STAND. COM. REP. NO. 1526

Honolulu, Hawaii

RE:    S.C.R. No. 129

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 129, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO CREATE A WORKING GROUP TO STUDY INSURANCE RECOUPMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the Insurance Commissioner to form a working group to study insurance recoupment.

     Your Committee received written comments in support of this measure from one individual.

     Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, the Department of Human Services, and one individual.

     Your Committee finds that Hawaii has no laws that limit the time period in which a health insurance plan may seek recoupment for benefits that have been paid in error to a health care provider.  Without such laws, the lack of a time limit on insurance recoupment results in an ongoing, open-ended liability for health care providers, which undermines their ability to build upon and plan a viable, economically feasible practice.

     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 concurs with the intent and purpose of S.C.R. No. 129, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair