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                                  H.R. NO.              H.D. 1
                                                        
                                                        


  REQUESTING A STUDY ON THE FEASIBILITY OF ESTABLISHING A
    UNIVERSAL MEDICAL FEE SCHEDULE FOR THE PREPAID HEALTH
    INSURANCE SYSTEM, THE MEDICAL PORTION OF THE NO-FAULT
    AUTOMOBILE INSURANCE SYSTEM, AND THE MEDICAL PORTION OF
    THE WORKERS' COMPENSATION INSURANCE SYSTEM IN HAWAII, AND
    DETERMINING UNIVERSAL PAYMENT POLICIES, RECOGNIZED
    PROVIDERS, AND POLICIES REGARDING PAYMENT FOR SUPPLIES.



 1        WHEREAS, in Hawaii, health care financing is fragmented
 2   and complex where separate, parallel, and often duplicative
 3   insurance systems exist, for example, mandatory prepaid health
 4   care insurance for employees, workers' compensation, and no-
 5   fault automobile insurance for drivers; and
 6   
 7        WHEREAS, three different medical fee schedules are in
 8   operation in Hawaii for these three different insurance systems
 9   even though the medical services, treatment, or care being
10   provided are either identical or similar in nature; and
11   
12        WHEREAS, the medical fee schedule under the medical
13   insurance portion of no-fault automobile insurance is higher
14   than the fee schedule under the employer-based prepaid health
15   care insurance system; and
16   
17        WHEREAS, workers' compensation is similarly duplicative,
18   especially for the majority of health benefits that are offered
19   under employees' regular prepaid health plans; and
20   
21        WHEREAS, fully forty percent of workers' compensation
22   payments are made for medical claims; and
23   
24        WHEREAS, there is no reason why the cost of treating an
25   injury or illness, regardless of the cause, should be different
26   merely because the type of insurance system under which
27   providers are paid is different; and
28   
29        WHEREAS, the three separate medical fee schedules used to
30   pay providers under the prepaid health insurance system, the
31   medical portion of the no-fault automobile insurance system,
32   and the medical portion of the workers' compensation insurance
33   system should be consolidated into one universal medical fee
34   schedule; and
35        WHEREAS, the establishment of this universal medical fee
36   schedule does not require an insurer under any of the three
37   insurance systems to cover medical benefits that it does not

 
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                                  H.R. NO.              H.D. 1
                                                        
                                                        


 1   already provide; the universal medical fee schedule merely
 2   provides one single comprehensive set of payments for medical
 3   services, treatment, and care that an insurer provides under
 4   any insurance system; and
 5   
 6        WHEREAS, the cost of health insurance is a significant
 7   contributor to the cost of living in Hawaii and every effort
 8   should be made to streamline and consolidate medical fee
 9   schedules paid for the same treatment, care, or service
10   provided under either prepaid health insurance, the medical
11   portion of no-fault automobile insurance, or the medical
12   portion of workers' compensation insurance; now, therefore,
13   
14        BE IT RESOLVED by the House of Representatives of the
15   Twentieth Legislature of the State of Hawaii, Regular Session
16   of 2000, that the Legislative Reference Bureau (LRB) is
17   requested to study the feasibility of:
18   
19        (1)  Establishing a universal medical fee schedule for the
20             prepaid health insurance system, the medical portion
21             of the no-fault automobile insurance system, and the
22             medical portion of the workers' compensation
23             insurance system in Hawaii; and
24   
25        (2)  Determining universal payment policies, recognized
26             providers, and policies regarding payment for
27             supplies.
28   
29        BE IT FURTHER RESOLVED that, if the LRB finds that it is
30   feasible to implement a universal medical fee schedule in
31   Hawaii, the LRB is requested to include in its report, to the
32   extent possible, a suggested model universal medical fee
33   schedule; and
34   
35        BE IT FURTHER RESOLVED that the LRB is requested to submit
36   a report to the Legislature no later than twenty days prior to
37   the convening of the Regular Session of 2001; and
38   
39        BE IT FURTHER RESOLVED that certified copies of this
40   Resolution be transmitted to the Acting Director of LRB, the
41   Director of Commerce and Consumer Affairs, and the Insurance
42   Commissioner.