STAND. COM. REP. NO. 654

Honolulu, Hawaii

RE:    S.B. No. 399

       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 S.B. No. 399, 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 change the allowable charge for acupuncture treatments provided through motor vehicle insurance.

More specifically, this measure ties the authorized charge for acupuncture treatments allowed under personal injury protection benefits provided through motor vehicle insurance to the workers' compensation supplemental medical fee schedule.

     Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs and the Hawaii Association for Justice.

     Your Committee received written comments in opposition to this measure from State Farm Insurance.

     Your Committee finds that the charge allowed for acupuncture treatments has not increased in nearly twenty years, while rates for other services, such as physical therapy and medical office visits, have increased.  Your Committee further finds that this freeze has resulted in a compensation rate that has not kept up with inflation or the increased costs of providing acupuncture care.

     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. 399, 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