STAND. COM. REP. NO. 147-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2361
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Legislative Management, to which was
referred H.B. No. 2361 entitled: 

     "A BILL FOR AN ACT RELATING TO MEDICAL SAVINGS ACCOUNTS,"

begs leave to report as follows:

     The purpose of this bill is to establish a medical savings
account (MSA) pilot program for payment of medical expenses of
state legislators, legislative employees, and their dependents
only.

     The Hawaii Medical Journal, Hawaii Federation of Physicians
and Dentists, Hawaii Medical Association, and several concerned
individuals testified in support of this measure.  Several of the
testifiers indicated that the scope of the bill should be
expanded to cover all state employees.

     MSAs are tax-free savings accounts in which the funds are
used to pay for medical expenses.  Your Committee finds that the
use of MSAs will allow the State to save money by empowering
employees to be more cost-conscious in using the health care
system.  Further, this pilot program would help control the
rising cost of healthcare and provide tax savings for
participants.

     As affirmed by the record of votes of the members of your
Committee on Legislative Management that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2361 and recommends that it pass Second Reading and

 
 
                                 STAND. COM. REP. NO. 147-00
                                 Page 2

 
be referred to the Committees on Labor and Public Employment and
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Legislative
                                   Management,



                                   ______________________________
                                   EZRA KANOHO, Chair