STAND. COM. REP. NO.  1557

 

Honolulu, Hawaii

                , 2015

 

RE:   S.B. No. 736

      S.D. 1

      H.D. 2

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary, to which was referred S.B. No. 736, S.D. 1, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose of this measure is to ensure timely recoupment and demand for offset of insurance benefits paid out in error by:

 

(1)  Requiring an insurer, mutual benefit society, dental service corporation, or health maintenance organization to send written notice to a health care provider at least 30 calendar days prior to any effort to recoup or offset a payment or reimbursement for health care provided to an insured; and

 

(2)  Prohibiting any recoupment or offset demand efforts more than 18 months after an initial claim payment is received, with specific exceptions, including a 72-month time limit for cases involving insurance fraud.

 

     The American Congress of Obstetricians and Gynecologists, Hawaii Medical Association, and Hawaii Psychological Association testified in support of this measure.  Hawaii Medical Service Association provided comments.

 


     Your Committee has amended this measure by changing its effective date to take effect upon its approval.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 736, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 736, S.D. 1, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

 

 

 

____________________________

KARL RHOADS, Chair