Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 830
                                        S.D. 1

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


     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 830 entitled: 


begs leave to report as follows:

     The purpose of this measure is to require health insurers,
mutual benefit societies, and health maintenance organizations to
reimburse providers and patients within a specified time period.  

     The Department of Commerce and Consumer Affairs, the
American Massage Therapy Association, the Hawaii Psychiatric
Medical Association, the Hawaii Chapter of the American Physical
Therapy Association, and the Hawaii Medical Association presented
testimony in support of the measure.  Pacific Radiation Oncology,
Inc., and three individuals, though not present at the hearing,
submitted written testimony in support of the measure.  The
Hawaii Medical Services Association presented testimony in
opposition to the measure.

     Your Committee finds that this measure will allow the
Insurance Commissioner to investigate a health insurer if
complaints are received from providers due to delays in claims
reimbursement.  These complaints may indicate that an insurer may
be having financial problems. 

     Your Committee has amended this measure by postponing the
effective date of the Act to January 1, 2001, so that health plan

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tracking systems currently being retooled for Y2K compliance
would not be overtaxed. 

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 830, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 830, S.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

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