STAND. COM. REP. 2029

Honolulu, Hawaii

, 2004

RE: S.B. No. 2934

 

5Honorable 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 S.B. No. 2934 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 motor vehicle insurance purposes, the covered loss deductible does not include public assistance benefits.

Testimony in support of this measure was submitted by the Department of Human Services and the Consumer Lawyers of Hawaii. The Hawaii Insurance Council submitted opposing testimony.

Your Committee finds that the covered loss deductible for personal injury recoveries operates to exclude awards of medical expenses. Usually, motor vehicle insurance pays for medical expenses where the covered loss deductible operates to prevent a double payment for medical expenses. However, public assistance pays for medical expenses while the covered loss deductible prevents the reimbursement of public assistance funds because it excludes payments for medical expenses. Meanwhile, the recipients are required to reimburse the Department of Human Services and their recovery is further reduced by the covered loss deductible. This measure will clarify that public assistance benefits are excluded from covered loss deductibles.

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 S.B. No. 2934 and recommends that it pass Second Reading 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