STAND. COM. REP. NO. 650

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 844
                                        S.D. 2




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 S.B. No. 844, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to require parity in health
insurance coverage for mental illness and substance abuse
treatment.

     The Hawaii Psychiatric Medical Association, The Hawaii State
Alliance for the Mentally Ill, The National Association of Social
Workers, United Self-Help, The Equal Insurance Coalition, the
Very Big Mental Health Consumer Sandwich Group, the Hawaii Nurses
Association, the Mental Health Association in Hawaii, and several
individuals presented testimony in support of the measure.

     Although not present at the hearing, the Department of
Health, the Commission on Persons with Disabilities, the Hawaii
Government Employees Association, the Hawaii Medical Association
and several individuals submitted testimony in support of the
measure.

     The Insurance Commissioner, also not present, submitted
written comments on the measure.

     Hawaii Medical Services Association, Kaiser Permanente, and
Kapi`olani Medical Specialists presented testimony in opposition
to the measure.

 
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     Although not present at the hearing, the Queen's Health
Management submitted testimony in opposition to the measure.

     Your Committee finds that treatment for mental illness and
substance abuse reduces secondary conditions, including many
physical illnesses such as HIV, fetal alcohol syndrome and
cirrhosis.  Requiring parity in coverage for mental illness and
substance abuse will provide access to needed medical services,
while not increasing insurance rates.

     Your Committee has amended the measure by:

     (1)  Deleting the "gatekeeper provision" (431M-4(d)) in
          section 2 of the measure; and

     (2)  Making a technical, nonsubstantive amendment to conform
          to the deletion above.

     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 S.B. No. 844, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 844, S.D. 2.

                                   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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