STAND. COM. REP. NO.  976

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 1348

      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. 1348, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HEALTH INSURANCE EXCHANGE,"

begs leave to report as follows:

     The purpose of this bill is to establish a nonprofit health insurance exchange, to be known as the Hawaii Health Connector, which shall, among other things, facilitate the purchase and sale of qualified health plans in compliance with the federal Patient Protection and Affordable Care Act of 2010.

     The American Cancer Society, AARP, Hawaii Medical Service Association, Hawaii Pharmacists Association, and Healthcare Association of Hawaii testified in support of this measure.  The Department of Commerce and Consumer Affairs, Department of Human Services, Hawaii Association of Health Plans, Legislative Reference Bureau, Hawaii Medical Association, Ohana Health Plan, and Hawaii Dental Service offered comments.

     Your Committee amended this bill by:

(1)  Including health care providers in the composition of the Hawaii Health Connector's Board of Directors;

(2)  Expanding the definition of "insurer" to include providers of dental benefits;

(3)  Expanding the definition of "qualified health plan" to include dental benefit plans as described in the federal Patient Protection and Affordable Care Act;

(4)  Changing the effective date to July 1, 2040, to facilitate further discussion; and

(5)  Making technical, nonsubstantive amendments 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. 1348, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1348, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

RYAN I. YAMANE, Chair