STAND. COM. REP. NO. 1178

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1125
                                        H.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Health and Human Services and Judiciary,
to which was referred H.B. No. 1125, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO RECOVERY OF MEDICAL
     PAYMENTS,"

beg leave to report as follows:

     The purpose of this administration measure is to allow the
Department of Human Services to subrogate against a third party
recovery on any claim brought by an injured person who receives
medical assistance.

     Your Committees received testimony in support of this
administration measure from the Department of Human Services.
Informational testimony was submitted by the Consumer Lawyers of
Hawaii.

     Your Committees find that medical assistance recipients who
receive a third party recovery should repay the State the amount
of the costs of their medical treatment resulting from an
accident.  This measure creates a right of subrogation for the
Department of Human Services for that purpose.

     Your Committees note that questions still remain regarding
the practical application of this measure.  More specifically,
your Committees have concerns about situations where third party
recoveries by medical assistance recipients are below the costs
of medical assistance paid for by the department.  Your
Committees request that the Committee on Ways and Means consider

 
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                                   STAND. COM. REP. NO. 1178
                                   Page 2


inserting language that clarifies the responsibilities of
assistance recipients to the department in these instances.

     As affirmed by the records of votes of the members of your
Committees on Health and Human Services and Judiciary that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 1125, H.D. 2, and recommend that
it pass Second Reading and be referred to the Committee on Ways
and Means.


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and Human
                                   Services and Judiciary,



____________________________       ______________________________
AVERY B. CHUMBLEY, Co-Chair        SUZANNE CHUN OAKLAND, Chair



____________________________
MATTHEW M. MATSUNAGA, Co-Chair

 
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