THE SENATE

S.B. NO.

1079

TWENTY-SEVENTH LEGISLATURE, 2013

 

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.  Section 431:2-201.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The following definitions shall be used when applying Title 42 United States Code section 300gg, et seq.:

     "Employee" means an employee who works on a full-time basis with a normal workweek of twenty hours or more.

     "Group health issuer" means all persons offering health insurance coverage to any group or association, but shall not include those persons offering benefits exempted from Title I of the Health Insurance Portability and Accountability Act of 1996, P.L. 104-191, under sections 732(c) and 733(c) of Title I of the Employee Retirement Income Security Act of 1974 and sections 2747 and 2791(c) of the Public Health Service Act.

     "Qualifying event" means the date of issuance of a general excise tax license, the loss of a job, a reduction in hours of work, or the exhaustion of the federal Consolidated Omnibus Budget Reconstruction Act continuation coverage that results in a loss of health care coverage.

     "Self-employed individual" means a person operating the person's own business, whether as a sole proprietorship or in any other legally recognized manner in which a person may operate the person's own business, who has a general excise tax license for that business, and who is registered or licensed by the department of commerce and consumer affairs for that business.

     "Small employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who [employs between] employed an average of at least one [and no] but no more than [fifty] one hundred employees[.] on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year."

     SECTION 2.  Section 432:1-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Article 2, article 2D, parts II and IV of article 3, article 6, part III of article 7, article 9A, article 13, article 14G, and article 15 of chapter 431, sections 431:3-301, 431:3-302, 431:3-303, 431:3-304, and 431:3-305, and the powers granted by those provisions to the commissioner, shall apply to managed care plans, health maintenance organizations, or medical indemnity or hospital service associations that are owned or controlled by mutual benefit societies so long as the application in any particular case is in compliance with and is not preempted by applicable federal statutes and regulations."

     SECTION 3.  Section 432D-19, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Article 2, article 2D, part IV of article 3, article 6, part III of article 7, article 9A, article 13, article 14G, and article 15 of chapter 431, and sections 431:3-301 and 431:3-302, and the powers granted by those provisions to the commissioner shall apply to health maintenance organizations, so long as the application in any particular case is in compliance with and is not preempted by applicable federal statutes and regulations."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act, upon its approval, shall take effect on July 1, 2013; provided that the amendment made to section 431:2-201.5, Hawaii Revised Statutes, by this Act shall not be repealed when that section is reenacted on July 1, 2013, by section 3 of Act 120, Session Laws of Hawaii 2008, as amended by section 14 of Act 11, Session Laws of Hawaii 2009.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Health Insurance

 

Description:

Amends the definition of "small employer" contained in section 431:2-201.5, Hawaii Revised Statutes; amends sections 432:1-102(b) and 432D-19(d), Hawaii Revised Statutes, by including the producer licensing requirements contained in article 9A of chapter 431, Hawaii Revised Statutes.

 

 

 

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