Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2093, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to create the offense of health insurance fraud arising from acts or omissions related to health insurance claims.

Testimony in support of this measure was submitted by the Hawaii Medical Service Association (HMSA) and State Farm Insurance Companies. Testimony in support with reservations was submitted by a private individual. Testimony in opposition to this measure was submitted by the Hawaii Medical Association. The State Insurance Commissioner and the Office of Information Practices submitted comments on this measure.

Your Committee finds that this measure is intended to deter fraudulent health insurance claims by creating a civil cause of action for insurers to recover payments or benefits obtained through fraudulent acts or omissions by an insured or a provider. Your Committee further finds that this measure targets not only insured individuals making such fraudulent claims but also includes health care providers who substantiate or allow such fraudulent claims to be filed.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2093, S.D. 1, and recommends that it pass Third Reading.