STAND. COM. REP. NO. 839-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2392
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2392, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to require:

     (1)  All individual accident and sickness health care
          policies providing health care coverage; and

     (2)  All group health care contracts issued by health
          maintenance organizations and mutual benefit societies;

to cover outpatient diabetes self-management training, education,
equipment, and supplies.

     The Office of Hawaiian Affairs, Hawaii Association of
Diabetes Educators, Diabetes Advocacy Alliance of Hawaii,
American Diabetes Association, and numerous individuals testified
in support of this measure.  The Hawaii Podiatric Medical
Association also testified in support of this measure but with
reservations.  The Department of Health and Queen's Health
Management testified in support of the intent of this measure.
The Hawaii Medical Service Association and the Legislative
Information Services of Hawaii testified in opposition to this
measure.  Comments were submitted by the Department of Commerce
and Consumer Affairs, American Family Life Assurance Company of
Columbus, State Farm Insurance Companies, and Kaiser Permanente.

 
 
                                 STAND. COM. REP. NO. 839-00
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Replacing the term "diabetics" with "persons with
          diabetes;"

     (2)  Clarifying that certain types of supplementary health
          insurance are exempt from the bill;

     (3)  Replacing the term "licensed nutritionist" with
          "dietician;"

     (4)  Limiting blood glucose monitoring to one per year, or
          if medically necessary as recommended by a physician;

     (5)  Including podiatric services under the definition of
          "diabetes equipment and supplies";

     (6)  Exempting this bill from the requirement that the
          Legislative Auditor prepare and submit a report that
          assesses the social and financial effects of the
          proposed mandated coverage; and

     (7)  Making technical, nonsubstantive amendments for the
          purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2392, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2392, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair