STAND. COM. REP. NO.2307

Honolulu, Hawaii

, 2002

RE: S.B. No. 2093

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Health and Human Services and Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2093 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

beg leave to report as follows:

The purpose of this measure is to prohibit insurance fraud in connection with health insurance claims.

Testimony in support of this measure was received from the Hawaii Medical Service Association (HMSA) and State Farm Insurance Companies. Comments on this measure were submitted by the Public Defender, Insurance Commissioner, and Office of Information Practices.

This measure is intended to detect, punish, and deter insurance fraud in connection with health insurance claims to obtain benefits or recover compensation for services provided. According to testimony of HMSA, insurance fraud is on the rise nationally and locally. HMSA estimates that Hawaii's health industry loses over $600 million annually as a result of fraud and abuse.

Your Committees note that this measure targets the individual making the claim and any provider of covered services. For example, an accident victim could make a fraudulent claim and could be assisted by a health provider to substantiate that claim. The health provider could also act alone in submitting fraudulent claims for reimbursement.

Your Committees have amended this measure by:

(1) Deleting references to criminal penalties;

(2) Conferring immunity from criminal culpability to insurance company investigators; and

(3) Correcting a chapter number reference.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2093, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2093, S.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair

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DAVID MATSUURA, Chair