STAND. COM. REP. NO. 1390-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2924

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2924, S.D. 2, H.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 ensure that the individual mandate for health insurance coverage afforded under the federal Patient Protection and Affordable Care Act of 2010 is preserved under Hawaii law.

Specifically, this measure:

(1) Requires a qualified taxpayer to obtain and maintain affordable, creditable coverage for each of the twelve months of the taxable year at the risk of incurring a tax penalty;

(2) Provides a religious exemption; and

(3) Requires the Insurance Commissioner to establish a process to determine whether a health plan is affordable and for a taxpayer to contest a penalty.

IMUAlliance testified in support of this measure. The Department of Commerce and Consumer Affairs, Department of Taxation, Hawaii Medical Service Association, Kaiser Permanente Hawaii, Alliance of Health Care Sharing Ministries, Tax Foundation of Hawaii, and an individual provided comments.

Your Committee has amended this measure by:

(1) Exempting members of a health care sharing ministry from the requirement of obtaining affordable, creditable coverage for months the member maintains a membership with the health care sharing ministry; and

(2) Making technical, nonsubstantive amendments for clarity and consistency.

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 S.B. No. 2924, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2924, S.D. 2, H.D. 2.

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

____________________________

ROY M. TAKUMI, Chair