Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Higher Education, to which was referred H.B. No. 1059 entitled:

beg leave to report as follows:

The purpose of this bill is to help improve insurance coverage and manage liability risks by authorizing and providing initial funding for the establishment of a domestic captive insurance company by the Hawaii Health Systems Corporation (HHSC) to provide medical malpractice and hospital professional and general liability coverage for HHSC, the Department of Health (DOH), the John A. Burns School of Medicine (JABSOM), and physicians serving these entities.

JABSOM, HHSC, Leahi Hospital, West Kauai Medical Center – Mahelona Medical Center, Hilo Medical Center, Kona Community Hospital, and Maui Memorial Medical Center supported this bill. The Department of Commerce and Consumer Affairs and DOH supported the intent of this measure.

Your Committees find that the rising cost of medical malpractice and liability insurance and the decreasing number of insurers providing this type of coverage makes the establishment of a captive insurance company in Hawaii a necessity to insure and control state exposure to the liability risks of DOH, HHSC, and JABSOM.

As affirmed by the records of votes of the members of your Committees on Health and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1059 and recommend that it be referred to the Committee on Finance.