Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1452

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 1452 entitled:


begs leave to report as follows:

     The purpose of this bill is to strengthen the protection of
consumer rights for patients in managed care plans and health
maintenance organizations.

     Your Committee finds that Act 178, Session Laws of Hawaii
1998, is the Hawaii Patient Bill of Rights and Responsibilities
Act.  Besides regulating managed care, the Act also required the
Insurance Commissioner to convene a task force to recommend
suggested legislation to protect patients in health and managed
care situations.

     This bill is the product of the task force's efforts and
generally includes issues such as:

     1.   A health insurance revolving fund;

     2.   Accreditation of managed care plans;

     3.   Standing referrals to specialists;

     4.   Notice for managed care complaints;

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     5.   Appeals procedures;

     6.   Information to managed care plan enrollees;

     7.   Reimbursements; and

     8.   Alternate plans.

     Your Committee supports and concurs with the testifiers on
this bill before the Committees on Commerce and Consumer
Protection and Health and Human Services and finds that this bill
will ensure quality health care that is responsive and
accountable to patient consumers.

     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.
1452 and recommends that it pass Third Reading.

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

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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