STAND. COM. REP. NO. 838

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 Commerce and Consumer Protection, to which was referred S.B. No. 64, S.D. 1, 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 and prohibit issuers from denying the applicant a Medigap policy or certificate or making any premium rate distinctions due to various reasons, including health status; and

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

Your Committee received testimony in support of this measure from two individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that Medicare beneficiaries can incur substantial cost-sharing and out-of-pocket expenses for their medical care, especially if they have a serious health problem. Many Medicare beneficiaries supplement their Medicare benefits with private insurance, such as Medigap plans, to help lessen the cost of copayments, coinsurance, and deductibles. However, the open enrollment period for Medigap insurance is limited to the first six months of a beneficiary's Medicare eligibility. This measure ensures that Medigap plans continue to offer meaningful benefits and affordable choices for beneficiaries and protects them from high out-of-pocket costs.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 64, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair