HOUSE OF REPRESENTATIVES

H.R. NO.

55

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

HOUSE RESOLUTION

 

 

requesting the auditor to conduct a study and audit of the workers' compensation system in hawaii.

 

 

 


     WHEREAS, the State has long held on the public policy level that it is in the best interests of our citizenry to protect employees when they are ill or injured; and

 

     WHEREAS, wage replacement programs such as the Workers' Compensation Law and the Temporary Disability Insurance Law were enacted specifically because the Legislature acknowledged the importance of making employees "whole" during times of illness and injury not only for the benefit of the worker, but also for the stability of businesses and our economy, and for the health and welfare of our people; and

 

WHEREAS, Hawaii’s workers’ compensation law was established to provide benefits in a prompt and accurate manner to employees who sustain a work-related injury or illness; and

 

     WHEREAS, the Department of Labor and Industrial Relations (DLIR), through its Disability Compensation Division, has the overall responsibility of administering the workers’ compensation law including its effective execution and supervision of prompt and accurate compensation payments; and

 

     WHEREAS, in order for injured employees to recover from their work-related injuries and get back to work in a timely manner, the processing of workers' compensation claims must be completed as expeditiously as possible; and

 

WHEREAS, over the years, numerous concerns have been raised over the administration of workers’ compensation claims by employers, employees, insurers, and healthcare providers; and
     WHEREAS, a backlog of open workers' compensation cases has delayed the processing of claims and the rendering of decisions by the Disability Compensation Division, prompting DLIR to try to streamline its process and make the filing of claims and dispensing of cases more efficient; and

 

     WHEREAS, the healthcare community has also raised concerns about the difficulty in providing healthcare in workers' compensation cases due to their low reimbursement rates; and

 

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, that the Legislative Auditor (Auditor) is requested to study the workers' compensation system in Hawaii to determine if any problems exist within the current system; and

 

     BE IT FURTHER RESOLVED that the Auditor is requested to also conduct an audit of the workers' compensation claims process of the Disability Compensation Division of DLIR; and

 

     BE IT FURTHER RESOLVED that the Auditor is further requested to study the workers' compensation insurance market in Hawaii, including the number of providers, the costs associated with the provision of workers' compensation insurance, the number of workers' compensation cases and types of cases filed annually with insurers, the number of contested claims, and the number of cases involving workers' compensation fraud; and

 

     BE IT FURTHER RESOLVED that the Auditor include any remedies made to problems that have affected the workers' compensation system in the past and any remedies currently being attempted or contemplated to address any current or future problems expected with the workers' compensation system; and

 

     BE IT FURTHER RESOLVED that the Auditor submit a report of its findings and recommendations to the Legislature no later than 20 days prior to the convening of the Regular Session of 2008; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Legislative Auditor and Director of Labor and Industrial Relations.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Requesting the Auditor to conduct a study and audit of the workers' compensation system in Hawaii.