Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 2721 entitled:

begs leave to report as follows:

The purpose of this measure is to make permanent Act 132, Session Laws of Hawaii (SLH) 2001, relating to regulation of dental service corporations and dental service organizations.

Your Committee received testimony in favor of this measure from the Department of Commerce and Consumer Affairs and HMSA. Your Committee received testimony opposing this measure from the Hawaii Dental Service.

Your Committee finds that this measure continues to allow dental insurance to be regulated in the same manner as health and accident insurance. Act 132, currently to be repealed on July 1, 2002, was an attempt to even the regulatory field among dental plans. Prior to Act 132, some of Hawaii's dental plans were regulated and some were not. Your Committee believes all dental plan consumers should have the same assurances and protections afforded to health plan consumers.

Your Committee has amended this measure by extending the repeal date to July 1, 2003, and by providing that actions taken under Act 132, SLH 2001, shall continue in force under the Act until the conclusion of the complaint.

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. 2721, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2721, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.