Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 16 entitled:

begs leave to report as follows:

The purpose of this measure is to change the basis for Hawaii's workers' compensation medical fee schedule.

As of January 1, 2002, this measure would adopt the federal workers' compensation medical fee schedule rather than one hundred ten per cent of the Medicare fee schedule.

Your Committee finds that the federal workers' compensation medical fee schedule treats health care providers more fairly than does the Medicare fee schedule adjusted upwards ten per cent. Your Committee further finds that the workers' compensation insurance premiums will likely rise as a result of the higher levels of reimbursement under the federal workers' compensation medical fee schedule. However, your Committee also finds that any rise in premiums will be more than offset by the increase in the worker's accessibility to quality care.

Your Committee has amended the bill by changing the effective date to June 31, 2105, to make the bill defective in order to promote continuing discussion.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 16, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 16, S.D. 1.