STAND. COM. REP. NO. 304-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2392
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2392 entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to require all individual
accident and sickness health care policies providing health care
coverage, and all group health care contracts issued by health
maintenance organizations and mutual benefit societies, to cover
outpatient diabetes self-management training, education,
equipment, and supplies.  This measure amends Chapter 431, Hawaii
Revised Statutes, by adding a new section 10A, "Coverage for
diabetes" and Chapter 432, Hawaii Revised Statutes, by adding a
new section to article 1, entitled "Diabetes coverage."

     Testimony in support of this measure was submitted by
American Diabetes Association and several concerned citizens.

     Testimony in support of this measure, with proposed
amendments, was submitted by Department of Health and Queen's
Health Management.  

     Testimony opposing this measure was submitted by the Hawaii
Medical Service Association, Kaiser Permanente Hawaii, and State
Farm Insurance Companies.


 
 
 
 
                                 STAND. COM. REP. NO. 304-00
                                 Page 2

 
     Testimony commenting on this measure was submitted by the
Department of Commerce and Consumer Affairs and the Department of
Budget and Finance.

     Your Committee finds that diabetes is a very serious chronic
disease, which affects many people in Hawaii, and is often life
threatening.  Unfortunately, many people in Hawaii with diabetes
have not been able to obtain the necessary diabetic supplies,
equipment and access to individualized education programs to be
able to manage both the day to day and long term consequences of
their diabetes without financial assistance.  Nevertheless, your
Committee is concerned about the potential impact of the
provisions of this bill on health insurance costs.

     Your Committee has amended this measure by leaving the
effective date blank to ensure further discussion of this bill.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2392, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2392, H.D. 1, and be referred to the Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair