Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1128 entitled:

begs leave to report as follows:

The purpose of this measure is to remove the requirement that the Department of Health set credentialling standards for professionals seeking third party reimbursement for substance abuse treatment services rendered.

Your Committee received testimony in support of this measure from the Department of Health, the Hawaii Psychological Association, Kaiser Permanente, the Hawaii Psychiatric Medical Association, and the National Association of Social Workers.

Substance abuse is a disease that permeates every strata of our society. Your Committee believes that the State should do everything possible to eradicate this disease, and recognizes the need for professionals with specialized training to treat substance abuse.

Under existing law, professionals providing substance abuse treatment services are eligible for payment from third party payors, primarily health care plans, only if they meet certain credential criteria established by the Department of Health.

Your Committee agrees that the third party payors, and not the Department of Health, should be responsible for determining the process and criteria for reimbursement of substance abuse counselors. Your Committee finds that eliminating the Department of Health from the equation will increase the number of licensed professionals eligible for reimbursement. In turn, this will lead to wider availability of substance abuse treatment services.

Your Committee made several technical, nonsubstantive amendments to this measure for accuracy and clarity.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1128, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1128, S.D. 1, and be placed on the calendar for Third Reading.