STAND. COM. REP. NO. 2689

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2655
                                        S.D. 2




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 S.B. No. 2655, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to strengthen the patient's
bill of rights and responsibilities law.

     Your Committee received testimony from the State Insurance
Commissioner, American Academy of Pediatrics, and a private
individual.

     This measure is a result of the work of the Patients Bill of
Rights Task Force, established by Act 178, Session Laws of Hawaii
1998, to review various laws that may affect patient's rights in
this State.  The twenty members of the task force represent
various organizations and agencies of diverse interests.  This
measure contains the recommended legislation of the task force,
in response to Senate Concurrent Resolution No. 152, 1999,
requesting the task force to develop further legislation and
conduct a study of the term "medical necessity".

     Your Committee finds that this measure enhances the
protections of patients enrolled in medical insurance managed
care plans.  This measure strikes an equitable balance between
managed care plans and their patients.  The intent of this
measure is not to hinder or unduly scrutinize the operations of

 
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managed care plans.  Your Committee recognizes that managed care
plans in Hawaii are among the best in the nation.

     Your Committee has amended this measure by:

     (1)  Adding that the enrollee's treating provider or
          appointed representative may file the request for an
          external review;

     (2)  Clarifying the order of consideration and the factors
          to determine the effectiveness of a health intervention
          and the medical necessity of existing interventions;

     (3)  Clarifying that the restoration of functional ability
          includes functional and developmental delays in
          children; and

     (4)  Making technical, nonsubstantive changes for clarity to
          improve understanding of the text and for preferred
          drafting style.

     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 is in accord with the intent and
purpose of S.B. No. 2655, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 2655, S.D. 2.

                                   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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