STAND. COM. REP. NO. 1674

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 152
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 152, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE HAWAII PATIENT
     BILL OF RIGHTS AND RESPONSIBILITIES TASK FORCE TO MAKE A
     THOROUGH STUDY OF THE ISSUES RELATING TO THE USE OF THE TERM
     "MEDICAL NECESSITY" TO DETERMINE THE MOST APPROPRIATE
     DEFINITION OF "MEDICAL NECESSITY," OR TO DEVELOP NEW TERMS
     TO BETTER RESOLVE THE ISSUES EXAMINED,"

begs leave to report as follows:

     The purpose of this measure is to request the Hawaii Patient
Bill of Rights and Responsibilities Task Force to make a thorough
study of the issues relating to the use of the term "medical
necessity" to determine the most appropriate definition of the
term, or to develop new terms to better resolve the issues
examined.

     Your Committee finds that competing definitions of the term
"medical necessity have evolved, so that there is no single
uniform definition.  However, many critical medical decisions on
treatment are based on this standard.  Ambiguities can lead to
unnecessary, even life-threatening delays in treatment.  Your
Committee believes that open discussion regarding the use of the
term "medical necessity" will benefit patients, medical care
providers and insurers alike.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to

 
a                                                     
                                   STAND. COM. REP. NO. 1674
                                   Page 2


this report, your Committee concurs with the intent and purpose
of S.C.R. No. 152, S.D. 1, and recommends its adoption.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a