STAND. COM. REP. 3139

Honolulu, Hawaii

, 2004

RE: H.B. No. 2459

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2459, H.D. 1, S.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, for purposes of the covered loss deductible, public assistance benefits are not personal injury protection benefits.

Your Committee finds that the Department of Human Services 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. Because half of the moneys recovered in these cases belong to the federal government, the Department either reimburses the federal government or adjustments are made in future disbursements to the Department.

Presently, the covered loss deductible under section 431:10C-301.5, Hawaii Revised Statutes, requires that any judgment, settlement, or award of any automobile liability claim be reduced by $5,000 or the amount of personal injury protection benefits incurred, whichever is greater, up to the maximum limit. 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. Your Committee believes that it is unfair that they be made to 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 made a technical, nonsubstantive amendment for the purpose of clarity.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2459, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2459, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair