STAND. COM. REP. NO. 1644

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 170
                                     H.D. 1




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.C.R. No. 170 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO
     CONDUCT A STUDY OF MANDATORY HEALTH INSURANCE COVERAGE FOR
     MENTAL HEALTH AND SUBSTANCE ABUSE,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request that
the Legislative Auditor (Auditor) conduct a study of the social
and financial impacts of enacting a parity law requiring that
insurance coverage for mental illness be equal to that for all
other medical illnesses.

     Your Committee received testimony in support of this
concurrent resolution from the Department of Health and the
Hawaii Medical Service Association.  The Hawaii Psychological
Association and Legislative Information Services of Hawaii, Inc.,
submitted testimony supporting this concurrent resolution and
suggesting amendments.  The Insurance Commissioner of the
Department of Commerce and Consumer Affairs stated a willingness
to cooperate if the concurrent resolution was adopted.

     Your Committee notes that when the Legislature mandated a
similar study by way of resolution in 1997, the Auditor's report
in response, indicated difficulties in producing an analysis, in
part, because of the lack of a definition for parity and the
centrality of the term to the questions asked by the resolution.
Your Committee understands that as written, this concurrent

 
 
                                 STAND. COM. REP. NO. 1644
                                 Page 2

 
resolution would create many of the same impediments to
productive reporting by the Auditor.  Accordingly, your Committee
has refocused this concurrent resolution on the populations that
have mental health and substance abuse treatment needs that may
not be adequately addressed under current levels of health
coverage.  The Auditor is requested to determine whether these
groups exist, and if these groups do exist, to identify their
needs and estimate the costs of providing any needed additional
coverage based on an examination of this state's existing private
health care programs, as well as comparisons with the approaches
taken by other states to meeting the needs of this population.

     Your Committee has also amended this concurrent resolution
as suggested by testifiers, to request that the Auditor consult
parties that would be affected by any resulting mandated
coverage, and to remove references to public employee and public
assistance policies.  Your Committee further believes that once a
study is conducted, liability for costs as well as any conflicts
with the Employee Retirement Income Security Act may be clarified
by request to appropriate agencies and entities.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee concurs with the intent and purpose
of H.C.R. No. 170, as amended herein, and recommends that it be
referred to the Committee on Finance, in the form attached hereto
as H.C.R. No. 170, H.D. 1.

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



                                   ______________________________
                                   RON MENOR, Chair