STAND. COM. REP. 2731

Honolulu, Hawaii

, 2004

RE: S.B. No. 2957

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2957, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOSPITAL AND PROFESSIONAL LIABILITY RISK FINANCING,"

begs leave to report as follows:

The purpose of this measure is to require the Hawaii Health Systems Corporation to organize a domestic captive insurance company to provide malpractice insurance coverage to the Department of Health, the John A. Burns School of Medicine, and other governmental entities or quasi-governmental entities of the State involved in the provision of health care.

Your Committee finds that the cost of purchasing medical malpractice and hospital professional and general liability coverage is becoming prohibitive, and for some, unavailable.

Your Committee further finds that establishment of a captive insurance company domiciled in the State is vitally essential to the future viability of government and quasi-government entities of the State involved in the provision of health care because it can help reduce costs and control losses.

Upon further consideration, your Committee has amended this measure by:

(1) Permitting, rather than requiring, the Hawaii Health Systems Corporation to organize the captive insurer;

(2) Requiring a board of directors for the captive insurer, if organized, to include one member representing each insured; and

(3) Appropriating an unspecified amount, to facilitate further discussion, to fund the start up of the captive insurer, to be expended by the Hawaii Health Systems Corporation.

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. 2957, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2957, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair