STAND. COM. REP. NO. 984-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2657
                                     S.D. 2
                                     H.D. 1




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 2657, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to require all individual
accident and sickness health care policies providing health care
coverage, and all group health care contracts issued by health
maintenance organizations and mutual benefit societies, to cover
outpatient diabetes self-management training, education,
equipment, and supplies, if it is found to be medically necessary
and prescribed by an authorized health care professional.

     Diabetes is a serious disease that affects many people in
Hawaii.  Your Committee believes that providing education and
supplies to those who need it will help to prevent complications
of the disease and reduce the costs of care.

     Testimony was received in support of this measure from the
Office of Hawaiian Affairs, Diabetes Advocacy Alliance of Hawaii,
American Diabetes Association, Hawaii Nurses' Association, many
diabetes educators, and concerned diabetics. 

     The Hawaii Association of Diabetes Educators, Queen's Health
Management, Department of Health, and Hawaii Medical Service
Association (HMSA) support the intent of this bill and have
suggested amendments.  

 
 
                                 STAND. COM. REP. NO. 984-00
                                 Page 2

 
     Kaiser Permanente provided comments and suggestions for
amendments to this bill.  The Chamber of Commerce of Hawaii and
State Farm Insurance Companies both opposed this measure.

     Your Committee has amended this bill by:

     (1)  Adopting the amendments recommended by HMSA to allow an
          insurer the ability to develop and manage its own
          programs to best meet the needs of its members.
          Accordingly, your Committee has amended this measure by
          deleting subsections (a)(3), (b), (c), and (d) of
          Section 2;
     
     (2)  Deleting Section 5, to address the concerns stated by
          the Chamber of Commerce of Hawaii, which would have
          exempted this bill from the requirement of passing a
          concurrent resolution requesting the auditor to prepare
          an impact assessment report; and  

     (3)  Deleting reference to "individual" health care
          contracts so that this measure only applies to "group"
          health care contracts.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2657, S.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2657, S.D. 2, H.D. 1, and be referred to the
Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair