STAND. COM. REP. NO.907

Honolulu, Hawaii

, 2001

RE: S.B. No. 16

S.D. 1

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 16, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this bill is to compensate health care providers more fairly by changing the basis for Hawaii's workers' compensation medical fee schedule by adopting the federal workers' compensation medical fee schedule.

The Hawaii State Teachers Association, eight businesses, and seven individuals supported this measure.

The Department of Budget and Finance, Department of Commerce and Consumer Affairs, ILWU Local 142, National Federation of Independent Business-Hawaii, Hawaii Medical Association, and four individuals commented on this measure.

The Department of Labor and Industrial Relations, Department of Human Resources of the City and County of Honolulu, and thirty-two individuals and business organizations opposed this measure.

Your Committee finds that replacing the existing 110 percent of the Medicare fee schedule with the federal workers compensation fee schedule will increase State's workers' compensation costs. Your Committee also understands that further discussion with the insurance industry representative is necessary to address the concerns about the under-representation of certain specialties. However, due to time constraints, your Committee is passing this measure as amended for further consideration by your Committee on Consumer Protection and Commerce.

Your Committee has amended this bill by:

(1) Reinstating language requiring the director to make the determination of the charges and adopt fee schedules based upon those determinations;

(2) Reinstating language that charges shall not exceed a blank per cent of fees prescribed in the Medicare Resource Based Relative Value Scale systems applicable to Hawaii as prepared by the United States Department of Health and Human Services;

(3) Removing reference to the federal workers'

compensation medical fee schedule;

(4) Reinstating language regarding the criteria that updates should be based upon;

(5) Changing the effective date to July 1, 2001; and

(6) Making technical, nonsubstantive changes for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 16, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 16, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

 

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

____________________________

TERRY NUI YOSHINAGA, Chair