STAND. COM. REP. NO. 2454

Honolulu, Hawaii

RE:    S.B. No. 2298

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Commerce, Consumer Protection, and Affordable Housing and Judiciary and Labor, to which was referred S.B. No. 2298 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

beg leave to report as follows:

     The purpose of this measure is to establish a joint legislative study group on twenty-four hour coverage to investigate the issues involved in implementing twenty-four hour insurance coverage in Hawaii.

     Your Committees received testimony in support of this measure from the Hawaii Medical Service Association.

     The study group will address the means by which the State can combine prepaid health care, temporary disability insurance, motor vehicle insurance personal injury protection, and workers' compensation insurance, and other related insurance systems in order to prevent duplication of coverage and avoid delays in the delivery of health care.

     California enacted twenty-four hour coverage in 1992.  The term twenty-four hour coverage is a combination of general health coverage and workers' compensation coverage.  In twenty-four hour coverage, all of an employee's health needs - whether work-related or non-occupational - are covered by a single health care provider.  Thus, coverage exists around the clock.  The twenty-four hour coverage concept also offers advantages for employers and employees.  By contracting with an exclusive provider of health care, savings are achieved by reducing administrative duplication.  Participating employers insured by a workers' compensation carrier would be eligible for reduction in their workers' compensation premiums.  Employees choosing to enroll may benefit from the convenience and continuity of care that results from the same doctor or health care provider serving all of their health care needs.

     Savings from twenty-four hour coverage could result in two areas: administrative costs and reduced litigation and because the administrative aspects of general health insurance and workers' compensation coverage are duplicative, and twenty-four hour coverage may eliminate these duplications.

     Your Committees believe that twenty-four hour coverage needs to be explored in Hawaii, particularly with the addition of mandatory motor vehicle personal injury protection coverage.

     Your Committees have amended this measure by changing the effective date to July 1, 2050, to continue the discussion on this matter.

     As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Affordable Housing and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2298, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2298, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Affordable Housing and Judiciary and Labor,

____________________________ BRIAN T. TANIGUCHI, Chair

____________________________ RUSSELL S. KOKUBUN, Chair