STAND. COM. REP. NO.  471-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2522

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 2522 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose of this measure is to promote quality health care procedures in the State by requiring each health insurance policy contract, plan, or agreement issued or renewed in the State after December 31, 2014, to provide health insurance coverage of medically necessary orthodontic services for the treatment of orofacial anomalies.

The Hawaii Dental Association and several individuals testified in support of this measure.  Kaiser Permanente Hawaii and Family Voices of Hawai‘i supported the intent of this measure.  The Hawaii Medical Service Association and The Chamber of Commerce of Hawaii opposed this measure.  The Department of Commerce and Consumer Affairs, Department of Health, Hawaii Pacific Health, and American Family Life Assurance Company of Columbus commented on this measure.

     Your Committee recognizes the necessity for individuals to obtain insurance coverage to obtain medically necessary orthodontic treatment of orofacial anomalies.

     Upon careful consideration, your Committee has amended this bill by:

(1)  Requiring the Auditor to assess the social and financial effects of proposed mandatory health insurance coverage for medically necessary orthodontic services for the treatment of orofacial anomalies for all policies, contracts, plans, or agreements issued or renewed in the State after December 31, 2015, instead of statutorily mandating the coverage at this time;

(2)  Specifying that as of January 1, 2016, benefits that exceed the essential health benefits under section 1302(b) of the Patient Protection and Affordable Care Act of 2010, shall not be required of a qualified health plan when the plan is offered in the State through the Hawaii Health Insurance Exchange by a health carrier;

(3)  Changing its effective date to July 1, 2050, to facilitate further discussion; and

(4)  Making technical, nonsubstantive amendments for clarity 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. 2522, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2522, 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,

____________________________

DELLA AU BELATTI, Chair