STAND. COM. REP. NO. 1661

Honolulu, Hawaii

RE:    H.B. No. 1479

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 1479, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE SUPPORT FOR SMALL BUSINESSES,"

begs leave to report as follows:

     The purpose of this measure is to require group health issuers to offer all group health plans to self-employed individuals in their service areas. 

     Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs, the Hawaii Association of Realtors, and the Maui Chamber of Commerce.  The Hawaii Association of Health Plans submitted written comments in opposition to this measure.  The Hawaii Medical Service Association submitted written comments.

     Your Committee finds that presently, there is no mandate that group health insurers offer group health plans to self-employed individuals.  This measure will require group health insurers to offer group health plans and will also allow insurers to impose certain limitations with regard to the timing of enrollment and reenrollment in order to control adverse selection and to plan member costs. 

     Your Committee has amended this measure by amending the definition of a "self-employed individual" to require that the individual be licensed by the Department of Commerce and Consumer Affairs for the business the individual operates.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1479, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1479, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair