Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 78 entitled:

begs leave to report as follows:

The purpose of this measure is to require parity in mental health and alcohol and drug abuse treatment insurance benefits for persons who are age eighteen and younger.

Your Committee received testimony in support of this measure from the Department of Human Services (to the parity portion and opposed to the QUEST portion), Hawaii Psychological Association, National Alliance for the Mentally Ill–Oahu, Mental Health Association in Hawaii (MHA), Hawaii Disability Rights Center, Hawai'i Nurses' Association, Hawaii Psychiatric Medical Association, NAMI OAHU, and an individual. Testimony in opposition was received from The Chamber of Commerce of Hawaii, Bay Harbor Company, Honolulu Sign Co., Ltd., National Federation of Independent Business, The Hawaii Business League, Hawaii Coalition for Health, and Kaiser Permanente. The Hawaii Medical Service Association submitted comments.

The issue of the cost of mental health insurance has not been formally studied. The intent of this measure is to target mental health treatment to those who could most benefit, children and minors. Testimony of the MHA indicates that mental health treatment is critically important for this target group, with over ninety per cent of children and adolescents who commit suicide having a mental disorder.

The issue of mental health insurance parity is emotionally charged, pitting the providers of mental health services against businesses that pay the premiums. Your Committee has not received any actuarial evidence that mental health insurance benefits contribute inordinately to the cost of health insurance premiums. However, there is a perception that mental health insurance benefits are costly, and from the standpoint of employers, any amount of added premium cost is undesirable.

Your Committee has heard the testimony and is cognizant of the various arguments and concerns. Accordingly, your Committee has amended this measure to clarify that parity applies to persons of any age, although present law does not reference any age limitation.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 78, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 78, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.