CONFERENCE COMMITTEE REPORT NO. 16

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2797
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2797, H.D. 1, S.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to clarify the State's
enforcement jurisdiction in certain health-related matters.

     This measure replaces certain references to the Health
Insurance Portability and Accountability Act of 1996 (HIPAA) in
the insurance code provision relating to conformity to federal
law with reference to title 42 United States Code section
300(gg), et seq., which includes the provisions of the Newborns'
and Mothers' Health Protection Act of 1996 and Women's Health and
Cancer Rights Act of 1998, in addition to those of HIPAA.


 
 
 
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     This measure amends section 431:2-201.5, Hawaii Revised
Statutes, to:

     (1) Indicate more clearly that group health insurers need to
         offer all its group plans to small groups;

     (2) Clarify that it was the legislature's intent to go
         beyond the HIPAA in the area of prohibiting preexisting
         condition exclusions; and

     (3) Include association plans into the term group health
         issuers.

     Upon further consideration, your Committee on Conference has
amended this measure by:

     (1) Providing for a definition of "small group health plans"
         to specify that small group health plans means medical
         plans currently offered, advertised or marketed by a
         group health insurer for small employers;

     (2) Modifying section 431:2-201.5(a)(4), Hawaii Revised
         Statutes, to only apply to small group health plans and
         small employers; 

     (3) Changing the effective date of the Act to July 2, 2000
         so that the Act will not be superseded when 1999
         Session Laws of Hawaii, Act 93, Section 5, takes effect
         on July 1, 2000;

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

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2797, H.D. 1, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2797, H.D. 1, S.D. 1, C.D. 1.

 
 
 
 
 
 
 
 
 
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       RON MENOR, Chair




______________________________
BRIAN KANNO, Co-Chair