STAND. COM. REP. NO. 601

Honolulu, Hawaii

RE:    S.B. No. 373

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 373 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify that acute care hospitals are covered under the State's clean claims statute.

     Your Committee received testimony in support of this measure from the Healthcare Association of Hawaii, Kaiser Permanente Hawaii, Hawaii Health Systems Corporation, The Queen's Health Systems, Hawai‘i Pacific Health, and Legacy of Life Hawai‘i.

     Your Committee finds that under the State's existing clean claims statute, health plans must pay providers within thirty days for uncontested or clean claims submitted in writing and within fifteen days for clean claims submitted electronically.

     However, your Committee further finds that revisions made to the clean claims statute in 2015 unintentionally created ambiguity regarding which types of providers are covered by this statute.  This measure clarifies the definition of "health care facility" within the clean claims statute, which will clarify the intent of the clean claims law and ensure that acute care hospitals are paid in a timely fashion when uncontested or clean claims are submitted.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 373 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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ROSALYN H. BAKER, Chair