STAND. COM. REP. NO. 2770

Honolulu, Hawaii

RE:    S.B. No. 2667

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2667 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to promote the timely payment of claims made by health insurers to health care providers.

     Specifically, the 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.

     Your Committee received written comments in support of this measure from Healthcare Association of Hawaii, Hawaii Pacific Health, and The Queen's Health System.

     Your Committee received written comments on this measure from the Department of Human Services and the Hawaii Medical Service Association.

     Your Committee finds that this measure will help to mitigate the adverse impacts of payment delays on clean claims by encouraging the timely payment of claims.

     Your Committee notes that the Department of Human Services stated that repealing the exemption of Medicaid claims from the definition of a clean claim is unnecessary.  Your Committee further notes that Hawaii Pacific Health requested an amendment to also repeal two other types of claims from the definition of a clean claim, specifically claims for self-insured groups and claims for services rendered to individuals associated with a health care entity through a national participating provider network.

     Your Committee suggests that Hawaii Pacific Health should submit their proposed amendment for adoption by the next committee to hear this measure.

     Your Committee has amended this measure by noting in the preamble of the measure that the Department of Human Services indicates that the exemption of Medicaid claims from the definition of clean claims is not necessary.

     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 is in accord with the intent and purpose of S.B. No. 2667, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2667, S.D. 1.

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

________________________________

JILL N. TOKUDA, Chair