STAND. COM. REP. NO.247

Honolulu, Hawaii

, 2001

RE: H.B. No. 308

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 308 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION MEDICAL FEES,"

begs leave to report as follows:

The purpose of this bill is to return the medical fee structure for workers' compensation to the structure existing before Act 234, Session Laws of Hawaii 1995.

Testimony in support of this measure was received from the Department of Labor and Industrial Relations, Hawaii Insurer's Council, the Hawaii Employers Mutual Insurance, Hawaii Medical Association, Concentra Medical Centers, Dr. Linda Rasmussen, Dr. Sharleen Nakamura, Dr. Amy Harpstrite, written testimony submitted from physicians representing the Ohana Physicians Group, and numerous individual physicians. The Insurance Commissioner presented testimony on the historical basis for the change in the workers compensation fee schedule.

Concerns raised by the physicians were that the current fee schedule, which is tied to the Medicare fee schedule, is insufficient to cover the costs of physicians' services. The impact to the injured worker is that physicians are reluctant to treat these cases without, what they believe to be adequate and fair compensation. Testimony from one physician also suggests that injured workers are filing claims under their own individual medical plans in order to assure timeliness and adequacy of treatment. The Insurance Commissioner, with the Department of Commerce and Consumer Affairs has been requested to provide information on the projected cost impact to workers' compensation of any proposed fee schedule increase. Your committee is concerned that the current medical fee schedule, as set by existing statute, needs further discussion and review.

Your committee further noted that a 1998 study by the Legislative Reference Bureau entitled "The Medical Fee Schedule Under the Workers' Compensation Law" made recommendations which the Committee has included as an amendment to the bill as follows:

(1) Create a medical fee schedule advisory council to help the director in creating a fair schedule for fees for workers' compensation cases; and

(2) Change the amount of money that will be paid for workers' compensation cases to _____ per cent of fees prescribed in the Medicare Resource Based Relative Value Scale system applicable to Hawaii as prepared by the United States Department of Health and Human Services.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 308, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 308, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

____________________________

TERRY NUI YOSHINAGA, Chair