STAND. COM. REP. NO.  1258-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2530

      S.D. 2

      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 Consumer Protection & Commerce, to which was referred S.B. No. 2530, S.D. 2, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to increase access to health insurance by requiring group health insurers to offer small group health plans to certain self-employed individuals located in the group health insurer's service areas, subject to the Insurance Commissioner's ability to exempt insurers who are unable to adequately deliver these services given their existing obligations.

     This bill also places certain restrictions on periods of enrollment and reenrollment in these group health plans.

     The Department of Commerce and Consumer Affairs (DCCA) testified in support of this bill.  The Chamber of Commerce of Hawaii, Hawaii Association of REALTORS, Kaiser Permanente, and Hawaii Medical Service Association supported the intent of this measure.

     Your Committee has amended this bill by:

     (1)  Clarifying that this measure applies to self-employed individuals whose businesses are registered, not licensed, by DCCA; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 S.B. No. 2530, S.D. 2, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 2530, S.D. 2, H.D. 1.

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

____________________________

ROBERT N. HERKES, Chair