STAND. COM. REP. NO. 1553

Honolulu, Hawaii

RE:    H.B. No. 235

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 235, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose and intent of this measure is to address the coverage of acupuncture treatments provided under motor vehicle insurance.

     More specifically, this measure:

(1)  Clarifies that the authorized benefit for acupuncture treatments allowed under personal injury protection benefits shall be tied to the charges, and subsequent increases in charges, permissible under the Workers' Compensation Supplemental Medical Fee Schedule; and

(2)  Clarifies that the number of acupuncture treatments allowed under personal injury protection benefits may not exceed thirty visits, and that the visits shall be counted separately from naturopathic or chiropractic visits.

     Your Committee received written comments in support of this measure from Hawaii Oriental Medicine and Acupuncture Association, Institute of Clinical Acupuncture and Oriental Medicine, Windward Acupuncture, Maui Acupuncture, and six individuals.

     Your Committee received written comments in opposition to this measure from State Farm Mutual Automobile Insurance Company, Hawaii Insurers Council, and Property Casualty Insurers Association of America.

     Your Committee received written comments on this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that licensed acupuncturists provide citizens with an important and popular form of treatment.  While acupuncture treatments are covered under the personal injury protection benefits of motor vehicle insurance, the reimbursement rate for licensed acupuncturists under this insurance has not increased for nearly two decades.  Tying the authorized benefit for acupuncture treatments allowed under personal injury protection benefits to the charges permissible under the Workers' Compensation Supplemental Medical Fee Schedule will result in periodic fee adjustments for licensed acupuncturists. 

     Your Committee notes the following concerns regarding this measure:

(1)  The Hawaii Revised Statutes currently caps the combined number of naturopathic, chiropractic, and acupuncture treatments allowed under personal injury protection benefits at thirty visits per year.  By removing acupuncture treatments from this list but still allowing up to thirty covered acupuncture treatments, the number of total treatments covered by an insurance policy is doubled from thirty to sixty.  The State Insurance Commissioner notes that the doubling of allowed visits will likely lead to across-the-board increased costs to all motor vehicle insurance policyholders; and

(2)  Untying the covered number of acupuncture treatments from the combined number of covered naturopathic and chiropractic treatments may set a precedent for covering a specific amount of visits for individual types of treatment rather than bundling the covered treatments. 

     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 H.B. No. 235, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

JILL N. TOKUDA, Chair