STAND. COM. REP. NO. 161-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2008

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Public Employment and Health, to which was referred H.B. No. 2008 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

The purpose of this bill is to protect the health and welfare of Hawaii's citizens by implementing a system of universal health care insurance. Among other things, this bill:

(1) Establishes a single entity to be known as the Hawaii Health Alliance (Alliance) to serve as the State of Hawaii's Medicaid agency and to provide comprehensive, affordable health care coverage to Medicaid recipients and eligible small employers, including the self-employed, their employees and dependents, and other individuals on a voluntary basis;

(2) Provides for the organization of the Alliance's Board of Directors (Board), and establishes the Board's responsibilities, powers, and duties;

(3) Provides a mechanism for the appointment of an administrator of the Alliance by the Board;

(4) Requires annual audits of the Alliance;

(5) Establishes requirements for enrollment, covered benefits, a standard benefits package, insurance carrier participation, basic medical services, and residency;

(6) Provides a funding mechanism for the Alliance;

(7) Requires the establishment of high-risk pools for those individuals incurring large medical expenses over a twelve-month period;

(8) Integrates the single-payor system of the Alliance with the Hawaii Prepaid Health Care Act (PHCA);

(9) Promotes consumer education and comparative analysis of health care services; and

(10) Transfers the Hawaii QUEST Program to the Alliance.

Civil Unions-Civil Rights Movement, Kokua Council, First Unitarian Church, Hawaii Primary Care Association, Hawaii State Commission of the Status of Women, AARP Hawaii, and several concerned citizens testified in support of this measure. The Hawaii State Teachers Association and ILWU Local 142 supported the intent of this measure. The Department of Health, Department of Labor and Industrial Relations, Department of Commerce and Consumer Affairs, Chamber of Commerce of Hawaii, Hawaii Medical Association, HMSA, and Legislative Information Services of Hawaii opposed this measure. Kaiser Permanente and the American Council of Life Insurers commented on this measure.

In 1974, the Hawaii State Legislature enacted a ground-breaking law that reaffirmed the State's commitment to protecting the health of our citizens, as well as promoting the stability of our economy's workforce. This law, PHCA, was revolutionary because never before in the United States had a state government required employers to provide insurance coverage for workers.

Your Committees find that the PHCA was monumental in assisting the healthcare need of Hawaii's people and continues to do so. However, your Committees also find that over 144,000 individuals in the State are currently without healthcare coverage and that over 50 percent of these individuals are gainfully employed.

The inability of Hawaii to change the PHCA due to preemption imposed through enactment of the Employees Retirement Income Securities Act (ERISA) and changes in economic climates over the last 30 years has increased strains on employers to provide coverage for employees at levels established in 1973.

Although your Committees realize that this measure is not the "cure all" for the existing problems facing the uninsured individuals in our State, it remains a worthwhile piece of legislation that deserves further discussion and consideration.

Accordingly, your Committees have amended this measure by:

(1) Changing the effective date to February 31, 3003; and

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

As affirmed by the records of votes of the members of your Committees on Labor and Public Employment and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2008, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2008, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committees on Labor and Public Employment and Health,

 

____________________________

DENNIS A. ARAKAKI, Chair

____________________________

MARCUS R. OSHIRO, Chair