Report Title:
Health Insurance; Rate Regulation
Description:
Repeals the health insurance rate filing requirements in order to charge health care insurance companies the responsibility of determining their own rates.
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THE SENATE |
S.B. NO. |
2413 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that health insurance is a vital necessity in the promotion of public welfare. Pursuant to chapter 431, article 14G, Hawaii Revised Statutes, the insurance commissioner may mandate filings for health insurance rates when the commissioner has actuarially sound information that the current rates may be excessive, inadequate, or unfairly discriminatory.
In light of the discrepancy between the cost of living and the cost of health care in Hawaii, it is becoming increasingly difficult for health care insurance companies to maintain rates that provide for the reimbursement to health care providers, facilities, and services, and, at the same time, provide affordable, sustainable health care access to the public, pursuant to the review and approval of the insurance commissioner. Health care insurance companies have a greater ability and experience in analyzing and accounting for the fluctuations in the health care market and health care demand. Health care insurance companies should be responsible in determining health care insurance premiums to maintain a balance between the cost of living and cost of health care, rather than the insurance commissioner.
The purpose of this Act is to effectuate the recommendations of the Maui Health Initiative Task Force established pursuant to Act 219, Session Laws of Hawaii 2007 by repealing chapter 431, article 14G, Hawaii Revised Statutes, relating to health insurance regulation to allow health care insurance companies to be primarily responsible in determining health care insurance rates.
SECTION 2. Chapter 431, Article 14G, Hawaii Revised Statutes, is repealed.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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