STAND. COM. REP. NO.  33-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1673

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 1673 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE,"

begs leave to report as follows:

The purpose of this measure is to help patients in the State obtain access to critical, life-sustaining medical supplies by establishing the Durable Medical Equipment Supplier License Program to license durable medical equipment suppliers that sell, dispense, deliver, or service durable medical equipment to consumers in the State.

The Hawaii Health Systems Corporation, Healthcare Association of Hawaii, Hawaii COPD Coalition, Hawaii Primary Care Association, and an individual supported this measure.  The Department of Health, Board of Pharmacy, and Hawaii Medical Service Association commented on this measure.

     Your Committee notes the testimony of the Department of Health that the cost to implement and manage the Durable Medical Equipment Supplier License Program would exceed by twofold the revenue estimated to be collected if licensing fees are established within the maximum fee amount proposed by this measure.

     Upon consideration, your Committee has amended this measure by:

(1)  Increasing the license fee assessed on each durable medical equipment supplier from no more than $150 to no more than $300;

(2)  Changing its effective date to July 1, 2050, to facilitate further discussion; and

(3)  Making technical, nonsubstantive amendments for the purposes of clarity, style, and consistency.

     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 H.B. No. 1673, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1673, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

DELLA AU BELATTI, Chair