998;

     (2)  Offering individual LTC insurance policies an option to
          provide a combination of LTC services;

     (3)  Providing that employers and others offering group LTC
          insurance offer one, instead of two or more, group LTC
          insurance policy;

     (4)  Adding another new section to Article 10A of Chapter
          431, Hawaii Revised Statues, relating to the
          availability of policies;

     (5)  Specifying that a policy purchased by a person who
          terminates employment is deemed to be portable;

     (6)  Correcting the reference to "brain diseases" by
          replacing it with the term "brain disorders";

     (7)  Deleting the exemption that no adjustments will be made
          to any age group sixty-five or older;

     (8)  Replacing the term "adult residential care homes" with
          "adult residential homes" to include Adult Foster
          Family Homes;


 
                                 STAND. COM. REP. NO. 121
                                 Page 3

 
     (9)  Adding a severability clause; and

    (10)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

    As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Health that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 169, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as H.B. No. 169, H.D. 1, and be referred to the Committee on
Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Health,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ALEXANDER SANTIAGO, Chair          DENNIS ARAKAKI, Chair