STAND. COM. REP. NO. 2491

Honolulu, Hawaii

RE:    S.B. No. 3012

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 3012 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to limit the number of visits, charge per visit, and combined total visits for therapeutic massage treatments to those imposed on naturopathic, chiropractic, and acupuncture treatments in determining motor vehicle insurance policy personal injury protection benefits.

     Testimony in support of the measure was submitted by the Department of Commerce and Consumer Affairs, GEICO, State Farm Insurance Companies, and the Hawaii Insurers Council.  Testimony in opposition to the measure was submitted by the Hawaii State Chiropractic Association, the American Massage Therapy Association-Hawaii Chapter, the Massage Therapists Association of Hawaii, the Consumer Lawyers of Hawaii, and fourteen individuals.

     Your Committee finds that, under the current motor vehicle insurance law, combined chiropractic, naturopathic, and acupuncture treatments under personal injury protection coverage cannot exceed thirty visits.  Therapeutic massage and physical therapy, however, are treatments subject to other limitations, including requiring a prescription from a medical doctor.  Your Committee further finds that, recently, the Department of Labor and Industrial Relations implemented increases to the workers' compensation supplemental medical fee schedule, which increased the charges allowed for therapeutic massage treatments.  This measure seeks to offset the effects of the cost increase by limiting the number of therapeutic massage treatments allowed under personal injury protection benefits in a motor vehicle insurance policy.  Additionally, this measure also attempts to prevent abuses and excessive treatment.

     Your Committee does not believe that imposing the same limitations on therapeutic massage treatments as applies to chiropractic, naturopathic, and acupuncture treatments is the most effective way to deal with the existing or potential abuse.  Instead, a more focused solution needs to be examined and implemented.

     Accordingly, your Committee has amended this measure by changing its effective date to July 1, 2050 to facilitate further discussion on and changes to the measure.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3012, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3012, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Affordable Housing.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DAVID Y. IGE, Chair