CONFERENCE COMMITTEE REP

CONFERENCE COMMITTEE REP. 104

Honolulu, Hawaii

, 2003

RE: S.B. No. 614

S.D. 1

H.D. 1

C.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Calvin K.Y Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 614, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to establish civil penalties for the commission of health insurance fraud and grant immunity from civil liability to persons reporting health insurance fraud, unless the reporting involved malice or perjury.

Your Committee on Conference has amended this measure by:

(1) Deleting the word "immunities" from the title of the new statutory sections being established in chapters 431:10A, 432:1, and 432D, Hawaii Revised Statutes;

(2) Clarifying the types of fraud reporting actions that are subject to immunity from civil liability;

(3) Deleting language that:

(a) States that the purpose of the Act is to provide penalties for insurance fraud in health insurance;

(b) Defines "malice";

(c) Provides that the immunity provision shall not be construed to impose a duty upon the Insurance Commissioner to investigate or prosecute fraud;

(d) Requires health insurance applications and claim forms to contain language notifying applicants and claimants that insurance fraud is a criminal act subject to fines or imprisonment; and

(e) Amends the insurance fraud provision in the motor vehicle insurance law;

(4) Deleting the savings clause provision; and

(5) Inserting an effective date of July 1, 2003.

Finally, your Committee on Conference notes that during the legislative interim, discussions on the issues presented in this measure will continue to be held among the stakeholders and other interested parties in an effort to reach a further consensus.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 614, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 614, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ BLAKE K. OSHIRO, Co-Chair		____________________________ RON MENOR, Chair
____________________________ THOMAS WATERS, Co-Chair		____________________________ BRIAN T. TANIGUCHI, Co-Chair