STAND. COM. REP. NO. 3165

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 165
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 165 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE INSURANCE
     COMMISSIONER TO DETERMINE HOW THE COST SAVINGS ATTRIBUTABLE
     TO MOTOR VEHICLE REFORM UNDER ACT 251, SESSION LAWS OF
     HAWAII 1997, HAS IMPACTED CONSUMER ACCESSIBILITY TO
     MEDICALLY REASONABLE, NECESSARY, AND APPROPRIATE REFERRAL TO
     MASSAGE THERAPY AND PHYSICAL THERAPY,"

begs leave to report as follows:

     The purpose of this measure is to identify the source of
premium cost savings realized after enactment of legislation
reforming the motor vehicle insurance laws and to assess the
impact of the Act on consumers' access to referrals for massage
therapy and physical therapy.

     Testimony on the measure was submitted by the Insurance
Commissioner, Hawaii Chapter of the American Physical Therapy
Association, American Massage Therapy Association, Hawaii State
Chiropractic Association, and Massage Therapists Association of
Hawaii. 

     After the enactment of Act 251, Session Laws of Hawaii 1997,
the measure that implemented reform of the motor vehicle
insurance laws, the practice of referring insureds to massage
therapists and physical therapists by chiropractors was no longer
permitted.  Although motor vehicle insurance premium rates have
decreased since the reforms were implemented, it is uncertain

 
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whether these savings are related to the restrictions on
referrals and whether the restrictions have affected an insured's
ability to obtain a medically reasonable, necessary, and
appropriate referral for massage therapy and physical therapy.
This measure authorizes a study that would provide the
Legislature with a clearer understanding of the relation between
the reforms and savings in premium costs and of how the changes
in the law have affected access to treatment for victims of motor
vehicle accidents. 

     Your Committee has amended this measure to include among the
recipients of this measure the Hawaii Insurer's Council, State
Farm Insurance, Allstate, AIG, GEICO, and any other major motor
vehicle insurance company in the State.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of S.C.R. No. 165, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.C.R. No. 165, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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