STAND. COM. REP. NO. 1921-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2364

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2364, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

The purpose of this measure is to prevent undue delay in injured workers' receipt of medical care and payment to medical providers under the workers' compensation system. Specifically, this measure:

(1) Requires employers to pay for all medical services required for their employees' compensable injuries and process of recovery, even when claims are disputed;

(2) Establishes negotiation, notice, and review procedures for disputed claims;

(3) Imposes fines and penalties for failure to negotiate in good faith; and

(4) Permits service providers to charge interest on late bill payments.

Hawaii Medical Association, Hawaii Injured Workers Association, Hawaii Chapter of the American Physical Therapy Association, and several individuals testified in support of this measure. The Department of Labor and Industrial Relations, The Chamber of Commerce Hawaii, Hawaii Insurers Council, and Society for Human Resource Management – Hawaii Chapter testified in opposition to this measure. The Department of Human Resources Development, Department of Human Resources of the City and County of Honolulu, and Automated HealthCare Solutions commented on this measure.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2364, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair