STAND. COM. REP. NO.  1820

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1803

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1803, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to provide health care coverage for Hawaii's residents by amending state health insurance laws with respect to small insurers.

     Specifically, this measure:

     (1)  Exempts a small group health issuer from having to offer a group health plan to small employers that employ only one employee, if the issuer offers the small employers at least one small group health plan that meets the requirements of Chapter 393, Hawaii Revised Statutes, relating to prepaid health care plans; and

     (2)  Exempts any accident or sickness insurer with less than 30 percent share of the accident and sickness insurance market from the prohibition against requiring a prospective insured to purchase another class or an additional policy of the same class of insurance in order to obtain the desired accident and sickness insurance policy.

     The Hawaii Management Alliance Association testified in support of this bill.  The Department of Commerce and Consumer Affairs testified in opposition to this measure. The Hawaii Medical Service Association submitted comments.

     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 S.B. No. 1803, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair