Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 665, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to provide for a more effective administration of the Prepaid Health Care Act.

Specifically, this bill:

The Hawaii Medical Association testified in support of this measure. The Department of Labor and Industrial Relations supported this measure with amendments.

Your Committee finds that an appearance of impropriety may exist, if persons representing a HMO, a mutual benefit society that issues individual and group hospital or medical service plans or any health care organization, are members of the Council. The absence of representation by health care contractors will improve the current environment by assuring the public that the Council performs its duties in a fair and equitable manner, without influence of health care contractors or their agencies.

Upon careful consideration, your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 665, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 665, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.