STAND. COM. REP. NO. 2045

Honolulu, Hawaii

RE: S.B. No. 2340

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2340 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to ensure certain benefits under the federal Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) are preserved under Hawaii law, including:

(1) Extending dependent coverage for adult children up to twenty-six years of age;

(2) Prohibiting health insurance entities from imposing a preexisting condition exclusion; and

(3) Prohibiting health insurance entities from using an individual's gender to determine premiums or contributions.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaii State Commission on the Status of Women; Special Education Advisory Council; The Sex Abuse Treatment Center; The Queen's Health Systems; Hawaii Medical Association; Hawaii Medical Service Association; Hawai‘i Public Health Institute; Hawai‘i State Democratic Women's Caucus; American College of Obstetricians and Gynecologists, Hawaii Section; League of Women Voters Hawaii; Planned Parenthood Votes Northwest and Hawaii; Oahu County Committee on Legislative Priorities, Democratic Party of Hawaii; IMUAlliance; YWCA O‘ahu; Hawai‘i Appleseed Center for Law and Economic Justice; Healthy Mothers Healthy Babies; Hawaii Children's Action Network; and fifty-four individuals. Your Committee received comments on this measure from Kaiser Permanente Hawai‘i.

Your Committee finds that the Affordable Care Act has resulted in an estimated 20,000,000 Americans gaining health insurance coverage, while nationwide, the rate of uninsured Americans has decreased by nearly forty percent or more for every income group. According to testimony received by your Committee, the dependent coverage requirement under the Affordable Care Act has resulted in a lower number of uninsured young adults throughout the country and has been associated with a decline in the percentage of young adults reporting delays in medical care due to cost, an increase in young adults reporting excellent mental and physical health, and a reduction in the number of young adults with large out-of-pocket medical expenditures.

Your Committee further finds that the Affordable Care Act has expanded coverage and improved medical care and health among low-income adults and established important protections for all Americans, but in particular women and individuals with pre-existing conditions. Your Committee notes that prior to the passage of the Affordable Care Act, insurers were able to deny coverage for medical histories that were unique to or disproportionately affected women, including past cesarean delivery, previous pregnancies, and being a victim of domestic violence.

Your Committee notes that the future of the Affordable Care Act remains uncertain. This measure therefore ensures that certain benefits established by the Affordable Care Act, including extending dependent coverage for adult children up to twenty-six years of age, preventing denial of coverage for preexisting conditions, and prohibiting health insurance entities from using a person's gender when determining premiums or contributions, will remain available for Hawaii residents.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2340, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2340, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

ROSALYN H. BAKER, Chair