STAND. COM. REP. NO. 2691

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2974
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2974 entitled:

     "A BILL FOR AN ACT RELATING TO SUBSTANCE ABUSE INSURANCE
     BENEFITS,"

begs leave to report as follows:

     The purpose of this measure is to require parity of mental
health insurance coverage for substance abuse services.

     Testimony on the measure was submitted by the Hawaii Medical
Service Association, Hawaii Substance Abuse Coalition, Hawaii
Psychiatric Medical Association, Equal Insurance Coalition, and
the Mental Health Association in Hawaii.

     This measure prohibits policy coverages for mental health,
alcohol, and drug abuse benefits from discriminating against any
person with an alcohol or drug dependence, and requires that
benefits for substance abuse services cover adults and children
under the same terms and conditions as other illnesses.  This
measure also makes application of mental health, alcohol, and
drug abuse to QUEST plans effective upon approval of this
measure.

     Your Committee finds that substance abuse and drug abuse
benefits should be considered the same as physical illnesses for
insurance coverage purposes.  This measure is intended to
facilitate the treatment of substance and alcohol abuse, which is
a necessary component of fighting addiction.

 
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                                   STAND. COM. REP. NO. 2691
                                   Page 2



     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. 2974 and recommends that it pass 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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