STAND. COM. REP. NO. 2713

Honolulu, Hawaii

RE: S.B. No. 2364

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2364, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to ensure that employees who suffer from a workplace injury receive workers' compensation benefits in a timely manner.

Specifically, the measure facilitates payments to injured workers by:

(1) Prohibiting any employer from denying a workers' compensation claim without reasonable cause or while the claim is pending investigation; and

(2) Imposing fines and other penalties on any employer who continues to deny a workers' compensation claim without reasonable cause.

Your Committee received written comments in support of this measure from AHCS, the Hawaii Chapter of the American Physical Therapy Association, Hale Lea Medicine, ILWU Local 142, Vally Medical Group, WIMAH, and five individuals.

Your Committee received written comments in opposition to this measure from the Department of Labor and Industrial Relations and SHRM Hawaii.

Your Committee received written comments on this measure from the Hawaii Medical Association.

Your Committee finds that ongoing investigations of pending workers' compensation claims delay care for seriously injured workers, and patients waiting for follow up from insurance companies are often not compensated until decisions are rendered. These workers may be forced to return to work with serious injuries, find less suitable employment, or apply for public assistance. Your Committee finds that this measure will help to protect workers from employers who delay payments in bad faith.

Your Committee has amended this measure by:

(1) Inserting a reference to Chapter 393, Hawaii Revised Statutes, which is the Prepaid Health Care Act;

(2) Amending the notice to providers to more clearly convey that a provider of services forfeits the right to dispute an employer's denial of payment if the provider fails to submit a timely bill dispute request;

(3) Clarifying that the service fee assessed against a party that has failed to negotiate in good faith is a fine;

(4) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(5) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 2364, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2364, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair