Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 2317 entitled:

begs leave to report as follows:

The purpose of this measure is to make permanent the requirement that health insurers treat a bona fide trade association and its members as a single group at the option of the trade association for the purpose of issuing a health insurance policy.

Testimony in support of this measure was submitted by the Insurance Commissioner, Department of Commerce and Consumer Affairs; the Hawaii Transportation Association; Retail Merchants of Hawaii; the Hawaii Association of Realtors; and a certified public accountant. No testimony in opposition was received by your Committee.

According to the Insurance Commissioner, at least twenty-seven trade associations receive some form of health insurance premium discounts, and about 15,000 members receive their health insurance through these trade associations.

Your Committee finds that this measure provides a valuable option to those individuals who would not have the same opportunities for health insurance coverage as larger businesses in the absence of this measure.

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 is in accord with the intent and purpose of H.B. No. 2317, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.