STAND. COM. REP. NO.  960-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2054

      S.D. 3

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 2054, S.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose of this measure is to ensure the provision of quality health care for all Hawaii residents by requiring health insurers, mutual benefit societies, and health maintenance organizations to provide coverage for treatment of autism spectrum disorders up to a maximum benefit of $50,000 per year and a maximum lifetime benefit of $300,000, with adjustments for inflation, beginning after July 1, 2014, for individuals under 21 years of age.

The Department of Health; State Council on Developmental Disabilities; Hawaii Medical Association; Community Alliance for Mental Health; United Self Help; Autism Behavior Consulting Group, Inc.; Autism Society of Hawaii; Hawaii Disability Rights Center; and numerous individuals supported this measure.  Hawaii Medical Service Association and The Chamber of Commerce of Hawaii opposed this measure.  The Department of Human Services, Department of Commerce and Consumer Affairs, Department of Budget and Finance, Kaiser Permanente Hawaii, Autism Speaks, Hawaii Association of Health Plans, Easter Seals Hawaii, and two individuals commented on this measure.

     Your Committee has amended this measure by:

(1)  Deferring the applicability of autism spectrum disorder benefits and coverage to after December 31, 2015;

(2)  Narrowing the age of eligibility for the treatment of autism spectrum disorders to individuals under nine years of age, rather than individuals under 21 years of age;

(3)  Clarifying the exemptions related to autism spectrum disorder benefits and coverage to exclude non-grandfathered plans in the individual and small group markets that are required to include essential health benefits under the Patient Protection and Affordable Care Act, Public Law 111-148, as amended, or to Medicare supplement, accident-only, specified disease, hospital indemnity, disability income, long-term care, or other limited benefit hospital insurance policies;

(4)  Providing that notwithstanding section 432D-23, Hawaii Revised Statutes, the coverage and benefits for autism spectrum disorders provided by a health maintenance organization apply to all policies, contracts, plans, or agreements issued or renewed in the State by a health maintenance organization after December 31, 2015; and

(5)  Making technical, nonsubstantive amendments for clarity, consistency, 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. 2054, S.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2054, S.D. 3, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

DELLA AU BELATTI, Chair