STAND. COM. REP. NO.929-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2302

S.D. 2

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Health, to which was referred S.B. No. 2302, S.D. 2, entitled:


begs leave to report as follows:

The purpose of this bill, as received, is to stabilize skyrocketing health insurance costs by regulating rates.

The Department of Commerce and Consumer Affairs and Kokua Council testified in support of the measure. Kanoelehua Industrial Area Association opposed the measure.

Your Committee circulated a proposed H.D. 1 at the public hearing, which:

(1) Establishes the State Health Authority (Authority) whose primary purpose is to provide state-funded medical assistance for individuals with incomes up to 300 percent of the federal poverty level, and by July 1, 2004, purchase health care for all residents of the State; and

(2) Makes the Authority responsible for collecting funds for the purchase of health care.

The Hawaii Primary Care Association, Kokua Kalihi Valley, and a concerned individual testified in support of the proposed H.D. 1. The Healthcare Association of Hawaii supported the intent of the proposed H.D. 1.

Hawaii Dental Service, Hawaii Insurers Council, Hawaii Disability Rights Center, Legislative Information Services of Hawaii, and the American Council of Life Insurers testified in opposition of the proposed H.D. 1. The Office of Information Practices submitted comments.

Your Committee finds that the idea of statewide health care coverage has been brought up before, but was never pursued. Your Committee believes that this is an important concept to the citizens of Hawaii and that options should be explored.

Accordingly, your Committee has further amended the proposed H.D. 1, to:

(1) Initially establish the Authority to develop a plan for providing medical assistance to all citizens;

(2) Include the public's input in the Authority's planning and development;

(3) Specify that the Authority submit a proposal to the Legislature no later than twenty days prior to the Regular Session of 2004 and necessary legislation to implement the program prior to the Regular Session of 2005;

(4) Specify that the Authority be ready to implement the program by July 1, 2005; and

(5) Make technical, nonsubstantive amendments for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2302, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2302, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,