STAND. COM. REP. NO. 2252

Honolulu, Hawaii

RE:    S.B. No. 2529

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Health and Commerce and Consumer Protection, to which was referred S.B. No. 2529 entitled:

"A BILL FOR AN ACT RELATING TO HEALTHCARE CLAIMS,"

beg leave to report as follows:

     The purpose of this measure is to establish a Hawaii healthcare claims uniform reporting and evaluation system.

     Your Committees received testimony in support of this measure from the Hawaii Medical Association.  Testimony in support of the intent of this measure with amendments was received from the Hawaii Medical Service Association, the Hawaii Association of Health Plans, and the Hawaii Health Information Corporation.  The Department of Budget and Finance submitted testimony with comments on this measure.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that a uniform claims reporting system will add transparency and accountability to what is often an incomprehensible system to laypeople.  Your Committees further find that a task force to study this issue will help to make the program pertinent and accessible and will guide Hawaii to consistency with national standards.

     Your Committees have amended this measure by:

     (1)  Establishing a task force to improve the system and to bring it in line with developing national standards;

     (2)  Including a provision to repeal specific uniform healthcare claims reporting and evaluation methods detailed in section 1 of this measure when widely accepted national standards are in place;

     (3)  Including 'encounters' in the definition of claims data to be collected to ensure meaningful participation by health management organizations; and

     (4)  Changing the fee provision established under the proposed section 431:10-H to be charged to per covered life rather than per claim.

     As affirmed by the records of votes of the members of your Committees on Health and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2529, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2529, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ DAVID Y. IGE, Chair