STAND. COM. REP. NO.  174-08

 

Honolulu, Hawaii

                , 2008

 

RE:   H.B. No. 2390

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2390 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to increase the accountability of the workers' compensation system by requiring the workers' compensation insurance carrier to provide annual reports to the Director of the Department of Labor and Industrial Relations (DLIR) and the State Insurance Commissioner (Insurance Commissioner) detailing:

 

     (1)  Costs of Independent Medical Examinations (IMEs);

 

     (2)  Costs for legal services relating to administration of         claims; and

 

     (3)  Administrative costs.

 

  The Hawaii Insurers Council, Hawaii Employers' Mutual Insurance Company, Inc., and American Insurance Association testified in opposition to this bill. DLIR and the Department of Commerce and Consumer Affairs commented on this measure.

 

     Insurers currently only provide lump sum costs of their policies to the Insurance Commissioner and do not have to report a cost breakdown including costs for IMEs, legal services, and administration of these policies.  By providing a breakdown of these costs, your Committee believes that both DLIR and the Insurance Commissioner will be better able to evaluate the costs of the workers' compensation system in Hawaii.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2390 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

 

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

 

 

____________________________

ALEX M. SONSON, Chair