STAND. COM. REP. NO.  1309-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2667

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2667, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to promote the timely payment of claims made by health insurers to health care providers.  Specifically, this measure:

     (1)  Requires health insurers to treat claims for payment that are in all aspects correctly filed and priced, otherwise known as clean claims, in the same manner as uncontested claims for purposes of payment timeframes; and

     (2)  Repeals the exemption of Medicaid claims from the definition of clean claims.

Hawaii Pacific Health, Healthcare Association of Hawaii, and The Queen's Health Systems testified in support of this measure.  The Department of Commerce and Consumer Affairs testified in support of the intent of this measure.  The Department of Human Services, Hawaii Medical Service Association, and Ohana Health Plan provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Enabling a claim for services through a self-insured employer group to be recognized as a clean claim; and

     (2)  Changing the effective date to July 1, 2016.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2667, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2667, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair