STAND. COM. REP. NO. 2400

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2891
                                        S.D. 1




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

Sir:

     Your Committees on Health and Human Services and Commerce
and Consumer Protection, to which was referred S.B. No. 2891
entitled: 

     "A BILL FOR AN ACT RELATING TO MENTAL HEALTH PARITY,"

beg leave to report as follows:

     The purpose of this measure is to require parity in mental
health insurance benefits relative to other health insurance
benefits.

     Your Committees received testimony in support of this
measure from the Department of Human Services, Department of
Health (DOH), State Insurance Commissioner, Hawaii Psychological
Association, ILWU, Mental Health Association in Hawaii, NAMI
Oahu, Equal Insurance Coalition, Hawaii Nurses' Association,
Hawaii Medical Association, Hawaii Psychiatric Medical
Association, National Association of Social Workers, HGEA-AFSCME,
and three private individuals.  Testimony in opposition was
received from the Hawaii Medical Service Association, Kaiser
Permanente, National Federation of Independent Business, and
Hawaii Business Roundtable.

     Your Committees agree with the testimony of the DOH that
research shows the costs of providing mental health parity in
coverage is low.  This is attributable to an overall low
prevalence rate of individuals accessing mental health treatment
services relative to traditional medical health care services.


 
a                                                     SB2891 SD1
                                                      
                                   STAND. COM. REP. NO. 2400
                                   Page 2


     Your Committees find that mental health insurance benefits
should be considered on par with medical health coverage,
inasmuch as mental disease can be just as debilitating and costly
as medical health problems.

     Your Committees have amended this measure by:

     (1)  Clarifying the definition of mental illness to mean any
          mental health condition or disorder of adults and
          children, as listed in the Diagnostic and Statistical
          Manual of the American Psychiatric Association but
          excluding alcohol or substance abuse, or in the Mental
          Disorders Section of the International Classification
          of Diseases as used for billing purposes; and

     (2)  Making technical, nonsubstantive changes to reflect
          preferred drafting style, clarity, and consistency.

     As affirmed by the records of votes of the members of your
Committees on Health and Human Services and Commerce and Consumer
Protection that are attached to this report, your Committees are
in accord with the intent and purpose of S.B. No. 2891, as
amended herein, and recommend that it pass Second Reading in the
form attached hereto as S.B. No. 2891, S.D. 1, and be referred to
the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and Human
                                   Services and Commerce and
                                   Consumer Protection,



____________________________       ______________________________
BRIAN KANNO, Co-Chair              SUZANNE CHUN OAKLAND, Chair



____________________________
BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     SB2891 SD1