STAND. COM. REP. NO. 1981

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.C.R. No. 152
                                     S.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 S.C.R. No. 152, S.D. 1, entitled:

     "SENATE CONCURRENT 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 concurrent resolution is to request that
the Hawaii Patient Bill of Rights and Responsibilities Task Force
(Task Force) convened by the Insurance Commissioner make a
thorough study of the issues relating to the use of the term
"medical necessity" in the context of the health insurance
industry.

     The Hawaii Medical Service Association submitted testimony
in support of this measure.  The State Insurance Commissioner
commented that the Task Force is willing to study the issues
outlined in this measure.

     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 S.C.R. No. 152, S.D. 1, and recommends that it be referred to
the Committee on Finance.


 
 
                                 STAND. COM. REP. NO. 1981
                                 Page 2

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



                                   ______________________________
                                   RON MENOR, Chair