Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 756, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to establish an expedited certification process for foreign health maintenance organizations (HMOs).

The Department of Commerce and Consumer Affairs (DCCA) supported this bill. The Hawaii Medical Service Association provided comments.

DCCA reported that Hawaii's prepaid health insurance market is currently served by a small number of mutual benefit societies, HMOs, and health insurers, resulting in few choices for Hawaii's employers. Fast-tracking the certification of foreign HMOs is seen by DCCA as a way to lure competition to Hawaii.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2020, to

(2) Making technical, nonsubstantive changes for clarity,

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 756, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 756, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.