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 allow the Department of Commerce and Consumer Affairs, Insurance Division to protect Hawaii's consumers from insolvent dental insurers by repealing the July 1, 2002 "drop dead" provision of Act 132, Session Laws of Hawaii, 2001.

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 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 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. All dental plan consumers should have the same assurances and protections afforded to health plan consumers.

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 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.