Bill Text: HI SR52 | 2012 | Regular Session | Amended


Bill Title: Insurance Commissioner; Rate Filings; Capital Reserves and Surplus

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2012-06-22 - (S) Certified copies of resolutions sent, 06-19-12. [SR52 Detail]

Download: Hawaii-2012-SR52-Amended.html

 

 

STAND. COM. REP. NO. 3430

 

Honolulu, Hawaii

                  

 

RE:    S.R. No. 52

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.R. No. 52 entitled:

 

"SENATE RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO REVIEW THE ACCUMULATION OF CAPITAL RESERVES AND SURPLUS OF MANAGED CARE PLANS WHEN REVIEWING RATE FILINGS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to request the Insurance Commissioner to consider the capital reserves and surplus of managed care plans when reviewing rate filings.

 

     Written comments in support of this measure were submitted by the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that the federal Patient Protection and Affordable Care Act establishes a process for reviewing proposed increases in health plan premiums and requires plans to justify these rate increases.  Your Committee further finds that health plans that accrue excessive reserves may simply be accumulating funds instead of using those moneys to pay claims.  Accordingly, your Committee believes that the Insurance Commissioner should take health plans' capital reserves and surpluses into account when deciding whether to approve or disapprove proposed rate increases.  Your Committee finds that considering this information in the rate review process will help ensure that plan subscribers pay appropriate rates for their health insurance coverage.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 52 and recommends its adoption.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair

 

 

 

 

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