STAND. COM. REP. NO. 2732

Honolulu, Hawaii

RE:    S.B. No. 409

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 409, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to ensure patient safety and quality health care in medical-surgical wards of the acute care hospitals in Hawaii.

     Specifically, this measure mandates health insurance coverage for medical vigilance services that are approved by the federal Food and Drug Administration.

     Your Committee received testimony in support of this measure from Hoana Medical, Inc. and one individual.  Hawaii Medical Service Association and Kaiser Permanente submitted testimony with concerns on this measure.  The Auditor submitted an update on the submission of the final report.

     Your Committee finds that mandatory health insurance coverage for medical vigilance services will substantially enhance patient safety and provide a new standard-of-care for the people of this State.  Your Committee further finds that, pursuant to Senate Concurrent Resolution No. 209 C.D. 1 (2007), the Auditor is in the process of completing an impact assessment report, required by sections 23-51 and 23-52, Hawaii Revised Statutes, of the social and financial impacts of mandating coverage of medical vigilance services in acute care hospitals for all policies and contracts, hospital and medical service plan contracts, medical service corporation contracts, and health maintenance organization plans and contracts issued after December 31, 2007.

     Accordingly, your Committee has amended this measure by changing the effective date to encourage further discussion regarding the Auditor's report that is to be submitted to the Legislature.  Your Committee has further amended this measure by making technical, nonsubstantive changes for the purposes of 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 S.B. No. 409, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 409, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DAVID Y. IGE, Chair