STAND. COM. REP. NO. 130

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1125
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.B. No. 1125 entitled: 

     "A BILL FOR AN ACT RELATING TO RECOVERY OF MEDICAL
     PAYMENTS,"

begs leave to report as follows:

     The purpose of this bill is to clarify and standardize
provisions relating to the recovery of medical assistance
payments by the Department of Human Services (DHS) in third-party
liability situations.

     Specifically, this bill:

     (1)  Clarifies and standardizes DHS's reimbursement rights
          in third-party liability situations;

     (2)  Gives DHS discretion to settle or compromise the amount
          of reimbursement rights in liability situations;

     (3)  Clarifies that liens and reimbursement disputes are to
          be resolved through the administrative hearing process;
          and

     (4)  Allows service of liens by certified mail, in addition
          to registered mail.

     DHS submitted testimony in support of this measure.
Consumer Lawyers of Hawaii submitted testimony in opposition to
this measure.


 
                                 STAND. COM. REP. NO. 130
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1125 and recommends that it pass Second Reading and
be referred to the Committee on Judiciary and Hawaiian Affairs.

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



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair