STAND. COM. REP. NO. 489

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 894
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 894, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH INSURANCE
     REIMBURSEMENTS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Require health insurance policies to provide
          reimbursement for emergency helicopter aeromedical
          services; and

     (2)  Require the Legislative Auditor to conduct a study
          assessing the impact of mandating the reimbursement.

     Testimony in support of the measure was submitted by the
Department of Health.  The Department of Commerce and Consumer
Affairs and a private health plan provider submitted comments.

     Your Committee finds that the term "reasonable" as it
relates to reimbursement of services lacks clarity and could be
confusing.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting the term "reasonable" where it appears with
          respect to reimbursement for services; and


 
 
                                 STAND. COM. REP. NO. 489
                                 Page 2

 
     (2)  Making technical, nonsubstantive revisions to the
          specific provisions of the insurance code amended, and
          for purposes of style and clarity.
   
     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. 894, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance in the
form attached hereto as H.B. No. 894, H.D. 2.

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



                                   ______________________________
                                   RON MENOR, Chair