STAND. COM. REP. NO. 411

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1452
                                        




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Health and Human Services, to which was referred S.B. No. 1452
entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

     The purpose of this measure is to amend the Hawaii Patient
Bill of Rights and Responsibilities Act as recommended by the
Patient Rights and Responsibilities Task Force (Task Force). 

     The Hawaii Health Information Corporation and the AARP
presented testimony in support of the measure.  The Hawaii
Nurses' Association and the Task Force's Access to Services
Subcommittee, though not present at the hearing, submitted
written testimony in support of the measure. 

     Testimony in support of the measure, but requesting
amendments thereto was presented by the following: the Insurance
Commissioner (Commissioner), the Legal Aid Society of Hawaii,
Kaiser Permanente, the Hawaii Medical Association, the Hawaii
Medical Services Association, the University Health Alliance, and
the Hawaii Insurers Council.  The Hawaii Coalition for Health,
though not present at the hearing, submitted written testimony in
support of the measure with proposed amendments.  State Farm
Insurance Companies presented testimony in support of certain
provisions and in opposition to other provisions of the measure.


 
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                                   STAND. COM. REP. NO. 411
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     Act 178, Session Laws of Hawaii 1998, established the Hawaii
Patient Bill of Rights and Responsibilities Act (Act) that
established certain rights and protections for enrollees in
managed care plans.  Additionally, Act 178 required the
Commissioner to convene a task force comprised of members from
the public and private sectors to review laws relating to patient
rights and responsibilities, determine whether further action was
required to protect patients under the Act, and report its
findings and recommendations to the 1999 Legislature.  

     This measure implements the Task Force's recommendations.
Some of the key recommendations included in this measure:

     (1)  Establish a health insurance revolving fund and
          authorize appropriations out of the fund to pay for
          medical experts and to fund educational activities; 

     (2)  Require the accreditation of managed care plans;

     (3)  Clarify review hearing rights, procedures, and
          standards in the case of an appeal to the Commissioner
          from a managed care plan's adverse decision;

     (4)  Strengthen the enrollee information requirements for
          managed care plans; and

     (5)  Establish detailed requirements for a health plan's
          provision of emergency services. 

     Your Committees find that the recommendations proposed by
the Task Force will further strengthen patients' rights in the
area of health care. 

     Your Committees are aware that various amendments have been
proposed to this measure by several of the groups that presented
testimony.  Although your Committees are passing this measure out
in its original form, it is your Committees' intent that there be
further consideration of these proposed amendments as the measure
moves through the legislative process.

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Health and
Human Services that are attached to this report, your Committees
are in accord with the intent and purpose of S.B. No. 1452 and
recommend that it pass Second Reading and be referred to the
Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 411
                                   Page 3


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and Health
                                   and Human Services,



____________________________       ______________________________
SUZANNE CHUN OAKLAND, Chair        BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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