STAND. COM. REP. NO. 95-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2550
                                     H.D. 1




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

Sir:

     Your Committee on Health, to which was referred H.B. No.
2550 entitled: 

     "A BILL FOR AN ACT RELATING TO MENTAL HEALTH PARITY,"

begs leave to report as follows:

     The purpose of this bill is to require health insurers to
make equitable reimbursements for mental health treatment.  It
requires full parity in mental health treatment benefits relative
to other health insurance benefits. 
     
     Chapter 431M, Hawaii Revised Statutes, requires insurance
plans to provide a minimum set of mental health treatment
benefits to subscribers.  Act 121, Session Laws of Hawaii 1999,
required the removal of theses limits for serious mental
illnesses, including schizophrenia, schizo-affective disorder,
and bipolar mood disorder.  However, limits were not removed for
other mental conditions or disorders of adults or children that
fell under the diagnostic categories of the Mental Disorders
Section of the International Classification of Diseases or the
Diagnostic and Statistical Manual of the American Psychiatric
Association.

     Your Committee finds that the national trend in mental
health care is toward mandating mental health treatment benefits
through "parity" with other physical illnesses.  This trend is
based on the assumption that it is discriminatory to restrict or
offer less access to mental health care than other areas of
health care.

 
 
                                 STAND. COM. REP. NO. 95-00
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     Testimony in support of this measure was submitted by the
Department of Human Services, the Department of Commerce and
Consumer Affairs, Hawaii Psychiatric Medical Association, Mental
Health Association in Hawaii, the Office of Youth Services,
Hawaii Nurses Association, Hawaii Psychological Association,
Equal Insurance Coalition, Hawaii Medical Association, and NAMI
Hawaii.  Testimony in opposition to this measure was submitted by
the Hawaii Medical Service Association (HMSA), the Hawaii
Business Roundtable, Kaiser Permanente, and the Hawaii Business
League.

     HMSA raised the concern that this measure does not comply
with section 23-51, Hawaii Revised Statutes (HRS), which requires
that a concurrent resolution be passed requesting the Auditor to
assess the social and financial effects of any proposed mandated
health coverage before any legislative measure can be considered.
The Department of Health has asked the Attorney General to issue
an opinion on this issue and is currently waiting for a response.

     Your Committee has amended this measure by: 

     (1)  Clarifying that the bill excludes changing any benefits
          for alcohol and substance abuse treatments;

     (2)  Clarifying why the Diagnostic and Statistical Manual of
          the American Psychiatric Association and International
          Classification of Diseases are both referenced in the
          definition of "mental illness";

     (3)  Adding a period to the title to conform with
          fundamental bill drafting conventions; and

     (4)  Making technical, nonsubstantive amendments to correct
          drafting errors.

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2550, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2550, H.D. 1, and
be referred to the Committee on Consumer Protection and Commerce.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 95-00
                                 Page 3

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair