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 & Commerce, to which was referred H.B. No. 647, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage foreign health maintenance organizations (HMOs) to offer health plans in the state by authorizing the Insurance Commissioner to wave filing requirements that are duplicative of those under another state's certification process.

Testimony in support of this bill was received from the Department of Commerce and Consumer Affairs and Kaiser Permanente. The Hawaii Medical Service Association (HMSA) voiced concerns.

Your Committee finds that Hawaii's prepaid health insurance market is currently being served by a small number of mutual benefit societies, health maintenance organizations, and health insurers. Employers need more choices from which to select HMOs for the benefit of their employees. Reducing filing requirements for foreign HMOs would encourage these organizations to serve Hawaii's residents.

Your Committee has amended this bill to allow further discussion, by including an effective date of July 1, 2099. Technical, nonsubstantive amendments were also made for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 647, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 647, H.D. 2.