Bill Text: HI HB152 | 2013 | Regular Session | Amended


Bill Title: Workers' Compensation; Medical Fee Schedules ($)

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2013-06-18 - Act 097, 6/14/2013 (Gov. Msg. No. 1197). [HB152 Detail]

Download: Hawaii-2013-HB152-Amended.html

 

 

STAND. COM. REP. NO. 965

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 152

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 152, H.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:  amend section 386-21(c), Hawaii Revised Statutes, to increase the maximum liability of the employer for workers' compensation charges for medical care, services, and supplies to one hundred thirty percent of fees prescribed in the Medicare Resources Based Relative Value Scale system applicable to Hawaii.

 

     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; International Longshore and Warehouse Union, Local 142; Hawaii State AFL-CIO; Hawaii Laborers' Union; Kaiser Permanente Hawaii; Hawaii Medical Association; Healthcare Association of Hawaii; Work Injury Medical Association of Hawaii; Hawaii State Chiropractic Association; Hawaii Injured Workers Association; InVision Imaging; and three individuals.  Testimony in opposition to this measure was submitted by the Department of Human Resources Development; Department of Human Resources, City and County of Honolulu; Property Casualty Insurers Association of America; Hawaiian Electric Co., Inc. and its subsidiaries; Hawaii Insurers Council; and The Chamber of Commerce of Hawaii.  The Department of Commerce and Consumer Affairs submitted comments on this measure.

 

     Your Committee finds that existing law restricts the charges for medical care, services, and supplies from exceeding one hundred ten percent of the fees prescribed in the Medicare Resource Based Relative Value Scale that are applicable to Hawaii.  However, over time, the reimbursement rates of providers have failed to keep pace with the higher costs of medical care that have led some physicians to opt out of providing treatment to injured workers in the workers' compensation system.  The Department of Labor and Industrial Relations indicated in written testimony that the United States Department of Labor's Office of Workers' Compensation Program Medical Fee Schedule conversion factor for Hawaii was one hundred forty three percent of Medicare in 2012, which indicates the need to allow for the charges to be increased beyond the one hundred ten percent currently allowed under law.  This measure will increase the reimbursement rate to more adequately align the workers' compensation medical fee schedule with the current cost of health care.

 

     Your Committee notes the concerns raised in the written testimony submitted by the Department of Human Resources Development that this measure may result in significant cost implications on state funds appropriated for workers' compensation.  The Department testified that an across-the-board increase for services that fall under the Medicare fee schedule will drive medical costs higher and will likely require an increase in the Department's general fund appropriation under program ID HRD 102 to pay for claims under chapter 386, Hawaii Revised Statutes.  The Department testified that this measure would result in an increase of $468,000 annually, which would require an increase in general fund appropriations.  Your Committee encourages your Committee on Ways and Means, should the Committee schedule this measure for a hearing, to consider the fiscal implications this measure may have on the Department of Human Resources Development and appropriately reflect this increase in the state budget.

 

     Your Committee has amended this measure by inserting an effective date of July 1, 2013.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 152, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 152, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

____________________________

CLAYTON HEE, Chair

 

 

 

 

feedback