STAND. COM. REP. NO.  1121

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 387

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 387, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to specify requirements for the inclusion of adequate numbers of various types of medical service providers in health insurance provider networks, as well as requirements for contracts, disclosure, continuity of care, and publication of directory information, to ensure that individuals covered under a health benefits plan have adequate access to appropriate health care.

Your Committee received testimony in support of this measure from Kaiser Permanente Hawaii and Hawai‘i Pacific Health.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaii Medical Service Association.

     Your Committee has amended this measure by:

     (1)  Delaying the repeal of current statutes governing network adequacy until the network adequacy requirements contained in this measure become applicable in order to avoid a period with no effective network adequacy rules;

     (2)  Changing its effective date to July 1, 2070, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purpose 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. 387, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 387, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

DELLA AU BELATTI, Chair