STAND. COM. REP. NO.2019
Honolulu, Hawaii
, 2002
RE: S.B. No. 2094
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Health and Human Services, to which was referred S.B. No. 2094 entitled:
"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE REIMBURSEMENT,"
begs leave to report as follows:
The purpose of this measure is to make permanent section 431:13-108, Hawaii Revised Statutes, relating to reimbursement of health insurance benefits, which is scheduled for repeal on July 1, 2002.
Testimony in favor of this measure was submitted by Insurance Division, Hawaii Psychiatric Medical Association, and Hawaii Medical Association.
This measure also repeals the requirement of notification by an entity to a provider for a contested or denied claim, and limits the requirement of paying interest accruals of at least two dollars.
The reimbursement of health insurance benefits statute was enacted by Act 99, Session Laws of Hawaii 1999, to regulate the claim relations between providers of medical services and health insurers, mutual benefit societies, and health maintenance organizations.
Your Committee agrees with the testimony of the State Insurance Commissioner that the statute should be made permanent in order to ensure that health plans pay claims properly. Your Committee is aware of the often difficult experiences that providers have had in obtaining payment from insurers. Indeed, it was against this backdrop that the statute was enacted.
Your Committee has amended this measure by:
(1) Retaining the requirement that the entity notify the provider of a contested or denied claim, and adding an exception to the requirement if the entity provides the provider at least monthly with a reimbursement report containing the required information;
(2) Changing from seven to fifteen days the time limit for paying the claim after receiving additional information;
(3) Clarifying the definition of "claim" to add using the entity's standard claim form; and
(4) Adding a definition of "clean claim".
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. 2094, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2094, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.
Respectfully submitted on behalf of the members of the Committee on Health and Human Services,
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____________________________ DAVID MATSUURA, Chair |
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