Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3031, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require continued medical services to an injured employee involved in a workers' compensation dispute with the employee's employer or the employer's insurer until the Director of Labor and Industrial Relations makes a decision on continuation of treatment.

Your Committee finds that, presently, medical services provided to an injured employee may be suspended or delayed if a dispute arises with respect to the workers' compensation coverage of the injured employee. Delays caused by Department of Labor and Industrial Relations' hearings to resolve the dispute, or delays caused by insurers for various reasons, may result in aggravating the employee's injury or cause the employee to miss more work than originally expected. The delays may also increase the costs of the employee's medical treatment and ultimately increase workers' compensation premium costs for the employer.

To prevent this needless physical aggravation to the employee and possible spiraling medical costs for the workers' compensation system and the employer, this bill provides a reasonable and civil solution for all parties involved to promote cost effective medical services management and an expeditious return to work for the employee.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

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. 3031, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3031, S.D. 2.