Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2094, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to make permanent Hawaii's prompt payment law, which is scheduled for repeal on July 1, 2002.

Testimony in support of this measure was submitted by the Hawaii Medical Service Association and Hawaii Medical Association. The State Insurance Commissioner submitted testimony supporting the deletion of the sunset requirement, and opposing the proposed $2 minimum for interest on delayed claims payments.

Your Committee finds that the prompt payment law should be continued to ensure prompt payment of health insurance claims. This bill is a culmination of all interested parties' efforts to create a law that provides an incentive for health plans to pay claims expeditiously and for providers to bill accurately.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2094, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.