STAND. COM. REP. NO.  49-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2114

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 2114 entitled:

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

begs leave to report as follows:

The purpose of this measure is to clarify provisions relating to the Hawaii Health Insurance Exchange under chapter 435H, Hawaii Revised Statutes, by:

(1)  Requiring statewide representation on the Hawaii Health Insurance Exchange Board;

(2)  Removing insurers from membership on the Hawaii Health Insurance Exchange Board;

(3)  Clarifying that provider representation on the Hawaii Health Insurance Exchange Board is not limited to dental providers;

(4)  Defining "consumer" for purposes of the Hawaii Health Insurance Exchange; and

(5)  Requiring the Hawaii Health Insurance Exchange to offer a basic health plan.

Hawaii Primary Care Association, Waikiki Health Center, and an individual testified in support of the measure.  Hawaii Medical Service Association, Kaiser Permanente, and Hawaii Dental Service opposed this measure.  The Office of the Governor, Department of Labor and Industrial Relations, Hawaii Health Connector, Ohana Health Plan, and American Cancer Society commented on the measure.

     Your Committee has amended this measure by:

(1)  Retaining insurers as part of the Hawaii Health Insurance Exchange Board;

(2)  Specifying that four consumers and three providers shall serve on the Hawaii Health Insurance Exchange Board;

(3)  Deleting the requirement that the Hawaii Health Insurance Exchange offer a basic health plan;

(4)  Changing its effective date to upon approval; and

(5)  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 H.B. No. 2114, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2114, 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