HB2722.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	2722
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HEALTH.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that health savings accounts are an encouraging development in the health insurance market that creates a new opportunity for providing affordable health care coverage and engaging patients as allies in managing costs and achieving high value for health care spending.

Health savings accounts combine a tax-advantaged savings account earmarked for medical expenses with a high-deductible health insurance plan. Lower insurance premiums offset the amount used to fund the account, which can be used to pay expenses before the deductible has been met.

Health savings accounts encourage patients to comparison shop among treatment options, as well as among physicians and hospitals. These accounts also encourage patients to seek health information that prompts greater use of preventive services and the adoption of healthy lifestyle habits.

Ultimately, health savings accounts can lower the cost of health care, encourage healthier lifestyles, allow for more patient and physician control of health care decisions, and save money for employers and employees. In any case, more evidence is needed on the actual impact of health savings accounts on patient behavior and on mechanisms through which such impact occurs.

The purpose of this Act is to create a health savings account assessment task force to assess the viability of health savings accounts in the State.

SECTION 2. (a) There is created a health savings account assessment task force to be placed in the department of labor and industrial relations for administrative purposes only. Not later than August 1, 2010, the director of labor and industrial relations shall appoint members to the task force as follows:

(1) Four members from the Hawaii Prepaid Health Care Council;

(2) Three members from the Employees of Hawaii Medical Association;

(3) Three members from non-government employee unions;

(4) One member from a local bank;

(5) Three members from the health insurance industry; and

(6) Four members from other interested organizations or stakeholders who can contribute to the mission of the task force, to be appointed at the discretion of the chairperson.

The director of labor and industrial relations shall also serve on the task force.

The taskforce shall elect a chairperson and any other officers it deems necessary from its membership. Members shall not be compensated for their service, but may be reimbursed for expenses, including travel expenses, necessarily incurred in the performance of their duties.

(b) The task force shall convene its initial meeting no later than August 20, 2010. The duties of the taskforce shall include the following:

(1) Assess the current state of health savings accounts in Hawaii;

(2) Create a plan of action to encourage the use of health savings accounts and propose legislation to ensure a greater number of Hawaii residents have the option to open a health savings account;

(3) Identify and recruit potential health care plans that may be willing to look into expanding the availability of health savings accounts; and

(4) Assess the potential economic impact of expanding health savings accounts, estimate potential monetary savings for individuals and employers, and estimate the costs and benefits of expanding health savings account options.

(c) The task force shall submit a report of findings, recommendations, and any proposed legislation to the legislature no later than twenty days prior to the convening of the 2011 regular session. The task force shall cease to exist on June 30, 2011.

SECTION 3. This Act shall take effect on May 1, 2010.

INTRODUCED BY:	_____________________________