STAND. COM. REP. NO. 1352

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.R. No. 94
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.R. No. 94 entitled:

     "SENATE RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO
     CONDUCT A COMPARATIVE ANALYSIS OF HAWAII'S HEALTH CARE
     PLANS,"

begs leave to report as follows:

     The purpose of this measure is to request the Insurance
Commissioner to conduct a comprehensive comparative analysis of
health plans.

     The Insurance Commissioner submitted comments on the
measure.  The Hawaii Medical Service Association submitted
testimony in support of the measure.

     Your Committee finds that an understanding of the
differences between health plans in the State is in the best
interests of the State and its consumers.  This measure would
further this interest by requiring the Insurance Commissioner to
conduct a comprehensive comparison between health plans with
respect to organization structure, tax status, types of plans,
accreditation status, and other factors. 

     Your Committee further finds that a comparative review of
health plans should include a review of dental plans, and that
the Auditor, rather than the Insurance Commissioner, is better
situated to conduct a comparison between health plans with

 
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                                   STAND. COM. REP. NO. 1352
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respect to tax issues.  Accordingly, your Committee has amended
this measure by:

     (1)  Broadening the scope of the Insurance Commissioner's
          review to include dental plans;

     (2)  Requesting the Auditor to assess the inequities or
          unevenness of the tax laws and other laws in relation
          to mutual benefit societies and all of insurance; and

     (3)  Making technical amendments, including changing the
          title, to reflect the above changes.

     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 concurs with the intent and purpose
of S.R. No. 94, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.R. No. 94, S.D. 1.

                                   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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