STAND. COM. REP. NO.  983

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 1274

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 1274, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to update the Patients' Bill of Rights and Responsibilities Act to conform to federal law by establishing uniform standards for external review procedures.

     Hawaii Medical Service Association, and Ohana Health Plan testified in support of this measure.  Numerous concerned individuals opposed this bill.  The Department of Commerce and Consumer Affairs offered comments.

     Your Committee amended this bill by:

     (1)  Changing the effective date to July 1, 2040, to facilitate further discussion regarding state-based external review procedures in relation to the preemptive federal regulation that will become effective in the absence of state-based procedures; 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 Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1274, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1274, S.D. 2, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

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

____________________________

RYAN I. YAMANE, Chair