STAND. COM. REP. NO. 1078-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2245
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committees on Labor and Public Employment and Consumer
Protection and Commerce, to which was referred S.B. No. 2245,
S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO MEDICAL FEE SCHEDULES,"

beg leaves to report as follows:

     The purpose of this bill is to create the Medical Fee
Schedule Advisory Council (Council) to assist the Director of
Labor and Industrial Relations (Director) in adjusting the
workers' compensation medical fee schedule. It also requires the
Director, with the assistance of the Council, to update the
medical fee schedule on an annual or more frequent basis
depending on circumstances.  

     Radiology Associates, the Small Business Economic Revival
Force, the Hawaii Employers' Mutual Insurance Company and a
concerned individual testified in support of this measure. The
Anesthesia Medical Group, C.H.A.R.T., a state senator from
Washington, the Hawaii State Chiropractic Association, Sestak
Rehabilitation Services, the Hawaii Orthopedic Association and a
number of concerned individuals testified in support of the
intent of this measure and suggested amendments. Pacific Physical
Therapy, Hawaii Society of PM and R, the Hawaii Medical
Association, the Department of Labor and Industrial Relations
(DLIR), ILWU Local 142, H.A.P.T.A., and a number of concerned
individuals provided testimony commenting on this measure and
suggested amendments.  A concerned individual testified in
opposition to this measure.

 
                                 STAND. COM. REP. NO. 1078-00
                                 Page 2

 

     Your Committees note that DLIR testified that an increase to
125 to 130 percent for workers compensation reimbursement may be
warranted, based on information from a 1998 Legislative Reference
Bureau study.  However, the predicted costs of such an increase
are high enough to cause DLIR to advise an increase to only 120
percent at this time.

     Your Committees have therefore amended this bill by leaving
the percentage figure for workers compensation reimbursement
blank in order to further discussion on this issue.

     Upon further consideration, your Committees have further
amended this measure by:

     (1)  Reducing the number of voting members of the Medical
          Fee Advisory Council (Council) from thirteen members to
          nine members;

     (2)  Specifying that the Council will have four nonvoting
          members; and

     (3)  Removing all other amendments proposed to Section
          386-21, Hawaii Revised Statutes.  

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Consumer Protection
and Commerce that are attached to this report, your Committees
are in accord with the intent and purpose of S.B. No. 2245, S.D.
1, as amended herein, and recommend that it pass Second Reading
in the form attached hereto as S.B. No. 2245, S.D. 1, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment, and Consumer
                                   Protection and Commerce,

                                   
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Chair                   TERRY NUI YOSHINAGA, Chair