STAND. COM. REP. NO. 917

Honolulu, Hawaii

RE: S.B. No. 1237

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 1237, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to require health insurance providers that provide Medicare Advantage (Medicare Part C) health benefit plans to submit administrative data, including health care service claims and payment data, to the State Health Planning and Development Agency, or its designee.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii Employer-Union Health Benefits Trust Fund, Executive Office on Aging, Office of Enterprise Technology Services, State Health Planning and Development Agency, University of Hawai‘i System, and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i.

Your Committee finds that the all-payer claims database is a tool to address rising health care costs in the State. However, under existing law, the all-payer claims database does not have access to Medicare Advantage, or Medicare Part C, plans in Hawaii. This creates a significant gap in its dataset as Medicare Advantage participants comprise approximately 45 percent of the Medicare population in the State. Your Committee further finds that without this information, it will be difficult to determine the impact that Medicare Advantage has on the health and utilization patterns of its members in comparison to traditional Medicare plans. This measure updates existing law to cover any gaps in necessary datasets, thereby improving transparency in the health care sector and providing better insight on drivers of health insurance premiums in the State.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1237, S.D. 1, and recommends that it pass Third Reading.

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

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KARL RHOADS, Chair