RESOLUTION

WHEREAS, the cost of medical care in Hawaii and across the nation has been increasing at an alarming rate; and

WHEREAS, as the State of Hawaii continues to face difficulties with expanding and diversifying its economy, the rising cost of health care has had an impact on Hawaii's small business community; and

WHEREAS, the number of uninsured individuals in Hawaii is rising, and there is increased concern over access to health care; and

WHEREAS, Hawaii's Prepaid Health Care Act is unique in the United States; as the cornerstone of health care access in Hawaii, it provides the vast majority of Hawaii employees with health insurance through a public/private approach and has been instrumental in making Hawaii one of the more successful states in ensuring that people have health insurance; and

WHEREAS, Hawaii's Prepaid Health Care Act requires that qualified prepaid health plans, referred to as "A" status plans, must provide for health care benefits equal to, or a reasonable substitute for, medical benefits provided by prepaid health plans of the same type which have the largest number of subscribers in the State, referred to as the "prevalent plan"; and

WHEREAS, both state and federal laws have required numerous mandated benefits in addition to the original basic benefits established by Hawaii's Prepaid Health Care Act; and

WHEREAS, the benefit level for required benefits under Hawaii's original Prepaid Health Care Act legislation has increased from an 80 per cent level to a 90 per cent level for "A" status plans over the past several years; and

WHEREAS, there is a need to explore all available options to maintain the affordability of Hawaii's health plans; and

WHEREAS, there may be opportunities with the current language of Hawaii's Prepaid Health Care Act to redesign benefit levels for "A" status plans; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that the Department of Labor and Industrial Relations (DLIR) and Hawaii health plan carriers explore options for redesigning the benefit levels of "A" status plans defined under Hawaii's Prepaid Health Care Act; and

BE IT FURTHER RESOLVED that DLIR submit a report of its findings and actions to the Governor and the Legislature no later than twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor of the State of Hawaii, the Director of Labor and Industrial Relations, the Insurance Commissioner, and all health plan carriers licensed to do business in the State of Hawaii.

Report Title:

Requesting the Department of Labor and Industrial Relations and Hawaii's health plan carriers to explore options for redesigning the benefit levels of "A" status plans defined under Hawaii's Prepaid Health Care Act.