STAND. COM. REP. NO. 716-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 2408
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 2408, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to allow bona fide trade association (BFTA) members to obtain group rates for health insurance and stronger negotiating positions with health insurers by:
(1) Requiring health insurers to treat a BFTA and its members as a group for the purpose of issuing a health insurance policy;
(2) Prohibiting health insurers from restricting the number or types of health plans issued by another insurance entity that the BFTA may offer to its members; and
(3) Prohibiting health insurers from requiring BFTA members to be insured under the group policy.
The Insurance Division of the Department of Commerce and Consumer Affairs, Department of Labor and Industrial Relations, Chamber of Commerce of Hawaii, Legislative Information Services of Hawaii, H2O Transportation, LLC, National Federation of Independent Business-Hawaii, Hawaii State Bar Association, Retail Merchants of Hawaii, Hawaii Coalition of Care Home Administrators, Hawaii Association of Realtors, and a concerned individual testified in support of this bill. Kaiser Permanente supported the intent of this measure. The Hawaii Medical Service Association opposed this bill.
Your Committee has amended this measure by:
(1) Replacing references to "health insurance policy" with their respective technical terms under sections in Hawaii Revised Statutes (HRS):
(A) "Group disability insurance" in chapter 431:10A, HRS, relating to accident and health or sickness insurance contracts;
(B) "Group hospital or medical service plan contract" Article I of chapter 432, HRS, relating to mutual benefit societies; and
(C) "Group contract" in chapter 432D, HRS, relating to the Health Maintenance Organization Act;
and
(2) Making other technical, nonsubstantive amendments for clarity, consistency and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2408, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2408, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |