HOUSE OF REPRESENTATIVES

THE TWENTY-SECOND LEGISLATURE

REGULAR SESSION OF 2004

COMMITTEE ON LABOR AND PUBLIC EMPLOYMENT

Rep. Marcus R. Oshiro, Chair

Rep. Bob Nakasone, Vice Chair

Rep. Kirk Caldwell

Rep. Brian K. Blundell

Rep. Ken Ito

Rep. Mark S. Moses

Rep. Romy M. Mindo

Rep. David A. Pendleton

Rep. Joseph M. Souki

AMENDED NOTICE OF HEARING

DATE:

Tuesday, February 17, 2004

TIME:

9:00 a.m.

PLACE:

Auditorium

State Capitol

415 South Beretania Street

A G E N D A # 2

The Administration has proposed an omnibus measure intended to reform Hawaii's workers' compensation system. This measure, House Bill No. 2486, contains nine (9) separate components pertaining to: managed care and limits on palliative care; exemptions for Limited Liability Corporations, Limited Liability Partnerships, partnerships, and sole proprietorships; "maximum medical improvement" and limits on coverage; mental stress claims; employer-designated health care providers; emergency care; vocational rehabilitation; arbitration; and fraud.

For the purpose of receiving testimony and discussion, the committee will be hearing the following bills reflecting the deletion of current contents and the insertion of new language in a proposed amended form:

HB 880

RELATING TO WORKERS' COMPENSATION.

Expands prohibition of stress-related claims for workers' compensation to include all lawful personnel actions.

LAB, FIN

     

PROPOSED

HD1

Excludes services performed by an individual who is a member of a limited liability company or a partner of a limited liability partnership who has a distributional interest in the company or partnership of at least fifty percent, a partner of a partnership, and a sole proprietor from the definition of "employment under the Workers' Compensation Law.

 
     

HB 1374

RELATING TO WORKERS' COMPENSATION.

Provides employers the option of selecting a medical care provider to provide medical services to an employee injured in the workplace.

LAB, FIN

     

PROPOSED

HD1

Mandates rather than permits that the administrative penalties of restitution of benefits or payments fraudulently received under the Workers' Compensation Law be enforced. Entitles parties that successfully investigates fraud to be entitled to 50% of a fine of not more than $10,000 for each violation upon a determination that fraud was committed. Authorizes the Insurance Fraud Investigations Branch, Department of Commerce and Consumer Affairs to initiate investigations, prosecutions, and disciplinary actions relating to workers' compensation.

 
     

HB 1775

RELATED TO WORKERS'S COMPNSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Clarifies that payment of benefits under the Workers' Compensation Law shall be terminated if maximum medical improvement has been reached, the employee has filed a false claim, or upon payment of 104 weeks of benefits, whichever comes first. Authorizes the Director to extend benefits upon finding after an administrative hearing that maximum medical improvement has not been achieved or that the injury is deteriorating. Establishes notification requirements of the Director's finding of maximum medical improvement, and proceedings by which a finding of maximum medical improvement may be administratively challenged. Defines "attending physician" and "maximum medical improvement".

 
     

HB 1776

RELATING TO WORKERS' COMPENSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Clarifies that no vocational rehabilitation plan shall include vocational rehabilitation requiring vocational or academic instruction permitting the employee to become self-employed. Provides that successive plans for vocational rehabilitation not be implemented without the approval of the employer. Provides that an employee's refusal to accept a rehabilitation plan shall terminate compensation for temporary total disability.

 
     

HB 2324

RELATING TO WORKERS' COMPENSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Provides that effective January 1, 2005, and for each succeeding calendar year thereafter, the changes for emergency room services under the Workers' Compensation Law provided within 48 hours from the point of injury shall be charged at usual and customary. However, the charge shall not exceed 200% of fees prescribed in the Medical Resource Based Relative Value Scale system applicable to Hawaii as prepared by the United States Department of Health and Human Services

 

HB 2486

RELATING TO WORKERS' COMPENSATION.

Establishes a definition for the term "attending physician". Excludes from the definition of "employment" service performed by a member of a limited liability company, a partner of a partnership, a partner of a limited liability partnership, and a sole proprietor. Disallows compensation for mental injury or illness caused by good faith personnel actions. Allows an employer to require an injured employee to select a physician from an employer designated healthcare provider list for medical service for the first 120 days of treatment. Limits charges for emergency room services. Revises provisions relating to plans of rehabilitation. Clarifies when benefits may be terminated if a false claim is filed. Validates arbitration agreements and mediation. Allows the Insurance Fraud Investigations Branch to initiate prosecutions and disciplinary actions.

LAB, FIN

     

PROPOSED

HD1

Requires employees to have no more than one attending physician in workers' compensation cases. Authorizes treatment by other physicians if allowed and referred by the attending physician upon a determination that the employee's injury or illness involves more than one body system and requires multidisciplinary care or is so severe or complex that the services of more than one qualified physician or health care provider are required. Provides limits on the number of visits and treatments provided by chiropractors, naturopaths, optometrists, podiatrists, psychologists, massage therapists and any other provider of care who does not qualify as an attending physician. Defines "attending physician" and "palliative care"

 
     

HB 2657

RELATING TO WORKERS' COMPENSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Establishes procedures for aggrieved parties to arbitrate controversies under the Worker's Compensation Law.

 
     

HB 2659

RELATING TO WORKERS' COMPENSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Prohibits compensation for mental injury or illness proximately caused by personnel actions taken in good faith, including disciplinary action, counseling, work evaluation or criticism, job transfer, layoff, demotion, suspension, termination, retirement, or other good faith actions associated ordinarily with personnel administration.

 
     

HB 2658

RELATING TO WORKERS' COMPENSATION.

Appropriates funds for fiscal year 2004-2005 for the purchase and installation of computers and software to process workers’ compensation claims in the State of Hawaii.

LAB, FIN

     

PROPOSED

HD1

Authorizes the employer to mandate the injured employee to select from an employer designated health care provider list (provider list) for the first 120 days of medical treatment. Requires the provider list to: (1) Contain no less than three physicians or physician networks; and (2) Be furnished upon date of employment or prior to the date of injury. Provides that 50% of the provider list contain qualified health providers who reside on the island where the injured employee resides. In the absence of any provider list, the injured employee may select any physician or surgeon practicing on the island where the injury was incurred. Only after 120 days of treatment for a work injury may an employee utilizing a provider list opt to change attending physicians for any reason.

 
     

HB 2660

RELATING TO WORKERS' COMPENSATION.

Allows an employer to direct an employee to a physician of the employer's choice in workers' compensation cases.

LAB, FIN

     

PROPOSED

HD1

Allows an employer to direct an employee to a physician of the employer's choice in workers' compensation cases.

 

 

COPIES OF THE PROPOSED HOUSE HD1S WILL BE AVAILABLE TO THE PUBLIC AFTER 8:00 A.M. ON FRIDAY, FEBRUARY 13, 2004, AT STATE CAPITOL, ROOM 439.

 

DECISION MAKING TO FOLLOW

PERSONS WISHING TO TESTIFY ARE REQUESTED TO SUBMIT 50 COPIES OF THEIR TESTIMONY AT LEAST 24 HOURS PRIOR TO THE HEARING TO: (1) THE COMMITTEE'S VICE CHAIR IN ROOM 424, STATE CAPITOL, OR (2) THE HOUSE SGT.-AT-ARMS TESTIMONY DROP OFF BOX IN THE TURNAROUND AREA OF THE CAPITOL BASEMENT PARKING LOT. TESTIMONY MAY BE FAXED TO THE HOUSE SGT.-AT-ARMS OFFICE AT: 586-6501 (OAHU) OR 1-800-535-3859 (NEIGHBOR ISLANDS). WHEN FAXING, PLEASE INDICATE TO WHOM THE TESTIMONY IS BEING SUBMITTED, THE DATE AND TIME OF THE HEARING, AND THE REQUIRED NO. OF COPIES THAT IS NEEDED FOR SUBMITTAL.

IT IS ALSO REQUESTED THAT THE COPIES BE ON ONE SIDE OF AN 8-1/2" X 11" SHEET WITH TWO HOLES PUNCHED AT THE TOP. FOR FURTHER INFORMATION, PLEASE CALL THE COMMITTEE CLERK AT 586-8505.

IF YOU REQUIRE SPECIAL ASSISTANCE OR AUXILIARY AIDS AND/OR SERVICES TO PARTICIPATE IN THE PUBLIC HEARING PROCESS OF THE STATE HOUSE (I.E., SIGN LANGUAGE INTERPRETER, WHEELCHAIR ACCESSIBILITY, OR PARKING DESIGNATED FOR THE DISABLED), PLEASE CONTACT THE COMMITTEE CLERK AT LEAST 24 HOURS PRIOR TO THE HEARING SO ARRANGEMENTS CAN BE MADE.

 

 

________________________________________

Rep. Marcus R. Oshiro

Chair