STAND. COM. REP. NO.  648-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2291

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2291, 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 expand access to health care by establishing a state agency to develop plans for universal health care coverage.

     The Hawaii Medical Service Association testified in support of the intent of this bill.  The Department of Commerce and Consumer Affairs, Department of Budget and Finance, Hawaii Medical Association, Healthcare Association of Hawaii, and Hawaii Association of Health Plans opposed this measure.  The Department of the Attorney General submitted comments.

     Your Committee has amended this bill by replacing its entire contents with provisions that address the growing shortage of physicians by, among other things:

     (1)  Prohibiting insurers from preventing health care providers from passing on the cost of medical malpractice insurance premiums exceeding $15,000 annually in the form of a patient surcharge of up to $10 per office visit and $100 per surgical procedure;

     (2)  Requiring insurers, after receiving a claim for the payment of benefits, to make direct payment to the health care provider that provided the services;

     (3)  Exempting the direct insurer payments to health care providers from the general excise tax;

     (4)  Limiting noneconomic damages that may be awarded in medical tort actions;

     (5)  Defining "economic damages" for medical tort actions;

     (6)  Providing that noneconomic and economic damages are to be allocated in medical tort actions based upon the health care provider's proportionate percentage of negligence or other fault; and

     (7)  Providing that medical torts only include the rendering of professional services within the scope of services for which the health care provider is licensed and not within any restriction imposed by the licensing agency or licensed hospital.

     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 H.B. No. 2291, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Judiciary in the form attached hereto as H.B. No. 2291, H.D. 2.

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

____________________________

ROBERT N. HERKES, Chair