STAND. COM. REP. NO. 1246-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.C.R. No. 184
                                     




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

Sir:

     Your Committees on Human Services and Housing and Labor and
Public Employment, to which was referred H.C.R. No. 184 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING A TASK FORCE TO
     REVIEW AND REPORT ON THE BENEFITS AND FEASIBILITY OF
     COLLABORATIVE HEALTH CARE PURCHASING ARRANGEMENTS BETWEEN
     HAWAII QUEST AND THE HAWAII PUBLIC EMPLOYEES HEALTH FUND,"

beg leave to report as follows:

     The purpose of this concurrent resolution is to reduce the
State's overall administrative costs for health care purchasing
by requesting the establishment of a Task Force to review and
report on the feasibility of establishing collaborative health
care purchasing arrangements between the Hawaii Public Employees
Health Fund (Health Fund) and the Hawaii QUEST Program,
including:

     (1)  Coordination of health plan purchasing standards;

     (2)  Combined purchasing of administrative services;

     (3)  Cooperative purchasing of health services; and

     (4)  Establishing a single health care purchasing agency for
          both the QUEST Program and the Health Fund.

     The Department of Human Services testified in support of
this measure.  The Health Fund submitted comments.


 
 
                                 STAND. COM. REP. NO. 1246-00
                                 Page 2

 
     Your Committees note that standardizing the purchasing
requirements for these two programs could lead to administrative
cost savings among health plans.  Additionally, reducing
differences in administrative demands and increasing the size of
the overall purchasing pool could re-stimulate the commercial
health insurance marketplace through competitive bidding for both
lines of business.

     Your Committees also note that additional funding may be
necessary for a consultant.

     As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Labor and Public
Employment that are attached to this report, your Committees
concur with the intent and purpose of H.C.R. No. 184 and
recommend that it be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Labor and
                                   Public Employment,

                                   
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Chair         DENNIS A. ARAKAKI, Chair