SB243

Report Title:

SSN; Prohibited Use

Description:

Prohibits the use of social security numbers on medical insurance cards.

THE SENATE	S.B. NO.	243
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10A, part I, to be appropriately designated and to read as follows:

"§431:10A- Use of social security number prohibited on health insurance identification card; hearing; cease and desist order; penalty. (a) No insurer shall issue a health insurance policy identification card that displays an insured's social security number.

(b) Whenever the commissioner has reason to believe that any insurer is in violation of subsection (a), the commissioner shall issue and serve upon the insurer a statement of the charges and a notice of a hearing to be held at a time and place fixed in the notice, which shall not be less than fifteen days after the date of the service. At the time and place fixed for the hearing, the insurer shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring the insurer to cease and desist from the acts or practices that are the subject of complaint. Procedures at the hearing shall be governed by chapter 91.

(c) If, after the hearing, the commissioner determines that an insurer is in violation of subsection (a), the commissioner shall reduce the findings to writing and shall issue and cause to be served upon the insurer an order requiring the insurer to cease and desist from engaging in the prohibited practice. Any insurer aggrieved by an order of the commissioner under this subsection may obtain judicial review of the order in the manner provided for by chapter 91.

(d) Any insurer who violates a cease and desist order of the commissioner under subsection (c), may be subject, at the discretion of the commissioner, to either or both of the following:

(1) A fine of not more than $ for each and every act in violation of the cease and desist order; or

(2) Suspension or revocation of the insurer's license.

No order of the commissioner pursuant to this subsection or order of court to enforce it shall in any way relieve or absolve any insurer affected by the order from any other liability, penalty, or forfeiture required by law."

SECTION 2. Chapter 432, Hawaii Revised Statutes, is amended by adding a new section to article 1, part I, to be appropriately designated and to read as follows:

"§432:1- Use of social security number prohibited on medical service plan card; hearing; cease and desist order;

penalty. (a) No mutual benefit society shall issue a medical service plan identification card that displays a member's social security number.

(b) Whenever the commissioner has reason to believe that any mutual benefit society is in violation of subsection (a), the commissioner shall issue and serve upon the mutual benefit society a statement of the charges and a notice of a hearing to be held at a time and place fixed in the notice, which shall not be less than fifteen days after the date of the service. At the time and place fixed for the hearing, the mutual benefit society shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring the mutual benefit society to cease and desist from the acts or practices that are the subject of complaint. Procedures at the hearing shall be governed by chapter 91.

(c) If, after the hearing, the commissioner determines that a mutual benefit society is in violation of subsection (a), the commissioner shall reduce the findings to writing and shall issue and cause to be served upon the mutual benefit society an order requiring the mutual benefit society to cease and desist from engaging in the prohibited practice. Any mutual benefit society aggrieved by an order of the commissioner under this subsection may obtain judicial review of the order in the manner provided for by chapter 91.

(d) Any mutual benefit society that violates a cease and desist order of the commissioner under subsection (c), may be subject, at the discretion of the commissioner, to either or both of the following:

(1) A fine of not more than $ for each and every act in violation of the cease and desist order; or

(2) Suspension or revocation of the mutual benefit society's license.

No order of the commissioner pursuant to this subsection or order of court to enforce it shall in any way relieve or absolve any mutual benefit society affected by the order from any other liability, penalty, or forfeiture required by law."

SECTION 3. Chapter 432D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432D- Use of social security number prohibited on health insurance identification card; hearing; cease and desist order; penalty. (a) No health maintenance organization shall issue a health insurance policy identification card that displays an enrollee's social security number.

(b) Whenever the commissioner has reason to believe that any health maintenance organization is in violation of subsection (a), the commissioner shall issue and serve upon the health maintenance organization a statement of the charges and a

notice of a hearing to be held at a time and place fixed in the notice, which shall not be less than fifteen days after the date of the service. At the time and place fixed for the hearing, the health maintenance organization shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring the health maintenance organization to cease and desist from the acts or practices that are the subject of complaint. Procedures at the hearing shall be governed by chapter 91.

(c) If, after the hearing, the commissioner determines that a health maintenance organization is in violation of subsection (a), the commissioner shall reduce the findings to writing and shall issue and cause to be served upon the health maintenance organization an order requiring the health maintenance organization to cease and desist from engaging in the prohibited practice. Any health maintenance organization aggrieved by an order of the commissioner under this subsection may obtain judicial review of the order in the manner provided for by chapter 91.

(d) Any health maintenance organization that violates a cease and desist order of the commissioner under subsection (c), may be subject, at the discretion of the commissioner, to either or both of the following:

(1) A fine of not more than $ for each and every act in violation of the cease and desist order; or

(2) Suspension or revocation of the health maintenance organization's license.

No order of the commissioner pursuant to this subsection or order of court to enforce it shall in any way relieve or absolve any health maintenance organization affected by the order from any other liability, penalty, or forfeiture required by law."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________