STAND. COM. REP. NO. 362

Honolulu, Hawaii

RE:    S.B. No. 1516

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 1516 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE ADMINISTRATIVE UNIFORMITY,"

begs leave to report as follows:

     The purpose and intent of this measure is to exempt collaboration among managed care plans, health care providers, and government agencies from state antitrust laws when the collaboration is intended to adopt uniform administrative procedures to enhance the quality of health care in Hawaii.

     Your Committee received testimony in support of this measure from Hawaii Medical Service Association, Hawaii Medical Association, and the Healthcare Association of Hawaii.

     Your Committee finds that collaborative development of uniform administrative standards for quality health care measures could help produce better quality health care that is more cost effective, while allowing providers to spend more time providing quality patient care and less time with administrative claims procedures.  To encourage productive discussion and agreements between health care providers, insurers, and other interested entities on uniform administrative standards regarding evidence-based medicine, clinical efficacy, and quality in health claims processing, such collaboration should be exempt from the State's unfair competition and antitrust laws, which might otherwise deter or prevent this type of beneficial cooperation.  Based on testimony received, your Committee finds that this measure could be improved by opening the discussion to certain parties who have expressed an interest in attending and receiving notifications of these discussions.

     Accordingly, your Committee has amended this measure by:

(1)  Adding language requiring that all accident and health or sickness insurers, third party administrators, health care providers or facilities, and managed care plans operating within the State of Hawaii, and the Insurance Division of the Department of Commerce and Consumer Affairs be provided with notice and an opportunity to participate in the collaborative discussions; and

(2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 1516, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1516, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

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

____________________________

JOSH GREEN, M.D., Chair