Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 3090 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Director of Labor and Industrial Relations to establish standardized forms for health care providers to use when reporting on and billing for injuries compensable under the State's workers' compensation law.

Testimony in support of this measure was submitted by the Department of Human Resources Development, the Hawaii State Teachers Association, the ILWU Local 142, the Hawaii Chapter of the American Physical Therapy Association, the Hawaii Insurers Council, and the Hawaii State Chiropractic Association. Comments on the measure were also submitted by the Department of Labor and Industrial Relations (DLIR).

Your Committee finds that although some standardized forms exist for the filing of workers' compensation claims, more can be done to provide uniformity, greater clarity, and efficiency in the delivery of medical services to injured employees and payment to the providers. The current lack of uniformity in the filing of paperwork by providers often results in the employer's denial of payment for services without an effective way for the employee to determine the basis for denial. Consequently, denials necessitate the filing of additional paperwork and further delay, or eliminate the receipt of payment from the employer's insurer. Your Committee believes that the use of standardized forms can help to clearly identify the information that is necessary for a proper determination of the need for care and the type of care that satisfies medical reporting requirements.

However, your Committee believes that for the forms to be truly successful in streamlining the workers' compensation system, DLIR must receive input from interested stakeholders in the workers' compensation system, including insurers, providers, employers, and employees, in order to better serve all parties involved. Your Committee also notes that discussion was held on the possibility of automating the Disability Compensation Division (DCD), so as to make standardized forms available online for electronic filing with DLIR. Your Committee believes that this is an important issue that should continue to be explored and discussed as the measure progresses throughout the session and as estimates are made regarding the cost of automating the DCD and implementing an electronic filing system.

Accordingly, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3090, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3090, S.D. 1, and be referred to the Committee on Ways and Means.