THE SENATE	S.B. NO.	2091
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

Relating to health care.

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

     SECTION 1.  The legislature finds that Hawaii has enjoyed one of the highest rates of health care insurance coverage in the nation for more than thirty years, largely due to the Hawaii prepaid health care act.  The prevalence of health care insurance coverage is a good predictor of community health, so it is no surprise that the people of Hawaii enjoy a higher level of health than most of the rest of the nation. 

     The Hawaii prepaid health care act requires employers to provide health care insurance to employees who work at least twenty hours a week, and provides for minimum requirements for the benefits package of each health care insurance plan.  The director of labor and industrial relations administers the Hawaii prepaid health care act and has the authority to determine which health plans may operate in Hawaii.  The director of labor and industrial relations is advised by the prepaid health care advisory council.

     The prepaid health care advisory council currently consists of a maximum of seven members appointed by the director of labor and industrial relations, with the required representation of medical and public health professions, representatives of consumer interests, and persons experienced in prepaid health care protection.  Health care provider organizations, such as hospitals, are not currently represented on the prepaid health care advisory council.  The legislature also finds that including representation from health care organizations would give the council valuable perspectives on the design of health plan benefits.  For example, the representation of health care organizations on the prepaid health care advisory council would add the expertise needed to create value-based insurance benefits that could improve the prevention and treatment of chronic diseases and ultimately reduce Hawaii's health care costs. 

     The purpose of this Act is to include representation from health care organizations on the prepaid health care advisory council and to increases the maximum membership of the prepaid health care advisory council from seven to nine.

     SECTION 2.  Section 393-7, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The prepaid health care advisory council shall be appointed by the director and shall include representatives of the medical and public health professions, representatives of health care provider organizations, representatives of consumer interests, and persons experienced in prepaid health care protection; provided that a person representing a health maintenance organization under chapter 432D, a mutual benefit society issuing individual and group hospital or medical service plans under chapter 432, or any other health care organization shall not be a member.  The membership of the council shall not exceed [seven] nine individuals."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2012.

INTRODUCED BY:

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Report Title:

Health Care; Advisory Council

Description:

Includes representatives of health care organizations on the prepaid health care advisory council to provide their perspectives regarding health plan benefits. Increases the maximum membership of the prepaid health care advisory council to 9 members.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.