STAND. COM. REP. NO. 304

 

Honolulu, Hawaii

                   

 

RE:     S.B. No. 64

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Health and Human Services, to which was referred S.B. No. 64 entitled:

 

"A BILL FOR AN ACT RELATING TO MEDICARE SUPPLEMENT INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Require issuers of Medigap insurance in the State to accept an eligible individual's application for coverage at any time throughout the year;

 

     (2)  Prohibit issuers from denying the applicant a Medigap policy or certificate or making any premium rate distinctions for various reasons, including health status; and

 

     (3)  Require the Insurance Commissioner to amend or adopt rules accordingly.

 

     Your Committee received testimony in support of this measure from the Leukemia & Lymphoma Society, ALS Association, Chronic Disease Coalition, Dialysis Patient Citizens, AARP Hawaii, and two individuals.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs' Insurance Division and one individual.

 

     Your Committee finds that existing state law requires insurance companies that sell Medicare supplement insurance, also known as Medigap insurance, to issue Medigap insurance on a guaranteed-issue basis to eligible individuals without adjusting premiums based on medical underwriting, as long as their applications are submitted within the open enrollment period.  Your Committee further finds that under existing law, it is extremely difficult for individuals whose health conditions or financial situations may have changed after their open enrollment period to switch to another Medigap benefit plan that is more suitable.  This measure ensures that Medicare enrollees can switch between Medigap benefit plans at any time throughout the year without their premiums being adjusted for various reasons, including health status, even after their open enrollment period.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting an effective date of December 31, 2050, to encourage further discussion; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 64, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 64, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

 

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

 

 

 

________________________________

JOY A. SAN BUENAVENTURA, Chair