Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 2459 entitled:

beg leave to report as follows:

The purpose of this bill is to clarify that the covered loss deductible of motor vehicle insurance does not include benefits paid under any public assistance program.

The Department of Human Services and Insurance Division of the Department of Commerce and Consumer Affairs testified in support of this measure. The Hawaii Insurers Council (HIC) opposed this measure.

Your Committees find that recipients of government medical assistance have the cost of medical services deducted from an award or settlement due to the covered loss deductible. They in effect pay twice for these services when they are also required to repay the government for the cost of medical services.

Your Committees note that HIC expressed concern that this measure would result in an increase in insurance costs. Your Committees respectfully request the Committee on Finance to further discuss this measure's effect on insurance costs.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2459 and recommend that it pass Second Reading and be referred to the Committee on Finance.