STAND. COM. REP. NO. 946

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 326
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 326, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to require health insurance
coverage for medical foods and low-protein modified food products
for the treatment of inborn metabolic diseases.

     The Department of Health, the State Insurance Commissioner,
and Kaiser Permenente presented testimony in support of the
measure. The American Council on Life Insurance presented
proposed amendments to the measure. Although not present at the
hearing, the Department of Human Services, and the Office of
Hawaiian Affairs submitted written testimony in support of the
measure.

     Your Committee finds that currently few health insurance
plans cover medical foods and low protein modified foods that are
necessary to treat inborn metabolic diseases such as
phenylketonuria (PKU) and maple syrup urine disease (MSUD).
Without these foods, children born with PKU or MSUD will
eventually suffer severe brain damage or death.  

     Your Committee further finds that medical and low-protein
modified foods may cost a family over $10,000 per year for one
child.  According to a Report by the Legislative Auditor, fewer

 
a   
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than 25 people in the State of Hawaii require this treatment.
Therefore, mandating coverage in these cases will have a minimal
impact on the cost of health insurance, while relieving a great
burden on many families in the State and ensuring that affected
children receive necessary treatment. 

     Your Committee has amended this measure to:

     (1)  Delete the third condition for coverage of medical
          foods and low-protein modified food products, which
          required that the product is "not a commonly available
          commercial preparation";

     (2)  Delete the provision which required QUEST to cover at
          least eighty per cent of the cost of medical foods and
          low-protein modified foods; and

     (3)  Make technical and non-substantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 326, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 326, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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