STAND. COM. REP. NO.  217

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1476

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 1476 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to require the Insurance Commissioner to administer a health insurance purchasing pool that will provide health insurance coverage to employees who are not eligible for coverage under the Hawaii Prepaid Health Care Act.

     Specifically, this measure requires the Insurance Commissioner to contract with health care plan carriers to provide such health care coverage at premium levels that do not exceed one hundred and ten per cent of the median price of health insurance offered in the State.  Furthermore, this measure requires the Insurance Commissioner to subsequently use a bid process to transfer administrative and fiscal responsibility for the program to a nonprofit entity.  This bill also establishes a special fund to finance the operations of the health insurance purchasing pool.

     Testimony in support of the measure was received from the Hawaii Association of Realtors.  Testimony in opposition to the portion of the measure that exempts the purchasing pool from the procurement code was received from the State Procurement Office.  Comments on the measure were received from the Insurance Commissioner, the Hawaii Medical Service Association, and Kaiser Permanente.

     Your Committee finds that a significant number of employees in the private sector are not covered by health insurance despite the success of the Hawaii Prepaid Health Care Act.  Specifically, these employees include, but are not limited to, part-time or seasonal employees, and employees of family businesses.  Your Committee finds that this measure will ensure that health insurance is made both available and affordable to the presently uninsured.

     Your Committee notes that the Insurance Commissioner supports the concept of the bill but expressed concerns that, if enacted in its present form, the measure may have unintended consequences and raise issues of conflict with regard to the Insurance Commissioner's role as contemplated by the measure.  Your Committee takes the Insurance Commissioner's concerns under advisement and will hereafter work with the Insurance Commissioner and other committees to resolve the matter accordingly.

     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 H.B. No. 1476 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

JOSHUA B. GREEN, M.D., Chair