Requires health insurance policies and similar products that provide coverage for the children of an insured to also provide coverage for the disabled children of the insured.

A BILL FOR AN ACT

SECTION 1. Chapter 431:10A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§431:10A- Coverage for disabled children. Any other law to the contrary notwithstanding, commencing on January 1, 2006, each policy of accident and health or sickness insurance that is issued or renewed in this State shall contain a provision for coverage for a child of the insured, regardless of the child’s age, while the child is and continues to be:

provided proof of incapacity and dependency is furnished to the insurer by the policyholder as may be required by the insurer, but not more frequently than annually."

SECTION 2. Chapter 432D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432D- Coverage for disabled children. Any other law to the contrary notwithstanding, commencing on January 1, 2006, every contract for health care services delivered or issued for delivery in this State that provides health care services or benefits for the children of the insured shall also provide coverage for a child of the insured, regardless of the child’s age, while the child is and continues to be:

provided proof of incapacity and dependency is furnished to the insurer by the enrollee as may be required by the insurer, but not more frequently than annually."

SECTION 3. Section 431:10-212, Hawaii Revised Statutes, is amended to read as follows:

"§431:10-212 [Contract limitations for mentally retarded and handicapped children. Every individual life insurance policy, every group life insurance policy, and every hospital or medical expense insurance policy, delivered or issued for delivery in this State after May 8, 1968, which provides that coverage of a dependent child shall terminate upon attainment of the limiting age for dependent children specified in the policy, shall also provide in substance that attainment of such limiting age shall not operate to terminate coverage of such child while the child is and continues to be:

provided proof of such incapacity and dependency is furnished to the insurer by the policyholder within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the insurer, but not more frequently than annually after the two-year period following child's attainment of the limiting age.] Coverage for disabled children. Any other law to the contrary notwithstanding, commencing on January 1, 2006, every insurance policy and every contract for health care services delivered or issued for delivery in this State that provides benefits for the children of the insured shall also provide coverage for a child of the insured, regardless of the child’s age, while the child is and continues to be:

provided proof of incapacity and dependency is furnished to the insurer by the policyholder as may be required by the insurer, but not more frequently than annually."

SECTION 4. Section 431:10D-212, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) For purposes of this section:

"Dependent" means a child of the insured individual:

"Individual" includes a person or a member of any group provided in section 431:10D-202 and sections 431:10D-204 through 431:10D-210."

SECTION 5. Section 432:1-601, Hawaii Revised Statutes, is amended to read as follows:

"§432:1-601 [Contract limitations for mentally retarded and handicapped children. All individual and group hospital or medical service plan contracts, delivered or issued for delivery in this State after May 8, 1968, which provide that coverage of a dependent child shall terminate upon attainment of the limiting age for dependent children specified in the contract shall also provide in substance that attainment of such limiting age shall not operate to terminate the coverage of such child while the child is and continues to be both (1) incapable of self-sustaining employment by reason of mental retardation or physical handicap, and (2) chiefly dependent upon the policyholder, subscriber or employee as the case may be, for support and maintenance, provided proof of such incapacity and dependency is furnished to the hospital service or medical indemnity association by the policyholder, subscriber or employee within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by such association.] Coverage for disabled children. Any other law to the contrary notwithstanding, commencing on January 1, 2006, every hospital or medical expense insurance policy and every contract for health care services delivered or issued for delivery in this State that provides health care services or benefits for the children of the insured shall also provide coverage for a child of the insured, regardless of the child’s age, while the child is and continues to be:

provided proof of incapacity and dependency is furnished to the insurer by the policyholder as may be required by the insurer, but not more frequently than annually."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.