Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 106 entitled:

begs leave to report as follows:

The purpose of this bill is to protect employee privacy rights by defining the types of health care information and the circumstances under which insurers, mutual benefit societies, and health maintenance organizations must provide this information to employers.

Testimony in support of this bill was submitted by Kaiser Permanente, HMAA, Hawaii Association of Health Plans, and Hawaii Medical Service Association. The Employers' Chamber of Commerce supported the intent of the bill. The Department of Commerce and Consumer Affairs and Summerlin Life & Health Insurance Co., opposed the bill. Consumer Lawyers of Hawaii commented.

Your Committee finds that group health claims information allows employers to compare the costs of health care plans and make a determination on which plan is most cost-effective for their employees. This bill requires insurers, mutual benefit societies, and health maintenance organizations to provide employers with employee group health claims experience under the current health plan within 90 days of request, and provides for a reasonable processing fee and disclosure exceptions.

However, your Committee finds that the bill contains ambiguous language, which may cause the inadvertent release of sensitive and classified information. In addition, concerns were raised about the processing fee and the scope of immunity from civil liability provided to insurers, mutual benefit societies, and health maintenance organizations. There were also concerns that businesses employing less than 100 persons would be excluded from obtaining claims information under this bill.

Accordingly, your Committee has amended this bill by:

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 H.B. No. 106, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 106, H.D. 1, and be referred to the Committee on Labor and Public Employment.