STAND. COM. REP. NO. 2734

Honolulu, Hawaii

RE: S.B. No. 2924

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2924, S.D. 1, 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 that the individual mandate for health insurance coverage afforded under the federal Patient Protection and Affordable Care Act of 2010, as amended, is preserved under Hawaii law.

Specifically, this measure requires qualified taxpayers 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. Additionally, this measure requires the Insurance Commissioner to establish a process to determine which health plans are considered affordable.

Your Committee received written comments in support of this measure from IMUAlliance; Kaiser Permanente; Planned Parenthood Votes Northwest and Hawaii; The Queen's Health Systems; and one concerned individual.

Your Committee received written comments in opposition to this measure from two concerned individuals.

Your Committee received written comments on this measure from the Department of Commerce and Consumer Affairs, Insurance Division; Department of Taxation; Hawaii Medical Service Association; Samaritan Ministries; Samaritan Ministries International; and twelve concerned individuals.

Your Committee finds that, with the enactment of the federal Patient Protection and Affordable Care Act of 2010, as amended, many more of the State's residents were able to obtain affordable health insurance. Consequently, the number of uninsured individuals in the State declined by forty-six per cent between 2013 and 2016. However, recent federal tax legislation has reduced the federal individual mandate penalty to zero, which has caused uncertainty about the sustainability of the individual insurance market in Hawaii. Your Committee believes that a state-level individual insurance mandate will provide a measure of certainty and stability to Hawaii's individual insurance market.

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

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2924, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2924, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair