STAND. COM. REP. NO. 590

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1130
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1130 entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH MAINTENANCE
     ORGANIZATIONS,"

begs leave to report as follows:

     The purpose of this bill is to require health maintenance
organizations to file quarterly reports with the Insurance
Commissioner; and to impose penalties and other administrative
sanctions on health maintenance organizations that fail to renew
their certificates of authority in a timely manner.

     Your Committee finds that quarterly reporting and the timely
renewal of certificates of authority can help the Insurance
Commissioner to more effectively monitor the financial solvency
of health maintenance organizations.  With more and more
employers turning to health maintenance organizations as a means
of controlling or reducing health care costs, everything possible
must be done to ensure the continued solvency of health
maintenance organizations.

     Your Committee has amended this bill by making technical
nonsubstantive changes for purposes of clarity, consistency, and
style.


 
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                                   STAND. COM. REP. NO. 590
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1130, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1130, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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