REPORT TITLE:
Insurance Exemption


DESCRIPTION:
Exempts health insurance offered under federally funded programs
under the Social Security Act, as amended, by insurers, mutual
benefit societies, health maintenance organizations, and managed
care plans, from mandated coverage requirements.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        528
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HEALTH INSURANCE.



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

 1      SECTION 1.  Chapter 431:10A, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "431:10A-     Federally funded programs; exemption.
 
 5 Requirements relating to mandated coverages shall not be
 
 6 applicable to any insurer offering health insurance under a
 
 7 federally funded program under the Social Security Act, as
 
 8 amended; provided that this exemption shall apply only to that
 
 9 part of the insurer's business under the federally funded
 
10 program."
 
11      SECTION 2.  Chapter 432:1, Hawaii Revised Statutes, is
 
12 amended by adding a new section to be appropriately designated
 
13 and to read as follows:
 
14      "432:1-     Federally funded programs; exemption.
 
15 Requirements relating to mandated coverages shall not be
 
16 applicable to any mutual benefit society offering health
 
17 insurance under a federally funded program under the Social
 
18 Security Act, as amended; provided that this exemption shall
 

 
Page 2                                                     528
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 apply only to that part of the mutual benefit society's business
 
 2 under the federally funded program."
 
 3      SECTION 3.  Chapter 432D, Hawaii Revised Statutes, is
 
 4 amended by adding a new section to be appropriately designated
 
 5 and to read as follows:
 
 6      "432D-     Federally funded programs; exemption.
 
 7 Requirements relating to mandated coverages shall not be
 
 8 applicable to any health maintenance organization offering health
 
 9 insurance under a federally funded program under the Social
 
10 Security Act, as amended; provided that this exemption shall
 
11 apply only to that part of the health maintenance organization's
 
12 business under the federally funded program."
 
13      SECTION 4.  Chapter 432E, Hawaii Revised Statutes, is
 
14 amended by adding a new section to be appropriately designated
 
15 and to read as follows:
 
16      "432E-     Federally funded programs; exemption.
 
17 Requirements under this chapter shall not be applicable to any
 
18 managed care plan under a federally funded program under the
 
19 Social Security Act, as amended; provided that this exemption
 
20 shall apply only to that part of the managed care plan's business
 
21 under the federally funded program."
 
22      SECTION 5.  New statutory material is underscored.