STAND. COM. REP. NO. 379-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2415

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2415 entitled:

"A BILL FOR AN ACT RELATING TO THE PATIENTS' BILL OF RIGHTS AND RESPONSIBILITIES ACT,"

begs leave to report as follows:

The purpose of this bill is to encourage qualified physicians to serve on external review panels by:

(1) Authorizing the Department of Commerce and Consumer Affairs (DCCA) to provide a flat fee of $400 to physicians as compensation for serving on review panels; and

(2) Exempting payments of the $400 fee and the selection of panel members from the time-consuming procedures of the Procurement Code.

Testimony in support of this measure was received from DCCA and Kaiser Permanente.

Your Committee finds that external review panels (panels) were established to review health plan coverage disputes, numbering about 25 per year. Physicians receive no compensation for serving on these panels, which may take them away from their practices for several hours for each case. Your Committee further finds that the lack of compensation has contributed to the reluctance of many physicians to leave their medical practices to serve on these panels. Since external review hearings must be held within 60 days of the request for a hearing, it is crucial that DCCA be able to act quickly to select panel members and schedule hearings. DCCA estimated the cost of this measure as being not more than $10,000 annually.

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. 2415 and recommends that it be referred to the Committee on Finance.

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

 

____________________________

KENNETH T. HIRAKI, Chair