Bill Text: HI SB1073 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Dental Service Corporations; Dental Insurers; Insurance

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-06-26 - Act 191, 6/25/2013 (Gov. Msg. No. 1294). [SB1073 Detail]

Download: Hawaii-2013-SB1073-Amended.html

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STAND. COM. REP. NO. 327

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1073

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1073 entitled:

 

"A BILL FOR AN ACT RELATING TO DENTAL SERVICE CORPORATIONS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish the licensing and regulation of dental service corporations under the Insurance Commissioner.

 

     Your Committee received testimony in support of this measure from the Insurance Division of the Department of Commerce and Consumer Affairs.  Your Committee received testimony in opposition to this measure from the Hawaii Dental Association.

 

     Your Committee finds that under the federal Patient Protection and Affordable Care Act, beginning in 2014, all health plans will include a pediatric dental component.  Your Committee further finds that stand alone dental plans will be able to be sold through Hawaii's health insurance exchange, known as the Hawaii Health Connector.  However, a dental insurer must be licensed prior to selling a stand alone dental plan on the Hawaii Health Connector.  This measure creates a licensing requirement for dental insurers to enable the dental insurers to sell dental plans on the Connector, places dental insurers under insurance regulation, and establishes financial solvency oversight for consumer protection.

 

     Your Committee has heard the concerns that this measure would repeal the existing statutory authority for the formation and corporate structure of dental service corporations in the State.  Your Committee therefore concludes that amendments to this measure are necessary.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Amending the title of the new chapter to "Dental Insurers", to avoid a conflict with chapter 423, "Dental Service Corporations", and making conforming substitutions for the term "dental service corporation" with the term "dental insurer";

 

     (2)  Specifying that dental insurers are required to adopt provisions for the coordination of benefits;

 

     (3)  Removing language that would have repealed chapters 423 and 448D, Hawaii Revised Statutes;

 

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

 

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

 

     Your Committee notes that this amended measure is the result of a compromise between the Insurance Division of the Department of Commerce and Consumer Affairs and interested stakeholders.

 

     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. 1073, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1073, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

		____________________________ ROSALYN H. BAKER, Chair