STAND. COM. REP. NO. 3544

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.C.R. No. 184
                                        




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

Sir:

     Your Committee on Commerce and Consumer Protection, 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,"

begs leave to report as follows:

     The purpose of this measure is to authorize a study of
health care purchasing arrangements in an effort to reduce the
costs of providing health care coverage for QUEST beneficiaries
and public employees. 

     Testimony on the measure was submitted by the Department of
Human Services (DHS), Hawaii Public Employees Health Fund
(HPEHF), and Legislative Reference Bureau (LRB).

     Your Committee finds that collaborative health care
purchasing arrangements between HPEHF and the Hawaii QUEST
Program may help to stabilize health care costs and result in
administrative cost savings.  Additionally, increasing the size
of the overall purchasing pool may provide the State with greater
negotiating leverage and stimulate competition in the commercial
health insurance marketplace.  This measure authorizes the
establishment of a task force to study the possible benefits of
collaborative health care purchasing arrangements and to examine
the feasibility of establishing such arrangements between HPEHF
and the Hawaii QUEST Program.

 
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                                   STAND. COM. REP. NO. 3544
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     Your Committee notes that LRB has requested that DHS provide
administrative and clerical support to the task force, including
the production and printing of the task force's report, and that
DHS is in agreement with this request. 

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of H.C.R. No. 184, and recommends that it be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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