STAND. COM. REP. NO. 1299

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1058
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 1058, S.D. 2, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to clarify and standardize
provisions relating to the recovery of medical assistance
payments by the Department of Human Services (DHS) in third-party
liability situations.

     Testimony in support of this bill was received from the
State Department of Human Services.  Additional testimony was
received from the Consumer Lawyers of Hawaii.

     Your Committee finds that the State Department of Human
Services annually recovers approximately $1,000,000 in
reimbursements for medical assistance from third parties
responsible for injuries suffered by medical assistance
recipients.  Such reimbursements help fund the medical assistance
program.

     Your Committee finds that there has been a steady increase
in the number of pending third party liability cases, making
direct State intervention or involvement impractical.  Your
Committee finds that this measure alleviates potential burdens
upon the Department of Human Services and the taxpayers of the

 
 
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State, and fairly distributes the responsibility for attorney
fees and costs incurred in the recovery of reimbursable funds.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1058, S.D. 2, H.D. 1, and recommends that it
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair