Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.C.R. No. 144 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a study on the issue of medical malpractice insurance coverage in the State.

The Hawaii Medical Association and American College of Obstetricians and Gynecologists, Hawaii Section, testified in support of this measure. The Department of Commerce and Consumer Affairs presented comments.

Your Committee finds that the cost of hospital professional and general liability coverage continues to rise and that there is a lack of insurers willing to provide coverage in Hawaii. While the access problem exists statewide, it is particularly serious on the neighbor islands. Further, the difficulty in obtaining liability coverage has affected consumers' access to medical treatment, especially in the areas of obstetrics/gynecology, general surgery, orthopedic surgery, anesthesiology, and gastroenterology.

This measure requests the Auditor to study whether medical malpractice insurance rates in the private sector have increased over the years and whether it is feasible for the State to establish a captive insurance company to provide medical malpractice insurance. Your Committee finds that an Auditor's study will assist the Legislature in better understanding the issues relating to the availability of medical malpractice coverage in this State and to determine whether legislative action is required.

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. 144 and recommends its adoption.