94
THE SENATE                           S.R. NO.              S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  RESOLUTION
  REQUESTING A COMPARATIVE ANALYSIS OF HAWAII'S HEALTH CARE AND
    DENTAL CARE PLANS, AND AN ASSESSMENT OF THE INEQUITIES OR
    UNEVENNESS OF THE TAX LAWS AND ANY OTHER LAWS IN RELATION
    TO MUTUAL BENEFIT SOCIETIES AND ALL OF INSURANCE.



 1        WHEREAS, the 1998 Health Risk Management Inc. Report
 2   ranked Hawaii's quality of health care the best in the country;
 3   and
 4   
 5        WHEREAS, the February 1994 General Accounting Office
 6   Report indicated that Hawaii's health care dues rates are among
 7   the lowest in the nation despite the high cost of living; and
 8   
 9        WHEREAS, the December 1998 American Journal of Public
10   Health ranked Hawaii as the state with the highest number of
11   medically insured people in the country and the highest number
12   of physicians and dentists per capita; and
13   
14        WHEREAS, elsewhere in the United States, serious problems
15   and concerns with the management and operation of some health
16   care plans have arisen; and
17   
18        WHEREAS, Although Hawaii has not experienced many of the
19   problems associated with other health plans in the United
20   States, the Senate wishes to ensure Hawaii's high standard of
21   excellence in health care will continue into the twenty-first
22   century; and
23   
24        WHEREAS, the same types of health care plans exist here as
25   do elsewhere in the United States; and
26   
27        WHEREAS, Hawaii has taken steps to prevent these problems
28   from occurring here, with the passage of Act 178, Session Laws
29   of Hawaii 1998, known as the Patient's Bill of Rights to
30   legislate and protect consumers' health care rights; and 
31   
32        WHEREAS, the Senate wishes to better understand the
33   variety and composition of health care plans and dental care
34   plans in the State to further protect Hawaii's consumers; and 
35   

 
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                                  S.R. NO.              S.D. 1
                                                        
                                                        

 
 1        WHEREAS, the Senate is also concerned about apparent
 2   inequities between mutual benefit societies and other insurers
 3   with respect to taxes and other requirements; and 
 4   
 5        WHEREAS, insurers are required to pay a tax on premiums
 6   received for risks underwritten pursuant to section 431:7-202,
 7   Hawaii Revised Statutes (HRS); and
 8   
 9        WHEREAS, insurers paid approximately $59.5 million in
10   premium taxes in fiscal year 1998; and
11   
12        WHEREAS, mutual benefit societies are not subject to
13   taxation under section 431:7-202, HRS; and 
14   
15        WHEREAS, mutual benefit societies are also exempt from
16   participating in the Hawaii Insurance Guaranty Association
17   (HIGA) which pays the covered claims of an insolvent insurer
18   and assesses its member insurers in order to pay HIGA's
19   obligations; now, therefore,
20    
21        BE IT RESOLVED by the Senate of the Twentieth Legislature
22   of the State of Hawaii, Regular Session of 1999, that the
23   Insurance Commissioner is to compile pertinent data and conduct
24   a comprehensive analysis of all relevant health and dental
25   plans, including but not limited to health maintenance
26   organizations and mutual benefit societies, and prepare a
27   report containing its findings; and
28   
29        BE IT FURTHER RESOLVED that the Insurance Commissioner
30   report on the following components:
31   
32        (1)  Corporate form and domicile of the health or dental
33             care plan;
34   
35        (2)  Years in operation;
36   
37        (3)  Regulatory oversight, i.e. external audits, filings,
38             and jurisdiction;
39   
40        (4)  Types of plans and programs provided, i.e. QUEST,
41             individual plans, Medicare;
42   

 
 
 
 
 
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                                  S.R. NO.              S.D. 1
                                                        
                                                        

 
 1        (5)  Corporate administrative expenses;
 2   
 3        (6)  Accreditation status;
 4   
 5        (7)  Consumer satisfaction complaints;
 6   
 7        (8)  Financial protections for members;
 8   
 9        (9)  Relationship of board of directors and others to the
10             plan;
11   
12       (10)  Corporate governance;
13   
14       (11)  Member rights including membership meetings and
15             voting rights; and
16   
17       (12)  Organizational structure;
18   
19   and
20   
21        BE IT FURTHER RESOLVED that the Auditor is requested to
22   assess the inequities or unevenness of the tax laws and any
23   other laws in relation to mutual benefit societies and all of
24   insurance; and
25   
26        BE IT FURTHER RESOLVED that the Insurance Commissioner and
27   the Auditor shall submit their findings no later than twenty
28   days prior to the convening of the Regular Session of 2000; and
29   
30        BE IT FURTHER RESOLVED that certified copies of this
31   Resolution be transmitted to the Insurance Commissioner, who
32   shall in turn transmit a copy to every mutual benefit society
33   and health maintenance organization licensed to do business in
34   Hawaii, and to the Auditor.