STAND. COM. REP. NO. 1452-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2655
                                     S.D. 2
                                     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 S.B. No.
2655, S.D. 2, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to strengthen the Patient's Bill
of Rights Law which provides protection to consumers receiving
health care under managed care plans by:

     (1)  Clarifying enrollee rights during the internal appeal
          process and external review process; 

     (2)  Enlarging the Hawaii Patient Rights and
          Responsibilities Task Force (Task Force) membership
          from 20 to 25; and

     (3)  Establishing a statutory definition for "medical
          necessity to promote uniformity among various health
          care plans and to serve as the standard of review
          governing a health plan's internal appeal process and
          external review process."

     The Department of Health, Task Force, Hawaii Government
Employees Association, Kaiser Permanente, Hawaii State
Legislative Committee of the American Association of Retired
Persons, Hawaii Coalition for Health, and a concerned individual
testified in support of this bill.  The Hawaii Nurses'

 
 
                                 STAND. COM. REP. NO. 1452-00
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Association supported the intent of this bill.  The Hawaii
Medical Association, Kokua Council, Hawaii Psychological
Association, and the Hawaii Chapter of the American Academy of
Pediatrics offered comments.

     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 S.B. No.
2655, S.D. 2, H.D. 2, and recommends that it pass Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair