STAND. COM. REP. NO.  1077-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2894

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Health and Labor & Public Employment, to which was referred S.B. No. 2894, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

beg leave to report as follows:

The purpose of this measure is to:

     (1)  Authorize the Department of Human Services to develop and administer outreach as required by the federal Patient Protection and Affordable Care Act of 2010 (Affordable Care Act);

     (2)  Create Hawaii health insurance programs within the Department of Labor and Industrial Relations, which will conform state law to the Affordable Care Act and enable the State to:

          (A)  Preserve the benefits of the Hawaii Prepaid Health Care Act;

          (B)  Ensure a smooth transition to a state-based marketplace using the federal platform for individuals and families; and

          (C)  Develop a system to allow small businesses to continue to take advantage of Affordable Care Act tax credits; and

     (3)  Appropriate funds to the Department of Labor and Industrial Relations and Department of Human Services for the foregoing purposes.

The Department of Commerce and Consumer Affairs, Department of Human Services, Department of Labor and Industrial Relations, Ohana Health Plan, Healthcare Association of Hawaii, Hawaii Medical Service Association, and an individual supported this measure.

     Your Committees have amended this measure by:

     (1)  Changing its effective date to January 7, 2112, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Health and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2894, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2894, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Health and Labor & Public Employment,

____________________________ MARK M. NAKASHIMA, Chair

____________________________ DELLA AU BELATTI, Chair