STAND. COM. REP. NO. 509

                                   Honolulu, Hawaii
                                                     , 1999

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




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 S.B. No. 1058 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 (DHS) 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 DHS.  Testimony in opposition 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
DHS for that purpose.

     Your Committees have amended this measure on the
recommendation of the Consumer Lawyers of Hawaii to clarify the
rights and liabilities of the State and the recipient regarding
payment of attorneys fees in any subrogation action.  Your
Committees also have made technical, nonsubstantive amendments
for clarity and to reflect preferred drafting style.


 
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                                   STAND. COM. REP. NO. 509
                                   Page 2


     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 S.B. No. 1058, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as S.B. No. 1058, S.D. 1, 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 CHUMBLEY, Co-Chair           SUZANNE CHUN OAKLAND, Chair



_____________________________                                    
MATTHEW M. MATSUNAGA, Co-Chair

 
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