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.C.R. No. 17 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a study of the social and financial effects of requiring mandated health insurance coverage for biologically based psychiatric and addiction disorders.

Testimony in support of this measure was submitted by HGEA-AFSCME Local 152, Hawaii Psychiatric Medical Association, Hawaii Medical Association, and a private citizen. Testimony in opposition to this measure was submitted by the Department of Health. Comments on this measure were submitted by the State Insurance Commissioner.

Your Committee finds that many persons with mental disorders or substance abuse problems have biological or neurochemical causes, which if properly diagnosed and treated, would allow such persons to more quickly recover and thereby prevent further deterioration of their mental health. Your Committee further finds that while the State of Hawaii has a limited form of mental health parity, there still remains discrimination within health insurance coverage related to certain psychiatric disorders. Your Committee notes that the purpose of the Auditor's analysis is to explore the social and financial benefits to and adverse impacts upon both consumers and the insurance industry so that the legislature may make an informed decision prior to expanding mandated coverage to include these mental health disorders. Your Committee further recommends that the Auditor review the report of The Mandated Benefits Advisory Task Force issued by the State Insurance Commissioner's office pursuant to H.C.R. No. 129, C.D. 1, for information that might be relevant to the Auditor's study.

Your Committee has amended this measure by:

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 concurs with the intent and purpose of S.C.R. No. 17, as amended herein, and recommends that it be referred to the Committee on Commerce, Consumer Protection and Housing, in the form attached hereto as S.C.R. No. 17, S.D. 1.