STAND. COM. REP. NO. 149-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 1816

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1816 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

The purpose of this bill is to streamline the processing of workers' compensation claims for prescription drugs by:

(1) Establishing a private third-party workers' compensation drug card system (system) within the Department of Labor and Industrial Relations (DLIR), which is available to injured workers at no cost and on a voluntary basis; and

(2) Requiring that a system administrator (administrator) be selected.

ILWU Local 142, and a concerned individual submitted testimony in support of this measure. DLIR and RxAmerica, LLC, supported the intent of this measure. The Hawaii State Teachers Association and Hawaii Medical Association opposed this measure. The Hawaii Insurers Council offered comments.

Your Committee has amended this bill by:

(1) Clarifying the duties of the adminstrator to:

(a) Administer the system to maximize cost savings; and

(b) Establish a benefit design and formulary to meet the needs of eligible participants, yet monitors the medications dispensed;

(2) Changing the effective date to July 1, 2104; and

(3) Making technical, nonsubstantive amendments for purposes of clarity, consistency, 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 H.B. No. 1816, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1816, 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,

 

____________________________

MARCUS R. OSHIRO, Chair