STAND. COM. REP. NO. 836-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2579

S.D. 2

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 Committee on Health, to which was referred S.B. No. 2579, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MENTAL HEALTH AND ALCOHOL AND DRUG ABUSE INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to expand the definition of "serious mental illness" and to increase the minimum coverage for alcohol and drug dependence benefits.

The Department of Health, Department of Commerce and Consumer Affairs, Kaiser Permanente, National Association of Social Workers-Hawaii Chapter, Hawaii Government Employees Association, Hawaii Youth Services Network, Hawaii Substance Abuse Coalition, Hawaii Disability Rights Center, Hawaii Psychiatric Medical Association, NAMI Oahu, Equal Insurance Coalition, Blueprint for Change, Hawaii Medical Association, Hawaii Psychological Association, MADD-Hawaii, and numerous concerned individuals supported this bill. NAMI Hawaii supported the intent of this measure. The Chamber of Commerce of Hawaii testified in opposition. The Hawaii Medical Service Association provided comments.

 

Your Committee finds that requiring mental health parity represents sound public policy and that insurers should view the treatment of mental illness and alcohol or drug dependence in the same manner as they view the treatment of a physical health condition.

National trends in mental health care are towards expansion of mental health and substance abuse treatment benefits to ensure parity with other physical illnesses. A very small percentage of the population uses mental health and substance abuse treatment services. It is estimated that only 4 percent of the population use mental health services, compared to 65 percent who use physical health care services.

Your Committee has amended this bill by deleting its contents and replacing it with substance that, among other things:

(1) Establishes a Mental Health Parity Supplemental Coverage Tax Credit for employers who provide their employees with mental health benefits;

(2) Requires insurance policies to include supplemental mental illness and alcohol and drug dependence benefits upon written authorization by an employer;

(3) Amends definitions;

(4) Provides parity for mental illness and alcohol and drug dependence benefits, including crystal methamphetamine dependency; and

(5) Requires the Insurance Commissioner to report to the Legislature the effects of this measure.

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 S.B. No. 2579, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2579,

S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

 

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

 

____________________________

DENNIS A. ARAKAKI, Chair