Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 1109 entitled:

begs leave to report as follows:

The purpose of this measure is to assure that the State is notified of all claims it may have against a third person for medical assistance and burial expenses.

Your Committee received testimony in favor of this measure from the Department of Human Services.

In certain instances, a person receives medical assistance and burial expense payments from the Department of Human Services for an injury or death caused by a third person. In cases where a tort, liability, or other obligation arises against the third person from the injury or death, the State is subrogated all rights and claims relating to the payments that injured person or person's estate ("claimant") has against the third person. The problem arises when the Department of Human Services ("DHS") is not notified of the claimant's rights against the third person. In some cases, the claimant and third person enter into settlements without notifying DHS. As a result, the State is unable to recover the payments from the third person or the claimant.

Current law only requires the claimant or the claimant's attorney to make a reasonable inquiry and notify the State as to whether a claimant has received or is receiving medical assistance or burial payments from the State. Your Committee finds that this measure assures that the State is notified of any claims it may have against a third person by requiring the third person, or third person's attorney to make a reasonable inquiry as to whether a claimant has received or is receiving medical assistance or burial payments and to notify the Department of Human Services.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1109 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.