STAND. COM. REP. NO. 1506_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.R. No. 96
                                     




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

Sir:

     Your Committee on Health, to which was referred H.R. No. 96
entitled: 

     "HOUSE RESOLUTION REQUESTING THE HAWAII PATIENT BILL OF
     RIGHTS AND RESPONSIBILITIES TASK FORCE TO MAKE A THOROUGH
     STUDY OF THE ISSUES RELATING TO THE USE OF THE TERM "MEDICAL
     NECESSITY" TO DETERMINE THE MOST APPROPRIATE DEFINITION OF
     "MEDICAL NECESSITY," OR TO DEVELOP NEW TERMS TO BETTER
     RESOLVE THE ISSUES EXAMINED,"

begs leave to report as follows:

     The purpose of this resolution is to request the Hawaii
Patient Bill of Rights and Responsibilities Task Force to study
and define the term "medical necessity".

     The Department of Health, the Hawaii Medical Association,
and the Hawaii Medical Service Association testified in support
of the measure.  The Hawaii Insurers Council commented on the
measure.

     Your Committee finds that the term "medical necessity" is of
paramount importance to many health care decisions, yet has no
universally accepted definition.  To improve the quality of
health care and to better control the cost of health care, your
Committee finds that the term and the issues related to it
require study and definition.


 
 
 
 
                                 STAND. COM. REP. NO. 1506_______
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee concurs with the intent and purpose of H.R. No. 96 and
recommends that it be referred to the Committee on Consumer
Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair