STAND. COM. REP. NO. 757

Honolulu, Hawaii

RE:    S.B. No. 1274

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1274, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to amend the Patients' Bill of Rights and Responsibilities Act by establishing uniform standards for external review procedures.

     Your Committee received comments in support of this measure from Gordon Ito, State Insurance Commissioner, Department of Commerce and Consumer Affairs; and Ohana Health Plan.

     Your Committee received comments in opposition to this measure from Arleen Jouxson-Meyers, M.D., J.D., M.P.H., President, Hawaii Coalition For Health; Rev. Bob Nakata, Chair, Faith Action for Community Equity; and twenty-seven individuals.

     Your Committee finds that this measure is based upon the National Association of Insurance Commissioners Uniform Health Carrier External Review Model Act.  This measure replaces the existing external review process for deciding health insurance coverage disputes with a new process in which the review is conducted by an independent review organization in accordance with the requirements of the federal Patient Protection and Affordable Care Act.  An independent review organization is a private organization that contracts with a medical doctor to give a medical opinion on a health insurance coverage dispute.

     Your Committee has amended this measure by:

(1)  Deleting the amounts specified for an external review filing fee and the maximum annual aggregate filing fee and leaving those amounts unspecified;

(2)  Changing the effective date to July 1, 2050, in order to facilitate further discussion of the matter; and

(3)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1274, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1274, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair