STAND. COM. REP. NO. 2346

Honolulu, Hawaii

RE: S.B. No. 2804

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 2804 entitled:

"A BILL FOR AN ACT RELATING TO COMMERCE,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.

Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaii Medical Service Association.

Your Committee finds that access to affordable health care is essential to the health, safety, and welfare of the residents of the State. Your Committee further finds that consolidation and certain acquisition practices within the health care and health insurance markets may reduce competition, limit consumer choice, increase insurance premiums, and restrict access to medically necessary services. This measure provides safeguards to preserve competition, protect consumers from excessive premium increases, and ensure that the health care system remains responsive to patient needs rather than purely financial considerations.

Your Committee has amended this measure by inserting an effective date of January 30, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2804, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2804, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

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JOY A. SAN BUENAVENTURA, Chair