REPORT TITLE:
Health Ins. Revolving Fund

DESCRIPTION:
Establishes the health insurance revolving fund to provide the
insurance division with self-sufficiency in health insurance
regulation.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           774
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 431:2, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 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 in fiscal year 2000-2001 and each fiscal year
 
14 thereafter, each mutual benefit society under article 1 of
 
15 chapter 432, health maintenance organization under chapter 432D,
 
16 and any other entity whose primary purpose is to offer or provide
 
17 health coverage, benefits, or services under the regulation of
 
18 the commissioner, except an insurer licensed to offer health
 
19 insurance under article 10A, shall deposit with the commissioner
 

 
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                                     S.B. NO.           774
                                                        
                                                        

 
 1 by June 30 of each year an assessment based on a pro rata basis
 
 2 to be determined by and imposed by the commissioner.  The
 
 3 aggregate annual assessment shall not exceed $500,000.  The
 
 4 assessment shall be credited to the health insurance revolving
 
 5 fund.
 
 6      (d)  The commissioner shall report annually to the
 
 7 legislature before the convening of each regular session as to
 
 8 fund administration and expenditures.
 
 9      (e)  The commissioner may adopt rules in accordance with
 
10 chapter 91 to effectuate the purposes of this section."
 
11      SECTION 2.  Upon approval of this Act, each mutual benefit
 
12 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
13 health maintenance organization under chapter 432D, Hawaii
 
14 Revised Statutes, and any other entity whose primary purpose is
 
15 to offer or provide health coverage, benefits, or services under
 
16 the regulation of the commissioner, except an insurer licensed to
 
17 offer health insurance under article 10A, chapter 431, Hawaii
 
18 Revised Statutes, shall pay to the insurance commissioner by
 
19 September 30, 1999, a one-time assessment in an amount not to
 
20 exceed an aggregate amount of $500,000, to be credited to the
 
21 health insurance revolving fund.
 
22      SECTION 3.  There is appropriated out of the health
 
23 insurance revolving fund the sum of $500,000, or so much thereof
 

 
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                                     S.B. NO.           774
                                                        
                                                        

 
 1 as may be necessary for fiscal year 1999-2000, and the sum of
 
 2 $500,000, or so much thereof as may be necessary for fiscal year
 
 3 2000-2001 to carry out the purposes of this Act.
 
 4      The sums appropriated shall be expended by the department of
 
 5 commerce and consumer affairs. 
 
 6      SECTION 4.  New statutory material is underscored.
 
 7      SECTION 5.  This Act shall take effect on its approval.
 
 8 
 
 9                           INTRODUCED BY:  _______________________