THE SENATE

S.C.R. NO.

154

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

requesting a comparative study on health insurance market conditions.

 

WHEREAS, health care costs are rising, forcing health insurance premium rate increases; and

WHEREAS, this State has only a handful of health insurers, resulting in very little price competition among the health plans; and

WHEREAS, unlike the mainland, where contiguous states may be able to combine population bases to enable consumers to obtain lower health insurance premiums, Hawaii is unable to similarly combine with other states; and

WHEREAS, many states have health insurers that are incorporated as for-profit entities; and

WHEREAS, in Hawaii, health insurers are organized as nonprofit entities; and

WHEREAS, it is unclear as to whether comparisons between Hawaii's health insurance market with other mainland markets are done in a manner that fairly and accurately portrays each market's costs and benefits; and

WHEREAS, the Legislature needs to obtain accurate information on the differences between Hawaii's health insurance market and its local cost drivers and the rest of the nation's health insurance market and its cost drivers so that it may better understand how to reduce health insurance costs while still maintaining a high level of health benefits coverage; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the Auditor is requested to conduct a comparative analysis of the State's health insurance market with the rest of the nation; and

BE IT FURTHER RESOLVED that the Auditor's analysis include:

(1) A comparative analysis of Hawaii's health insurance market versus health insurance markets in similarly populated states on the mainland;

(2) A comparative analysis of Hawaii's health insurers versus health insurers on the mainland with regard to whether each is organized as a nonprofit or for-profit entity;

(3) A determination on whether the State's population base is adequate to attract other health insurers into the State's health insurance market;

(4) A determination on how important competition is in reducing health insurance costs for consumers in Hawaii;

(5) A determination on whether for-profit health insurers would be able to compete favorably in Hawaii;

(6) A determination on whether having a health insurance market where a single health insurance provider dominates the health insurance market is beneficial for consumers; and

(7) A determination on whether increased competition in the State's health insurance market would benefit consumers, and if determined to be beneficial, a recommendation on how to attract health insurers to the State to increase competition; and

BE IT FURTHER RESOLVED that the Insurance Division of the Department of Commerce and Consumer Affairs assist the Auditor in the gathering and supplying of information that the Auditor may require to accomplish this comparative analysis; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau assist the Auditor in the drafting of any legislation that the Auditor may require to accomplish any recommendations made under the comparative analysis; and

BE IT FURTHER RESOLVED that the Auditor is requested to report findings and recommendations of its comparative analysis to the Legislature not later than twenty days prior to the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Insurance Commissioner, and the Director of the Legislative Reference Bureau.

 

 

 

OFFERED BY:

_____________________________

Report Title:

State vs. Mainland Health Insurance Market; Auditor Study