Clarifies the State's enforcement jurisdiction in matters related
to the Newborns' and Mother's Health Protection Act of 1996 and
the Women's Health and Cancer Rights Act of 1998.  (HB2797 CD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            C.D. 1

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 431:2-201.5, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "431:2-201.5  Conformity to federal law.(a)  The
 4 provisions of [the Health Insurance Portability and
 5 Accountability Act of 1996, P.L. 104-191,] title 42 United States
 6 Code section 300(gg), et seq., as [it relates] they relate to
 7 group and individual health insurance [and to long-term care
 8 insurance to the extent provided in article 10H of chapter 431,]
 9 shall apply to title 24, except:
10      (1)  Where state law provides greater health benefits or
11           coverage than [the Health Insurance Portability and
12           Accountability Act of 1996, P.L. 104-191] title 42
13           United States Code section 300(gg), et seq., then the
14           state law shall be applicable;
15      (2)  This section shall not be applicable or affect life
16           insurance, endowment, or annuity contracts, or any
17           supplemental contract thereto, described in
18           section 431:10A-101(4);

Page 2                                                     2797
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 1      (3)  The following definitions shall be used when applying
 2           [the Health Insurance Portability and Accountability
 3           Act of 1996, P.L. 104-191:] title 42 United States Code
 4           section 300(gg), et seq.:
 5           (A)  "Employee" means an employee who works on a full-
 6                time basis with a normal workweek of twenty hours
 7                or more;
 8           (B)  "Group health issuer" means all persons offering
 9                [benefits under group health plans,] health
10                insurance coverage to any group or association,
11                but shall not include those persons offering
12                benefits exempted from Title I of the Health
13                Insurance Portability and Accountability Act of
14                1996, P.L. 104-191 under [section 706(c)] sections
15                732(c) and 733(c) of title I of the Employee
16                Retirement Income Security Act of 1974 and
17                sections 2747 and 2791(c) of the Public Health
18                Service Act; and
19           (C)  "Small employer" means an employer who employs
20                between one and no more than fifty employees;
21      (4)  All group health issuers shall offer all small group
22           health plans to all small employers whose employees
23           live, work, or reside in the group health issuer's

Page 3                                                     2797
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 1           service areas; provided that the commissioner may
 2           exempt a group health issuer if the commissioner
 3           determines that the group health issuer does not have
 4           the capacity to deliver services adequately to
 5           enrollees of additional groups given its obligation to
 6           existing employer groups; and
 7      (5)  A group health issuer shall be prohibited from imposing
 8           any preexisting condition exclusion.
 9      For the purpose of this subsection, "Small group health
10 plans" means the medical plans currently offered, advertised, or
11 marketed by a group health issuer for small employees.
12      (b)  The [insurance] commissioner may adopt rules to
13 implement, clarify, or conform title 24 to [the Health Insurance
14 Portability and Accountability Act of 1996, P.L. 104-191.] title
15 42 United States Code section 300(gg), et seq.
16      (c)  The adoption of the Health Insurance Portability and
17 Accountability Act of 1996, P.L. 104-191 for the purposes of
18 title 24 is not an adoption for any purposes for income taxes
19 under chapter 235.
20      (d)  The State shall have jurisdiction over any matter that
21 title 42 United States Code section 300(gg), et seq., permits,
22 including jurisdiction over enforcement."

Page 4                                                     2797
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 1      SECTION 2.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 3.  This Act shall take effect on July 2, 2000.