STAND. COM. REP. NO.  252-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2796

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 2796 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is ensure that insurers that hold a significant portion of the health insurance market contribute more to support Hawaii's health care system by:

(1)  Providing that health insurers with at least 50 percent of the market share provide increased insurance reimbursements; and

(2)  Exempting health insurers with less than 50 percent of the market share from taxes on premiums if they work toward decreasing the number of uninsured in Hawaii.

     The Healthcare Association of Hawaii and Hawaii Psychiatric Medical Association supported this bill.  The Department of Commerce and Consumer Affairs, Hawaii Medical Service Association, and AlohaCare opposed this measure.  The American Council of Life Insurers submitted comments.

     Your Committee has amended this bill by:

(1)  Clarifying that this measure applies only to insurers providing health insurance in accordance with Hawaii's Prepaid Health Care Act;

(2)  Providing that health insurers with at least ten percent of the market share provide reimbursement rates of at least 135 percent of the current Medicare fee schedule;

(3)  Exempting health insurers with less than ten percent of the market share from taxes on premiums if they work toward decreasing the number of uninsured in Hawaii; and

(4)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     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. 2796, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2796, H.D. 1, 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