STAND. COM. REP. NO. 1254-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.R. No. 40
                                     H.D. 1
                                     



Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.R. No. 40 entitled: 

     "HOUSE RESOLUTION REQUESTING THE DEPARTMENT OF LABOR AND
     INDUSTRIAL RELATIONS TO STUDY 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,"

begs leave to report as follows:

     The purpose of this resolution is to request the Department
of Labor and Industrial Relations (DLIR) to study 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.

     WorkComp Hawaii Insurance Company, Inc. and the Hawaii
Medical Service Association testified in support of this measure.
DLIR supported the intent of this measure.

     Your Committee finds that having three different schedules
for these insurance systems are unnecessary and needlessly add to
the administrative costs of medical insurance in this State.
Furthermore, the establishment of a universal medical fee
schedule will not require an insurer to provide any coverage for
services that it is not already providing.

 
 
                                 STAND. COM. REP. NO. 1254-00
                                 Page 2

 

     Your Committee has amended this resolution by:

     (1)  Requesting that the Legislative Reference Bureau (LRB)
          conduct the study instead of the DLIR;

     (2)  Requesting that the LRB also study the feasibility of
          establishing universal payment policies, recognized
          providers, and policies regarding payment for supplies;
          and

     (3)  Making technical, nonsubstantive changes for clarity,
          consistency, and style.

Accordingly, the title has been amended to read:

     "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."

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee concurs with the intent and purpose of
H.R. No. 40, as amended herein, and recommends that it be
referred to the Committee on Consumer Protection and Commerce in
the form attached hereto as H.R. No. 40, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair