REPORT TITLE:
Insurance


DESCRIPTION:
Establishes health insurance revolving fund.  Authorizes
assessments against mutual benefit societies and HMOs to be
credited to health insurance revolving fund and motor vehicle
insurance revolving fund.  Appropriates moneys out of the health
insurance revolving fund. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1127
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO INSURANCE. 



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to article 2 to be appropriately
 
 3 designated and to read as follows:
 
 4      "�431:2-     Health insurance revolving fund.  (a)  There is
 
 5 established a revolving fund in the state treasury to be
 
 6 administered by the commissioner and to be designated as the
 
 7 health insurance revolving fund.
 
 8      (b)  The commissioner may expend moneys from the health
 
 9 insurance revolving fund for the regulation of health insurance,
 
10 including but not limited to, the hiring of professional,
 
11 technical, and support staff, compliance, education, examination,
 
12 investigation, and rate and policy analysis.
 
13      (c)  Beginning with fiscal year 2000-2001 and each fiscal
 
14 year thereafter, each mutual benefit society under article 1 of
 
15 chapter 432, health maintenance organization under chapter 432D,
 
16 and any other entity offering or providing health benefits or
 
17 services under the regulation of the commissioner, except an
 
18 insurer licensed to offer health insurance under article 10A,
 
19 shall deposit with the commissioner by July 1 of each year an
 

 
Page 2                                                     1127
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 assessment based on a pro rata basis to be determined and imposed
 
 2 by the commissioner.  The aggregate annual assessment shall not
 
 3 exceed $1,100,000.  The assessment shall be credited to the
 
 4 health insurance revolving fund.
 
 5      (d)  The commissioner shall report annually to the
 
 6 legislature before the convening of each regular session as to
 
 7 fund administration and expenditures.
 
 8      (e)  The commissioner may adopt rules in accordance with
 
 9 chapter 91 to effectuate the purposes of this section."
 
10      SECTION 2.  Upon approval of this Act, each mutual benefit
 
11 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
12 health maintenance organization under chapter 432D, Hawaii
 
13 Revised Statutes, and any other entity offering or providing
 
14 health benefits or services under the regulation of the
 
15 commissioner, except an insurer licensed to offer health
 
16 insurance under article 10A of chapter 431, Hawaii Revised
 
17 Statutes, shall pay to the insurance commissioner by September
 
18 30, 1999, a one-time assessment in an amount not to exceed an
 
19 aggregate amount of $1,100,000, to be credited to the health
 
20 insurance revolving fund.
 
21      SECTION 3.  Upon approval of this Act, each mutual benefit
 
22 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
23 health maintenance organization under chapter 432D, Hawaii
 

 
Page 3                                                     1127
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 Revised Statutes, and any other entity offering or providing
 
 2 health benefits or services under the regulation of the
 
 3 commissioner, except an insurer licensed to offer health
 
 4 insurance under article 10A of chapter 431, Hawaii Revised
 
 5 Statutes, shall pay to the insurance commissioner by
 
 6 September 30, 1999, a one-time assessment in an amount not to
 
 7 exceed an aggregate amount of $200,000, to be credited to the
 
 8 motor vehicle insurance revolving fund for the purpose of
 
 9 reimbursing the fund for moneys expended to regulate health
 
10 insurance.
 
11      SECTION 4.  There is appropriated out of the health
 
12 insurance revolving fund the sum of $1,100,000, or so much
 
13 thereof that may be necessary for fiscal year 1999-2000, and the
 
14 sum of $1,100,000, or so much thereof as may be necessary for
 
15 fiscal year 2000-2001, to carry out the purposes of this Act.
 
16      The sums appropriated shall be expended by the department of
 
17 commerce and consumer affairs.
 
18      SECTION 5.  New statutory material is underscored.
 
19      SECTION 6.  This Act shall take effect upon its approval.