STAND. COM. REP. NO. 1370-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2186
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2186, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Commerce and Consumer Affairs (DCCA) to regulate the use of
independent bill reviewers by insurers for the evaluation of
service providers' billing submissions.

     DCCA, Hawaii Medical Association, Consumer Lawyers of
Hawaii, Hawaii State Chiropractic Association, State Farm
Insurance Companies, the Hawaii Chapter of the American Physical
Therapy Association, and Castle Medical Center testified in
support of this measure.  Hawaii Insurers Council testified in
opposition to this measure.  Comments were submitted by an
individual.

     Your Committee has amended this bill by changing the amount
of the appropriation to $51,379 and making it applicable to
fiscal year 2000-2001.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2186, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2186,
S.D. 2, H.D. 2.


 
                                 STAND. COM. REP. NO. 1370-00
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair