STAND. COM. REP. NO.  261

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1268

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1268 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to require the Hawaii Employer-Union Health Benefits Trust Fund board, when contracting for health benefits plans, to contract only with carriers that provide or administer prescription drug coverage together with medical benefits.  

     The Department of Budget and Finance opposed this bill.  The Hawaii Medical Service Association supported the intent of this bill.

     Studies indicate that integration of medical benefits has resulted in lower costs and improved quality of care for beneficiaries.  The integration may also result in efficiencies that improve the coordination of patient care.  For these reasons, this measure deserves further consideration.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1268 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

KARL RHOADS, Chair