STAND. COM. REP. NO. 639-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2476
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2476 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Clarify that disputes between provider and insurer over
          the correct fee or procedure code are governed by
          section 431:10C-308.5, Hawaii Revised Statutes (HRS),
          rather than 431:10C-304, HRS; 

     (2)  Create a uniform reference to the "workers'
          compensation supplemental medical fee schedule"; and

     (3)  Establish a limitation on the cost for an independent
          medical examination (IME). 

     Testimony in support of this measure, with proposed
amendments, was submitted by the Department of Commerce and
Consumer Affairs, Hawaii Insurers Council, State Farm Insurance
Companies, and the Consumer Lawyers of Hawaii.

     Testimony in opposition to this measure was submitted by the
Hawaii Medical Association, Hawaii Psychiatric Medical
Association, Hawaii Federation of Physicians and Dentists,
Argonaut Insurance Company, and a physician.


 
 
                                 STAND. COM. REP. NO. 639-00
                                 Page 2

 
     Your Committee finds that the intent of this measure is to
promote judicial economy, conserve administrative resources, and
streamline the resolution of disputes. 

     Your Committee has made the following amendments to this
measure at:

     (1)  Page 4, line 16 to page 6, line 18, changed due to the
          fact that this measure, as originally drafted, replaced
          the existing statutory provisions of section 10C-304,
          HRS, with a nonsubstantive re-write of this section for
          stylistic purposes.  Since the proposed language is
          nonsubstantive, retention of the original language is
          preferable since there is an existing body of case law
          construing the existing language; 

     (2)  Page 6, line 23 to page 7, line 14, deleted due to fact
          that it is duplicative of provisions already in the
          existing statute;

     (3)  Page 8, lines 18-24, left blank in provision of the
          bill that pertains to a limitation of charges for an
          independent medical examination to one hour and thirty
          minutes pending receipt of further information from the
          insurance division regarding appropriate IME charges;

     (4)  Page 9, line 1, included "charges" between the words
          "records" and "relating" to provide for disclosure of
          IME charges upon request to help monitor compliance
          with this provision; and

     (5)  Page 10, lines 10-14, modified the procedure for
          resolving disputes over billing amounts or codes to
          allow submission to the insurance commissioner,
          arbitration, or court. 

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2476, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2476, H.D. 1, and be placed on the calendar for Third Reading.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 639-00
                                 Page 3

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair