STAND. COM. REP. NO. 976-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 2957
S.D. 2
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 Consumer Protection and Commerce, to which was referred S.B. No. 2957, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOSPITAL AND PROFESSIONAL LIABILITY RISK FINANCING,"
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 HHSC with medical malpractice and hospital professional and general liability insurance coverage and also offer such coverage to the Department of Health (DOH) and the John A. Burns School of Medicine (JABSOM).
DOH, HHSC, and JABSOM testified in support of this bill. The Department of Commerce and Consumer Affairs supported the intent of this bill.
Your Committee finds that the cost of purchasing medical malpractice and hospital professional and general liability coverage is becoming prohibitively expensive and, even at very high prices, is becoming less available. The establishment of a captive insurance company to provide this coverage will help to reduce costs, control losses, and provide a viable and essential alternative for agencies of the State that are involved in providing health care.
Your Committee has amended this measure by:
(1) Clarifying that the captive insurance company will be able to provide both medical malpractice and hospital professional and general liability coverage to HHSC, DOH, and JABSOM;
(2) Reducing the appropriation by $2,300,000, to $6,700,000. This reflects the Insurance Commissioner's willingness to exercise his authority to accept a note or guarantee, in lieu of the capital and surplus requirement of $2,283,333 previously included in the cost projections; and
(3) Making technical, nonsubstantive amendments for clarity and style.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2957, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 2957, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |
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