Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 2957, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Hawaii Health Systems Corporation (HHSC) to organize a domestic captive insurance company to provide malpractice insurance coverage to the Department of Health, John A. Burns School of Medicine (UH Med School), and other governmental entities or quasi-governmental entities of the State involved in the provision of health care.

The Department of Health (DOH), Department of Commerce and Consumer Affairs, HHSC, UH Med School, and a member of the Maui County Council supported this bill.

Your Committee finds that the cost of purchasing medical malpractice and hospital professional and general liability coverage is becoming prohibitive and increasingly unavailable. The establishment of a captive insurance company domiciled in the State will help to reduce costs, control losses, and provide a viable and essential alternative to commercial malpractice and liability insurance coverage for government and quasi-government entities of the State that are involved in providing health care.

Your Committee has amended this measure 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. 2957, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2957, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.