HOUSE OF REPRESENTATIVES	H.C.R. NO.	128
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the legislative reference bureau to conduct a study of CERTAIN ISSUES RELATING TO RISING HEALTH INSURANCE PREMIUM COSTS, AS ADDRESSED BY House Bill no. 1896, regular session 2012.

 

 

 

     WHEREAS, rising health insurance premium costs are detrimental to the economic recovery of businesses in the State; and

 

     WHEREAS, restricting the increases in health insurance premium costs would help businesses in this State that are struggling to meet expenses; and

 

     WHEREAS, reform of the health insurance medical loss ratio and rate regulation provisions of the State's insurance code would likely promote economic revitalization; and

 

     WHEREAS, there are many important unresolved issues relating to the reform of the health insurance medical loss ratio and rate regulation provisions of the State's insurance code; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, the Senate concurring, that the Legislative Reference Bureau is requested to conduct a study of rising health insurance premium costs, as addressed by House Bill No. 1896, Regular Session of 2012, to examine any relevant issues, including the following:

 

     (1)  Whether a higher medical loss ratio would help to prevent increasing health insurance premium rates in Hawaii;

 

     (2)  Whether a higher medical loss ratio would promote competition in the health insurance market in Hawaii;

 

     (3)  Whether it would be fair to apply a medical loss ratio calculated according to the federal Patient Protection and Affordable Care Act formula, to tax-exempt health insurers that is higher than the ratio applicable to for-profit health insurers;

 

     (4)  What medical loss ratio the Insurance Commissioner uses when reviewing the rate requests of health insurers;

 

     (5)  How the Insurance Commissioner factors in investment income when reviewing the rate requests of health insurers;

 

     (6)  What were past medical loss ratios of health insurers in Hawaii;

 

     (7)  Whether House Bill No. 1896, Regular Session 2012, would be beneficial for employers, union trust funds, and individuals purchasing health insurance; and

 

     (8)  Whether House Bill No. 1896, Regular Session 2012, would be beneficial for the Employer-Union Health Benefits Trust Fund; and

 

     BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to provide any necessary assistance and information to the Legislative Reference Bureau; and

 

     BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to submit its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013; and

 

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of the Legislative Reference Bureau and the Insurance Commissioner.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

LRB; Study; Medical Loss Ratio