STAND. COM. REP. NO.
Honolulu, Hawaii
APR 0 2 2025
RE: S.C.R. No. 10
S. D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 10, S.D. 1, entitled:
"SENATE CONCURRENT RESOLUTION URGING THE DIRECTOR OF HEALTH
TO ESTABLISH A WORKING GROUP ON HEALTH INSURANCE REFORM TO
PROVIDE RECOMMENDATIONS FOR REDUCING THE IMPACT OF PRIOR
AUTHORIZATION REQUIREMENTS ON THE TIMELY DELIVERY OF HEALTH
CARE IN THE STATE,"
begs leave to report as follows:
The purpose and intent of this measure is to urge the
Director of Health to establish a working group on health
insurance reform to provide recommendations for reducing the
impact of prior authorization requirements on the timely delivery
of health care in the State.
Your Committee received testimony in support of this measure
from the State Health Planning and Development Agency, Hawai‘i
Primary Care Association, Hawaii Medical Association, Hawaii
Association of Health Plans, Hawaii Medical Service Association,
AlohaCare, and one individual.
Your Committee finds that current prior authorization
requirements utilized by insurers and managed care plans have
greatly diminished the provision of essential services to patients
on a timely basis. This has negatively impacted the health care
outcomes of the most vulnerable populations in the State. Your
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Committee also finds that while recent changes in the federal
Centers for Medicare and Medicaid services regarding prior
authorization will greatly improve the prior authorization process
for patients in federal programs, much more work is needed at the
state level to ensure broader relief from the problems associated
with the prior authorization process. Your Committee believes
that convening a panel of stakeholders to further examine this
issue would be beneficial to identifying ways of improving the
health care system for the State's residents.
Your Committee further finds that Senate Bill No. 1449 and
House Bill No. 250, introduced in the Regular Session of 2025, are
similar measures that also establish a working group to make
recommendations regarding the prior authorization process.
However, rather than the Director of Health convening the working
group, these measures establish the working group in the State
Health Planning and Development Agency (SHPDA), which administers
the Certificate of Need Program, implements the Health Services
and Facilities Plan, and promotes the sharing of facilities or
services by health care providers to achieve economies of scale
and restrict unusually costly services. According to testimony
received by your Committee, SHPDA is ready and able to convene the
working group proposed in this measure and your Committee further
finds that, by requesting the Director of Health, Med-QUEST
Administrator, and the Insurance Commissioner to serve as ex-
officio participants of the working group, this measure can lead
to constructive results to reduce the impact of prior
authorization requirements to improve the delivery of health care
in the State. 7\mendments to this measure are therefore necessary
to address these recommendations.
Accordingly, your Committee has amended this measure by:
(1) Requesting the Administrator of SHPDA, rather than the
Director of Health, to convene the working group;
(2) 7\mending the membership of the working group;
(3) TXmending its title accordingly; and
(4) Amending the list of individuals to whom certified
copies of this measure are requested to be transmitted.
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 STAND. COM. REP. NO.
Page 3
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 concurs with the intent and purpose of
S.C.R. No. 10, S.D. 1, as amended herein, and recommends its
adoption in the form attached hereto as S.C.R. No. 10, S.D. 2.
Respectfully submitted on
behalf of the members of the
Committee on Commerce and
Consumer Protection,
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 The Senate
Thirty-Third Legislature
State of Hawaii
Record of Votes
Committee on Commerce and Consumer Protection
CPN
Bill / Resolution No.:* Committee Referral: Date:
The Committee is reconsidering its previous decision on this measure.
If so, then the previous decision was to:___________________________________
The Recommendation is:
__ Pass, unamended v'^ass, with amendments __ Hold __ Recommit
2312 2311 2310 2313
Members Aye Aye (WR) Nay Excused
KEOHOKALOLE, Jarrett (C)
FUKUNAGA, Carol (VC)
MCKELVEY, Angus L.K.
RICHARDS, III, Herbert M. “Tim”
AWA, Brenton
TOTAL e
Recommendation: _ .
Adopted __ Not Adopted
Chair’s or Designee’s Signature:
Distribution: Original Yellow Pink Goldenrod
File with Committee Report Clerk's Office Drafting Agency Committee File Copy
*Only one measure per Record of Votes
Revised: 12/09/24