STAND. COM. REP. NO. 2218

Honolulu, Hawaii

, 2023

RE: S.C.R. No. 134

S.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred S.C.R. No. 134, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS TO CONTINUE TO RECOGNIZE AND ACCEPT THE RIGHT OF A PROVIDER OF SERVICE TO ASSIGN THE RIGHT TO PARTICIPATE IN A WORKERS' COMPENSATION BILLING DISPUTE TO A BILLING COMPANY; REVIEW THE WORKERS' COMPENSATION LAW FOR PROPOSED AMENDMENTS TO ENSURE THAT SERVICE PROVIDERS MAY ASSIGN THE RIGHT TO NEGOTIATE A BILL DISPUTE TO A BILLING COMPANY; AND INCLUDE THE PROPOSED AMENDMENTS IN A REPORT TO THE LEGISLATURE PRIOR TO THE REGULAR SESSION OF 2024,"

begs leave to report as follows:

The purpose of this measure is to request the Department of Labor and Industrial Relations to continue to recognize and accept the right of a provider of service to assign the right to participate in a workers' compensation billing dispute to a billing company; review the workers' compensation law for proposed amendments to ensure that service providers may assign the right to negotiate a bill dispute to a billing company; and include the proposed amendments in a report to the Legislature prior to the regular session of 2024.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations, Work Injury Medical Association of Hawaii and one individual.

Your Committee finds that the State has established a precedent of allowing assigned billing review companies to participate in workers' compensation billing disputes regarding prescription medical claims on behalf of the service providers. Your Committee further finds that attempts by service providers to participate in said billing disputes have been denied whereby having adverse results such as refusal to pay legitimate claims, delaying the reasonable return of injured employees to work and a backlog in workers' compensation billing disputes. Your Committee concludes that the State's Workers' Compensation Law are in need of amending to ensure that service providers have the legal right to assign their rights to negotiate a bill dispute to their billing agencies.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 134, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair