Report Title:

Health Care Insurance Hui

Description:

Prohibits health insurers, mutual benefit societies, and HMOs from refusing to contract to provide health care insurance to any legitimately constituted association of small businesses in Hawaii for the employees of the members of the association.

HOUSE OF REPRESENTATIVES

H.B. NO.

126

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HEALTH INSURANCE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to enable small businesses in Hawaii to band together to form associations in order to secure affordable health care insurance.

SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10A be appropriately designated and to read as follows:

"§431:10A-    Health care insurance associations; refusal to provide health care insurance prohibited; small businesses. (a) Any other law to the contrary notwithstanding, no insurer, who is subject to this chapter, may refuse to contract to provide health care insurance to any legitimately constituted association of small businesses in this State for the employees of members of the association, for the sole reason that the insurance coverage is provided to an association and not to an individual small business.

(b) For the purposes of this section, a business shall be considered a small business eligible for membership in a small business health care insurance association if the business:

(1) Is duly registered to do business in this State; and

(2) Employs                  or fewer employees for each working day during each of twenty or more calendar weeks in the calendar year, to provide service, including service in interstate commerce, performed for wages under any contract of hire, written or oral, express or implied."

SECTION 3. Chapter 432, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432-    Health care insurance associations; refusal to provide health care insurance prohibited; small businesses. (a) Any other law to the contrary notwithstanding, no mutual benefit society, who is subject to this chapter, may refuse to contract to provide health care insurance to any legitimately constituted association of small businesses in this State for the employees of members of the association, for the sole reason that the insurance coverage is provided to an association and not to an individual small business.

(b) For the purposes of this section, a business shall be considered a small business eligible for membership in a small business health care insurance association if the business:

(1) Is duly registered to do business in this State; and

(2) Employs                  or fewer employees for each working day during each of twenty or more calendar weeks in the calendar year, to provide service, including service in interstate commerce, performed for wages under any contract of hire, written or oral, express or implied."

SECTION 4. Chapter 432D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432D-    Health care insurance associations; refusal to provide health care insurance prohibited; small businesses. (a) Any other law to the contrary notwithstanding, no health maintenance organization, who is subject to this chapter, may refuse to contract to provide health care insurance to any legitimately constituted association of small businesses in this State for the employees of members of the association, for the sole reason that the insurance coverage is provided to an association and not to an individual small business.

(b) For the purposes of this section, a business shall be considered a small business eligible for membership in a small business health care insurance association if the business:

(1) Is duly registered to do business in this State; and

(2) Employs                  or fewer employees for each working day during each of twenty or more calendar weeks in the calendar year, to provide service, including service in interstate commerce, performed for wages under any contract of hire, written or oral, express or implied."

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

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