STAND. COM. REP. NO. 29

Honolulu, Hawaii

, 2019

RE: H.B. No. 216

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 216 entitled:

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

begs leave to report as follows:

The purpose of this measure is to ensure that cancer patients have full access to effective treatment options at early stages of their illness by prohibiting insurers from requiring an insured, diagnosed with stage two cancer, to undergo step therapy prior to providing coverage for the drug prescribed by the insured's health care provider.

The Hawaii Medical Association, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and one individual testified in support of this measure. The Department of Commerce and Consumer Affairs, Hawaii Medical Service Association, and Hawaii Association of Health Plans provided comments.

Your Committee notes the concerns raised by the Hawaii Medical Association and Hawaii Association of Health Plans regarding coverage of investigational or experimental drugs that are still awaiting approval of the Food and Drug Administration.

Your Committee has amended this measure by:

(1) Requiring the State Auditor to perform an analysis to determine if the mandated benefits rise to the level of triggering the Patient Protection and Affordable Care Act's requirement to defray the cost of any new mandate in excess of the essential health benefits;

(2) Requiring the State Auditor to perform an analysis to determine if an impact assessment report as required under section 23-51, Hawaii Revised Statutes, must be performed;

(3) Requiring the State Auditor to perform an analysis to determine if this measure circumvents the medical necessity provision in section 432E-1.4, Hawaii Revised Statutes;

(4) Changing its effective date to July 1, 2050, to promote further discussion; and

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

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 H.B. No. 216, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 216, 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,

____________________________

JOHN M. MIZUNO, Chair