Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 136
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health and Human Services, to which was
referred S.B. No. 136 entitled: 


begs leave to report as follows:

     The purpose of this measure is to prohibit long-term care
(LTC) insurers from requesting or requiring an individual or a
family member to undergo genetic testing to obtain an LTC
insurance policy or certificate.

     Your Committee received testimony in support of this measure
from the Department of Health, Executive Office on Aging,
Commission on Persons with Disabilities, Hawaii Medical
Association, Policy Advisory Board for Elder Affairs, Healthcare
Association of Hawaii, and a private citizen.  Testimony in
opposition was received from the Insurance Commissioner and
American Council of Life Insurance.  Informational testimony was
provided by State Farm Insurance Companies and a private citizen.
Your Committee notes that the Insurance Commissioner's testimony
was in opposition to authorizing insurers to request or require
genetic testing, when in fact the measure prohibits the practice.

     This measure also clarifies the use of genetic test results
for underwriting LTC insurance.

     Your Committee is very concerned about the impact of genetic
testing and test results upon the ability of a person to obtain
LTC insurance.  Genetic science and genetic testing are evolving

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                                   STAND. COM. REP. NO. 522
                                   Page 2

to the point where they have practical application to predict
chronic diseases and to even treat those diseases through gene
therapy.  However, your Committee feels that genetic test results
have no place in qualifying a person to purchase LTC insurance.
Hawaii is currently in the process of making LTC insurance
universal.  To allow genetic test results to be factored into
underwriting could result in disproportionately higher premiums
and discourage the applicant from purchasing LTC insurance.

     Your Committee has amended this measure to:

     (1)  Clarify that an LTC insurer may not underwrite an LTC
          insurance policy or certificate based on genetic test
          results unless based on actuarially sound principles or
          actual or reasonably anticipated experience;

     (2)  Delete the definition of "board certified genetics
          professional" because it is not used in the amended
          language; and

     (3)  Make technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 136, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 136,
S.D. 1, and be referred to the Committee on Commerce and Consumer

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human

                                   SUZANNE CHUN OAKLAND, Chair

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