HB2795.DOC

SECTION 1. The legislature finds that although many providers of health insurance currently maintain websites and use other forms of media to provide current and prospective members with written disclosure of coverages and benefits, there have been instances in which members have come across outdated or incorrect information.

Providing a website that is frequently updated with the most timely information regarding the health benefits that are provided by an insurer is essential, especially in current times when federal health reform legislation could change the landscape of health insurance and leave large numbers of people wondering how their policies may have been affected.

The purpose of this Act is to require providers of health insurance to post regularly-updated information regarding policy coverage on an internet website or to provide policy holders with the information via public notice through a newspaper publication or a newsletter.

SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10A to be appropriately designated and to read as follows:

"§431:10A- Disclosure of health care coverage and benefits. To ensure that all individuals understand their health care options and are able to make informed decisions, an insurer shall provide current and prospective holders of a policy of accident and health or sickness insurance with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage. The information provided shall be current, understandable, and available prior to membership, and upon request after membership. The information shall be:

(1) Posted on a website that shall be updated not less than once per year to ensure members that the information is current; or

(2) Made available not less than once per year through:

(A) A newsletter; or

(B) Public notice published or advertised in a newspaper or newspapers having a general circulation within the state."

SECTION 3. Section 432:1-101.5, Hawaii Revised Statutes, is amended to read as follows:

"§432:1-101.5 Disclosure of health care coverage and benefits. [~~In order to~~] (a) To ensure that all individuals understand their health care options and are able to make informed decisions, all mutual benefit societies shall provide current and prospective members with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage.

The information provided shall be current, understandable, and available prior to membership, and upon request after membership. The information shall be:

(1) Posted on a website that shall be updated not less than once per year to ensure members that the information is current; or

(2) Made available not less than once per year through:

(A) A newsletter; or

(B) Public notice published or advertised in a newspaper or newspapers having a general circulation within the state.

(b) A policy provided to a member which describes coverages and benefits shall be in conformance with part I of article 10 of chapter 431."

SECTION 4. Section 432D-25, Hawaii Revised Statutes, is amended to read as follows:

"§432D-25 Disclosure of health care coverage and benefits. [~~In order to~~] (a) To ensure that all individuals understand their health care options and are able to make informed decisions, all health maintenance organizations shall provide current and prospective enrollees with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage.

The information provided shall be current, understandable, and available prior to enrollment, and upon request after enrollment. The information shall be:

(1) Posted on a website that shall be updated not less than once per year to ensure members that the information is current; or

(2) Made available not less than once per year through:

(A) A newsletter; or

(B) Public notice published or advertised in a newspaper or newspapers having a general circulation within the state.

(b) A policy or contract provided to an enrollee which describes coverages and benefits shall be in conformance with part I of article 10 of chapter 431."

SECTION 5. The insurance commissioner shall submit a report to the legislature not later than twenty days prior to the convening of the regular session of 2011. The report shall include:

(1) An evaluation of the health insurance providers' efforts to provided timely information through an internet website, newsletter, or public notice;

(2) Any recommendations for improvements provided by the department of health, department of human services, and a representative of an independent hospital; and

(3) Any proposed legislation to implement the recommendations provided in the report.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on January 1, 2011, and shall be repealed on June 30, 2012; provided that sections 432:1-101.5 and 432D-25, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2795
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII