Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.C.R. No. 84 entitled:

begs leave to report as follows:

The purpose of this measure is to request a comparative study of Hawaii's health insurance market conditions with the rest of the nation.

The Insurance Commissioner, Hawaii State Teachers Association, Hawaii Medical Service Association, and Kaiser Permanente submitted testimony supporting the intent of this measure.

Your Committee finds that in 1999 the State Auditor conducted a study comparing the Hawaii Public Employees Health Trust Fund with sixteen states. This study, however, did not include an assessment of the health insurance market conditions in Hawaii.

Your Committee further finds that a comparative study of Hawaii's health insurance market conditions may assist the State in reducing health insurance costs while maintaining a high level of health benefits coverage.

Your Committee has amended this measure by adding to the requirements of the Auditor's analysis a determination of the barriers faced by insurers seeking to enter the Hawaii health insurance market.

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. 84, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 84, S.D. 1.