Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2890 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the payment of a flat fee of $400 for a physician who is appointed by the Insurance Commissioner to serve on a review panel to review a managed care plan's final internal determination.

The bill also exempts the payment of the fee and the selection of the physician to the panel from the state procurement code pursuant to chapter 103D, Hawaii Revised Statutes.

Your Committee finds that the payment authorized in this measure will help to ensure adequate participation by qualified physicians on external review panels that review health coverage disputes. Your Committee believes that the cost of paying these fees is not expected to be significant as these external review panels meet less than twenty-five times a year.

Upon further consideration, your Committee has amended this bill to clarify that the fee paid is for service on each review panel to which a physician is appointed. In addition, your Committee has reduced the amount of the fee from $400 to $200.

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. 2890, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2890, S.D. 1.