Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.C.R. No. 17, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to request the auditor to conduct an impact assessment report of the social and financial impacts of mandating coverage for biologically based psychiatric and addiction disorders for all policies and contracts, hospital and medical service plan contracts, medical service corporation contracts, and heath maintenance organization plans and contracts issued after December 31, 2002.

Testimony in support of this measure was received from the Hawaii Medical Association, Hawai`i Nurses Association, Hawaii Psychological Association, HGEA-AFSCME Local 142, and one individual.

Your Committee finds that at least thirty-one states, including Hawaii, have some form of mental health parity. Hawaii statutes, however, limit parity to persons with "serious mental illness", and this measure would assess the impact of expanding mental illnesses covered – as is the case in eight of those states.

Your Committee notes that S.B. No. 2095, which is cited in the measure, refers only to biologically based psychiatric and addiction disorders. However, studying all mental disorders would not add significantly to the assessment, and would provide vital additional information.

Your Committee has amended this measure accordingly, to broaden the range of disorders to be covered in the assessment to those disorders as listed in the Diagnostic Statistical Manual of Mental Disorders, Fourth Edition, and to amend the title.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 17, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 17, S.D. 2.