STAND. COM. REP. NO.  570

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1467

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1467, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend policy and insurer requirements for the Hawaii Health Connector (the Connector) by, among other things:

     (1)  Authorizing the Connector to offer large group coverage to insurers, beginning January 1, 2017;

     (2)  Mandating insurers having a small group market share in the State that exceeds twenty percent to offer coverage through the Connector;

     (3)  Encouraging full participation in the Connector by prohibiting the issuance of transitional renewal policies beginning January 1, 2016, and expanding notice requirements for group health plans offering continuation coverage;

     (4)  Expanding the small business market in the Connector by increasing the number of employees needed to qualify as a "small employer" from 50 to 100, pursuant to federal law;

     (5)  Requiring health insurers offering qualified plans to offer federally-qualified health centers the opportunity to contract for services covered by the qualified plan; and

     (6)  Requiring health insurers with a greater than 20 percent share of the State's small group health insurance market to offer at least one silver and at least one gold qualified health plan as a condition of participation in the individual market of the Connector.

The Hawaii Primary Care Association testified in support of this measure.  The Chamber of Commerce of Hawaii and Hawaii Medical Service Association testified in opposition to this measure.  The Department of Labor and Industrial Relations, Department of Commerce and Consumer Affairs, and Hawaii Health Connector provided comments.

     Your Committee has amended this measure by changing the requirement for health insurers with greater than 20 percent share of the State's small group health insurance market to offer at least one gold and one platinum qualified health plan, as a condition of participation in the individual market of the Connector.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1467, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1467, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair