STAND. COM. REP. NO.  1517

Honolulu, Hawaii

                , 2017

RE:   H.C.R. No. 201

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.C.R. No. 201 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO REPORT ON CAPITATED PAYMENT MODELS BY HEALTHCARE INSURANCE PLANS,"

begs leave to report as follows:

The purpose of this measure is to request that the Insurance Commissioner assist the Legislature in its consideration of health care and health insurance policy by asking the Insurance Commissioner to investigate and report on the anticipated effects of changes to provider reimbursement procedures by the State's largest health insurer.  This measure requests that the Commissioner both provide a written report and participate in an informational briefing on the impacts of these changes to the cost and availability of health care in the State.

Your Committee received testimony in support of this measure from Hawaii Medical Association and an individual.  The Department of Commerce and Consumer Affairs and Hawaii Medical Service Association submitted comments.

     Your Committee has amended this measure by:

     (1)  Amending its title to read, "REQUESTING THE INSURANCE COMMISSIONER TO REPORT ON ALTERNATIVE PAYMENT MODELS BY MEDICARE AND HEALTHCARE INSURANCE PLANS.";

     (2)  Broadening the scope of the request to the Insurance Commissioner to include evaluation of and reporting on a broader range of alternative payment models initiated by Medicare and any other healthcare insurance plans in the State rather than limiting the requested evaluation and report to the effects of a capitated payment model implemented by a single insurer;

     (3)  Deleting language requesting that the Insurance Commissioner's report include analysis of the effect of new payment models on independent competition within the healthcare sector, cost for the Employer-Union Health Benefits Trust Fund, and cost for the single insurer; 

     (4)  Deleting language recommending postponing implementation of the capitated payment model pending the outcome of the Commissioner's report; and

     (5)  Making technical, nonsubstantive amendments for clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 201, as amended herein, and recommends that it be referred to your Committee on Consumer Protection & Commerce in the form attached hereto as H.C.R. No. 201, H.D. 1.

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

____________________________

DELLA AU BELATTI, Chair