Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2302, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to regulate health insurance rates for all types of health insurance offered by managed care plans.

Specifically, this measure requires every managed care plan to file their rates with the Insurance Commissioner in advance of the effective date of those rates and subject to the Commissioner's disapproval of the filings. Furthermore, this measure prohibits any managed care plan from issuing policies except in accordance with the filings that are in effect.

Your Committee finds that this measure will benefit the public by requiring health plans to:

Your Committee further finds that without rate oversight, the Insurance Division is unable to ascertain whether premiums are used to provide the medical care promised by the plans. Without rate oversight, employers and employees will not be able to know whether their rates are in line with actual health care costs.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2302, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2302, S.D. 2.