STAND. COM. REP. NO. 2270

Honolulu, Hawaii

RE: S.B. No. 2673

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 2673 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to require that the authorized benefit for chiropractic treatments allowed under personal injury protection benefits provided through motor vehicle insurance be tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule.

Your Committee received testimony in support of this measure from the Hawaii State Chiropractic Association, Turning Point Chiropractic, Chiro Management Group LLC, Tanaka and Associates Chiropractic & Massage, Aloha Family Chiropractic, Hawaii Chiropractic Clinic, Klein Natural Health and Wellness Center, and thirteen individuals.

Your Committee received testimony in opposition to this measure from American Property Casualty Insurance Association.

Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs' Insurance Division, and Hawaii Insurers Council.

Your Committee finds that the existing motor vehicle insurance law limits the authorized personal injury protection benefit for chiropractic treatments to the lesser of thirty visits at no more than $75 per visit or the treatments as defined by the Hawaii State Chiropractic Association guidelines. Your Committee further finds that the authorized benefits for acupuncture treatments were changed in 1997 to be tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule. This measure aligns the authorized benefit for chiropractic care with that for acupuncture treatments and ensures equitable, fair, and accessible chiropractic care for individuals recovering from automobile accidents.

Your Committee notes the concerns raised in testimony regarding the impact of this measure may have on insurance premiums, as the existing limits on authorized benefits were enacted in 1997 to reduce insurance premiums. Removing this limit and pairing the authorized benefit with the worker's compensation supplemental medical fee schedule could cause the cost of treatments to raise dramatically, thereby increasing insurance rates. Your Committee finds that this issue merits further consideration and respectfully requests further examination by subsequent Committees as this measure progresses through the legislative process.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2075, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2673, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2673, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

________________________________

HENRY J.C. AQUINO, Chair