STAND. COM. REP. NO.  978

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 1217

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 1217, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to:

(1)  Require insurers to provide health care coverage for medically necessary health care services covered by a health insurance policy, contract plan, or agreement when provided by licensed naturopathic physicians acting within their scope of practice;

(2)  Specify that health care services provided by naturopathic physicians may be subject to certain coverage limitations;

(3)  Specify that coverage limitations shall not direct treatment in a manner that unfairly discriminates against the practice of naturopathic medicine; and

(4)  Permit insurers to require naturopathic physician services to be provided by a licensed naturopathic physician under contract or covered as consistent with out-of-network provider reimbursement practices.

The Hawaii Society of Naturopathic Physicians and numerous individuals supported this measure.  Kaiser Permanente Hawaii and the Hawaii Association of Health Plans opposed this measure.  The Department of Commerce and Consumer Affairs, Hawaii Medical Service Association, and two individuals commented on this measure.

     Your Committee has amended this measure by:

(1)  Making it an unlawful method of competition and unfair or deceptive act or practice in the business of insurance for accident and health or sickness insurers to discriminate with respect to participation under the plan or coverage against any health care provider, acting within the scope of the health care provider's license or certification, in violation of 42 United States Code section 300gg-5; and

(2)  Changing its effective date to July 1, 2112, to facilitate further discussion.

     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. 1217, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1217, S.D. 1, 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