Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1761, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Insurance Commissioner to regulate the rates of "managed care plans", which include health insurers regulated under the Insurance Code, as well as health maintenance organizations and mutual benefit societies.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs, ILWU Local 142, Hawaii State Teacher Association, Hawaii State AFL-CIO, Benefit Plan Consultants, Inc., The Kokua Council, and numerous individuals. The Office of Information Practices and Chamber of Commerce of Hawaii supported the intent of this bill. Kaiser Permanente, Hawaii Medical Service Association, Healthcare Association of Hawaii, Hawaii Medical Association, Hawaii Pacific Health, Hawaii Management Alliance Association, Kauai Chamber of Commerce, and Hawaii Business Roundtable submitted testimony in opposition to the bill. Comments were provided by Legislative Information Services of Hawaii and Gyotaku Japanese Restaurants.

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 H.B. No. 1761, H.D. 1 and recommends that it pass Third Reading.