STAND. COM. REP. 2907

Honolulu, Hawaii

, 2004

RE: H.B. No. 2459

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred H.B. No. 2459, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC ASSISTANCE,"

begs leave to report as follows:

The purpose of this measure is to clarify that public assistance benefits are not personal injury protection benefits for purposes of the covered loss deductible.

Testimony in support of the measure was submitted by the Department of Human Services (department) and Legal Aid Society of Hawaii. The Hawaii Insurers Council submitted testimony in opposition.

Your Committee finds that the department is required by federal law to pursue reimbursement from third parties and insurers liable for any injuries or payment of reimbursement obligations as a result of any injury, disease, or death. Over half of the moneys recovered in these cases belong to the federal government and the department either reimburses the federal government or adjustments are made in future disbursements to the department.

Currently, the covered loss deductible under section 431:10C-301.5, Hawaii Revised Statutes, requires that any judgement, settlement, or award of any automobile liability claim be reduced by $5,000 or the amount of Personal Injury Protection benefits incurred, which ever is greater, up to the maximum limit. In certain cases this statute is reducing the amount available to reimburse the department of medical expenses in their party liability situations. As a result, the recipients of government medical assistance have the cost of medical services deducted from an award or settlement due to the covered loss deductible. In effect, they pay twice for these services when they are also required to repay the government for the cost of medical services.

Upon further consideration, your Committee has amended the effective date to July 1, 2004.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2459, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2459, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair