STAND. COM. REP. NO. 2554

Honolulu, Hawaii

RE: S.B. No. 2277

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Health and Human Services and Commerce and Consumer Protection, to which was referred S.B. No. 2277 entitled:

"A BILL FOR AN ACT RELATING TO HOSPITAL PRICE TRANSPARENCY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require each hospital in the State to comply with federal hospital price transparency requirements;

(2) Require the Department of Health to monitor and enforce compliance;

(3) Establish a process for patients to challenge debt collection actions filed by noncompliant hospitals;

(4) Require the Department of Health to publish a list of any enforcement actions taken against noncompliant hospitals; and

(5) Require hospitals to provide patients with an easy-to-understand itemized bill statement before initiating a debt collection action against a patient.

Your Committees received testimony in support of this measure from the State Health Planning and Development Agency, PatientRightsAdvocate.org, Silver Plume Strategies, Power to the Patients, and one individual.

Your Committees received testimony in opposition to this measure from the Healthcare Association of Hawaii.

Your Committees received comments on this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs and Department of Health.

Your Committees find that the State's residents struggle with increased health care costs each year, and that many residents also have limited knowledge of health care pricing, particularly regarding hospital care. Your Committees believe that patients in the State should be empowered to compare hospital costs to find the best value for care and services. This measure codifies certain federal price transparency requirements into state law to allow the State to better monitor and enforce compliance with those requirements and protect patient consumer rights.

Your Committees have amended this measure by:

(1) Inserting language to clarify that the Department of Health shall be authorized to bring civil actions to collect civil penalties;

(2) Clarifying that any violation, not just willful or knowing violations, of requirements to provide patients with certain information prior to initiating a collection action against the patient shall constitute an unfair or deceptive act or practice in violation of chapter 480, Hawaii Revised Statutes;

(3) Inserting language to clarify that the remedies provided for under the Hospital Price Transparency Act are in addition to and not exclusive of any other remedies provided by law;

(4) Inserting an effective date of January 30, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2277, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2277, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair