Hawaii-2011-HR52-Introduced

WHEREAS, according to the Mayo Clinic, an estimated one‑quarter of Americans between the ages of sixty-five and seventy-five and around three-quarters of those older than seventy-five have some degree of hearing loss; and

WHEREAS, further according to the Mayo Clinic, hearing loss is not reversible; and

WHEREAS, according to the Hawaii Lions Club, the cost of a custom low- to mid-level analog or digital hearing aid begins around $2,000 or less, and starts around $3,000 and higher for a high–end hearing aid; and

WHEREAS, Medicare and most insurance companies do not cover the cost of hearing aids; and

WHEREAS, section 23-51, Hawaii Revised Statutes, requires that "[b]efore any legislative measure that mandates health insurance coverage for specific health services, specific diseases, or certain providers of health care services as part of individual or group health insurance policies, can be considered, there shall be concurrent resolutions passed requesting the auditor to prepare and submit to the legislature a report that assesses both the social and financial effects of the proposed mandated coverage"; and

WHEREAS, section 23-51, Hawaii Revised Statutes, further provides that "[t]he concurrent resolutions shall designate a specific legislative bill that:

(1) Has been introduced in the legislature; and

(2) Includes, at a minimum, information identifying the:

(A) Specific health service, disease, or provider that would be covered;

(B) Extent of the coverage;

(D) Limits on utilization, if any; and

(E) Standards of care.

For the purposes of this part, mandated health insurance coverage shall not include mandated optionals"; and

WHEREAS, section 23-52, Hawaii Revised Statutes, further specifies the minimum information required for assessing the social and financial impact of the proposed health coverage mandate in the Auditor's report; and

WHEREAS, legislation introduced in 2011 mandates health insurance coverage for hearing aids for hospital and medical service plan contracts, medical service corporation contracts, and health maintenance organization plans, other than an accident-only, specified disease, hospital indemnity, Medicare supplement, long-term care, dental, vision, or other limited benefit health insurance policy; and

WHEREAS, the Legislature believes that mandatory health insurance coverage for hearing aids will substantially assist persons suffering from hearing loss to lead full lives; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that the Auditor is requested to conduct an impact assessment report, pursuant to sections 23-51 and 23-52, Hawaii Revised Statutes, of the social and financial impacts of mandating coverage for hearing aids for hospital and medical service plan contracts, medical service corporation contracts, and health maintenance organization plans; and

BE IT FURTHER RESOLVED that the Auditor is requested to identify the number of residents in Hawaii in the target population who are deaf, hard of hearing, and deaf-blind based on national prevalence rates, in order to determine who may be impacted by the cost of hearing aids and cochlear implants; and

BE IT FURTHER RESOLVED that the Auditor is requested to include in the impact assessment report a survey of other states which have implemented a mandate for hearing aids or cochlear implants to examine what the experience has been in these states; and

BE IT FURTHER RESOLVED that the Auditor is requested to research public and private entities that provide coverage for hearing aids to determine what is currently being used as a standard for frequency of replacement and what, if any, cost limitations are placed on the hearing aid and cochlear implant coverage benefit. This research should examine whether different standards are applied to adults compared to children in need of these devices. Entities for this research should include, but not be limited to, Medicare, Medicaid, health plans in Hawaii, and individuals who need, use, or otherwise experience the need for such devices or procedures; and

BE IT FURTHER RESOLVED that the Auditor is requested to compare the cost and utilization of cochlear implants to hearing aid devices; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations to the Legislature, including any necessary implementing legislation, no later than twenty days prior to the convening of the Regular Session of 2011; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor and to the Insurance Commissioner, who in turn is requested to transmit

copies to each insurer in the State that issues health insurance policies.

	OFFERED BY:	_____________________________

Report Title:

Health Insurance; Hearing Aids

HOUSE OF REPRESENTATIVES	H.R. NO.	52
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII