STAND. COM. REP. NO. 1417-00

                                 Honolulu, Hawaii
                                                   , 2000

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

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to require all group 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 has seriously affected the population of Hawaii.
Approximately ninety thousand people living in Hawaii have
diabetes.  Native Hawaiians and Asians experience a risk of
developing diabetes that is twice that of the general U.S.
population.  From 1989 through 1991, native Hawaiians, compared
to other racial groups in the State, experienced the highest
mortality rate due to diabetes and its complications.  

     Your Committee believes that it is critical that people
afflicted with diabetes be given the necessary support and access
to obtain self-management training, education, equipment, and
supplies.  Your Committee further believes that taking action to
prevent complications associated with this disease will reduce
future health care costs.  

 
 
                                 STAND. COM. REP. NO. 1417-00
                                 Page 2

 
     The Department of Health, the Hawaii Medical Service
Association, and many concerned individuals supported this
measure.  The Hawaii Association of Diabetes Educators, the
Diabetes Advocacy Alliance of Hawaii, and the American Diabetes
Association supported the intent of this measure with amendments.
The Legislative Information Services of Hawaii and Kaiser
Permanente opposed this measure.

     Your Committee has amended this measure by:

     (1)  Requesting that each insurer, health maintenance
          organization, and mutual benefit society conduct a
          study evaluating the effectiveness, cost savings (if
          any), and quality of care provided by their respective
          diabetes coverage and report back to the 2003
          Legislature; 

     (2)  Changing the effective date from January 1, 2002, to
          July 1, 2001; and

     (3)  Making technical, nonsubstantive changes for purposes
          of style and clarity. 

     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.
2657, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2657,
S.D. 2, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair